Friday, October 5, 2007

Meraki Business Model

Meraki has the coolest Wifi mesh access point for $49 to bring Internet to the next billion people. But Meraki has changed its pricing model.

The Meraki mini access point cost $49. That was until 10/1/07. Meraki has decided to change their business model. You pay a different price for the Meraki mini based on the service level for the network management hosted application they provide you. Meraki has three service levels: Standard, Pro and Carrier. For the Standard edition, you pay $49 for the Meraki mini and you get very basic network management. For the Pro edition, you get in addition, billing capabilities with more advanced network management capabilities, but you pay $149, for the same Meraki mini as in the Standard . The only recurring fee is that you pay the Meraki 20% for every Internet access sale you make. You set your own price on the Meraki dashboard. Keep in mind that the Meraki mini is exactly the same unit whether you sign up for the Standard edition of the Pro edition. Meraki has not provided detailed information about the Carrier edition.

What is your take on the Meraki new business model?