Hi, everyone. Welcome to the A6 and Z podcast. I'm Sonal and we are continuing our series on pricing. We've already talked about why to raise prices, how to go about doing this. And now we're talking more specifically about pricing premium to premium as well as open source and what that means. Joining us to have that conversation, we have general partners Peter Levine and

Martine Casado, who cover all things infrastructure. And we have Mark Craney who heads up our go-to-market

practice as well as our executive briefing center. Welcome, guys. Thank you. All right. Peter,

you want to kick it off? So as we think about freemium to premium, you could either give something away for free, give some value away for free.

The idea of freemium is that people get to self-try and you give away something.

It doesn't have to be open.

Open source does not mean freemium.

You could have a closed source product that has a premium component to a premium component, but open source tends to

lend itself towards kind of wide adoption with users using some sort of free adoption,

viral kind of penetration through an organization. The way I think about freemium is that it's a proxy for marketing spend.

You tend to have to spend quite a bit on marketing in order to get the user to see the value of a given product.

What Freemium does is it offsets the marketing costs.

You have to give away some features in your product.

But through adoption inside the enterprise,

you actually can get some nice traction and users using your product through a premium model

and not spend a lot on marketing because, in a sense, the user is the sales organization,

and the user is the marketing organization in a

premium. Now, the whole notion of premium is that users, individual users, while they can certainly

get benefit and appreciate certain features in a product, they often can't see all features

that may be required in an enterprise. An individual who's doing job X may appreciate a certain feature,

but there's maybe 10 other features in the product that they wouldn't necessarily use

or appreciate, and that may be a different group who would say,

...