Yesterday New Relic announced adjustments to their pricing model, increasing Data Ingestion from $0.25 per gigabyte to $0.30 beginning on June 1, 2022. That 5 cents may not sound like much, but it's a 20% increase from the prior rate!
For companies like mine, the increase is not miniscule. Last month, New Relic ingested 21,680GB of data from our Cloud, costing $5,420. Under the revised rates, that same amount of data will now cost $6,504, a monthly difference of $1,084. That is not an insignificant increase during a year which is experiencing record inflation across the board.
Prior to the announcement, our sentiment was that we were already over-paying for the value that New Relic was providing, but this rate hike is now forcing us to reconsider our relationship with the vendor.
Are you using New Relic? I'd love hear your thoughts on the rate change & experience with the product!
Top comments (2)
Hi Joe — Thanks for the post! I can share some helpful context as I joined New Relic last year after they acquired Pixie, an open-source cncf K8s monitoring project that I co-created.
The ingest price increase announcement did go through last week (first one in 2 years afaik) to help the new relic product teams keep bundling more features with the ingest place. They’re also balancing the rising costs that all of us are dealing with. However, the intention was not to deter eng teams like yours from continuing to use the product. Further, the $0.05 increase is for the data ingest, the user seat pricing is the same so your overall spend would be a lot lower than the 20% you mentioned. Most teams’ spend is more on user-seats than data ingest but your’s might be a different users to data split.
I know we have teams who can help optimize your ingest volume and also balance your overall spend (users and data) so that your spend remains within your budget and seems fair value.
Let me know if a conversation would be helpful to you? I can connect you to the right engineers. They’d also really value your feedback so that fine tune the feature set and pricing.
Hopefully this helps. Thanks!
Ha, I had a feeling that someone from New Relic would stumble upon this post.
Hello Ishaq, it’s a pleasure to meet you. Thank you for sharing additional information, I regularly work with my account manager to optimize our usage. You are correct about the increase not affecting user licenses but that’s the smaller expense for us as I implemented a seat-based approach to licensing for our company in order to keep costs within budget.
Unfortunately we have felt the cost has been too high since I was convinced to switch to the new pricing model two years ago; I was sold on costs being 50% lower than what they turned out to be. Part of that is on our growth, but part of it is also on mismatched expectations that the sales rep pitched. We’re a little sour about that.
I just renewed an annual commitment in February so we won’t be making any immediate moves, but the price hike will be a big factor once we deplete our APOF; we get value out of new Relic but not enough value for what I spend yearly in comparison to all of my other operational costs.