SmarterTools have released information to customers about changes to the license structure and upgrade protection.

Summary of changes

• SmarterMail will not longer contain domain limits. 
• Versions will be split by number of mailboxes. 
• There will be a greater number of version limits to aid small companies to grow. 
• Upgrade protection has been introduced. This will allow the license to be upgraded to major and minor versions throughout the first year of purchase and for each year following subsequent renewal. Upgrade protection renewal has been set at 40% of the full price (85% if upgrade protection has already expired)

In response to customer requests over the years and with the assistance of a focus group consisting of customers, partners, and users; SmarterTools has made significant adjustments to our purchasing and upgrade policies. It is important that you understand these changes because they affect you and your software licenses.

1. Extended Upgrade Protection at No Additional Charge
2. Upgrade Protection Renewals at Reduced Rates
3. Special Consideration for Recent New and Major Version Purchases
4. One-time Upgrade Opportunity for Existing Licenses and Licensees Outside 45-day Protection
5. New Product Levels and Pricing
6. The Impact on SmarterTools
7. Additional Information and Updates

1. Extended Upgrade Protection at No Additional Charge

Up until now, all new and version upgrade purchases of SmarterTools products qualified for automatic 45-day major version upgrade protection. As of August 10, 2009, all new purchases of SmarterTools product licenses will include 12 months of major and minor upgrade protection at no additional charge. Further, customers will have the option of continuing their upgrade protection on a yearly basis at a greatly reduced rate—bringing predictability to SmarterTools purchases and savings to the majority of customers who upgrade their software with each major release. This new policy will apply to all SmarterTools products: SmarterMail, SmarterTrack, and SmarterStats.

2. Upgrade Protection Renewals at Reduced Rates

Previously, upgrading SmarterTools licenses upon major version release cost approximately 65% of the full retail price. Customers can now renew/extend Upgrade Protection on a yearly basis for approximately 40% of the full retail price—reflecting a significant savings. SmarterTools software licenses will still operate as they always have. No one will be required to upgrade a license or maintain Upgrade Protection unless they want to maintain the most current version each year for a much lower price.

Those who choose not to maintain continuous Upgrade Protection can re-establish it at a later date to get the latest software version and a renewed 12 months of Upgrade Protection for approximately 85% of the full retail new license price.

3. Special Consideration for Recent New and Major Version Purchases

Customers who have licenses within the established 45-day upgrade protection period will automatically receive one year of full Upgrade Protection on all new and major version upgrade purchases. This applies to all new and major version upgrade purchases made from June 26 through August 9, 2009.

4. One-time Upgrade Opportunity for Existing Licenses and License Holders

Based upon the recommendations of our pricing focus group, SmarterTools will provide an effective way for existing license holders to upgrade their licenses and receive Upgrade Protection. Starting August 10, 2009, and lasting for 45 days, all existing SmarterTools licenses (no matter the version) can be upgraded to the latest version and receive a full 12 months of additional Upgrade Protection for approximately 50% of the full retail price. SmarterTools decided to make this opportunity available in conjunction with the release of SmarterMail 6.x as an additional benefit for SmarterTools’ customers.

5. New Product Levels and Pricing

SmarterTools has also added new licensing levels to our software product lines—allowing our customers to more efficiently select the capacity they require. Minor pricing adjustments have been implemented to better reflect the new levels and available price points. In addition—specific to SmarterMail 6.x—domain limits have been removed from all paid product levels. This means that customer have more flexibility in choosing the right product level and can focus on the number of mailboxes alone when making their selection. The SmarterMail FREE edition will still be limited to one domain.

6. Impact on SmarterTools

The implementation of these changes will allow most customers to realize decreased costs and, in some cases, more product for the same cost. We anticipate that this will result in SmarterTools receiving less revenue than it otherwise might have over the next two years as customers take advantage of Upgrade Protection, the One-time Upgrade Opportunity, and more refined product levels. Over the long term, however, we believe that these changes will benefit the entire SmarterTools community and encourage greater adoption of SmarterTools products.

7. Additional Information and Updates

SmarterTools will post this email and related updates as they are available on the SmarterTools forums. If you have any questions or want more information, email them to: [email protected].

SmarterTools is grateful for the continued support of all of customers and partners and looks forward to our mutual continued success.

Sincerely,

Tim Uzzanti