sascha's picture

Since posting several concerns with the future of Meraki's pricing structure I've heard that Meraki is planning discontinue their Meraki Mini $49 mesh router on August 12, 2008. If true (I've now heard it from a few different sources), this means that Meraki users have only a few more days to buy hardware before the minimal price goes up by 300%.


[UPDATE01]From Meraki on the evening of the 12th:

    Standard Edition Transition

    We are also announcing the end of life of our Standard Edition (ad-supported) products, which will no longer be available to new customers after January 31, 2009. Over the past year we've seen rapidly increasing demand for the features and functionality of the Pro Edition line of products and have decided to simplify our offerings and focus our development efforts.

    As an existing Standard Edition customer, your networks will continue to operate normally and Meraki will continue providing hosted services for the lifetime of the product. In addition, as part of our streamlined product offering, your networks will have certain features enabled in Dashboard which were previously only available in Pro Edition, including custom images on splash pages and unlimited device whitelisting. You may optionally upgrade to the complete Pro Edition for $100 per node by contacting sales@meraki.com.

    Network operators planning to expand Standard Edition networks can continue purchasing the Meraki Mini for $49 and Meraki Outdoor for $99 through January 31, 2009 through the "Standard Edition Store" link under the "Support" tab in your Meraki Dashboard. The Meraki Indoor is available in the Pro Edition, but can be added to existing Standard networks.

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sascha's picture

[UPDATE02] Once or twice a week I get the question, "I'm thinking about using Meraki's equipment, what do you think?" And I always start my answer much the same way. [As a disclaimer, I've known the Meraki folks since their time back at MIT -- my development teams used to collaborate actively with them.]

Meraki is a great system for quick do-it-yourself networking. The technology is elegant and the graphical user interface (mostly) intuitive. If you want a plug-and-play technology immediately deployed, it's a good solution. But that is far from the whole story.

As many of my readers know, I've been advocating for open tech for years and years -- so how does Meraki stack up? The core technologies in Meraki are open source -- but they've been smothered in a proprietary wrapper that makes Meraki little different from most "black box" solutions. Users can't easily view the code, change features (or add features, for that matter), fix bugs, or otherwise adapt the technology for their own uses. As a number of open source projects have discovered, even gaining access to information that was covered by existing open source licenses has become increasingly difficult as Meraki has become increasingly proprietary.

Most people think Meraki's back-end is free. They are wrong. In fact, Meraki plans tomay eventually charge for the use of their services. As a recent GovTech article reported, Meraki's founder stated that their solution "includes three years of its data center services in the price of the hardware." For those who forget, Meraki's hardware used to cost $49 for an indoor node, then the cost went up to $149 -- if you wanted more equipment, you had to pay a rate three times as much, and since Meraki's equipment is sole-sourced, you had to pay whatever they charged.

I fully expect that we're going to see the same problem with Meraki's back-end services. Most users (and certainly just about everyone in the general public) thinks that once you buy a wireless access point that it will continue to work indefinitely (or at least until the hardware fails). With Meraki, however, you're getting a package of hardware and software -- and you can't run a Meraki network without Meraki's proprietary back-end. So how much will the service cost at the end of your 3-year "free" period? I have no idea (though if you know, please let me know). [EDIT: As Meraki CEO, Sanjit Biswas, clarified on this blog (see comments), "the cost the hosted backend service is included for the lifetime of the device with the current line of products at $149/$199. We may decide to unbundle the pricing with future products, but it will be clear to the customer and not a hidden fee." So current hardware should remain free to use. And what happens if you've been a Meraki network over that 3-year periodand are now about to get a huge monthly charge? Probably you'll either have to pay whatever they cost or parts of your network will cease to work. I'm not sure that I would agree with Sanjit that this is not a hidden fee -- most Meraki customers are not aware of the possibility that future compatible hardware might carry additional fees.]

Hundreds of projects, organizations, and municipalities are rolling out Meraki-based networks, yet few seem to understand that they're buying a bundled service not just a piece of hardware. Over time, these initiatives will end up paying an unknown amount of money to Meraki just to keep their system running. It is, in fact, the ultimate bait-and-switch paradigm -- you think you have a one-time hardware cost, instead you get vendor lock-in, recurring charges, and path dependencies.

These and other reasons are why it remains so important to support and utilize truly open technologies. The simulacrums are getting better and better -- but inevitably you're getting a worse deal than you think.

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