Support : Publications : Chronolog Archives : January 2002

Dialog Implements Pricing Initiatives Announced in June

Dialog has launched several major pricing initiatives: new pricing plans, the roll-out of Dialog's connect-time option, and the completion of a series of technical projects designed to make its DialUnits pricing more consistent across the different Dialog platforms.

According to President and CEO, Roy M. Martin, Jr., "We promised we would take the steps necessary to allow our customers to choose options based on what works best for their unique, individual searching patterns, as well as for the budgeting and billing processes of their companies. The implementation of these initiatives reflects the latest results in this ongoing process."

New pricing plans

Dialog has introduced three new pricing plans for customers of its Dialog and DataStar family of products. These new plans -- replacing an array of former pricing programs — are Dialog Transact, Dialog Advantage, and, available to Dialog's largest customers, Dialog Enterprise.

With an emphasis on simplicity and value, the new pricing plans offer a number of benefits to customers, depending on the customer's unique situation and budgetary requirements. These benefits, dependent on the exact plan the customer selects, can include predictable fixed monthly payments, discounts based on usage levels beginning as low as $1,000 per year, multi-year options offering price protection, and access to all Dialog databases. When coupled with the simplified sales contracts, released in June, total sales related documentation at the time of an order, including all terms and conditions, can be four pages or less!

The new plans were developed based on feedback from DataStar and Dialog customers worldwide. The users of those products are drawn from large, mid-sized, and small companies, as well as from numerous industries and markets around the world.

"Our goal is to nurture long-term relationships with our customers," Martin said. "To do that, we need to give them the ability to craft their relationship with us on their terms, according to their needs. Our new pricing plans will help our customers define their own ways of maximizing the value of Dialog and DataStar in their professional lives."

Connect-time option available

The availability of connect-time pricing, which began on January 1, 2002, offers Dialog customers a second option to measure their usage on DialogClassic, DialogClassic Web and DialogWeb. With connect-time customers' use of the system is based on when they log on and log off, with rates dependent on the files being searched. Customers can toggle back and forth between the DialUnit and connect-time options by setting the preference in their user profiles.

The price list for connect-time is available at http://www.dialog.com/pricing.

DialUnits made more consistent

Dialog has also completed technical enhancements to its systems to make DialUnits more consistent across Dialog platforms. Now, the same search in DialogClassic, DialogWeb, or DialogClassic Web will generate more consistent results. Additionally, other system improvements have resulted in faster search response times.

"We made DialUnits more consistent across different platforms because our customers asked for consistency and greater simplicity in how DialUnits are calculated," said Martin. "Users of the various Dialog-branded products may see either increases or decreases—depending on the specific platforms—to their actual usage charges. However, these should be relatively minor, except in the case of DialogClassic Web where customers are likely to see a significant decrease in costs."

DialUnits, first introduced in 1998, are an activity-based approach to measuring online system usage. DialUnits are determined by the amount of system resources required to execute search and other system commands and the nature of the content being searched. Each command that is executed (except administrative commands, such as HELP) generates some portion of a DialUnit.

Choosing connect-time or DialUnits

By providing dual options, customers can maximize the value they derive from Dialog systems based on their own individual searching behavior, usage patterns, or expertise in a given area. The introduction of connect-time allows users to choose between a clock-based charge, which tracks usage by the minute, and an activity-based charge, DialUnits, which tracks usage by commands performed and the complexity of the searches conducted. The option an individual user selects is best determined by that individual's searching and document retrieval behavior.

Customers who may find the connect-time alternative more appealing would include those searching for a specific document with a known citation, title, or author, or those with significant system expertise. In contrast, the DialUnits option does not charge for "think time," but instead measures usage based on when system resources are actually used. Therefore, there are no DialUnits calculated for frequently used functions, such as consulting help screens and Bluesheets, browsing or reviewing previously displayed title lists and search output, configuring Alerts, and establishing delivery options and user preferences. The DialUnits option might be favored by customers who prefer to browse search results online or for infrequent and new users, as well as those researching an unfamiliar subject.

In the future

Martin commented, "We will focus on the various existing fee structures that are part of the Dialog pricing model, as well as the development of new pricing programs and structures for all Dialog product-line platforms. Our pricing transformation will continue, with ongoing progress being made in a structured and disciplined fashion."

These are the latest initiatives in Dialog's ongoing review of its pricing strategy. Additional pricing initiatives are expected to be announced later in the first quarter of 2002.

top