New Qlik licensing model

From September 2023, Qlik is launching a new licensing model for the Analytics side of the Qlik Cloud platform: capacity-based licensing. A similar model was introduced earlier this year for the Data Integration branch of the platform. Initially the model will mainly be used for new Qlik customers, but it is not ruled out that existing customers will also get the option to switch to this new model in time. In this blog, Senior Consultant Lennaert van den Brink explains how the new model works.

Paying for data instead of users

The core of the new licensing model is that you no longer pay for the number of users on your platform, but for the amount of data you process or analyze with it. In the old model, the primary metric of a license agreement is the number of Analyzer and Professional users who get access to the system. In the new model, you effectively buy an amount of bandwidth for the data you can process. What matters here is the potential amount of data, not how much you actually use. In other words: you pay for the diameter of the pipe, not for the water flowing through it. In this new model, Qlik distinguishes 3 tiers: Standard, Premium and Enterprise.

Standard

The Standard edition is intended as a starter package. For a low price you get a small environment in which you can take your first steps in building a Qlik Cloud Analytics environment. In this version your growth is limited, as you can analyze up to a maximum of 50GB of data. In the Standard edition you still have to pay for every user you want to give access to the platform, and you cannot use advanced functionality such as AutoML or Application Automation.

Premium

If you want to analyze more data, you automatically end up with the Premium edition. In the Premium edition you have an unlimited number of "basic users". A basic user is comparable to the Analyzer license from the old model: you can mainly view and consume, but not create anything new yourself. The big advantage of unlimited basic users is that you are never held back from connecting more users to your environment, which greatly promotes adoption. In the Premium edition you still pay for the "full users" you purchase. You can also expand the amount of data you can process in the platform (in steps of 25 or 250 GB). In this edition you can also use all advanced functionality.

Enterprise

The final step up is the Enterprise edition. In this edition the number of users is completely unrestricted, and there is no restriction on what these users can do. This makes it the ideal starting point when you want to enable your users as fully as possible in self-service BI and analytics (although you can of course disable certain capabilities for groups of users). What you still pay for in this edition is the data you analyze in the platform.

An important question is of course what happens when you analyze more data than your license covers. The good news is that the platform simply keeps working, so you will not get an error message saying the limit has been reached. You will, however, see the overage on your bill, with a 25% surcharge on the list price for the extra capacity pack you fell short of. If you still purchase the extra capacity within the same invoice period, the consumption will no longer be counted as an overage.

What is Data Analyzed?

An important metric in the new model is the so-called "Data Analyzed". Simply put, all data that is loaded or created in Qlik Cloud Analytics on a given day is added up into data analyzed. The highest daily peak in a one-month period is taken as the consumed capacity for that month.

There are quite a few ways to load or create data within Qlik Cloud Analytics, but not everything counts in the same way. Loading data refers to all data read in via a query or connector. In addition, all files uploaded 1-to-1 to a space count as well (this includes all QVFs and QVWs). Data that is brought in once and then reused in multiple places only counts once. For example, if you retrieve a dataset from a database via a Microsoft SQL connector, then store it in a QVD and then load it into three new dashboards, you are only charged for the data that flows through the connector and the file size of the QVD. Loading the three subsequent apps is not counted.

Getting the most out of your environment?

As mentioned earlier, the new licensing model will be offered alongside the old model for the time being. For existing customers not much changes at the moment, although it is likely that this model will also become available to existing customers in the future. What is interesting about the new model is that you are rewarded for making smart use of the capabilities of your Qlik platform. In a follow-up blog we will give you a number of tips on how to get the most out of your environment. Follow us on LinkedIn using the button below to stay informed of every new blog.