Businessmodel of Couchbase

Customer Segments

Couchbase has a segmented business model, which recognizes customer segments with slightly different needs. Its two customer groups are as follows:

• Non-Commercial Developers: The company offers this group Couchbase Server Community Edition. It does not include the latest bug fixes and its binaries have not been subjected to the iterative test, fix, and verify Quality Assurance cycle that is a part of the Enterprise Edition release process. Users can receive assistance through manuals, forums, and mailing lists on the website.
• Commercial Developers: The company offers this group Couchbase Server Enterprise Edition, which represents its most production-ready release. It has features not available in the Community version that supports enterprise clients with heavy production deployments running in data centers and/or public clouds. A paid annual subscription to the product gives users a commercial license, technical support with service-level commitments, and technical support and hot fixes for older releases. ### Value Proposition

Couchbase offers two primary value propositions: accessibility and brand/status.

The firm’s database is designed to be highly scalable and deployable across many machines. This means that applications running on Couchbase Server can serve numerous users simultaneously. Further, its configurable cross data center replication feature helps increase data locality and availability.

Couchbase benefits from a strong reputation. It is viewed by many industry analysts as the performance and scalability leader among NoSQL vendors, making it competitive with legacy vendors such as Oracle. Its clients include many members of the Fortune 500 across a wide range of industries; these include General Electric, Citibank, Verizon, Nike, and Disney.

Channels

Couchbase’s main channel is its website, through which it markets its offerings. The company also promotes its products and acquires customers through frequent participation in trade shows and conferences.

Moreover, it hosts several “Couchbase Days” annually, a free day-long educational event consisting of presentations and hands-on workshops about Couchbase Server.

Customer Relationships

Couchbase’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees. That said, there is a strong personal assistance component as enterprise clients globally have access to round-the-clock support through 24x7x365 service level agreements.

Key Activities

Couchbase’s key activities focus on platform management. The company’s business model entails running its proprietary database and making improvements through a variety of additions, such as the integration of third-party applications.

Key Partners

Couchbase maintains “Couchbase Partners”, a program in which it partners with database solution specialists and connects them with customers to help them improve their business. The types of specialists it works with include software and hardware vendors, system integrators, and cloud providers.

Couchbase provides program members technical training and sales tools such as white papers, solution briefs, and data sheets. Program benefits include cross-promotion of joint offerings, participation in the company’s online events and conferences, and use of the Couchbase logo. Program partners include Google, Microsoft, Intel, Accenture, Informatica, and Wipro.

Key Resources

Couchbase’s main resource is its proprietary software platforms, Couchbase Server and Couchbase Mobile.

It relies heavily on its human resources, namely its engineering staff and technical support team, the latter of which has significant experience in complex database and enterprise software operations.

Lastly, Couchbase has strong financial resources in the form of its many investors, who include Accel Partners, Adams Street Partners, Ignition Partners, Mayfield Fund, North Bridge Venture Partners, Sorenson Capital, and WestSummit.

Cost Structure

Couchbase has a value-driven structure, focusing primarily on providing strong personal service. The company’s biggest cost driver is likely its customer support operations, a fixed cost, due to the extent of the service it provides its enterprise clients. Other major expense drivers are in the areas of product development and administrative expenses, both of which are fixed.

Revenue Streams

Couchbase has two main revenue streams: product subscriptions and training fees.

The company offers three subscription levels for its products: Silver, Gold and Platinum. While it does not make pricing amounts for each option available, it indicates that pricing starts at $5,600 per node. Subscriptions are offered to customers on an annual and multi-year basis.

The company also offers a training program called “Couchbase Learning Services”. Through this offering, clients receive instruction from an expert in NoSQL application development and administration. The courses are hands-on and lab intensive, and are available in both in-person classroom and virtual formats. Pricing generally ranges from $1,000 to $3,000 per course.