Heroku Pricing Changes

Couple of quick points on Heroku’s pricing changes which I’ve been meaning to get out:

  • Its not an across-the-board price cut. While the dyno pricing has decreased, they also got rid of the free $36ish/month in free dyno credits.
  • New free tier replaces the free dyno credit. Minimum 6 hours of sleep per day means no more abusing the free tier by pinging your app every few minutes to keep it from sleeping. Seems a lot of people were doing this to run production apps for free; good riddance.
  • New $7/month hobby tier is a great new option for people who were previously hosting production apps for free and need them live 24/7. This is a great deal since you can even have worker/background dynos for the same price. Makes sense for Heroku too – they’ll derive a good deal of long tail revenue from folks who would’ve previously just stuck with the free tier (maybe using the ping hack to prevent idling). Honestly I think the revenue is not the point – it’s more just preventing people from abusing the free tier while giving enough folks a no-excuses carrot to use the platform so it’ll be a no-brainer when they “go pro.”
  • Professional dyno pricing drop is great, but it’s going to be a wash for the majority of paying users because the free credit is going away. Basically there’s no more big cliff where you go from free->paid any more, but the steepness of the pricing increases is somewhat lower. My intuition is the winners are the 4-5 figure/month customers, makes sense since that’s around the time they start thinking about moving to AWS directly for cost savings. More of them will just consider staying.

Leave a Reply

Your email address will not be published. Required fields are marked *