CloudAhoy to Charge for Debrief

Back in March, I wrote a review of CloudAhoy, giving it a shining review.  As far as apps go, it’s rather simple, and the debrief feature offers a ton of data for analyzing flights after you’re done.  It’s useful for debriefing yourself, or it could also be used as an impartial observer to debrief a student as a CFI.

 

If any of you have an account with CloudAhoy, I’m sure you got their email last night.  For those of you who did not receive it, I’ll recap it here.

 

In order to continue debrief your flights, you will now have to pay a subscription fee.

 

First, I have to be fair and address some things that I know others will not address:

• The fact that they are now charging for the service is reasonable, given the benefits it provides.  This move does not surprise me in the least.
• Servers cost money – either to purchase and maintain yourself, or have someone else host
• Domains cost money – either to host yourself, or have someone else host
• Bandwidth costs money – either through you managing this yourself through an ISP, or indirectly in a fee to whoever hosts your site and data server
• Additional employees cost money
• Being an Apple developer costs money

I say that to admit that charging for the service is not uncalled for.  The best things in life are not free, and to be honest, I was surprised that it was free for this long.  My issue rests with the price of the subscription.

 

I’m really trying to approach this from a rational, balanced point of view.  I appreciate that the developer wants to recoup costs, and probably make a little money on the side.  As someone who pays to be an Apple developer, and manages web services for a company, I understand these costs well.  At the same time, I also understand how expensive aviation truly is, and how it’s already difficult enough to justify everything in aviation – particularly to significant others and concerned family members in general.  Most people don’t give me too much trouble when I tell them that the necessary charts for flying are about $75 per year through ForeFlight.  If I said I was spending $70 per year to analyze data that I’m collecting personally, on my personal iPad, using my own personal GPS, I’d get funny looks.  I do understand that CloudAhoy’s servers are doing the number crunching and eventual data storage, but I feel like the business model is all wrong here.

 

I’m sure there are some economies of scale at play, but I don’t believe that it is really driving the price point as much as one might believe.  I understand that the aviation community is a lot smaller than the target audience of other products and services, but it is not a small one in and of itself.  I understand that data storage, data calls, data transfers, data processing, and other tasks can also cost money.  I’m just having a very difficult time accepting that $70 is an acceptable price point to meet the costs of business, or even operate at a modest profit.  As the email states itself, the user base is rapidly growing and spans all continents with the exception of Antarctica.

 

Since I don’t know the costs that they’re operating with, I won’t attempt to make cost arguments based on notional numbers, as they may be misleading.  I really want to stress that this is just my opinion rather than anything else.

 

My arguments are as follows:

• The email states that their data storage is in the cloud.  Cloud storage can get particularly expensive, depending on the provider, and the way in which they price their data storage.  This could drive the cost up significantly if not structured properly for the service provided.
• The profit driver of today’s age is data.  Why is it that Facebook, Twitter, Instagram and the like are all free?  They have to pay for servers and other similar costs, too.  The answer is data.  Your information, interests, and habits are all sold to those wanting the data.  Imagine the amazing amount of information that CloudAhoy servers now contain from all of the tracked flights.  FlightAware provides data to those who request it for many different purposes.  From my understanding of their privacy policy, I do not think that they are taking advantage of this.
• As much as trying to make a living off of something you enjoy would be great, some endeavors require time and clever number crunching to make work.  As the definition of “make a living” can be highly personal, I’ll end my point here.

I’d honestly love to see CloudAhoy succeed, but I don't think that the current model is the best avenue for that success – personally.  I may be completely wrong in that assessment, but I find $70 to be way too expensive for what is provided in return.

 

As a data guy, I know that the data can then be sold to other people.  I’m sure the likes of AOPA, GAMA, manufacturers, and many others would love to see the data.  Based on their answer regarding the privacy policy, I do not believe this is being taken advantage of.  This could significantly increase their revenues, and affect the price point.  All of this would come without directly affecting customer privacy, too.  As an example, CloudAhoy detects airports that you fly to and from.  On an aggregate level, route pairs, airport activity and so on could be sold to people requesting the data, and provided the flights are not referenced to individual users in the data, I would not consider privacy to be compromised.

 

Again, as much as I think they have a great product on their hands, and as much as I like to see success in aviation, I won’t be springing for the service unless something changes.

Here is the full text of the email for those who are interested:

Allow me to interrupt your flight debriefs for a news flash.

 

There is a significant change coming. In December 2013 we will start charging a subscription fee for debriefing flights.  I am very excited about this; let me tell you why.

 

On May 2011, the first version of CloudAhoy landed at Apple’s app store. In the two and a half years since, CloudAhoy became an important tool for a rapidly growing community of pilots.  It spread by word of mouth - first in flight training, then in GA, military and commercial aviation.  It is being used in every continent except Antarctica.

 

CloudAhoy started as a hobby of mine, and the first CloudAhoy server ran from my house.  It soon became my day job (OK, also my night job) as well as that of other people, and our servers are now hosted securely in the cloud.

 

We have grown, and plan to keep growing our team.  Your subscription will let us continue to provide you with the same level of dedicated and fast response to questions, feedback and feature requests, large and small. Our road-map for the next year is full of exciting developments - I think you will be delighted.  Oh, and BTW your subscription will also allow us CloudAhoyians to pay the mortgage, and occasionally indulge in consuming $100 hamburgers.  We do this work both because we are passionately in love with it, and because we want to make a living off it. 

We will transition your account as follows:

• On December 2nd you will get a free and unlimited use of CloudAhoy, expiring 35 days after your next fight (flown after December 2nd).
• 12-month subscription with unlimited use: introductory price of $45 if bought before May 2014, $70 afterwards.
• 3-month subscription: $20, all of which can be used later towards buying an upgrade to 12-months.
• As an existing user you will receive a special appreciation bonus days equal to 10% of the time since you’ve signed up. It will be awarded when you purchase a 3 or 12 months subscription. Thank you!
• If your free use or the subscription expires, you will still have full debrief access to all your flights (plus flights shared with you) prior to the expiration.  You will also be able to log new flights and have them listed in your flight list, but you will need to renew your subscription in order to debrief them.