GitLab Subscription Changes: Bronze Tier Discontinued

GitLab, the rapidly growing DevOps platform, has recently announced a significant adjustment to its subscription plans. The company is discontinuing its $4 per month Bronze/Starter package. Existing subscribers will have the opportunity to renew their current plan one final time at the present rate, or they can upgrade to a higher tier and benefit from substantial discounts over the following three years.

It’s important to note that GitLab’s free tier will remain available, and the company asserts that it encompasses “89% of the features found in Bronze/Starter.”

According to GitLab founder and CEO Sid Sijbrandij, this decision was not taken lightly. He recognized that this represents a considerable shift for those currently utilizing the Bronze plan. “We trust that our users will recognize the thoroughness of our evaluation and the value of our extended pricing options,” Sijbrandij stated, adding that the company is committed to considering user feedback.

To mitigate the impact of this change, Bronze plan users can renew their existing subscriptions before January 26, 2022, for one additional year at the current price. Alternatively, they can choose to transition to the Premium tier with a reduced rate for the next three years, beginning at $6 per user per month in Year 1, increasing to $9 per user per month in Year 2, and $15 per user per month in Year 3. The Bronze package is no longer available for new users, effective immediately.

Ultimately, this adjustment was a financial necessity for GitLab. As Sijbrandij explained, the company was incurring a loss with each Bronze-tier customer. “We were operating at a loss with the Bronze tier,” he said. “Every sale resulted in a financial loss, factoring in hosting and support costs. To ensure the long-term viability of our business, this change was essential. While it’s a significant transition for our customers, our priority is to maintain a sustainable company and continue investing in our platform.”

Sijbrandij shared that the team explored the possibility of raising the price of the Bronze tier to achieve profitability. “We investigated all possible solutions, but ultimately, any price increase would have resulted in an offering very similar to Premium. This would have created excessive overlap between the two tiers,” he clarified.

Following this update, GitLab now offers three distinct tiers: Free, Premium, and Ultimate (the “Silver/Premium” and “Gold/Ultimate” names are being retired).

The free tier, which currently has the largest number of total users on GitLab, will continue to be offered. While it likely operates as a loss-leader for GitLab, it includes limited CI/CD credits and lacks support options, suggesting the benefits outweigh the costs for the company. Sijbrandij also emphasized that, as an open core company, providing a free and open offering is a fundamental requirement.