We don't sell seats.
We license validated sites.
Every incumbent in digital validation charges per user. That model was built for software people operate by hand. Qualitum's agents do the work, so the number of humans goes down — and a per-seat vendor gets punished for its own product working. This guide sets out the market evidence, the licence design that replaces it, the delivery and validation costing, the partner economics, and the motion that sells it.
What this document is
One source of truth for how Qualitum is priced, sold, delivered and split with partners. It replaces every earlier pricing sheet, deck slide and verbal quote. Where a number elsewhere contradicts a number here, this document wins until it is formally revised.
Who it is for
Partners and resellers who have to quote, our own sellers, and anyone writing the offer documents, the portal or the contracts. It assumes you know the life-sciences validation world. It does not assume you know our model.
What it is not
Not a client-facing document. Every price here is recommended list, not a quote, and the cost and margin figures are for the people quoting — they do not go to a client or a prospect in any form.
One version
There is no partner edition and internal edition of this guide any more — there is this one. Everything in it is safe to say to a partner, including the cost and margin columns in chapter 13, which exist so the split can be checked rather than trusted.
How to use it
It is built as a guide, not a report. Pick a chapter from the contents on the left, read it end to end, then press Next at the bottom to continue. Chapters stand alone — you can read the partner model without reading the market analysis — but they are ordered so that reading straight through works as a course, and the deck and narration script are built from the same order.
02 — How it all works gives you the whole model in ten minutes. 06 — Price list & limits has the numbers you will be asked for on every call. 12 — Go-to-market explains how a deal actually starts. Everything else is depth behind those three.
What changed from earlier versions
- Per-site, not per-seat. Users are unlimited. The licence is bound to a site or an enterprise programme, and the fair-use envelope is counted in validation packages per year.
- Qualitum always implements. Partners sell and support; they do not deliver. The implementation fee is split with them 50/50 anyway.
- The pilot is paid. The free step is a ninety-minute teardown. The Proof of Value costs €20,000 and is credited against the first licence year.
- Delivery list prices went up to fund that 50/50 split. Anything quoted from an older sheet is re-quoted before signature.
- Every open question is closed. Chapter 16 records the seven decisions and why the alternative lost.
How the whole thing works
Before any of the detail: this is the entire commercial model, in the order money actually moves. If you can hold this chapter in your head you can hold a first call without notes.
A pharma site pays us one annual fee to run Qualitum at that site, with as many users as it likes. We build and validate the deployment ourselves, for a one-off project fee, and we keep doing that on every deal. A partner finds the client, holds the relationship and answers the day-to-day questions, and takes a share of both the licence and the project fee. Infrastructure and model tokens sit outside the licence and are usually the client's own cloud bill. Nobody buys any of this cold — they buy a free teardown, then a €20,000 Proof of Value, then a site.
The four things a client actually buys
1 · The annual licence
The right to run Qualitum at one licensed site for a year, unlimited users, with a fair-use envelope measured in validation packages. Renewable annually. Typical: €98,000. This is the recurring revenue and it is where almost all of the margin lives.
2 · The deployment project
One-off. We configure the platform to their templates, workflows, SSO and roles, and go live. One to six weeks depending on complexity. Typical: €40,000.
3 · The validation pack
One-off, per site. Their own IQ/OQ/PQ evidence for their configuration, so the deployment is usable for regulated work. Typical: €40,000. Optional in theory, never skipped in practice.
4 · The ongoing services
Annual periodic review, inspection support, corpus tailoring, hosting if they want us to run it. Recurring, high-margin, and the reason a site is worth more in year three than in year one.
How a deal moves
Nothing here is invented. It is the standard motion for regulated enterprise software, compressed. Each step is small enough that the buyer can say yes without a committee, and each one produces the evidence needed for the next.
Who does what
| Job | Qualitum | Partner | Client |
|---|---|---|---|
| Finding the deal | Sometimes | Yes — this is the job | — |
| Pricing & contract | Owns the licence contract, always signed directly with the client | Quotes from this sheet, may sell above list and keep the uplift | Signs with us |
| Deployment & validation | Always us. No exceptions | Earns 50% of the fee anyway | Supplies templates, SOPs, people for UAT |
| Day-to-day user support | L3 engineering only | L1 and L2 — the reason they earn on renewals | — |
| Infrastructure & model tokens | Agnostic; can operate it for them | — | Normally their own cloud account and their own model contract |
| Being right with the regulator | Supplier evidence, quality agreement, audit access | — | Accountable. Nobody can outsource this |
Where the money goes
One worked example, so the shape is concrete. A mid-size CDMO buys one Standard site through a Certified Partner: Proof of Value, licence, standard deployment, validation pack and light tailoring.
In year one the partner earns two thirds of what we do, because they carried the sale and we carried the delivery cost. From year two the position inverts permanently: the licence renews, the project fees do not, and our share is almost all margin. Say that to partners out loud — it is the deal, and hiding it makes them suspicious of the renewal terms.
What is deliberately outside the licence
- Infrastructure. Their cloud, their account, their bill. We deploy into it.
- Model tokens. Their model contract in the default deployment. Where we host, an envelope is included and overage is published. Either way it is single-digit percent of what they pay us — see chapter 11.
- Their own validated state. We supply the evidence; they remain accountable for the decision to use it.
- Custom code. Configuration is theirs to change freely. Code is not. That boundary is what keeps the licence from leaking — chapter 10.
The vocabulary
Every term used in the rest of this guide, in one place. If a partner cannot use these words correctly on a first call, they are not ready to hold one.
| Term | What it means here |
|---|---|
| Validation | Documented proof that a system, piece of equipment or process does what it is supposed to do, reliably and repeatably. In pharma it is a legal precondition for using the thing at all. |
| Validation package | The set of approved documents covering one system, equipment item or process — typically a user requirement spec, functional spec, risk assessment, IQ/OQ/PQ protocols, traceability matrix and summary report. Our licence envelope counts these, once, on final approval. |
| IQ / OQ / PQ | Installation, Operational and Performance Qualification. The three test stages that prove something is installed right, works right, and keeps working right under real conditions. |
| GxP | Umbrella for the regulated "good practice" rules — GMP for manufacturing, GCP for clinical, GLP for labs. If work is GxP, it must be validated and inspectable. |
| Annex 11 / Part 11 | The two computerised-systems rules that matter: EU GMP Annex 11 and US FDA 21 CFR Part 11. Both govern audit trails, electronic signatures, access control and data integrity. |
| GAMP 5 Category 4 | Industry classification for a configured commercial product — not off-the-shelf, not bespoke code. That is what Qualitum is, and it sets how much validation evidence is expected. |
| CSV / CSA | Computer System Validation, and its lighter risk-based successor Computer Software Assurance. CSA is the direction the FDA is pushing, and it favours what we do. |
| ALCOA+ | The data-integrity test: attributable, legible, contemporaneous, original, accurate — plus complete, consistent, enduring, available. |
| Site | One physical location under one GMP authorisation. This is what the licence key is bound to. Not a company, not a department, not a user. |
| Envelope | The fair-use allowance in the licence, counted annually and reconciled at renewal. It is never metered mid-term and never generates an overage invoice. |
| Corpus | The body of reference material the agents work against — regulations, guidance, standards and validated examples. We license it; we never hand it over as a file. |
| Eval | An automated test that scores model output against a known-good answer. Evals plus guardrails plus a human approval step are what make a non-deterministic model acceptable in a regulated workflow. |
| L1 / L2 / L3 | Support tiers. L1 is "how do I", L2 is configuration and triage, L3 is engineering and code. Partners own L1 and L2; we own L3. |
| CDMO / CRO | Contract manufacturer and contract research organisation — companies doing regulated work on someone else's behalf. Both are buyers and both can be partners. |
| Proof of Value (PoV) | Our paid, three-week, fixed-scope pilot. Not a trial, not a demo, not free. |
A category that just got validated by a $172B buyer
Digital validation stopped being an emerging category in June 2026. Thoma Bravo agreed to take Kneat — the category leader — private for approximately C$650M in cash, at a 40% premium to its unaffected share price. Kneat's ARR at 31 March 2026 was C$76.4M, so the transaction cleared at roughly 8.5× ARR for a business growing ARR 20% year over year at 78% gross margin.
What the numbers tell us about buyer behaviour
- The land-and-expand unit is the site, not the seat. Kneat's investor materials describe site-by-site expansion; MSD runs 27 sites; a European CDMO signed in April 2026 across two dozen production sites starting with equipment validation. Buyers approve one site, prove it, then roll out. Our licence unit should match how they buy.
- Deal sizes are large and the floor is high. Mid-six to seven-figure annual deals are reported for top-20 pharma and major CDMOs; smaller for biotech. Veeva benchmarks: ~$325k annual licensing plus ~$300k implementation for a 500-person biotech; ~$2.15M licensing plus $1.2M+ implementation at 5,000+ employees.
- Services are a second market, not a rounding error. The CSV services market is forecast at ~$4.5B in 2026 growing to $7.4B by 2032. A single GMP system validation project runs $25k–$150k depending on complexity and GAMP category. This is the pool our implementers already live in.
- Incumbent implementation is slow and expensive. Kneat publishes 8–12 weeks average time to live. ValGenesis realistically runs 3–6 months for a single-site biotech and 9–18 months for a mid-cap multi-site rollout. Veeva makes implementation mandatory — there is no self-service path in a regulated environment.
- Change-of-control risk is live. Buyers signing multi-year Kneat deals in 2026 are being advised to price in the ownership change. Private-equity ownership historically means price discipline and upsell pressure. That is a real, current, sayable objection for our sellers.
The category is proven, the buyer's rollout pattern is known, and the leader is entering a PE ownership cycle at the exact moment we arrive with a cheaper, faster, sovereign, agent-native alternative. Our job is not to invent demand. It is to be the obvious second quote in every evaluation, and to be dramatically easier to start.
Per-seat, per-module, and a services bill that rivals the licence
| Vendor | Charging model | Observed price points | Implementation |
|---|---|---|---|
| Kneat Gx Category leader |
SaaS subscription for a specified number of users; multi-year terms, typically 3-year agreements, invoiced annually in advance. Land-and-expand site by site. | No list price. Mid-six to seven-figure annual deals for top-20 pharma and large CDMOs; smaller for biotech. C$76.4M ARR across the base. | 8–12 weeks published average. Professional services priced separately. |
| ValGenesis VLMS | Subscription that scales with users, sites and modules enabled (VLMS core, iVal, iClean, iOps, iCMC, iCPV). | No list price. Directory listing shows a $12,000 entry figure on a per-user model. Implementation, validation services and training all quoted separately. | 3–6 months single-site; 9–18 months mid-cap multi-site; 3+ years for global top-20. |
| Veeva Vault Validation Management |
Base application subscription plus named-user licences, per module, per environment. Storage bundles and API limits on top. | ~$600–$2,400 per user per year per module. ~$325k/yr licensing for a 500-person biotech; ~$2.15M/yr at 5,000+ employees. Enterprise agreements often structured around $500k/yr. | Mandatory. ~$300k for a mid-size biotech (≈92% of first-year licence); $1.2M+ at enterprise. GxP validation alone $100k–$500k. |
| MasterControl | Suite subscription, validation bundled into a wider QMS. | Directory entry point from $25,000/yr. | Services-led. |
| Validation services firms CAI, Performance Validation, boutiques |
Day rate or fixed-scope per system. Some now bundle a tool into a service ("validation as a service", no licence). | $25k–$150k per system; $40k–$120k per system for 6–12 weeks of execution work. | Is the implementation. |
Three structural weaknesses we can price against
Seats punish efficiency
Every incumbent's revenue grows with headcount in the validation department. Ours has to grow when their headcount falls, because that is the thing we sell. A per-seat Qualitum would be structurally at war with its own value claim.
Modules gate the outcome
Charging per module means the buyer discovers halfway through that the thing they needed is another SKU. It creates a second negotiation every year and it is the single most common complaint about enterprise life-sciences software.
Services cost as much as the software
A first-year Veeva bill is roughly double the licence. That is where the buyer's pain — and our partners' opportunity — actually sits. Cheap, fast, fixed-price deployment is the wedge.
Where pricing is heading in 2026
The wider market has already moved off pure seats. Seat-based pricing fell from 21% to 15% of SaaS companies in twelve months while hybrid models rose from 27% to 41%. Hybrid — a predictable base fee with a variable or capped usage layer — is now the dominant enterprise standard for AI products, because pure outcome pricing requires attribution nobody can agree on and pure consumption pricing makes budgets unforecastable. Our model is deliberately hybrid: a fixed licence per site, with a fair-use envelope rather than a meter.
The Qualitum Site Licence
One annual fee per licensed site. Unlimited users. All agents included. The client configures, maintains and owns their data; Qualitum owns the platform and keeps it in a validated, regulator-current state.
What a licence covers
- One licensed scope — see definition below
- Unlimited named users, including contractors and CRO/CDMO staff working on that site
- All agent systems in the purchased band, no per-module gating
- Deployment into the client's own environment, or a tenant we create for them
- Full configuration rights: templates, workflows, SOP mapping, terminology, prompt libraries, corpora
- Annual assurance: platform revalidation evidence, regulatory-change updates, version upgrades, vendor-audit support
What it does not cover
- Implementation, configuration and data migration — priced per project
- The client's own validation of their configuration — priced as a Validation Pack
- Infrastructure and model tokens where the client hosts — they contract those directly
- Bespoke development beyond configuration
- Inspection and audit attendance beyond the included allowance
Defining "site" — this is the clause that protects the model
A loose definition is how a global pharma turns eleven sites into one licence. The contract defines a Licensed Scope as either:
- A Licensed Site — one physical manufacturing, laboratory or packaging facility operated by the client at a single address, holding its own GMP authorisation, site registration or equivalent establishment identifier. Buildings within one contiguous campus under one authorisation count as one site.
- A Licensed Programme — one enterprise system validation programme not bound to a physical site (an ERP, MES or LIMS rollout, a CSV/CSA programme across an IT estate). Priced on the same bands.
The second definition matters more than it looks. A large share of validation spend is enterprise IT, not equipment — one publicly reported Kneat customer used the platform for all CSV documentation on an SAP S/4HANA deployment and reported $81M in savings. A pure per-site licence would have no way to price that deal.
Per-site is the right unit, but not on its own. Three failure modes, and the fix for each:
- Sites are not equal. A 40-person sterile fill-finish site and a 3,000-person campus are both "one site". Flat per-site overcharges the first and gives away the second. Fix: three bands keyed to scale and validation volume, not one price.
- Unlimited usage invites unlimited cost. Agents consume compute and support. Fix: a fair-use envelope expressed in validation packages per year — generous, visible, and reconciled at renewal rather than metered monthly. Pharma will accept a band upgrade; it will not accept a surprise invoice.
- CDMOs and CROs serve many clients from one site. One licence could quietly cover work for thirty pharma customers. Fix: a CDMO/CRO clause — the licence covers the site's own operations; validation work delivered as a commercial service to third parties requires the Service Provider band.
Why unlimited users is the right trade
The economic argument is that we should never be paid less because our agents replaced a reviewer. The commercial argument is stronger: seat counting is the single biggest source of friction in a validation rollout, because QA reviewers, engineering, external CQV contractors and equipment vendors all touch the workflow occasionally. Every one of those is a seat negotiation in a Kneat or Veeva deal. Removing it makes our deployment faster than theirs before we write a line of configuration — and speed to first value is the thing we are actually selling.
Recommended end-client pricing
All figures are recommended list, in EUR, ex VAT. The annual licence is quoted to the client as one number; internally it comprises the operating licence (80%) and Assurance & Upgrades (20%). Partners earn the shares set out in §09 and are free to sell above list — the uplift is theirs.
Annual licence
| Band | Annual licence | Fits | Fair-use envelope |
|---|---|---|---|
| Site · Essential | €65,000 | Single site, one modality. Biotech, small CDMO, medtech plant. Validate·AI. | 150 validation packages/yr |
| Site · Standard | €98,000 | The default. Full GMP site, multiple validation disciplines. Validate·AI + Operate·AI. | 400 validation packages/yr |
| Site · Complex | €145,000 | Large or multi-modality site, sterile/biologics, campus with several buildings, 2+ integrations. | 900 validation packages/yr |
| Programme | €98,000 | One enterprise system validation programme (ERP, MES, LIMS, IT estate CSV/CSA). | 400 packages/yr |
| Network | €420,000 | First 5 sites under one legal entity. Then +€62,000 per additional site. | Pooled across sites |
| Enterprise Network | from €1,250,000 | Unlimited sites in one legal entity or region. Negotiated scope, joint roadmap, named engineering capacity. | Pooled, uncapped |
| Service Provider | €165,000 | CDMO/CRO/validation house delivering validation to third parties from a licensed site. Per site. | 600 packages/yr |
Assurance & Upgrades is bundled into the annual licence and is never quoted as a separate +20% line. The whole position is “one number per site per year”; a separable line contradicts it and hands procurement something to decline at the third renewal, which is exactly when budgets tighten. The extra headline revenue is illusory anyway — a separately quoted assurance line simply gets netted against a lower base to reach the same market-acceptable total. Internally the split is still tracked at 80% operating licence / 20% assurance for revenue recognition and for the upgrade cost centre.
What the limits actually mean
Two numbers in the licence look like restrictions and get asked about on every call. Both are deliberately generous and both are reconciled once a year, never metered mid-term. Here is exactly what they count.
| Limit | What it counts | What it does not count | If exceeded |
|---|---|---|---|
| Validation packages per year |
One package = one approved deliverable set for one system, equipment item or process. A typical package is a URS, functional spec, risk assessment, IQ/OQ/PQ protocols, the traceability matrix and the summary report — everything for that one system, counted once, on final approval. | Drafts, regenerations, rejected versions, review cycles, revisions to an already-approved package within the same year, periodic reviews, searches, queries, dashboards, or anything a user reads rather than approves. | Nothing happens during the term. At renewal the site moves to the next band. There is no mid-term overage invoice, ever. |
| Users | Nothing. Unlimited named users at the licensed site, including QA, engineering, external CQV contractors, equipment vendors and CRO staff working on that site's validation. | — | — |
| Licensed scope | One physical site under one GMP authorisation, or one enterprise system programme. This is the thing the licence key is bound to. | Users, departments, workflow types, agent modules, storage, or the number of systems validated inside the envelope. | A second site or programme needs its own licence line. Detected at the annual entitlement attestation. |
| Token envelope Qualitum-hosted only |
Model consumption when we host. Essential 150M, Standard 500M, Complex 1,200M tokens/yr, pooled on Network. | Anything in client-hosted or client-tenant mode — they contract the model directly and we never see the bill. | €9 per additional 1M tokens, billed quarterly in arrears. See §11. |
| Support | Included: L3 engineering support, one remote vendor audit per year, unlimited platform documentation and training material access. | L1/L2 user support, which is the partner's job in the channel — or a priced Qualitum service on direct deals. | Inspection attendance and additional audit days are priced per day. |
Ask one question: “how many systems, equipment items or processes did you validate or revalidate last year?” Under 150 → Essential. 150–400 → Standard. Above 400, or sterile/biologics, or more than one building → Complex. If they cannot answer, that is itself the pitch — they are running a programme they do not measure.
Project and service fees
| Item | List | Elapsed | What it is |
|---|---|---|---|
| Proof of Value | €20,000 | 3 weeks | Credited in full against the first-year licence. See §12. |
| Deploy · Lite | €18,000 | 1 week | Standard configuration, SSO, roles, one workflow family, go-live support. |
| Deploy · Standard | €40,000 | 2–3 weeks | The usual case. Multiple workflow families, client templates mapped, document import, admin training, hypercare. |
| Deploy · Complex | €78,000 | 4–6 weeks | Up to two integrations, multi-department rollout, legacy migration, non-standard security review. |
| Validation Pack | €40,000 | +2–3 weeks | Per site. Validation plan, risk assessment, IQ/OQ/PQ protocols and execution, traceability matrix, summary report, GAMP 5 Cat 4 evidence, Part 11/Annex 11 assessment. |
| Corpus & template tailoring | €26k / €52k / €88k | 1–4 weeks | Light / standard / deep. Client SOPs, house style, terminology, historical package ingestion, eval tuning. |
| Annual Periodic Review | €18,000/yr | — | Per site. Revalidation of changed configuration, periodic review record, updated traceability. |
| Inspection support retainer | €12,000/yr | — | Named contact, 48h response, document pack on demand. Attendance €1,600/day. |
| EU AI Act conformity file | €16,000 | 2 weeks | For the client's deployment. Refreshed at €6,000/yr. |
| Managed Support direct deals only | €18,000/yr | — | Per site. L1 and L2 user support where there is no partner in the account. Never sold into a partner-owned deal — that is what the partner's renewal share pays for. |
| Bespoke development | €1,400/day | scoped | Anything outside configuration. Fixed-scope quote after a paid discovery day. |
A Standard site's €178,000 year one is €98,000 licence (recurring) + €40,000 Deploy · Standard + €40,000 Validation Pack (both one-off). The €80,000 of one-off cost is 45% of the year-one bill and none of it repeats — year two is the licence alone, €98,000. Isolate that split whenever year one is the objection: the licence isn’t expensive, year one is just carrying deployment on top of it once.
Two approved levers, neither of which moves the licence price or reopens the “one number, not two” decision above:
- Spread the €80,000 one-off across the year instead of invoicing it at signature — e.g. at signature, at go-live, and at 90 and 180 days. Total is unchanged; the number a procurement approval sees is much smaller.
- Waive Managed Support (€18,000/yr) for year one on direct deals. This only applies where there is no partner in the account, and it is the moment a new client has the least internal muscle for self-service. Charge it from year two, once they depend on it.
A third lever — ramping the licence itself below list in year one, recovered at renewal — would drop year-one licence margin below the 70% floor by design and needs a blended multi-year model before it is offered, not a per-deal judgement call.
How this compares
| Scenario | Comparable incumbent cost | Qualitum list | Note |
|---|---|---|---|
| 500-person biotech, single site, year one | ~€300k licence + ~€275k implementation (Veeva benchmark) | €98k + €80k | ~69% lower first-year total |
| One enterprise system CSV project | €23k–€138k per system, services route | €98k/yr, unlimited systems in envelope | Breaks even on the second system |
| Global pharma, 8 sites | Mid-six to seven figures annually | €606k | Priced to be the credible second quote |
Conversions use approximate mid-2026 rates and are directional. We are consistently positioned below the incumbents — never above — while carrying no per-seat ceiling.
They own the outcome. We own the machine.
The hardest question a partner will get is: "If we own our data and we can configure it ourselves, what exactly am I renewing?" Here is the answer, and it is a strong one.
| Asset | Client | Qualitum |
|---|---|---|
| Their validation data, documents, records, audit trail | Owns outright. Exportable in open formats at any time, including after termination. | No claim. No retention. No training on client data. |
| Their configuration — templates, workflows, SOP mapping, terminology, prompts | Owns and may modify without asking us. Full administrative rights. | No claim, but changes fall under the change-control clause. |
| Their environment | Runs in their cloud, their tenant, their region, their LLM contract if they wish. | Deployment-agnostic. We can operate it for them as a service. |
| Platform source code, agent architecture, evals, guardrails | Licensed to use, not transferred. | Owns. Non-exclusive, non-transferable, non-sublicensable licence to the client. |
| Reference corpora, benchmarks, validated datasets | Licensed for use at the licensed site for the licence term. | Owns. This is the compounding asset. |
| Validated state — qualification evidence, regulatory currency | Accountable to the regulator, always. | Maintained and re-issued annually under Assurance & Upgrades. |
You are not renewing permission to use software. You are renewing the validated state — the evidence pack that lets you point an inspector at this system, the updates that keep it current as Annex 11, CSA and the EU AI Act move, and the right to deploy new versions. Stop paying and your data is still yours and still exportable, but the validation evidence freezes on that day and the burden of maintaining it moves entirely to you.
What happens at non-renewal
Data
Full export in open formats, guaranteed for 12 months after termination. No hostage clause, ever. This is a selling point, not a concession.
Software
Licence key expires. Read-only wind-down mode for 60 days. Corpora and models are withdrawn — they were licensed, not sold.
Compliance
Last issued validation pack remains valid as a historical record. No further revalidation, regulatory updates or audit support. Their quality unit owns it from that point.
The change-control clause — read this carefully
Giving the client the right to modify their own configuration is commercially right and technically fine, but it has a regulatory edge. The platform is a GAMP 5 Category 4 configured product: we validate the product, the client validates their configuration. The contract must say that in those words. Two consequences:
- They will need help doing it, which is exactly what the Validation Pack and Annual Periodic Review are for. The right to self-serve creates the service revenue rather than removing it.
- Under the EU AI Act, a deployer who substantially modifies an AI system or changes its intended purpose can become a provider. The licence therefore defines an envelope of permitted configuration — inside it they are a deployer and we carry provider obligations; outside it they take on provider status themselves. Partners should sell staying inside the envelope, not warn about leaving it.
Qualitum implements. Always.
Delivery is not delegated. Every deployment, validation pack and corpus tailoring is executed by the Qualitum team, on Qualitum's method, to Qualitum's evidence standard. The partner sells it, owns the client relationship, runs first-line support — and takes 50% of the implementation fee.
Why we keep delivery
- The validation evidence is the product. If a partner produces it badly once, the regulator's view of the platform is set for years.
- Every deployment teaches the corpus. That learning has to come back to us, not sit in a partner's methodology.
- One to four weeks only works because the team has done it before. Distributed delivery becomes three months again.
- It removes the partner's biggest objection to signing up — they do not have to build a validation practice to earn from us.
What the partner does
- Finds, qualifies and closes the deal
- Owns the client relationship and the renewal conversation
- Runs L1/L2 user support in the client's language and time zone
- Coordinates the client side of deployment: stakeholders, access, security review, template collection, scheduling
- Sells the expansion — site two, the enterprise programme, the periodic review
One to four weeks to a working, configured deployment. Add two to three weeks if it has to be validated. We do the work; you take half the fee. Compare that with 8–12 weeks published by Kneat, 3–6 months typical for ValGenesis at a single site, and a mandatory implementation at Veeva that costs roughly as much as the first year of licence.
What moves the number
Adds time
- Client security review and penetration testing before deployment — routinely 2–4 weeks of calendar, not our effort
- Integrations into QMS, eDMS or ERP — roughly a week each
- Migration of legacy validation records
- Multi-language or multi-site template harmonisation
- A client with no digital validation history — the process design is the work, not the software
Does not add time
- User count — unlimited, no provisioning exercise
- Number of agents enabled — all in the band
- Choice of cloud or region
- Choice of model provider, including a private or local model
- Adding a second workflow family after go-live
Capacity is the constraint, and we manage it openly
If we deliver every deal, then delivery capacity — not sales — is the growth ceiling. A standard site consumes roughly 35 engineer-days across deployment and validation pack, so six engineers of standing capacity is on the order of twenty to twenty-five sites a year, not fifty. Three rules follow, and partners are told all three on day one rather than discovering them at signature.
- Go-live slots are published a quarter ahead and allocated on signature date. A signed order books a slot; a verbal commitment does not. The scarcity is real, so we use it rather than apologise for it.
- Channel recruitment is capped to delivery capacity — no more than one Certified partner per two engineers of standing capacity. The channel will outrun delivery long before it outruns the product, and a partner with no slot to sell into churns and then talks.
- The hiring trigger is written down: when booked slots pass 70% of the following two quarters, we recruit. Waiting for 100% guarantees a two-quarter gap, because a delivery engineer in this domain takes a quarter to become useful.
The two levers that raise the ceiling without hiring are Deploy · Lite — steer clients there wherever their templates genuinely fit — and corpus tailoring, which converts bespoke effort into a repeatable asset.
Why delivery list prices are where they are
Deployment and validation are delivered entirely by us, and the partner still takes half the fee. So the list prices are set from the far end: the half we retain has to clear 40% gross margin on fully loaded delivery cost, or the channel is being funded out of our own delivery P&L. That is the whole reason deployment lists at €40,000 rather than the €26,000 an earlier sheet carried, and the validation pack at €40,000 rather than €28,000. It is a real price increase, and it is not negotiable downward without also changing the partner share — the two numbers move together or not at all. Fully loaded cost per line is shown in the master table in chapter 13, so you can see the arithmetic rather than take it on trust.
| Package | List | Loaded cost | We keep (channel) | Our margin |
|---|---|---|---|---|
| Deploy · Lite (1 wk) | €18,000 | €4,400 | €9,000 | 51% |
| Deploy · Standard (2.5 wk) | €40,000 | €11,000 | €20,000 | 45% |
| Deploy · Complex (5 wk) | €78,000 | €22,000 | €39,000 | 44% |
| Validation Pack | €40,000 | €11,000 | €20,000 | 45% |
| Corpus tailoring · standard | €52,000 | €13,000 | €26,000 | 50% |
| Proof of Value | €20,000 | €9,000 | €20,000 (not split) | 55% |
Margin policy — two floors, both must hold
- Gross margin on Qualitum's own revenue: floor 70% on licence, floor 40% on delivery. Licence COGS per site per year is ~€8–14k (L3 support, platform ops, model operations, renewal management).
- Qualitum's share of end-client licence value: floor 65%. At 65% retention and ~12% COGS the contribution is ~53% of end-client list — the 50% target now holds at every tier and every band, which was not true when partners took 35–40%.
- Delivery margin is deliberately thinner than licence margin. It buys the annuity.
You sell and support. We build and validate. We split it.
Market benchmarks: referral partners in software typically earn 10–15% of first-year contract value; partners who own the customer relationship earn 20–35%; and hybrid structures pay a first-year share plus a smaller recurring one. Our model sits inside that range on the licence and adds something the benchmarks do not have — half the implementation fee, for work we perform.
| Referral | Certified Partner | Strategic Partner invitation only — not published | |
|---|---|---|---|
| Who it's for | Consultants, advisors, individuals with relationships. Pass the lead, we do everything else. | The core of the channel. Local sales and account ownership, first-line support. | Regional or segment leaders with a book of business and a support organisation. |
| Licence, year one | 15% of the licence as invoiced | 30% of licence list | 35% of licence list |
| Licence, renewals | — | 25% every year they remain the account owner | 30% every year |
| Implementation, validation, tailoring | — | 50% of the fee — Qualitum delivers | 50% of the fee — Qualitum delivers |
| Recurring services periodic review, retainer | — | 50% | 50% |
| Proof of Value | Qualitum runs and keeps it | Qualitum runs and keeps it. The partner's licence share is calculated on full list, so the PoV credit comes entirely out of our side. | |
| End-client price | List | Their choice, at or above list | Their choice, at or above list |
| They must | Sign an NDA and register the deal | A trained account lead, a trained support contact, deal registration, annual recertification | Four licensed scopes per year, a named support function with defined hours, a joint go-to-market plan |
| They get | Deal registration, materials, we run the sale | Partner portal, pricing, demo tenant, training, co-branded material, deal protection | All of Certified plus named-account protection, MDF, roadmap input, early access |
| Qualitum retains | 85% of licence | 70% Y1 / 75% renewals | 65% Y1 / 70% renewals |
On a typical single-site deal you earn roughly €82,000 in year one — €29,400 on the licence and €53,000 as your half of a deployment we execute — and then about €24,500 every year after, for owning the relationship and answering the phone. You do not need a validation practice, you do not need engineers, and you set the end-client price.
The support boundary, defined
The 50/50 delivery split only works if this is precise, so here it is. It goes into the partner agreement verbatim, and it is settled before a Certified partner signs rather than after the first argument about a ticket.
| Tier | Owner | What it covers | Response & target |
|---|---|---|---|
| L1 | Partner | “How do I” questions, user accounts and access requests, SSO and sign-in problems, training refreshers, template and terminology guidance, and first triage of anything reported. | 4 business hours to respond, 1 business day to resolve |
| L2 | Partner | Configuration changes inside the envelope, template and workflow edits, output and report formatting, permission models, data-quality investigation, and reproducing a suspected defect with steps. | 1 business day to respond, 3 business days to resolve |
| L3 | Qualitum | Platform defects, agent or model behaviour, performance, security, integrations — anything that needs code, a configuration we do not expose, or a release. | By severity, below |
| Severity | Definition | Qualitum response |
|---|---|---|
| S1 | Production unavailable, or the integrity of a GxP record is at risk. | 2 hours, 24/7 |
| S2 | A major function is unavailable and a workaround exists. | 1 business day |
| S3 | Minor defect or degraded function, no material impact on the validated state. | 3 business days |
| S4 | Request, enhancement or question about future behaviour. | Next release train |
A ticket reaches L3 with reproduction steps, environment, version and business impact, or it is returned. Three returned tickets in a quarter triggers mandatory retraining before the partner's next recertification. Where there is no partner in the account, L1 and L2 become a priced Qualitum service — Managed Support, €18,000 per site per year — which closes the gap on direct deals and makes the cost of the function visible when a partner asks what their 25% renewal share is actually for.
Rules that keep the channel honest
- Deal registration, 90 days. First to register with a named contact and a qualified opportunity owns the account. Renewable once on evidence of progress.
- The licence contract is always Qualitum ↔ end client. The partner earns margin but the licence and the EULA are direct. This protects the client (never orphaned if a partner leaves) and protects us (a partner cannot hold a renewal hostage).
- Renewal invoicing is ours. The partner share is paid automatically on collection.
- No sublicensing, no white-labelling the platform. Partners may white-label their own service wrapper. The product is Qualitum in front of the client and in the audit trail — which is what makes the compliance story hold.
- Account ownership is reviewed annually. The 25–30% renewal share is paid for keeping the client live, supported and current. If support goes quiet, the share reverts to us at the next renewal — and the client is told who to call instead.
- Support scope is written down — see the table above. L1 and L2 are theirs, L3 is ours, and the severity matrix and escalation rule sit in the partner agreement verbatim. This is the one place a 50/50 delivery split goes wrong, so it is settled before signature and not left to goodwill.
- Certified partner recruitment is capped to delivery capacity — one per two engineers of standing capacity. Signing partners we cannot give go-live slots to is how a channel destroys itself in its first year.
How we stop the licence leaking
Unlimited users plus client-side hosting plus a right to self-modify is, on paper, an invitation to give the product away. It isn't, provided six things are true.
1 · The key is the boundary
Every deployment runs against a signed entitlement file bound to the licensed scope, the environment fingerprint and the validation package hash. It is issued for 12 months with a 60-day grace period. Adding a site means a new key, and a new key means a new line on an order form. No key, no validated state — and an unvalidated instance is worthless to a regulated client.
2 · The envelope, not the meter
Validation packages per year is the fair-use dimension. It is reconciled once, at renewal, against the platform's own approval counter. Exceeding it moves the band next term. Never an in-term overage invoice — surprise billing is the fastest way to lose a pharma account.
3 · Annual attestation plus audit right
Many clients will be air-gapped, so telemetry cannot be the enforcement mechanism. Instead: a signed annual entitlement statement listing sites, environments and approved package count, plus a contractual right to audit once per year on 30 days' notice. Standard enterprise practice, and pharma quality units are entirely comfortable with it.
4 · Corpora are licensed, not delivered
The reference corpora, benchmark sets and eval suites are the compounding asset and they are withdrawn on termination. A client who walks keeps their documents and loses the thing that generated them well. This is the real switching cost, and it is a legitimate one.
5 · Direct licence, resold margin
Because the licence contract is always direct, a partner cannot bundle us invisibly into a managed service, cannot resell one licence across several of their clients, and cannot capture the renewal. The Service Provider band exists precisely so that CDMOs and validation houses can serve third parties — legitimately and at a price.
6 · Configuration yes, code no
Self-maintenance is a configuration right. Source, agent architecture, evals and guardrails are not delivered, not escrowed by default, and not modifiable. Source escrow is available as a negotiated concession on Enterprise Network deals only, released solely on insolvency.
Everything below the licence line
Infrastructure and model consumption sit outside the licence. We are agnostic by design — that is the sovereignty argument — and there are three ways a client can run us.
| Mode | Who runs what | Qualitum charges | Use when |
|---|---|---|---|
| Client-hosted default | Client's cloud or on-prem, client's model contract, client's security perimeter. We deploy and hand over the keys. | Licence + deployment only | Big pharma, anyone with a sovereign or private-model requirement, anyone with a data-residency mandate. Zero token exposure for us. |
| Client tenant, we operate | We create and run the tenant inside the client's own cloud account. They own the account and the bill; we hold operational responsibility. | +18% of licence/yr | Clients who want control of the data boundary but have no capacity to run it. Infrastructure and tokens billed directly to them by their cloud provider. |
| Qualitum-hosted | Our validated private cloud, EU or US region. We are then a service provider under Annex 11 and a processor under GDPR. | +€34,000/site/yr | Mid-market and biotech with no platform team. Includes the token envelope for the band; overage €9 per additional 1M tokens. |
What tokens actually cost
Partners ask this on every call and usually assume it is the risk in the deal. It is not. The table below is built from a blended model price of $5 to $12 per million tokens — the low end being a mid-tier model with cached retrieval, the high end a frontier model running full multi-pass sampling on every document. Real deployments land in the middle.
| Workload | Tokens | At $5/M | At $12/M | ≈ EUR | % of licence |
|---|---|---|---|---|---|
| One simple package GAMP Cat 3, small instrument | 0.2–0.6M | $1–$3 | $2–$7 | €1–€7 | — |
| One standard package Cat 4, multi-pass review | 0.6–1.5M | $3–$8 | $7–$18 | €3–€17 | — |
| One complex package Cat 5, large enterprise system | 1.5–3.0M | $8–$15 | $18–$36 | €7–€33 | — |
| Essential site 150 packages/yr, €65,000 licence | 60–200M | $300–$1,000 | $720–$2,400 | €280–€2,200 | 0.4–3% |
| Standard site 400 packages/yr, €98,000 licence | 240–600M | $1,200–$3,000 | $2,900–$7,200 | €1,100–€6,700 | 1–7% |
| Complex site 900 packages/yr, €145,000 licence | 900M–2.0B | $4,500–$10,000 | $10,800–$24,000 | €4,200–€22,000 | 3–15% |
| 8-site network ~3,200 packages/yr, €606,000 licence | 1.9–4.8B | $9,500–$24,000 | $23,000–$58,000 | €8,800–€54,000 | 1.5–9% |
What pushes it to the top of the range
- Frontier model on every pass rather than a tiered cascade
- Shotgun sampling at high n for contested or high-risk content
- Large legacy corpora re-embedded rather than cached
- Heavy regeneration cycles — the fix is prompt and template tuning, which is what corpus tailoring buys
The line for partners
In client-hosted mode — which is most deals — tokens are the client's own cloud bill and never appear on our invoice. Where we host, the envelope is included and the overage rate is published. Either way, model cost is single-digit percent of what they pay us. It is not a reason to hesitate and it is not a hidden cost.
The per-package figures above are engineering estimates and are never quoted to a client as a commitment. What is contractual is the envelope and the published overage rate. Qualitum-hosted envelopes are set with roughly 40% headroom over the estimate, so the hosted margin survives the estimate being wrong by that much. The first three deployments are instrumented for per-package telemetry and these numbers are replaced with measured data before the first Certified partner is onboarded. Review trigger: if measured consumption exceeds 60% of envelope in any quarter, the band envelopes are re-cut at the next annual revision.
Compliance: who is who, and what we charge for it
This is a pitch, not a disclaimer. The client cannot outsource accountability to a regulator — nobody can — so the offer is not “we take the risk off you”. It is: we make the evidence cheap, current and inspection-ready, and we stand next to you when someone asks for it.
| Framework | Client is | Qualitum is | What that obliges us to provide |
|---|---|---|---|
| GMP / Annex 11 / Part 11 | Regulated entity, accountable for the validated state | Supplier; service provider if we host | Quality/technical agreement, supplier qualification pack, validation evidence, change notification, audit access |
| GDPR | Controller | Processor if we host or operate; otherwise neither | DPA, sub-processor list, EU data residency, non-retention and no-training commitments |
| EU AI Act | Deployer | Provider of the AI system | Technical documentation, risk management file, logging, human-oversight design, conformity file; and a defined configuration envelope so the client does not inadvertently become a provider |
| ISO 27001 / security | Sets the requirement | Certified operator | Certificate, statement of applicability, pen-test summary, security questionnaire responses on request |
Priced compliance items
- Included in the licence: platform validation evidence, regulatory-change updates, quality agreement, supplier questionnaire responses, one remote vendor audit per year.
- Validation Pack — €40,000/site, one-off at deployment. The client's own IQ/OQ/PQ evidence for their configuration.
- Annual Periodic Review — €18,000/site/yr. Sold as the thing that keeps self-maintenance safe.
- Inspection support retainer — €12,000/yr, plus €1,600/day for attendance.
- EU AI Act conformity file — €16,000, one-off, refreshed at €6,000/yr.
- On-site vendor audit hosting — €4,800/day beyond the included remote audit.
The ladder
Every enterprise software company that has won in a regulated category has run the same motion: a small, cheap, credible first commitment that produces a number the buyer can take to their finance director, followed by a site, followed by the network. Kneat ran exactly this and was bought for C$650M. We are not inventing a motion; we are compressing it.
The Proof of Value, defined
It is a paid, fixed-scope services engagement — not a licence, not a trial, and not an obligation to buy anything afterwards. It exists to convert a belief into a measured number the client can defend internally.
What it is
- The genuine product, fully working, in a Qualitum sandbox we build and run
- Pre-loaded with the industry benchmark corpus, so it performs from day one without any client data ingestion
- Run against 3–5 of their real, historical, already-approved validation packages, redacted if their legal team prefers
- Measured against three success criteria and a baseline they supply, agreed in writing before kick-off
- Delivered as a live readout to the champion and their economic buyer, plus a written report they keep
What it deliberately is not
- Not connected to their systems — no ingestion pipelines, no integrations, no security review needed
- Not validated, and therefore not usable for GxP work — stated in the order form, in bold
- Not open-ended — three weeks, fixed scope, fixed price, one extension of one week by agreement
- Not a mock-up, a demo tenant or a slideware pilot
- Not free, and not discounted below list
Commitment, cancellation and the credit
| Question | Answer |
|---|---|
| Can they cancel after committing? | Yes. Cancel any time up to seven days before kick-off for a full refund less a €2,000 mobilisation fee. Cancel after kick-off and it is pro-rated by whole week, with a 50% minimum — we will have built the environment and loaded the corpus in week one. |
| Does it auto-convert to a licence? | No. There is no auto-renewal, no evergreen clause and no obligation to proceed. The order form is a services order that ends on delivery of the readout. |
| How does the credit work? | The full €20,000 is credited against the first-year licence if a licence is signed within 90 days of the readout. 50% is credited between 90 and 180 days. After 180 days the credit lapses. Applies once per client, not per site. |
| What if we miss the criteria? | They keep the report, the baseline analysis and the environment for a further 14 days, and they owe nothing more. No refund — they commissioned a measurement and they received one. We will offer one free week to re-run against different packages if the miss was ours. |
| Who owns the output? | The client owns every document generated, and their source material never leaves the sandbox and is deleted on request at close. The documents are not GxP-usable because the instance is unvalidated, and that is written into the order form so nobody is surprised at an inspection. |
| Who pays for it internally? | Almost always the validation or quality department's own budget. €20,000 sits below the no-tender threshold in most pharma organisations — but confirm the specific account's threshold before quoting, because in some it is €10,000. |
When €20,000 sits above their no-tender threshold
Ask it on the first call: “what is your no-tender threshold for software and services?” In most pharma organisations €20,000 sits below it. Where it does not, we do not split the purchase across two invoices to get under it — deliberate threshold-splitting is a finding internal audit actively looks for, and being the vendor who proposed it is a poor first impression to make on a quality organisation. The deal takes a different shape instead:
- Extend the teardown rather than shrinking the PoV. Half a day instead of ninety minutes, still free, still their own documents — now two or three packages, with their QA reviewer in the room. It does most of what the PoV does, and it costs us a morning.
- Then go straight to the lead site, with the first three weeks gated. The deployment's first milestone becomes an acceptance gate against the same three success criteria. Miss the gate and the client may terminate, paying only that milestone. Same risk transfer, one purchase order, no threshold problem.
A discounted half-scope PoV was considered and rejected: most of the cost is the environment build and the corpus load, neither of which halves, so a €9,500 version cannot clear the margin floor. What this route does cost us is the budget owner a paid pilot creates — so the champion has to be stronger before we take it. Qualify accordingly.
Why it is paid rather than free
- Free pilots do not convert in this category. Enterprise spend on generative AI tripled to $37B in 2025, yet MIT research found roughly 95% of generative AI pilots failed to show measurable P&L impact within six months. Almost all of them were free, unscoped and owned by nobody.
- A paid pilot creates a budget owner. Someone senior has to sign — and that is precisely the sponsor you need for the licence conversation twelve weeks later. Phase-gated pilots convert dramatically better than big-bang deployments.
- The credit removes the only real objection. They are not spending €20,000 on a trial; they are pre-paying the first slice of a licence they can still walk away from.
- The free step already exists. It is the Teardown. Anyone who will not give ninety minutes and one historical document was never going to buy.
Success criteria worth agreeing to
Pick three, in writing, before kick-off, measured against the client's own historical baseline which they supply: for example a 40% or better reduction in authoring and review hours on the sample packages; 100% requirement-to-test traceability in the generated output; and QA acceptance of the generated content by their own reviewer without structural rework. Agreeing the baseline is half the sale — it forces the client to quantify a cost they have been carrying without measuring.
The buyer, and what actually persuades them
| Role | What they care about | What to put in front of them |
|---|---|---|
| Head of Validation champion | Cycle time, backlog, audit findings, their team's overtime | The Teardown, then the PoV readout with their own packages side by side |
| Site or Ops director economic buyer | Time to release, recovered FTE capacity, capital project schedules | Recovered-hours arithmetic: a site running 200–400 packages a year with 8–15 validation FTE recovers roughly 4–7 FTE-equivalents at 50% documentation reduction — €300k–€600k of capacity against a €98k licence |
| QA / Compliance gatekeeper | Data integrity, ALCOA+, inspection defensibility, supplier qualification | Validation Pack contents, quality agreement, audit trail design, our GAMP 5 Cat 4 position |
| IT / Security gatekeeper | Where the data sits, which model, what leaves the perimeter | Client-hosted deployment, model-agnostic architecture, non-retention and no-training commitments, ISO 27001 |
| Procurement | Comparability, exit risk, lock-in | One number per site per year, no seat true-ups, guaranteed data export, no exit fee |
Four objections and the answers
“You're not Kneat.”
Correct — and Kneat has just been taken private by a private equity firm, which usually means price discipline and upsell pressure at renewal. We are the second quote that costs less, deploys in weeks rather than months, runs inside your own perimeter, and doesn't charge you per person.
“AI can't be validated.”
The platform is a GAMP 5 Category 4 configured product and is validated as one. Output quality is controlled by evals, guardrails and multi-pass sampling, with a human approval step that is never removed. The model is an interchangeable component; the controls are the product.
“Our data can't leave.”
It doesn't have to. Default deployment is inside your own cloud account with your own model contract. We are infrastructure- and model-agnostic, including private and local models. We can also operate it for you without ever holding the data.
“Why is it so much cheaper?”
Because we don't charge per person, don't gate features into modules, and deploy in weeks instead of quarters. The incumbents' cost structure includes a large field-services organisation. Ours includes agents.
Cost, margin, partner price, client price
Everything on one sheet. Line items are at recommended list. “Our cost” is fully loaded internal delivery cost, not marginal cost. Each partner tier shows what Qualitum keeps and what the partner earns from the same client invoice.
| Line item | Client list |
Our cost |
Referral · 15% | Certified · 30/25/50% | Strategic · 35/30/50% · invite only | |||
|---|---|---|---|---|---|---|---|---|
| Qualitum | Partner | Qualitum | Partner | Qualitum | Partner | |||
| Licence · Site Standard year one | 98,000 | 11,800 | 83,300 | 14,700 | 68,600 | 29,400 | 63,700 | 34,300 |
| Licence renewal every following year | 98,000 | 11,800 | 98,000 | 0 | 73,500 | 24,500 | 68,600 | 29,400 |
| Proof of Value (credited) | 20,000 | 9,000 | 20,000 | 0 | 20,000 | 0 | 20,000 | 0 |
| Deploy · Lite | 18,000 | 4,400 | 18,000 | 0 | 9,000 | 9,000 | 9,000 | 9,000 |
| Deploy · Standard | 40,000 | 11,000 | 40,000 | 0 | 20,000 | 20,000 | 20,000 | 20,000 |
| Deploy · Complex | 78,000 | 22,000 | 78,000 | 0 | 39,000 | 39,000 | 39,000 | 39,000 |
| Validation Pack | 40,000 | 11,000 | 40,000 | 0 | 20,000 | 20,000 | 20,000 | 20,000 |
| Corpus tailoring · light | 26,000 | 5,500 | 26,000 | 0 | 13,000 | 13,000 | 13,000 | 13,000 |
| Annual Periodic Review /yr | 18,000 | 5,000 | 18,000 | 0 | 9,000 | 9,000 | 9,000 | 9,000 |
| Inspection retainer /yr | 12,000 | 3,000 | 12,000 | 0 | 6,000 | 6,000 | 6,000 | 6,000 |
| Qualitum-hosted /site/yr | 34,000 | 14,000 | 34,000 | 0 | 34,000 | 0 | 34,000 | 0 |
| Typical single site, year one PoV + Standard licence + Deploy Standard + Validation Pack + light tailoring |
204,000 | 48,300 | 189,300 | 14,700 | 121,600 | 82,400 | 116,700 | 87,300 |
| Qualitum gross margin, year one | — | — | 74% | — | 60% | — | 59% | — |
| Same site, year two onward | 98,000 | 11,800 | 98,000 | 0 | 73,500 | 24,500 | 68,600 | 29,400 |
| Qualitum gross margin, run rate | — | — | 88% | — | 84% | — | 83% | — |
All figures in EUR. The Proof of Value credit is applied to the client's licence invoice and comes entirely out of Qualitum's share — the partner's licence percentage is always calculated on full list, which is why the Certified year-one total shows €121,600 rather than €141,600.
Change any number
The calculator below starts on that same example. Every quantity, price and cost is editable, and so are the three partner percentages. Set a quantity to zero to remove a line.
Deal model
| Line item | Qty | Unit price € | Our unit cost € | Client | Qualitum | Partner |
|---|
| Proof of Value credit against licence (borne by Qualitum) | — |
| Client pays, year one | — |
| Client pays, each following year | — |
| Qualitum three-year revenue | — |
| Partner three-year revenue | — |
| Client three-year spend | — |
| Qualitum cost, year one | — |
| Qualitum cost, run rate | — |
| Gross profit, year one | — |
| Gross profit, run rate | — |
Worked cases
| Case | Client yr 1 | Qualitum yr 1 | Partner yr 1 | Qualitum 3yr | Partner 3yr |
|---|---|---|---|---|---|
| A · Mid-size CDMO, one Standard site, Certified Partner. PoV + Deploy Standard + Validation Pack + light tailoring. | €204,000 | €121,600 | €82,400 | €268,600 | €131,400 |
| B · Biotech, one Essential site on our hosted cloud, referral partner, everything delivered by us. | €203,000 | €193,250 | €9,750 | €391,250 | €9,750 |
| C · Top-20 pharma, 8-site network, Strategic Partner. Deploy Standard and Validation Pack per site, deep tailoring. | €1,334,000 | €757,900 | €576,100 | €1,606,300 | €939,700 |
Note the shape of case A: in year one the partner earns two thirds of what we do, because they carried the sale. From year two the position inverts permanently and our share is almost all margin. Say that to partners out loud — it is the deal, and hiding it makes them suspicious of the renewal terms.
The five things their QA will ask for
Chapter 11 commits us, in one line of a table, to five deliverables under GMP: a quality/technical agreement, a supplier qualification pack, validation evidence, change notification and audit access. They are included in the licence, which means they are pure cost, and they have to exist before the first signature rather than after it. This chapter says what each one is and what building it involves.
The quality agreement is the parent document. Change notification and audit access are annexes inside it. The supplier qualification pack is the pre-sale dossier, and the validation evidence is what that dossier points at. Build them in that dependency order and it is two documents and one engineering effort, not five workstreams.
1 · Quality / technical agreement
A bilateral document signed by QA on both sides, not procurement, sitting alongside the commercial contract. Required by EU GMP Chapter 7 on outsourced activities and by Annex 11 §3.1, which obliges the regulated company to have a formal agreement with any third party providing a computerised system.
What goes in it
- Scope of the service and its GxP criticality
- Contract giver / contract acceptor roles
- A responsibility matrix across validation, change control, incident and deviation handling, CAPA, backup and restore, disaster recovery, data integrity
- Notification obligations and timelines
- Subcontractor and sub-processor disclosure, and their approval right
- Audit rights (Annex B)
- Record retention, data return and destruction on exit
- Named contacts, escalation path, review cycle
What we do about it
Write one master template that we hand them, so every negotiation is a redline of our paper rather than an acceptance of forty different versions of theirs. Roughly two to three days of drafting, and it pays for itself on the second client. Where we host, a service-provider addendum is bolted on covering the operational responsibilities we take over.
2 · Supplier qualification pack
What their QA needs in order to put us on the approved supplier list. Driven by Annex 11 §3.2 and by GAMP 5 supplier assessment. This is the single artefact that decides whether being qualified takes two weeks or eight, so it is a sales asset as much as a compliance one.
| Component | Contents |
|---|---|
| Company & stability | Corporate profile, ownership, financial standing, insurance, references, escrow position if asked. |
| Quality system | Quality manual summary, SOP index, document control, training and competency records, deviation and CAPA process. |
| Engineering | SDLC description, GAMP 5 Category 4 categorisation rationale, testing approach, release and version control, defect management. |
| Security | ISO 27001 certificate and Statement of Applicability, penetration test summary, access control model, incident response, business continuity and DR. |
| Data protection | DPA, sub-processor list, residency position, retention and non-training commitments. |
| Hosting | Data-centre and region detail, shared-responsibility model, monitoring and backup regime — only where we host or operate. |
The real deliverable is the response bank
Two artefacts: a supplier dossier PDF, and a pre-filled questionnaire response bank — the two hundred-odd standard questions every pharma QA and security team asks, answered once, maintained centrally, reused verbatim. The dossier is what they read; the response bank is what removes weeks of latency from every deal. About a week to build, and it should be owned by one person permanently.
3 · Validation evidence
Careful with the naming. This is not the €40,000 Validation Pack we sell — that is the client's own IQ/OQ/PQ for their configuration. This is our product-level evidence, given away inside the licence, proving the platform itself is built under control so the client can leverage it rather than re-test the platform layer themselves.
- Software development lifecycle procedure and its records
- Requirements and design specifications
- Risk assessment (FMEA) at product level
- Unit, integration and system test protocols and executed results
- Requirements-to-test traceability
- Version control, release records, release notes, defect and known-issue log
- Configuration management and environment qualification
- A Part 11 / Annex 11 technical controls assessment — audit trail, electronic signature, access control, timestamps, record integrity against ALCOA+
The AI layer is where QA will spend its time, because there is no established template for it. Our position needs to be written down as a standalone paper: pinned model version and pinned inference configuration, an eval suite with published acceptance thresholds, regression evidence on every change, multi-pass sampling for contested content, and a human approval gate that is never removed. The validated object is the workflow and its controls, not the model. That paper is also the answer to the "AI can't be validated" objection in chapter 12, so it earns its keep twice.
This is the long pole. Three to four weeks with engineering, and it cannot be written by anyone who is not inside the codebase.
4 · Change notification
A contractual commitment not to break their validated state without warning. It needs a classification scheme with lead times, published, and identical for every client.
| Class | What triggers it | Notice | What we supply |
|---|---|---|---|
| Major | Anything touching the validated state: data model, audit trail, electronic signature, breaking API change — and any LLM version change | 90 days | Impact assessment, regression evidence, the client's right to defer to their own change window |
| Minor | Non-breaking feature additions, UI changes, new agents that do not alter existing outputs | 30 days | Release notes and a summary of test coverage |
| Patch / security | Hotfixes and CVE remediation | 5 working days | Emergency security fixes may ship first with retrospective notice, by prior agreement |
Add a version support window — n-1 supported for eighteen months — and a deprecation policy. Then state plainly that there are no silent model swaps. That single sentence does more work in a QA meeting than the rest of the annex combined.
Two pages, half a day to write. The one thing to get right is consistency with the configuration envelope in chapter 10: if clients may modify freely and we also promise change control, the boundary between configuration and code has to be identical in both documents.
5 · Audit access
Define it, or it becomes unlimited — and forty clients auditing us individually is a headcount problem long before it is a compliance one.
- One remote or postal audit per year included. On-site beyond that at €4,800/day, already priced in chapter 06.
- 30 days notice, reduced to 5 working days for-cause following a major deviation or incident.
- Scope limited to the service they buy. Escorted. No access to other clients' data, environments or records — which is itself a control they should want.
- Regulator access: we commit to supporting inspection by their competent authority or the FDA, including a pre-approval inspection, on reasonable notice.
Commission one independent audit and share it
The SOC 2 pattern applied to GMP: one third-party GxP supplier audit, one report, offered to every client and every prospect. It costs a single engagement and removes most of the individual audit demand permanently. The lead time is long, so the decision needs making early — not the week the first client asks.
Build order, and what it costs us
| # | Artefact | Effort | Why it is in that position |
|---|---|---|---|
| 1 | Validation evidence + the AI control position paper | 3–4 weeks, engineering-led | Longest lead time, needs people inside the codebase, and it blocks the QA gatekeeper on every deal. |
| 2 | Supplier questionnaire response bank and dossier | ~1 week | Highest leverage per hour spent. Shortens qualification on every deal from that point on. |
| 3 | Quality agreement master template, with change notification and audit access drafted straight in as Annexes A and B | 3–4 days | One document, not three. Writing the annexes separately guarantees they will contradict each other. |
| 4 | Independent third-party supplier audit | Long lead, commission early | Not needed for the first deal. Needed badly by the fifth. |
Why this sits in a pricing guide and not a compliance one
All five items are given away inside the licence, and four of the five carry a recurring cost: the evidence has to be refreshed at every release, the response bank has to be maintained, the quality agreement has to be reviewed on cycle, and every client is entitled to an audit a year. That is a standing cost against every licence line, for as long as the licence renews.
Which is the point. When a partner asks why the licence cannot be discounted by fifteen per cent to close a quarter, this is a large part of the answer, and it is a better answer than “policy”. It is also the strongest thing to say to a client comparing us on price alone: the cheaper quote in front of them almost certainly does not include a supplier who will still be producing current validation evidence in year three.
Frequently asked
Grouped by who asks. Click a question to open it. Answers here are the approved wording — if you find yourself improvising an answer to something on this list, tell us and we will add it properly instead.
Licence and limits
What exactly is a "site"?
Is it really unlimited users?
What counts as a validation package against the envelope?
What happens if they go over the envelope?
Can they modify the system themselves?
What happens if they do not renew?
Price and comparison
Why are we so much cheaper than Kneat or Veeva?
Can a partner sell above list?
Can we discount?
What does it cost in year two?
What exactly is inside the €178,000 year-one number?
Can we soften the year-one number without discounting the licence?
Why is Expansion priced €62k–€98k, not one number?
Proof of Value
Why is the pilot not free?
Can they cancel after committing?
Do they get the €20,000 back?
What if the Proof of Value misses its criteria?
Delivery and partners
Why can't a partner implement?
So what does a partner actually do for the money?
What does a partner earn?
Who answers the phone when a user has a problem?
How long does implementation take?
Do we place engineers at the client site, and how are they scoped?
What happens if a client cancels mid-deployment?
How is this different from Palantir's forward-deployed model?
Technology, data and compliance
Where does the data live?
Which model does it use?
How can an AI system be validated at all?
What do the tokens cost?
Are you accountable to our regulator?
What certifications do you hold?
Seven decisions, and why the alternative lost
Earlier drafts of this model carried open questions. They are closed. Each one is recorded here with the reasoning, because a partner who knows why a rule exists will hold it under pressure, and a partner who only knows the rule will trade it away in the first difficult negotiation.
1 · Assurance & Upgrades is bundled, not added on
One annual number per site. The alternative was quoting assurance as a separate line at plus twenty per cent, which looks like more revenue and is not: a separable line simply gets netted against a lower base to reach the same total the market will accept. What it does reliably produce is a line item procurement can decline at the third renewal, which is precisely when budgets tighten and when we have the least leverage. Bundled is also harder to discount, because there is nothing separable to attack.
2 · The per-site bands are the only price vocabulary
€65k / €98k / €145k per site, €420k for a network. Earlier material carried a different set of tier figures; those are retired, not reinterpreted. The alternative was keeping both and explaining that one meant customer-level spend and the other per-site. Two price vocabularies inside one company is how an account ends up holding two different quotes from us, and nobody recalls a retrofitted definition correctly under pressure in a negotiation. Customer-level spend is now a derived figure — three standard sites is €294,000 — and never a published tier.
3 · Delivery list prices rose when we committed to the 50/50 split
Deployment at €40,000 and the validation pack at €40,000. The alternative was holding the earlier, lower figures and splitting those. It does not work: we carry the entire delivery cost and hand over half the fee, so the retained half at the old prices sits below any defensible margin, and the channel ends up funded out of the delivery P&L. The increase is simply the price of having a channel, and even after it a first-year bill from us is roughly seventy per cent below a Veeva-class equivalent. Anything quoted from an older sheet is re-quoted before signature.
4 · Delivery capacity is published and the channel is capped to it
Go-live slots published a quarter ahead and allocated on signature date; no more than one Certified partner per two engineers of standing delivery capacity. The alternative was recruiting the channel first and solving delivery afterwards. A partner with no slot to sell into churns, and a churned partner talks to the same small pool of accounts we are selling to. Scarcity that is stated in advance is a selling tool; scarcity discovered at signature is a broken promise. Chapter 08 has the mechanics.
5 · The Strategic tier exists, but is not published
Referral and Certified are on the sheet. Strategic is offered by invitation, after four partner-sourced sites are live or against a pipeline we have independently qualified. The alternative was publishing all three. With no certified partners in place yet, publishing three tiers invites every conversation to open by negotiating for the deepest one, before anybody has sold anything at all.
6 · The Proof of Value stays at €20,000; a low threshold changes the shape of the deal, not the price
Where €20,000 sits above an account's no-tender threshold we do not split the purchase across invoices — deliberate threshold-splitting is exactly the pattern a pharma internal audit function looks for, and proposing it to a quality organisation is a poor first impression to make. The alternative considered was a discounted half-scope pilot; it fails on arithmetic, because most of the cost is the environment build and the corpus load, and neither of those halves. The route round it is in chapter 12: an extended teardown, then a lead site whose first milestone is a terminable acceptance gate.
7 · Support tiers are defined before the first partner signs, not after the first argument
L1 and L2 belong to the partner, L3 to us, with response times and a four-level severity matrix, written into the partner agreement verbatim — chapter 09. The alternative was settling it in practice as tickets arrived. That is how a 50/50 delivery split turns into a dispute: not over money, but over who owned a ticket at two in the morning. Where there is no partner in the account, L1 and L2 become a priced service at €18,000 per site per year, which also makes visible what a partner's renewal share actually pays for.
What is still genuinely unknown
Three things, and none of them blocks a sale. Per-package token consumption, until the first three sites are instrumented — the figures in chapter 11 are engineering estimates and are labelled as such, and what is contractual is the envelope, not the estimate. The real support load behind a Certified partner, until one has been live a quarter. And the no-tender threshold in any given account, which is now a qualification question on the first call rather than a pricing question. Each has a stated trigger that reopens it. None of them is a reason to delay a quote.