WSO2 Introduces Income-Based Pricing Model for Governments Worldwide

WSO2 has introduced a new global pricing initiative aimed at public-sector customers, tying its government software subscription fees to national income levels in what it describes as a move toward fairer and more transparent digital modernisation.

The initiative, branded “Fair Pricing for Governments,” was announced in February 2026 and applies worldwide. The company says the goal is to ensure that government technology costs reflect local economic realities rather than uniform global pricing structures.

At the core of the model is an index-based methodology aligned with World Bank Country Income Classifications. Using internationally recognised income categories, WSO2 will apply standardised, non-negotiable discounts to government subscription fees based on a country’s economic standing.

High-income countries will receive a 20% discount. Upper-middle-income countries will be eligible for a 35% discount. Lower-middle-income countries will receive a 50% reduction, while low-income countries will qualify for a 62% discount.

The company says the approach is designed to eliminate arbitrage between markets, reduce negotiation-driven opacity and introduce consistency into public-sector procurement.

“Our goal is to facilitate software independence and help governments worldwide access high-quality, ethical digital services,” said Dr. Sanjiva Weerawarana, Founder, CEO and Chief Product Officer at WSO2. “We believe that fair pricing must reflect the economic context in which governments operate. By aligning fees with national income levels and applying a consistent, transparent framework globally, we are taking a concrete step toward enabling more equitable digital modernisation.”

Eligibility under the initiative is limited to official government entities directly funded by taxpayers, with public-private partnerships excluded from the framework. Subscription pricing will follow the income-based structure, while professional services and support will continue to be offered at standard commercial rates.

To provide budget predictability, WSO2 has capped annual subscription price increases under the programme at 5%, exempting participating governments from broader price revisions.

A Different Approach to Public-Sector Technology Pricing

The announcement comes as governments globally accelerate digital transformation efforts, from digital identity systems and API platforms to AI-enabled public services. While adoption is expanding, procurement costs and complex licensing negotiations often create disparities between high-income and lower-income markets.

By linking pricing directly to internationally recognised economic classifications, WSO2 is attempting to reposition enterprise software procurement in the public sector as a structured and transparent framework rather than a purely commercial negotiation.

The company, founded in 2005, provides open-source API management, integration and identity and access management software to organisations in more than 90 countries, with annual recurring revenue exceeding $100 million. Its positioning has long emphasised open-source principles and vendor independence.

The broader question is whether index-based pricing tied to economic indicators remains an isolated strategy or becomes a template for other enterprise software providers serving governments. As digital infrastructure becomes foundational to public services — and increasingly intertwined with national sovereignty and security — pricing structures themselves are becoming part of the policy conversation.

For lower-income countries, reduced subscription costs could lower barriers to deploying secure API management and identity platforms that underpin modern digital services. For higher-income governments, the capped increases offer longer-term budget clarity in large-scale infrastructure planning.

In effect, WSO2 is testing whether software pricing can be positioned less as a market negotiation and more as a structured global framework aligned with economic capacity. Whether others follow may determine how government technology procurement evolves in the next phase of digital transformation.