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Consumption and active-usage billing represent opportunity and risk for SaaS providers. Leveraging pay-per-active-usage models allows technology business unit leaders of SaaS providers to disrupt application markets and drive retention by delivering enhanced value and eliminating waste.
Table of Contents
Impacts and Recommendations
Pay-per-active-usage models represent an untapped opportunity for SaaS providers to deliver value and attract new clients
- Evaluating active-usage billing versus the prevailing model of discounted suites
Concern associated with less-predictable revenue by providers and investors accustomed to existing models remains a significant roadblock to progress of SaaS pay-per-active-usage models considered synonymous with other cloud markets
- What could stimulate providers to offer active-usage billing?
- Analyzing the lifetime value of a customer
Suitability of pay-per-active-usage billing and opportunity to disrupt existing markets by creating value will vary by enterprise size, use case and software market
- Impact of organization size
- Suitability of pay-per-active-usage billing across varying software markets
- Pay-per-active-usage models represent an untapped opportunity for SaaS providers to deliver value and attract new clients
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