Consumption-Based Pricing Is Emerging From Leading SaaS Providers, but Beware


Published: 11 March 2019 ID: G00379668

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Summary

Consumption-based pricing is often assumed to be synonymous with cloud. Until recently, it has been largely absent from major providers’ SaaS offerings — but that is changing. Sourcing, procurement and vendor management leaders must carefully evaluate consumption-based pricing to reduce SaaS costs.

Table of Contents

  • Analysis
  • Impacts and Recommendations
    • Digital Business and Cost Optimization Are Driving Major SaaS Providers to Offer Consumption-Based Pricing
    • Pay-as-You-Go IaaS Offerings Are Creating Growing Customer Demand for Similar Pricing Flexibility in SaaS Models
    • Consumption-Based Pricing Will Likely Be More Expensive per Unit Than Committed Volumes
    • Consumption-Based Pricing Will Force Some SaaS Pricing Metric Changes for Existing Customers
  • Gartner Recommended Reading
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