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.
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
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