SaaS has become the preferred software delivery model. However, with the rise of AI and other analytical tools and their intense compute usage, Consumption-based pricing is on the rise.

Consumption-based pricing, also known as usage-based or pay-as-you-go pricing, means customers pay only for the resources or services they actually use. This model is becoming increasingly popular, particularly in the SaaS and cloud computing sectors, as it aligns costs directly with value received and offers flexibility for both businesses and customers.

In fact, offering a consumption-based model isn’t just a trend—it’s becoming an industry standard. Vendors adopting it position themselves for long-term growth, higher margins, and stronger customer loyalty, all while meeting modern enterprise expectations

Ultimately, we think the Hybrid model (combining SaaS and Consumption models) will gain in popularity as it allows for elements of predictable pricing, while not overburdening all users with expensive features.

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