• As per the Openview Survey, Usage-based pricing has grown 32% this year for SaaS companies (45% adoption this year vs 34% adoption last year)
  • Since 2018, Usage-based pricing has been growing in the market. Major IaaS providers like AWS, Azure and Googlecloud use it to price their services. But, usage-based pricing was still relatively new in the Middleware and application space
  • Things are changing now with more and more middleware and application-based companies adopting usage-based pricing
    — Twilio, Stripe, and Plaid are among big middleware companies charging by usage
    — Shopify, Slack, and Hubspot are among big application companies using the model
  • As the growth of companies using SaaS, PaaS, and IaaS products are growing it looks like usage-based pricing will fuel the future adoption

Note: The only space where there seems to be lesser enthusiasm is “Enterprise customers”. With their licenses and subscription bills running into millions every year, big enterprise customers still prefer having predictability to their cost structure.