Gartner analyst Robert Desisto notes that suppliers of software as a service (SaaS) for the enterprise continue to resist to the move to “pay as you go” because it will have a very big impact on their business model predictability.
As understandable as that is, SaaS suppliers are vulnerable to viable suppliers willing to offer true "on demand" pricing where users pay on a "usage" basis.
Oddly enough, that's the model some policy advocates think is so detrimental for consumer users. To be sure, there would be winners and losers in a "usage-based" enterprise software market, as there certainly would be in a "usage-based" consumer market for Internet access.
Some lighter users would be better off with usage-based billing. Heavy users would pay more.
Sunday, December 8, 2013
Usage-Based Billing Might be Good for Many Enterprise and Consumer Users
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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