Alex Wang: Enterprise software will shift from per-seat to consumption pricing
Alex Wang · Alex Wang: Why Data Not Compute is the Bottleneck to Foundation Model Performance | E1164 · 20VC with Harry Stebbings · Jun 12, 2024 · at 32:14
Alex Wang, founder and CEO of Scale AI, explains why AI agents executing enterprise tasks render traditional per-seat SaaS licensing obsolete in favor of consumption-based models.
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“The reason that per seat pricing doesn't make sense going into the future is that at an enterprise today, certainly most of the productive work is done by their employees, done by people. But in a future where you imagine more and more of the work is done by AI agents or AI models then perceived pricing doesn't really make sense, because you want, you know, as a provider of software, provider of solutions, you want to make sure that you're capturing the value that you're providing to the people, but also the value that, you know, your agents or your, you know, your AI systems are producing. And so I think that, that shifts a lot of the world towards consumption-based pricing. Versus per seat.”
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