Scott Wu, CEO of Metronome, discusses organizational changes and go-to-market shifts required in usage-based software companies with a16z GP Martin Casado.
“I think in a lot of cases, the role of CS is really much thinner than you would otherwise have. I think you really do want a team who's deeply embedded in the success of the company, but most CS folks on the label Aren't doing enough to justify that.”
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More from Scott Wu
Insight
Scott Wu: AI output-based value breaks traditional seat-based SaaS monetization
“AI is changing the value prop of software. You know, it's kind of doing two things at once. One, it's like the software is not doing work on your behalf. And so the core value of the software is not who in my org has access to the data. It's like, what can thi…”
Scott WuJul 18, 2025▶ 8:08Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
AssertionNot checkable as stated
Wu: Public company manages $1B in usage billing entirely by hand
“We're talking to a company last week, a public company, they're in like a billion dollars in usage-based spend through enterprise contracts. All of that billion dollars is handled by hand.”
Scott WuJul 18, 2025▶ 13:57Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
AssertionNot checkable as stated
Wu: Dropbox's top 1% usage customers were margin negative
“The commercial model of Dropbox incentivized, it was a team-based thing, number of users. It incentivized us to get really good at getting a wall-to-wall deployment. Did not incentivize us at all to drive incremental usage. In fact, in a very literal sense, yo…”
Scott WuJul 18, 2025▶ 18:12Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
Insight
Scott Wu: Companies need a pricing dictator, not a pricing council
“My main thing is like, you don't want a pricing council. You want a pricing dictator. You want someone who is telling you what the right pricing is.”
Scott WuJul 18, 2025▶ 28:34Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
Insight
Wu: Seeking one fixed AI pricing model is a category error
“Basically, sometimes people are like, what's the right pricing model? And I'm like, that's a category error. Like there is no right pricing model. The only thing I know is agility is the only thing that's rewarded in this environment.”
Scott WuJul 18, 2025▶ 32:22Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
AssertionNot checkable as stated
Wu: AI startups are capping gross margins at 20% via cost-plus pricing
“Actually, one of the things that's really fascinating is you'll see companies that are actually, their pricing model is like a cost plus model in this moment, where basically they just fix their margin. And then they basically say, look, we just, we're going t…”
Scott WuJul 18, 2025▶ 33:36Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind)
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