Consumption Based Model
topic on 4 shows · 6 statements across 6 episodes
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6 statements about Consumption Based Model, every show
AI agents consume more compute resources than humans, driving infrastructure growth
“And actually that like agents appear to consume more resources and actually people. And so like the, some of these consumption based models, like the growth of companies”
Ranjan Roy: AI will become a daily utility billed by consumption
“AI will be baked into just daily life, and you will pay for it on a consumption-based model.”
Cannon-Brookes: Enterprise customers generally dislike consumption-based SaaS pricing
“Go talk to customers about how much they love consumption-based models. Generally, they don't love them very much, because they're not quite sure how much they're going to consume, they don't want to be in control of their employees, so the world does trend to…”
Consumption pricing beats seat-based pricing by removing caps on growth
“Having a consumption based model is super smart. I see this mistake a lot. Like people will be like, oh, I'm going to price on users. There's a cap on users. You know, if the economy goes down, then there's maybe less users. But if you can price based on, you …”
Software Pricing Will Shift From Per-Seat SaaS to Consumption-Based
“We will move away from a traditional per-seat SaaS model to a consumption-based model, aligned much more closely to value and output.”
Mehta: Customer success acts as the primary growth driver in consumption models
“If you have a business model where people pay you as they consume, like a consumption based model, like Twilio, which is we're proud to have as a gainside customer in those businesses, that customer success motion is the growth motion”