Consumption Based Pricing

“Well, eventually I think it's gonna be more consumption and then entirely consumption going forward. So I think there's also be a transition, but now it's gonna be hybrid, and eventually it's gonna be a hundred percent consumption.”

“With AI, all of these pricing models are minimally going to start to look like consumption based pricing, right?”

“Yeah, I think that's dead. I think consumption is, is the future for sure.”

“Consumption-based pricing. It doesn't work, and what I mean is, you can have some adoption in the short term. The best example is Snowflake, but in the long term, it destroys your business, and the reason is because you don't know which data is valuable, and y…”

“And also our baseline continues to grow. So as people get more and more data and more and more queries, our revenue grows as well. Right. Which I think is a way superior model than a licensing or Seat based. Cause eventually you might run out of users. For us …”

“I think the pricing models in the future will be both seat based and some kind of, they will have some kind of consumption based mechanism. Combine.”

“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 A…”

“I think we're gonna absolutely move to consumption-based pricing. It's the only way. I think it's gonna be very hard to hold the mold mode on, on recurring revenue as it is today. Because customers will want to see more value, and they'll want to see a more so…”

“So if you're starting a company from scratch, I do think the companies that are utility-based product-led growth, consumption-based pricing are the best businesses largely.”