Guest Blog: Keep the Subscription, Meter the Magic: The Practicalities of Usage-Based Pricing

Guest Author: Nicole Segerer

Pricing leaders face a stark reality as the economics of AI-powered products and cloud computing tear the conventional playbook apart.

Revenera’s 2026 Monetization Monitor suggests 80% of software producers already offer AI-enabled technology, yet 70% say delivery costs are eroding profitability. At the same time, Flexera’s IT Priorities report highlights budgetary strain for enterprise IT leaders, with overspending on AI the biggest cause of concern.

Buyers are frustrated by high costs, yet suppliers are struggling to see healthy margins. Something clearly needs to change, and it is.

Subscription models remain the backbone of software monetization, but they’re no longer enough. The data is clear: pure subscription is losing ground, while hybrid models – combining subscriptions for core functionality with usage-based components for high-cost features – are gaining momentum. This shift isn’t theoretical. It’s a direct response to the need for pricing strategies that reflect actual consumption, control costs, and ensure transparency for customers.

Figure 1: Findings from the Revenera Monetization Monitor 2026 Outlook report.

Usage-based pricing is on its way to mainstream for suppliers delivering software via public cloud, private cloud, and even for embedded software on intelligent devices. For AI, where resource demands and computation costs swing wildly, metered pricing is essential for protecting margins and meeting customer expectations.

The challenge is execution: how do you move from legacy models to a flexible, data-driven approach without disrupting your business?

In my upcoming session at profitABLE in Barcelona, I’ll break down the practical steps for launching usage-based pricing in SaaS and AI. Here’s the framework I’ll be sharing:

1. Define Your Value Metric: Identify the metric that best captures customer value – compute hours, API calls, transactions, or another driver.

2. Segment Your Customers: Build pricing tiers that reflect usage patterns and business priorities, not just seat counts.

3. Build Flexible Infrastructure: Your systems must be able to track, meter, and bill accurately. Without this, usage-based pricing will fail.

4. Model Financial Impact: Run the numbers. Forecast revenue scenarios and margin implications to secure internal buy-in and avoid surprises.

5. Communicate Transparently: Make it easy for customers to understand how usage translates to cost. Transparency drives trust and adoption.

6. Iterate and Optimize: Treat pricing as a living strategy. Monitor usage data, collect feedback, and refine your approach continuously.

   
   

These are not abstract recommendations – they’re actionable steps that leading suppliers are using to modernize their monetization strategies. In my session, I’ll dive into each step, share examples from the field, and address the operational challenges that come with change.

Ready to move beyond outdated pricing models? Join me to learn how you can build a resilient, profitable, and customer-aligned pricing strategy for your SaaS and AI offerings. Attendees will leave with a practical framework, real-world examples, and the confidence to lead pricing transformation in their organizations.

TITLE OF PRESENTATION: How to Launch Usage-Based Pricing for SaaS and AI

DATE OF PRESENTATION: FRIDAY, 5 DECEMBER 2025

TIME OF PRESENTATION: 13.30 - 14.10

MEETING ROOM: Jupiter