Debunking the usage vs subscription myth

In recent years, there has been a significant uptick in SaaS companies, in particular, investing in usage-based pricing models. Datadog, Twilo and Snowflake are just some of the big names to become a part of this growing trend, creating a belief amongst many that it is the future when it comes to selling services.

Underpinning this shift in business strategy, The End of Ownership is a movement that has been underway for some time. Today’s consumer is less interested in the status that comes with owning things. They don’t want to deal with upfront costs, the hassles of maintenance and the frustration of obsolescence. Instead, they are motivated by a desire for positive and fulfilling experiences that bring true value and convenience to their lives. People want to get the most out of whatever they pay for. And they do not want to pay for services that they do not use. In fact, a recent report from Zuora discovered that nearly three-quarters of international adults (72 percent) would prefer the ability to pay for what they use, rather than just a flat fee.

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