The SaaS industry has reached a turning point. After nearly two decades of relying on seat-based pricing, enterprises now expect pricing that reflects real value and real usage. Hybrid and consumption-based pricing models are becoming the new standard as AI-driven workloads reshape how software is used and consumed.
This shift accelerated in 2025 and 2026 for three key reasons:
- Enterprise customers want pricing aligned to usage, not access. Usage-based and hybrid models have grown exponentially, with adoption by 85% of SaaS leaders and 61% of companies using hybrid pricing by 2025.
- AI workloads created nonlinear consumption patterns that seats can’t capture. AI-augmented features add measurable consumption—tokens, credits, compute minutes—which cannot be priced sensibly per user.
- Vendors now depend on usage-based monetization for growth and competitiveness. High-growth SaaS companies (>40% YoY) show 21% median growth when using hybrid models.
This blog explores why the industry shifted, how hybrid/consumption pricing works and what leaders must do to remain competitive.
Why the old seat-based model broke
Reason 1: Overprovisioning and software waste took over
Seat-based pricing assumes predictable usage. In reality, organizations overbought licenses to cover fluctuating team structures, hybrid work and project-based staffing. The result was waste and rising IT spend.
Reason 2: AI disrupted SaaS economics
Generative AI doesn’t scale by user. It scales by tokens, compute minutes and model complexity. Seat-based pricing cannot reflect these cost drivers or the value created by AI.
Reason 3: Enterprise budgets require value clarity
Leaders want fairness and predictability. Hybrid pricing models grew rapidly because they help organizations better match cost to outcomes.
The rise of consumption-based pricing
Consumption-based pricing ties revenue directly to usage—such as API calls, storage or tokens. This creates better alignment between value and spend.
Why consumption aligns incentives
Usage-based pricing aligns vendor economics with customer value:
- Customer success drives vendor revenue
- Transparent pricing reduces friction
- Low barriers to entry support adoption
- Realized value accelerates expansion
The Metronome 2025 report emphasizes that 77% of the largest software companies use consumption pricing specifically to unlock revenue expansion from their existing customers.
AI’s impact on usage-based adoption
AI redefined the pricing unit. Seats are being replaced by tokens, credits, compute units and AI actions. These workloads are nonlinear and volatile, making consumption-based models a natural fit. With AI, the pricing unit fundamentally changed:
| Old unit | New unit |
|---|---|
| Seat | Token |
| User | Credit |
| Login | Compute unit |
| Feature | AI action/assist |
Modern AI workloads often involve:
- Multi-step reasoning
- Verification loops
- Context retrieval
- Agent orchestration
These dynamics multiply consumption. As Deloitte notes, AI spend has become “volatile and nonlinear,” breaking traditional pricing logic.
Example vendors leading the shift
Here’s how major SaaS providers changed pricing structures:
- Snowflake: pure consumption: storage + compute + queries
- AWS: granular metering across thousands of services
- Twilio: per‑API‑call, routing, and capacity units
- OpenAI / Anthropic: token‑based billing with distinct input/output rates
Even productivity platforms like Microsoft, Notion, and Atlassian now bundle AI usage credits alongside seats, signaling a broad shift across SaaS categories.
Hybrid pricing becomes the new default
Hybrid pricing combines a predictable base subscription with scalable usage. It has become the fastest-growing model across SaaS because it balances stability with flexibility.
Common hybrid pricing structures include:
- Seats with usage limits
- Included credits per user or tenant
- Credits with overage fees
- Pooled credits across teams
This variety underscores that hybrid is not a single model, but a category designed for flexibility.
Operational implications for practitioners
Hybrid and usage-based billing increase complexity for teams across FinOps, procurement and SaaS management. They require real-time visibility, multi-dimensional metering and better forecasting.
AI consumption compounds this complexity by introducing new metrics like tokens, actions and compute cycles. Organizations now need guardrails, alerts and consolidated views of spend across SaaS and cloud environments.
Why visibility matters
Without clear consumption data, organizations face budget surprises, uncontrolled AI use and inaccurate renewal planning.
What this means for the future of SaaS pricing
AI will push SaaS toward more multi-metric contracts, combining seats, storage, API calls, credits and tokens.
FinOps and SaaS management will continue to converge as organizations seek a unified view of technology spend. Vendors will be pressured to increase transparency through real-time dashboards, exportable consumption data and built-in cost governance.
Vendors will be forced to increase transparency
As consumption becomes more central to spend:
- Customers will demand real-time dashboards
- APIs for consumption export will become table stakes
- In‑portal‑only visibility will become unacceptable
- AI workloads will require automated cost governance
The industry will shift from reporting consumption to governing it.
Final thoughts on SaaS pricing and the hybrid era
The move from seat-based pricing to hybrid and consumption models is a structural evolution. Driven by AI, cloud economics and the need for value alignment, these models create a more sustainable and scalable pricing foundation for SaaS vendors and customers.
The next blog in this series will explore AI consumption metrics, token economics and why AI costs can escalate quickly.
