How consumption-based billing is making SaaS costs fairer

Part of the On Cloud Podcast series

Traditional subscription-based billing methods for SaaS are increasingly unpalatable for customers. To address the issue, many SaaS vendors are turning to consumption-based billing solutions

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Transforming SaaS cost structures with consumption-based billing

Subscription-based billing methods for SaaS products aren’t flexible, and they’re often not fair. Drop-in metered billing solutions change that dynamic by enabling consumption-based billing—with customer-chosen metrics—for SaaS. The result? For customers, a more equitable billing structure with improved cost control. For software vendors (or any company looking to monetize home-grown software), the ability to build a more flexible, customer-driven product and get it to market faster.


The closer you can get to the actual usage—the usage and value of the product in terms of the price, that's when you have really happy customers.

Akash Khanolkar is cofounder of Octane, a drop-in, metered billing system that gives businesses the flexibility to bill how they want.



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