Why Usage-Based Pricing is Taking Over SaaS

Consumption models are replacing per-seat pricing across the industry.

Platform businesses have fundamentally changed how value is created and distributed in the digital economy. Rather than building linear supply chains, platforms create ecosystems where producers and consumers interact directly, with the platform facilitating trust, discovery, and transactions.

The network effects that emerge from these interactions create powerful competitive moats. As more users join the platform, the value for each individual user increases, making it increasingly difficult for competitors to gain traction.

This dynamic has led to winner-take-most outcomes across many categories, from ride-sharing to social media to enterprise software. Understanding these dynamics is crucial for anyone building or investing in technology businesses today.

Looking ahead, we expect to see platform strategies extend into traditionally offline industries like healthcare, real estate, and financial services. The companies that successfully apply platform thinking to these large, fragmented markets will generate enormous value.