If you've been watching the market, you've probably noticed some changes in pricing models for enterprise software. While value-based pricing is already making its way into vendor strategies, the coming year will bring even more dramatic changes as demand fluctuates and vendors race to monetize their artificial intelligence workloads. For savvy chief information officers and customer experience (CX) leaders, it's an opportunity to optimize your spending and maximize value.
The software-as-a-service (SaaS) market is undergoing a real shift. On the demand side, companies are tightening their belts, reducing the number of licenses they purchase, and cutting overspending on unused seats. They're also looking at how much of the software they're actually using from a functionality perspective, and if there are lower-tier options that meet their needs without sacrificing capabilities.
Meanwhile, on the supply side, vendors are exploring new ways to capitalize on the AI revolution. Running large-scale AI models isn't cheap, and vendors are eager to pass those costs along to customers, albeit in ways that feel palatable. The result is an array of pricing experiments, from tiered AI credit systems to consumption-based billing that reflects actual usage to free and freemium embedded AI.
The other thing happening is both economic and functional. As AI-driven automation and agentic AI enables more interactions to be solved by digital agents, the old per-seat pricing models don't accurately reflect the value that software is delivering.
Not all vendors will be successful in this environment. Those with transparent, predictable pricing structures and robust tools, such as embedded telemetry, dashboards, and analytics, will rise to the top because they empower customers to see exactly what they're buying and where their money is going.
Strategies to Make the Most of Pricing Changes
The good news is that there's more transparency than ever in the market for software pricing, so having a handle on what the market will bear for pricing is easier than ever. Here are some strategies to optimize spending without sacrificing on your CX goals:
- Audit your SaaS usage. This sounds simple, but many organizations don't have real visibility into their SaaS usage. Are there licenses you're not using? Are some departments over-subscribed while others are underserved? If you can show your vendor that your usage patterns don't align with their standard offerings, you have a better opportunity to negotiate.
- Negotiate based on a credible business case. If you give your account manager the ammunition to explain to management why your deal warrants a discount, you make the job easier and your discount more likely. Vendors are increasingly open to value-based pricing, particularly with AI.
- Take advantage of telemetry and predictive tools. Real-time usage metrics and dashboards can help identify cost-savings opportunities and plan for the future.
- Demand flexibility. With the unpredictability of AI workloads, flexibility is key. Demand that vendors allow you to allocate AI credits across departments or workloads so you can get the most out of your investment as your needs evolve.
- Keep tabs on industry trends. What are your key vendors' competitors doing from a pricing perspective? Although you might not be considering a switch, understanding pricing trends, from user-based to consumption-based, bundling, and feature tiers, can help you anticipate changes and position your organization to benefit from them.
- Know your timing. Renewing contracts or adding licenses at the right moment can make a big difference. Knowing your organization's broader goals and how they may impact your overall contract with key vendors can help as well.
The SaaS market in 2025 will reward those who are proactive, informed, and unafraid to negotiate. By embracing transparency, demanding flexibility, and leveraging tools that provide insight into usage and spending, you can turn pricing changes into an opportunity to optimize costs and maximize value from your CX technology investments.
Rebecca Wettemann is founder and CEO of Valoir.