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Consumption-Based SaaS Is Here

SaaS licensing is shifting rapidly towards consumption based pricing. Visibility is difficult. Seat based pricing is out.

31 July 2026·5 min read

For the 10 years I’ve been in the Software Asset Management space, the way you buy software has been consistent; you counted your users, licensed per seat and optimised from there based on user activity. Budgeting was straightforward.

Something’s changed. The license metric is shifting from who has access to what is being consumed. Budgeting and optimising are becoming unpredictable and difficult. This change is likely going to define your next few renewal cycles and the uncomfortable part is most organisations are going in without the tooling, data or processes to get a favourable outcome.

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