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How Your Company Can Adopt a Usage-based Business Model Like AWS

by
TechCrunch+
July 25, 2022
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Summary

Tech Crunch shares why a usage-based pricing (UBP) model like Amazon Web Services is the only one that makes sense in the cloud, delivering very high levels of revenue growth and product adoption. "Any company operating in the cloud can (and should) adopt a usage-based pricing model enabled by best practices and frameworks that optimize the value being provided to the customer."

Of the 300+ services that Amazon Web Services (AWS) has released over the years, not a single one has needed to be rolled back from being priced incorrectly.

That’s no accident.

Usage-based pricing (UBP) delivers very high levels of revenue growth and product adoption. Any company operating in the cloud can (and should) adopt a usage-based pricing model enabled by best practices and frameworks that optimize the value being provided to the customer.

The usage-based model is the only one that makes sense in the cloud. Given the elastic nature of the underlying infrastructure, anything that gets layered on top needs to be just as flexible — and that includes pricing. Below, I lay out seven steps to get started with a usage-based pricing model at your business.

Why it Matters:

- As more firms incorporate digital products and services into their offerings, usage-based business models will become the preferred way to do business.

- Firms that have adopted usage-based pricing models will have more flexibility and agility to shift as consumer demands and market trends rapidly change.

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TechCrunch+
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