M3ter locks in $14M to expand its usagebased pricing tools for SaaS businesses
- Respectively, the former of these will let M3ter customers test pricing models in real time with simulations based on data troves it has amassed; and the latter will apply similar modeling to determine what a company might make under different business evolution scenarios.
- The concept of SaaS as a business model changed the game in tech by moving users away from buying software outright and toward paying for service availability based on time-based subscriptions, typically with per-month or annual pricing.
- That startup was eventually acquired by Amazon’s AWS — arguably the grand-daddy of popularizing usage-based pricing for APIs by way of its cloud services platform.One of the unique aspects of usage-based pricing is the granularity it gives customers: They are paying just for what they are using.
- They include a data science product it’s calling Cost Allocator.Based on feedback M3ter has been getting from its users, it will let customers figure out gross margin performance on a per-user basis, which Parry explained to me will help them figure out how to adjust pricing accordingly.
- SF-based Metronome, backed by some heavy hitters out of the Bay Area, and more legacy companies like LogiSense are among those also building out usage-based pricing platforms.
- )Pricing Experimenter and Usage Forecaster are also products under development.
The concept of SaaS as a business model changed the game in tech by moving users away from buying software outright and towards paying for service availability based on timebased subscriptions, typi [+6314 chars]