Software Pricing Pivot Could Reshape Big Tech Revenue Models

Lucas and Luna dig into a quiet but consequential shift underway in enterprise software pricing: the move from per-seat licensing to consumption-based and outcome-based models. Microsoft, Google Cloud, and smaller SaaS players are all experimenting with new structures that tie revenue directly to usage and results. Lucas cites Microsoft's recent decision to charge per 'AI action' for Copilot, a break from its traditional seat-based licensing, and examines how this could unlock higher revenue per user if AI adoption scales. Luna raises the tension for customers: while outcome-based pricing could lower barriers to entry, it also introduces cost unpredictability and potential vendor lock-in. They discuss why this pivot is especially urgent as big tech cloud growth plateaus—Microsoft's cloud business showed just 15% year-over-year growth in the most recent quarter—and how the shift might affect margins and customer relationships across the industry. #SoftwarePricing #ConsumptionBasedPricing #OutcomeBasedPricing #Microsoft #GoogleCloud #Copilot #SaaS #CloudGrowth #EnterpriseTech #BigTechRevenue #AImonetization #VendorLockIn #PerSeatLicensing #TechBusinessModels #Technology #FexingoBusiness #BusinessPodcast #TheBigTechPodcast Keep every episode free: buymeacoffee.com/fexingo