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Discussion on: Why Isn't Usage Based Billing A Bigger Category?

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Puneet Gupta

Enjoyed reading it. Thanks for sharing your insights.
If I read you correct, looks like for Netlify it was the right move to shift from subscription to Usage-Based, and they have not looked back.
The cons you cite I believe are all a function of an emerging domain/category...and will be addressed with time and purpose built solutions.

We are finding that companies are realizing that shifting to Usage-Based is not a step function (a feature change) but a full out overhaul. As you have chronicled about Netlify.
Ultimately, business alignment drives everything. Increasingly, customers are becoming more wary of shelfware (subscription amount paid but value not realized) and are warming up to the new model of - pay only for what you use, as the more fair and transparent business model.
You are right - surprises etc. have to be dealt with. But I consider that more of a company's culture and optics (how they wish to treat customers) than a limitation of the business model.

If this solution was available to you at Netlify, would you have considered it?
youtu.be/45qHczzQOX0

Puneet