SaaS pricing models

SaaS vendors are moving away from traditional seat-based models in favor of flexible, consumption-linked structures. Vertice’s data shows that as of March 2026, price per user models (seat-based pricing) has dropped to an all-time low of 35%, while hybrid models have surged to 31%. This shift reflects a market-wide transition where vendors aim to capture value from high-compute features like AI, while buyers seek to align costs more closely with actual output.

SaaS pricing trends 2026


While the data currently reveals a market converging toward a "three-way split," where no single pricing model holds a dominant majority, this might not be the case for long given the continued surge in hybrid pricing – up 6% YoY.

This growth signifies a fundamental change in the vendor-buyer relationship:

  • The AI monetization bridge: Vendors are using hybrid models to solve the "AI cost problem." By charging a fixed base for the platform and variable credits for AI tasks, they can maintain recurring revenue while passing on the fluctuating costs of Large Language Models (LLMs) to the power users.
  • A "best of both worlds" compromise: For CFOs, pure usage-based pricing often carries the risk of "bill shock." Hybrid pricing provides the budget predictability of a subscription floor combined with the "pay-for-what-you-use" efficiency that modern procurement teams demand.
  • The end of the "all-or-nothing" seat: As seat-based pricing falls to 35%, the hybrid surge proves that businesses are no longer willing to pay full price for low-engagement users. The hybrid model allows for a tiered approach where access is cheap, but activity is what actually drives the bill.

In short, while per-user and per-usage models are largely stagnant or in slight decline, the 6% jump in hybrid pricing suggests it is rapidly becoming the new industry standard for the "AI-first" tech stack.

Data source: These insights are derived from over $30bn of global processed spend managed by Vertice in 2026.

Last updated
April 2026

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The need-to-knows about Vertice

How much are prices rising in 2026?

According to Vertice’s software inflation data, as of March 2026, prices are rising by an average of 13.2% year-on-year. While this has dropped marginally from 14.2% in February 2026, it still remains significantly higher than the 2.4% US CPI. Having total visibility of software spend, access to real-time vendor pricing benchmarks and the support of a procurement expert that can leverage this data on your behalf – securing not only the best possible price but also optimal contract terms – is crucial for mitigating the impact of inflation on your budget. Take a tour of Vertice and see for yourself how a leading procurement platform provider with SaaS spend management capabilities can guarantee measurable SaaS savings.

What is the biggest risk in a hybrid SaaS contract?

Variable Volatility. Unlike seat-based models where costs are fixed, hybrid models allow costs to scale indefinitely. Without annual credit rollovers and overage price protection, a single high-activity month (or an inefficient AI bot) can consume your entire annual budget.