SaaS pricing models

Seat-based pricing models continue to decline.

With the rise of AI, speculation has grown around a shift from the traditional seat-based model to more flexible usage-based pricing. While the transition is slower than some experts predicted, a clear trend is emerging.

As of September 2025, 39% of SaaS contracts use seat-based pricing, down from 43% the previous year. In this same period, usage-based pricing has grown from 32% to 34%, while hybrid pricing increased from 25% to 27%.

This gradual but continual shift suggests that companies are demanding more flexibility in how they pay for software, and vendors are responding with increasingly hybrid and usage-based models to accommodate different products and customer needs.

Nick Riley, Global Head of Purchasing at Vertice, explains:

“Household names like Salesforce and Snowflake have announced moves away from charging by user or seat, which has likely given the impression that the switch to usage-based pricing is happening more quickly. In reality, many vendors seem to be watching and waiting - seeing how it plays out in the long term before making drastic changes.”

Nick Riley, Global Head of Purchasing at Vertice

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