SaaS pricing models

Seat-based pricing models continue to decline

SaaS pricing models are gradually evolving, reflecting both buyer preferences and vendor strategies to offer more flexible arrangements. Price-per-user models, once the dominant structure, have steadily declined from 42% of contracts in December 2024 to 37% in December 2025, suggesting organizations are increasingly seeking alternatives to fixed user-based pricing, particularly as workforce fluctuations make per-seat costs less predictable.

Meanwhile, usage-based pricing has remained relatively stable at around one-third of contracts, and hybrid models combining per-user and usage-based elements have grown from 27% to 30% over the same period. While these flexible models align costs more closely with actual adoption and value delivered, they also introduce greater variability in spend, as total costs can fluctuate with usage.

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