Comment by amoorthy
8 hours ago
"a pricing model based on seats, a product roadmap built around features rather than outcomes [is outdated]"
I disagree with this.
On pricing, I get that agents and tokens can scale in a way that's unrelated to # of users. But for much SaaS software, AI remains helpful to a human and the human remains the receiver of value. Seat-based pricing is easy to understand and you can always layer in token/agent costs thresholds.
On features vs. outcomes, the latter is hard to define and measure in many industries. In marketing SaaS, which I know well, you can't often tell what outcome to expect. You have to try a lot of ideas and some will hit. No way a SaaS vendor can guarantee that.
The argument against seat pricing is that companies will employ fewer people in general. So a 45 person company paying for 10 seats will become a 7 person company paying for one seat.
Not sure I agree with this train of thought, but a SaaS CEO made this exact argument to me last week.
I’d add that token pricing doesn’t work for anyone but the frontier models. Everything else will be commodified. So Opus can charge us top prices per token until a lower (or local) model hits parity and then price goes to zero.