Webinar

Setting the Stage: Rising Cloud and AI Costs

The webinar opens with a clear message: innovation isn’t cheap. As cloud hosting expenses rise and AI workloads explode, software producers are feeling real pressure on profitability. The speakers emphasize that companies staying ahead are the ones treating pricing as a strategic lever—not just a billing mechanism. This framing establishes the central question of the session: how can software vendors modernize monetization to keep margins strong while delivering increasingly compute‑heavy solutions?

The Experts: Revenera and Simon‑Kucher Perspectives

Paul Bland of Revenera brings deep experience in software monetization infrastructure, while Philip Daus from Simon‑Kucher contributes decades of pricing strategy expertise. Their combined vantage point—technology enablement plus commercial strategy—allows for a grounded, actionable discussion. Paul outlines Revenera’s role in empowering usage‑based and hybrid licensing, while Philip provides global market observations across hundreds of pricing projects. Together, they offer both the “why” and the “how” behind the shift toward modern monetization.

The Evolution of Software Monetization Models

The speakers walk through the industry’s evolution—from perpetual licenses to subscription, from subscription to consumption, and now toward outcome‑based models. They highlight how today’s software providers often sit in a transitional hybrid world, blending seat‑based and usage‑based approaches. This section makes clear that modern pricing isn’t binary; it’s multi‑dimensional, reflecting device access, user access, and real consumption. Importantly, AI accelerates this shift by introducing unpredictable costs and new value points.

The Limitations of Traditional Seat‑Based Pricing

A major takeaway is that seat‑based pricing is increasingly risky in an AI‑driven landscape. As AI automates human tasks, traditional per‑user models shrink in relevance, even as system costs rise. The presenters warn that tying revenue to human usage while AI handles more work will inevitably erode margins. This sets the foundation for why consumption‑based and outcome‑based models are becoming essential, not optional.

Token‑Based Pricing: A Flexible, Future‑Ready Alternative

Philip explains token‑based pricing through accessible analogies like Dave & Buster’s, illustrating how companies can convert upfront monetary commitments into flexible units that customers “spend” across various features. Tokens enable multiple pricing metrics—per request, per response, per event, per outcome—all under one umbrella. The speakers highlight benefits such as granular price control, easy mid‑term adjustments, and the ability to monetize premium AI features without rigid packaging constraints.

Real‑World Applications of Token and Outcome Models

The webinar showcases examples from major industry players already using credits or tokens—AI actions, agent interactions, generated documents, or successful outcomes. These examples demonstrate how companies can charge for true value moments rather than blunt usage proxies. They also outline how providers are balancing cost‑based versus value‑based token designs, depending on how measurable the outcome is and the maturity of their data infrastructure.

Revenera’s Elastic Access: Bringing Consumption Models to Life

Paul introduces Revenera’s Elastic Access as a turnkey way for vendors to implement token‑based consumption without building their own backend. Rate tables allow product teams to define token costs for features, AI operations, or any metered activity, and adjust them quickly as needed. The system handles real‑time token calculations, access control, analytics, and integration with billing systems. This section demonstrates how technology can remove the operational burden that typically slows down adoption of modern pricing.

Key Implementation Challenges: Wastage, Overage, and Migration

Both speakers emphasize that the hardest parts of token‑based pricing aren’t technical—they’re strategic. How do you manage unused tokens? What happens when customers exceed usage? How do you migrate a customer base without disruption? The webinar surfaces several models for token rollover, overage handling, discounts, and renewal structures, explaining the trade‑offs of each. This gives viewers a realistic understanding of what decisions must be made before launching a new pricing framework.

Crawl‑Walk‑Run Approaches for Modernizing Pricing

Recognizing that not every organization can jump straight into advanced monetization, the presenters outline practical starting points. Companies may begin by tracking token usage before charging for it, introduce only a few metered activities at first, or pair subscription tiers with small token pools. Over time, organizations can layer in complexity as they gain data and customer comfort. This guidance reassures vendors that modernization is achievable incrementally, not all at once.

The Big Picture: Monetizing Value, Not Just Recovering Costs

The webinar closes with a powerful reminder: modern pricing isn’t about recouping infrastructure spend—it’s about capturing the value customers receive. AI creates new opportunities to charge for impactful outcomes, mission‑critical automation, and premium capabilities. By embracing token‑based and consumption‑driven models, software producers can unlock new revenue, reduce churn, and strengthen long‑term profitability in an increasingly AI‑intensive world.