Software isn't dying, but it is becoming more honest - Helen Min

"We often conflate "SaaS" with "fixed subscriptions," but they aren't the same thing. At its core, SaaS was a shift in how software was accounted for-moving it from a fixed capital expense (the old "license and maintenance" era where you bought hardware and paid a massive upfront fee) to a recurring service."

"For a long time, seat-based enterprise software was a fantastic deal for vendors and a mediocre one for customers. It created "shelfware"-licenses bought "just in case" that sit idle, never get activated, yet keep the recurring-revenue ticker moving. We've all seen it: a company "trips the core" and adds a few dozen seats that no one actually uses."

"Outcome-based billing changes that dynamic. Instead of paying for potential capacity, you pay for what you actually accomplish. Usage-based billing is a big step in the right direction."

The SaaS industry is experiencing a fundamental shift in its business model, moving away from fixed subscription billing that has dominated for 15 years. While seat-based enterprise software created recurring revenue for vendors, it often resulted in unused licenses and wasted customer spending. Outcome-based and usage-based billing models are replacing this approach, allowing customers to pay for actual consumption rather than potential capacity. This evolution is particularly evident in AI companies that need infrastructure costs aligned with their usage patterns. The change represents not the death of software, but rather the maturation of how software businesses operate and charge for their services.

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