The Woman who Coined SaaS Says the Model is Breaking

SaaS business models are shifting from extractive, per-seat pricing toward symbiotic, value-based relationships as traditional growth levers reach a breaking point. Amy Konary, SVP of Marketing at Zuora and founder of the Subscribed Institute, argues that companies must move beyond aggressive price hikes and instead co-create value with customers. Sustainable growth now requires hybrid monetization strategies—combining platform fees with usage or outcome-based metrics—to ensure predictability while aligning costs with actual customer value. Because AI integration introduces significant uncertainty, building trust through clear communication, data transparency, and flexible retention options like "pause and resume" is critical. Ultimately, the most successful providers prioritize long-term relationships over short-term gains, recognizing that enterprise customers require stability and proven utility before committing to expanded, AI-driven tiers.