AI Compute Costs Drive Shift To Usage-Based Software Pricing

The software-as-a-service industry is undergoing a fundamental transformation, abandoning the decades-old "per seat" licensing model in favor of usage-based pricing structures. This shift, Business Insider reports, is primarily driven by the astronomical compute costs associated with new "reasoning" AI models that power modern enterprise software.
Unlike traditional generative AI, these reasoning models execute multiple computational loops to check their work -- a process called inference-time c