Puneet Gupta discusses usage-based pricing on Software at Scale podcast

October 13, 2022

In this interview, Amberflo co-founder and CEO Puneet Gupta sits down with Utsav Shah from “Software at Scale” to discuss his background at AWS and Oracle where he saw behind-the-scenes the challenges and opportunities that accompany operating usage-based businesses at scale. The link to the full interview can be found here.

Some highlights from the conversation include:

  • Why AWS pioneered the usage-based model and why S3 was the first service launched by AWS.
  • Discussing the impact UBP has on the culture and operations of a company. Puneet references his time at Oracle and the challenges it faced attempting to pivot from a traditional sales-led subscription approach to a more modern, usage-based approach.
  • How the subscription pricing approach is essentially a reinvention of software licenses from the 20th century and how usage-based pricing offers a better way to align vendor and customer success.
  • Why usage-based pricing is the most fair, transparent, and flexible approach; for cloud-native businesses it offers the most exact strategy to balance front-end usage with back-end resources consumed. As microservices-based architecture becomes the status quo, this trend toward usage-based pricing is only set to accelerate.
  • How even an established B2C vendor like Netflix could leverage a usage-based approach to address some of its current challenges around user monetization.
  • For a new company looking to get started with usage-based pricing today, what consulting services or best practices are available to help define and implement metering and ultimately arrive at a profitable, customer-friendly usage-based pricing plan.

Check out the full interview here:


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