Last week, Amberflo co-founder and CEO, Puneet Gupta appeared on the 10K Media Podcast by Adam LaGreca.
Puneet oversaw two different tier-one services at Amazon Web Services (AWS) scaling to over a billion dollars in revenue on the back of a usage-based pricing model. The trends in tech buying are moving away from perpetual licenses and subscription models, and even away from licensing seats and gating features, to a more straightforward business model that more directly aligns the value delivered with what the customer is charged. After gaining this experience firsthand, Puneet co-founded Amberflo to help organizations without the engineering resources and domain expertise of a company like AWS to deploy and scale with usage-based pricing.
According to Puneet, the future is here and the movement towards product-led growth and a usage-based business model is inevitable. We’ve included some highlights from the conversation below, but we encourage you to check out the entire podcast. Listen to the full podcast here.
- What is usage-based pricing?
- How enterprise technology pricing models have evolved over time; from on-premises licenses to subscriptions (seat-based pricing; feature-gated tiers) to usage-based pricing.
- Usage-based pricing aligns the cost charged to customers with the value realized from the solution. It is the most fair and transparent way to bill customers.
- Advice for companies looking to transition to usage-based pricing or to adopt a product-led growth (PLG) motion on the back of usage-based pricing.
- Why separating metering and billing into two disparate (yet integrated) services is the correct approach to enabling usage-based pricing at any scale.
- Lessons learned managing and growing tier-one services at AWS.
- Usage-based pricing requires usage instrumentation. This data must be accurate and complete, but once collected it has massive downstream value across all areas of the business, spanning sales/marketing/service, product, and even finance/accounting.
- Tips for getting started with Amberflo.