The landscape of SaaS pricing continues to undergo a transformative shift, driven by changes in buyer expectations, cloud services, automation, and the evolving nature of software consumption. Businesses seek greater flexibility and alignment between cost and value metrics, including trackable results that customers want from an application or service. Consumption-based pricing (CBP) has emerged as a compelling alternative and, in some cases, a complement to traditional subscription pricing models. CBP bills customers based on the actual use of a service, catering to buyers’ desire for greater pricing transparency and enabling SaaS businesses to diversify revenue streams and scale offerings in a more customer-centric manner. A blend of subscription and consumption pricing models, called hybrid pricing, contributes to revenue retention and expansion. Consumption-based pricing models are gaining traction for complex offerings such as generative AI (GenAI).