Episode Details

Dave Sobel is joined by analysts Ryan Morris and Seth Robinson to discuss the current state of the SaaS industry, the challenges with pricing models, and the impact of AI on the market. The analysts delve into the maturing nature of SaaS, highlighting the importance of demonstrating value to customers and the need for a shift towards outcome-based pricing models. They also explore the evolving landscape of AI and its potential to disrupt traditional pricing structures in the SaaS world. 

The conversation shifts towards the challenges of managing cloud spend and the need for companies to optimize their software code and implement chargeback processes effectively. The analysts emphasize the importance of educating customers and providing tangible value to ensure long-term success in the SaaS market. They also discuss the evolving net retention rates in the software industry and the implications for growth and customer retention. 

As the discussion delves into the role of AI in pricing models, the analysts explore the concept of per seat pricing and its limitations in the AI-driven landscape. They predict a shift towards consumption-based pricing models and emphasize the need for a focus on outcomes rather than inputs. The conversation concludes with a reflection on the potential for an AI bubble and the natural hype cycle that emerging technologies go through, highlighting the importance of delivering real value to users amidst market fluctuations.

About Business of Tech: The daily MSP news and analysis podcast for managed service providers and IT services leaders. Host Dave Sobel covers AI for MSPs, MSP pricing and profitability, MSP M&A and private equity, vendor partner programs, MSP cybersecurity and liability, and MSP operations — and answers the question every story raises: Why do we care? Produced by MSP Radio.

💼 All Our Sponsors

MSP Radio is supported by our partners:

ABC Solutions · CometBackup · Firetail · HaloPSA · LogMeIn · Mailprotector · Pax8 · Rythmz · ScalePad · TimeZest · Transit AI

Supporting the IT services community through insights, analysis, and transparency.

🚀 Join Business of Tech Plus

Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.

👉 https://businessof.tech/plus

🎧 Subscribe to the Business of Tech

Want the show on your favorite podcast app or prefer the written versions of each story?

📲 https://www.businessof.tech/subscribe

📰 Story Links & Sources

Looking for the links from today’s stories?

Every episode script — with full source links — is posted at:

🌐 https://www.businessof.tech

🎙 Want to Be a Guest?

Pitch your story or appear on Business of Tech: Daily MSP News & IT Services Analysis

💬 https://www.podmatch.com/hostdetailpreview/businessoftech

🔗 Follow Business of Tech

LinkedIn:

Listen Now