AI + a16z AI Is Upending SaaS Pricing
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Jul 18, 2025 
In this conversation with Martin Casado, Scott Woody, CEO and co-founder of Metronome and former monetization lead at Dropbox, discusses how AI is revolutionizing SaaS pricing. They delve into the shift from user-based value to output-based models, redefining monetization. Woody shares insights on the growing demand for usage-based billing and the complexities it entails, as well as strategic advice for SaaS founders in navigating these changes. This dialogue uncovers essential dynamics for thriving in an AI-driven landscape.
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Dropbox Billing Challenges
- Scott Woody shared his experience at Dropbox where pricing changes would take months to implement.
- Billing was seen as fragile, slow, and more like a product surface than a simple monthly workflow.
AI Changes Software Value
- AI changes software value from user count to work performed on behalf of users.
- This shift undermines seat-based pricing and creates demand for new commercial models.
Align Org For Usage Billing
- Usage-based billing requires rethinking sales comp, roles, customer success, product focus, and finance speed.
- CEOs must align the whole company to the usage model to make it successful.