Reduce costs by 14 percent with consumption pricing

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Consumption-based pricing models are changing how organizations align technology spend with business value, moving away from traditional subscription models that increase 5 to 10 percent annually regardless of usage. To investigate this dynamic, Nucleus Research reviewed research across multiple organizations who adopted consumption-based pricing models to understand its operational and financial impact relative to traditional subscription pricing. Analysis revealed direct savings of 14 percent relative to fixed-cost models, 52 to 80 percent faster implementation of new capabilities, and productivity improvements across technical teams. Early adopters who aligned architecture culture with consumption paradigms report more efficient cost structures over time, relative to traditional SaaS subscriptions. As this pricing model becomes further ingrained with the marginal cost implicit to AI services, organizations who build around usage-based services are poised for greater success.

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