Definition
Usage-Based Pricing refers to software charged by consumption. In SaaS procurement, this term can affect security approval, total cost, administrator workload, renewal timing, or the ability to switch vendors later.
Questions to ask vendors
- Is this capability included in the plan being quoted?
- Does it require an add-on, higher edition, or implementation service?
- Which team owns configuration and ongoing review?
- Can the vendor document how this works before contract signature?