AI + a16z

AI Is Upending SaaS Pricing

Episode Summary

a16z GP Martin Casado sits down with Metronome CEO Scott Woody to unpack how AI is fundamentally changing the value proposition of software—and why that shift demands a rethink of the traditional SaaS business model

Episode Notes

In this episode, a16z GP Martin Casado sits down with Metronome CEO Scott Woody to unpack how AI is fundamentally changing the value proposition of software—and why that shift demands a rethink of the traditional SaaS business model.

They explore how, in the cloud era, value scaled with the number of users accessing a shared system (think Salesforce). However, in the AI era, value shifts to the work the software performs on your behalf, automating tasks such as writing code or resolving support tickets. As a result, the old value metric of “users” is being replaced by “output,” and it’s upending how companies monetize.

This conversation goes deep on:

• What new pricing models will emerge in an AI-native world
   
• Why usage-based billing is gaining ground—and where it breaks
   
• How to align GTM teams and customer success orgs with evolving value metrics
   
• Strategic advice for SaaS founders navigating hybrid business models and incentive design

If you’re selling software today, you don’t want to miss this discussion.

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Scott Woody 

Martin Casado