Type: Blog

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The Shift to Usage-Based Pricing

Pricing strategies shape more than just revenue—they define how businesses grow and evolve in a competitive market. While subscription-based pricing has long been a staple for recurring revenue, usage-based pricing is emerging as the model of choice for businesses that prioritize flexibility, transparency, and alignment with customer behavior.

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A Complete Guide to Revenue Forecasting

Revenue forecasting is a cornerstone in shaping a company's future outlook and guiding essential business decisions. It influences both short-term and long-term goals, helping prepare the organization for the future. A well-structured forecast is pivotal for budgeting various aspects such as new hires, marketing campaigns, facilities, equipment, and research and development (R&D).

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How Consumption-Based Pricing is Impacting Different Industries

Consumption-based pricing is a dynamic model where customers are charged based on actual resource or service usage rather than a fixed fee or subscription. This approach is transforming various industries by driving innovation, enhancing customer experiences, and offering flexibility that benefits both customers and businesses. Let’s see how industries are reshaping their pricing strategies through consumption-based models—and why accurate revenue forecasting is critical to their success.

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Revenue Intelligence 2.0: Aligning Finance and Sales for Better Forecasting

Revenue forecasting today requires more than traditional metrics and isolated predictions. In an increasingly complex business environment, forecasting must encompass both sales dynamics and financial performance, integrating these insights to provide a true picture of future revenue. Yet, despite its importance, many companies remain constrained by siloed forecasting models that limit decision-making, accuracy, and long-term growth potential.

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What is Consumption-Based Pricing?

Consumption-based pricing is quickly becoming a powerful approach, providing flexibility that allows customers to pay only for the resources they use—whether it’s storage, API calls, or CPU hours. Known as pay-as-you-go, metered billing, or usage-based pricing, this model is increasingly popular across industries like cloud computing, IaaS, SaaS. While it offers clear benefits for both users and providers, this flexibility brings unique challenges to the forefront, particularly around revenue predictability and effective resource allocation.