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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Importance of Pricing in IT Operations Management Software
In the rapidly evolving IT Operations Management (ITOM) software landscape, pricing strategy serves as a critical competitive differentiator that directly impacts both market adoption and long-term revenue growth. A well-crafted pricing approach for ITOM solutions creates alignment between the value delivered through infrastructure monitoring, automation, and AI-powered capabilities and the investment customers are willing to make to achieve measurable operational improvements.
- Market expansion opportunity: The ITOM software market is growing rapidly from $39B in 2023 to a projected $73B-$135B by 2030, making effective pricing strategies essential for capturing market share during this expansion phase, according to Grand View Research and SNS Insider reports.[1][2]
- Cloud transition impact: With 65-70% of ITOM software now being delivered via cloud models, pricing structures must evolve beyond traditional licensing to subscription and consumption models that reflect the operational value delivered through modern deployment options.[1][2]
- AI value capture challenge: The integration of AI capabilities in ITOM solutions necessitates sophisticated pricing approaches that can accurately monetize automation benefits, predictive analytics, and operational efficiencies delivered through intelligent operations.[3]
Challenges of Pricing in IT Operations Management Software
Evolving Deployment Models and Their Pricing Implications
The ITOM software market presents unique pricing challenges due to its hybrid nature, with customers simultaneously operating both cloud-based and on-premises infrastructure management tools. This hybrid reality creates tension in pricing models as vendors must balance customer expectations for cloud-like pricing flexibility with the revenue certainty needed for sustainable growth.
According to Boston Consulting Group's analysis, ITOM vendors face a complex pricing landscape where cloud-native pricing approaches (consumption-based, subscription) must coexist with more traditional enterprise license agreements for on-premises deployments.[3] McKinsey's research indicates that successful ITOM vendors are addressing this challenge through value-based pricing frameworks that focus on measured outcomes rather than deployment methods, enabling consistent pricing approaches across hybrid environments.[4]
The AI Transformation Challenge
The accelerating integration of AI into ITOM solutions is fundamentally challenging traditional pricing models. As AI capabilities automate tasks previously requiring human operators, seat-based pricing becomes increasingly misaligned with the value delivered.
BCG's research on B2B software pricing reveals a significant shift toward agent-based and outcome-based pricing models in ITOM software, reflecting AI's role in replacing human labor and optimizing IT operations.[3] This transition requires careful definition of measurable outcomes and usage metrics that accurately reflect the business value of AI-powered automation and insights.
Feature Bundling and Packaging Complexity
ITOM software vendors frequently struggle with determining optimal feature sets across packages and tiers. The market demands both simplified purchasing decisions and customization flexibility, creating tension in packaging strategies.
McKinsey's analysis of SaaS pricing strategies identifies excessive tiering complexity as a common pitfall in ITOM software pricing, resulting in customer confusion and sales friction.[4] Successful ITOM vendors are moving toward streamlined package structures with clear value differentiation between tiers, supplemented by add-on modules for specialized capabilities like advanced AI features or industry-specific functionality.
Usage-Based Metrics Selection
Determining the right consumption or usage metrics for ITOM pricing represents a significant challenge. Options range from infrastructure units monitored to automated incidents resolved, with each approach creating different incentives and customer behaviors.
According to industry analysis, the most effective ITOM pricing metrics establish clear correlation between software usage and measurable IT outcomes such as uptime improvements, mean time to resolution, or cost efficiencies.[3] Finding metrics that scale appropriately with customer value while remaining simple to understand and forecast has become a critical competitive differentiator in the ITOM space.
Balancing Predictability and Consumption Models
While consumption-based pricing offers alignment with value delivered, enterprise customers require predictable IT budgets. This tension creates a unique challenge for ITOM software providers seeking to implement usage-based pricing models.
Research indicates that successful ITOM vendors are addressing this challenge through hybrid pricing approaches that combine subscription floors with consumption-based components, providing predictability for customers while maintaining upside potential for vendors when usage expands.[3][4] These hybrid models have become increasingly prevalent for AI-powered ITOM features where usage patterns may be less predictable initially.
Monetizely's Experience & Services in IT Operations Management Software
Proven Expertise in ITOM Pricing Transformation
Monetizely brings specialized expertise in transforming IT Operations Management software pricing models to align with evolving market demands and technological advancements. Our team has successfully guided ITOM vendors through critical pricing transitions that drive sustainable growth.
A standout example of our impact includes our work with a $10 million ARR IT Infrastructure Management Software company that was struggling with inconsistent sales and customer friction due to poorly structured pricing. The company was selling lump sum subscriptions without specific packages or pricing metrics, and couldn't effectively monetize new strategic features.
Monetizely implemented a comprehensive pricing transformation that:
- Aligned the company's pricing strategy with its go-to-market approach, specifically tailoring an enterprise pricing structure for a high average selling price (ASP) solution
- Rationalized their offerings from four ineffective packages to two well-defined packages with strategically remapped feature sets
- Guided the development of a sophisticated combination pricing metric based on users and customer company revenue
The result? We successfully launched the company's first consistent pricing model, eliminating sales friction and creating clear paths to monetize their innovative features.
Our Unique Approach to ITOM Pricing Strategy
Monetizely differentiates itself through a product-first approach to pricing strategy, combining deep SaaS expertise with rigorous methodological research. Unlike traditional pricing consultants who lack specific SaaS product knowledge, our team brings over 28 years of operational experience in technology product management and marketing.
Our approach to ITOM software pricing incorporates:
- Statistical and Quantitative Analysis: We employ Van Westendorp surveys for price point measurement, Conjoint Analysis for comprehensive package identification, and Max Diff for feature prioritization
- Empirical Data Analysis: We conduct detailed evaluation of pricing power across geographic regions, customer segments, and product tiers, combined with tier/package performance analysis examining discounting patterns, actual usage, and shelfware
- In-Person Qualitative Research: Our unique methodology includes structured in-person research to validate pricing and packaging approaches with existing clients and prospects
This comprehensive methodology ensures that ITOM software companies develop pricing strategies grounded in market reality rather than internal assumptions.
Capital-Efficient Pricing Research
Unlike traditional pricing consultants who rely on expensive, lengthy research methodologies that often fail to deliver actionable insights, Monetizely's approach is designed for the agile nature of modern SaaS development. Our research approach delivers high-impact insights at significantly lower costs compared to traditional pricing consultants.
We replace high-cost conjoint analysis (typically $150K+) that often proves difficult to apply in Enterprise B2B settings with more targeted, capital-efficient methodologies tailored to the unique dynamics of ITOM software. This enables even mid-market ITOM vendors to access sophisticated pricing expertise without enterprise-level consulting budgets.
Comprehensive ITOM Pricing Services
Monetizely offers a complete suite of pricing services specifically tailored for IT Operations Management software providers:
- Pricing Strategy Development: Creating comprehensive pricing frameworks aligned with product value, competitive positioning, and go-to-market strategies
- Package & Tier Optimization: Rationalizing product offerings into coherent packages with clear value differentiation and upgrade paths
- Pricing Metric Selection: Identifying and implementing the optimal pricing metrics (users, infrastructure units, outcomes) aligned with value delivery
- Consumption-Based Model Design: Developing flexible usage-based pricing models that balance predictability with alignment to customer value
- AI Feature Monetization: Specialized expertise in pricing artificial intelligence capabilities within ITOM solutions to capture their transformative value
- Sales Enablement: Training and equipping sales teams to effectively communicate pricing value and navigate objections
Our services help ITOM software providers avoid common pricing pitfalls like overreliance on seat-based pricing that fails to capture AI-generated value and overly complex or rigid pricing tiers that discourage adoption or renewal.
By partnering with Monetizely, IT Operations Management software companies gain access to pricing expertise specifically calibrated to the unique challenges of their industry, driving revenue growth while maintaining competitive differentiation in an increasingly sophisticated market.
[1] Grand View Research. "IT Operations Management Software Market Report, 2030." 2023. https://www.grandviewresearch.com/industry-analysis/it-operations-management-software-market-report
[2] SNS Insider. "IT Operations Management Software Market Size, Trend." 2024. https://www.snsinsider.com/reports/it-operations-management-software-market-6394
[3] Boston Consulting Group. "Rethinking B2B Software Pricing in the Agentic AI Era." 2025. https://www.bcg.com/publications/2025/rethinking-b2b-software-pricing-in-the-era-of-ai
[4] McKinsey & Company. "Five strategies to strengthen software pricing models." 2023. https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/the-art-of-software-pricing-unleashing-growth-with-data-driven-insights
[5] Impact Analytics. "Price Management Software—2025." 2025. https://www.impactanalytics.co/solutions/price-management-software