
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
Data platform pricing strategy directly impacts both competitive advantage and revenue potential in the increasingly crowded data management landscape. A well-designed pricing model not only determines market adoption but establishes the foundation for sustainable growth.
The data platform services landscape presents unique pricing challenges that require sophisticated strategies beyond traditional SaaS models. As organizations increasingly depend on data infrastructure, pricing models must align with evolving consumption patterns, value realization timelines, and technological advancements.
Data platform usage varies dramatically across customers and over time, creating tension between predictable revenue and customer-friendly billing. This variability challenges traditional subscription models as customers may experience significant month-to-month fluctuations in data volume, query complexity, and compute requirements.
Usage-based pricing has emerged as a dominant trend, with a 31% increase in adoption since 2023 among data platform providers [2]. This model aligns costs with value realization but introduces revenue predictability challenges for both vendors and customers. Leading data platforms like Snowflake and Databricks have pioneered hybrid approaches combining baseline subscriptions with consumption-based components, offering the predictability of subscriptions with the flexibility of usage-based models.
Communicating the value of data platform services remains a significant challenge, especially as features expand to include AI capabilities. According to Stripe's research on SaaS pricing models, data platform companies struggle to select pricing metrics that accurately reflect customer value while remaining transparent and understandable [4].
The challenge intensifies with value-based pricing adoption, which has risen to 78% among SaaS companies [2]. This approach requires sophisticated understanding of how customers perceive and quantify value—whether through time savings, insights generation, or business outcomes. Effective value communication has become essential as customers increasingly evaluate technology investments based on demonstrable ROI.
Data platforms typically serve multiple personas with diverse needs—from data engineers to business analysts to machine learning scientists. This diversity requires thoughtful feature segmentation and tiering strategies that balance simplicity with customization.
Research shows that 94% of SaaS leaders update their pricing or packaging at least annually to address evolving customer needs and feature sets [5]. However, packaging complexity creates sales friction, with customers struggling to match available tiers to their specific requirements. This complexity is particularly evident with advanced AI features, which may deliver significant value to specific customer segments while being irrelevant to others.
The rapid evolution of data platform technologies, particularly AI capabilities, presents unique pricing challenges. According to Monetizely's SaaS Pricing Benchmark Study, AI features in data platforms are typically bundled into premium tiers or priced via usage metrics such as queries processed or model training time [2].
This approach reflects the incremental value AI provides without imposing a flat uplift on all customers. However, it requires sophisticated pricing architecture to capture value appropriately. Common pitfalls include rigid flat fees, poor value communication, and ignoring usage variability—all of which reduce customer retention and limit expansion opportunities [1][5].
Monetizely brings specialized expertise to data platform companies facing the complex pricing challenges of today's market. Our approach combines deep SaaS product experience with data-driven pricing methodologies specifically tailored to the unique needs of data infrastructure providers.
Monetizely employs a multi-dimensional research approach that combines quantitative analysis with qualitative insights to develop pricing strategies that maximize both market adoption and revenue potential:
As demonstrated in our work with a $10M ARR IT Infrastructure Management Software company, Monetizely excels at transforming ad-hoc pricing approaches into strategic models that align with go-to-market strategies while reducing sales friction.
Monetizely has significant expertise in implementing usage-based pricing models specifically for technology infrastructure providers. Our case study with a $3.95B Digital Communication SaaS leader demonstrates our ability to transition companies to consumption-based models while protecting existing revenue streams:
This expertise is particularly relevant for data platform companies considering shifts toward consumption-based models that better reflect customer value realization patterns.
For data platforms with advanced AI capabilities, Monetizely offers specialized services to monetize these high-value features effectively:
Monetizely employs a full spectrum of pricing research methodologies tailored to the specific needs of data platform providers:
Data platform providers select Monetizely for our unique combination of product management expertise and pricing specialization:
Through our comprehensive approach to data platform pricing strategy, Monetizely helps companies transform pricing from a point of friction to a sustainable competitive advantage in this dynamic market segment.
Sources:
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
1
None of the other premier consultants have actually implemented complex pricing within companies like Twilio and Zoom. This requires operational systems understanding, not just strategy.
In addition, other consultants often "over egg the pudding", they know customers will buy approaches as long as they look/feel scientific, yet we have multiple customers who have spent more >$100k each on conjoint analysis which did not help them at all. We are careful with where we ask you to spend your money.
2
Willingness to pay is context-dependent and works best when analyzed alongside packaging and pricing metrics. We use structured surveys like Van Westendorp, Max Diff, Conjoint Analysis as well as in-person research interviews to gather actionable data.
3
The cost of milk or a McDonald's burger inflates. However, SaaS prices almost always deflate and requires both adjustment of product packages as well as innovation to remain relevant.
Additionally, AI adoption will drive a shift from user-based pricing to more usage/consumption based models to accommodate the very high costs of serving these products. Expect to see deflation over time here as well as the the cost of serving AI products drops by multiples every month.
4
We want to monitor discounting % per package, usage of features within the packages, upsell rate of features to see whether we have a good pricing motion or whether it needs adjusting.
5
The Monetizely team has over 28 years of collective experience in software pricing, having previously worked with industry leaders like Twilio, Zoom and DocuSign, ensuring expert guidance in SaaS pricing strategies.
6
We recommend doing a better job on the pricing testing phase and to mitigate risk roll out the pricing in a phased manner.
For 80-90% of cases, we do not recommend A/B testing as that creates too much market confusion and overhead (in certain cases, doing an advance roll out in a different geo can work).
7
Competitive information is helpful but only a small piece of the picture. Competitors are in different stages of growth. Their product functionality is also different.
We recently had a client where sales teams pushed for lower pricing to compete with current rivals, but the company’s strategic vision aimed to evolve into a new category, making the competitive pricing data less relevant.
8
To kickstart your SaaS pricing optimization, consider consulting with the experts at Monetizely. You can also deepen your understanding by reading our book "Price to Scale" and enrolling in "The Art of SaaS Pricing and Monetization" course on Maven. These resources are crafted to equip you with the necessary skills and knowledge to refine your pricing strategy effectively.