SAP’s Bob Stutz rips off the enterprise software pricing Band-Aid as DSAG reports significant redlines in member revenue
Last Friday, Paul Greenberg and Brent Leary, two of the best-known analysts in the CRM space hosted a public LinkedIn video discussion with senior executives from SAP, Oracle, Adobe, Microsoft, and Salesforce. Events of this kind are rare and there are plenty of learnings to be had from that session.
Towards the end of the 90 plus minute discussion, Bob Stutz, President of Engineering and Operations for SAP Customer Experience threw a curveball that has long been missing from discussions around responses to the COVID-19 pandemic:
I think the biggest question that I constantly get, and it’s not directed towards the current company I work for, but more around the industry is when is the software industry going to change its pricing model?…I mean, subscription models are hard. And, constantly I get asked the question, when will this industry move to a pay as you consume model? And it’s a valid question at the end of the day. Why should in this day and age, when you look at how things are built, if I use the hyperscaler, I get billed for what I consume, and it’s pretty darn accurate down to the second, usually? But if I use an SFA app, I’m getting charged a subscription. And depending on which company it is, it could be anywhere from $150 to $800 a month. And the question really is a valid one. When will the industry change?
Why can’t I just pay for what I use at the end of the day? I think in the pandemic, this is even more critical because companies do struggle. Subscriptions are killing because customers can’t afford to keep paying the subscriptions, especially when their business is faltering. Why does the industry make me pay from the time I