Alyona Mysko

The expansion of subscription-based models in business, particularly in the Software as a Service (SaaS) sector, has witnessed remarkable growth, with companies adopting this approach experiencing a three to fourfold increase compared to the S&P 500 in the past 12 years. However, as the prevalence of subscription licensing has surged, a noticeable disparity has emerged between providers' profits and the outcomes experienced by customers.
 
 Despite the apparent success of the subscription model, a closer examination reveals that software is not becoming more cost-effective or providing broader and deeper functionalities for customers. Major players such as Meta, Netflix, Microsoft, Oracle, SAP, and Salesforce have recently announced substantial price hikes, reaching up to 24% for specific products or services. Concurrently, the tech industry is witnessing a new wave of layoffs. The supposed advantages of economies of scope and scale seem to have gone awry, leaving business customers to bear the monthly cost burden. Long-term success in the market hinges on enhancing the productivity, agility, and bottom lines of business customers. In essence, focusing on adding value rather than imposing constraints.