Microsoft Webinar Pricing Models - SaaS Pricing

The webinar, titled "Microsoft Webinar Pricing Models - SaaS Pricing," is the third part of a series conducted for Microsoft in 2020, specifically targeting around a hundred of their larger Independent Software Vendor (ISV) accounts across Western Europe. In this segment, the speaker focuses on Software as a Service (SaaS) pricing models, following the previous parts which covered the on-prem to Cloud transition and product packaging. The key elements discussed in the webinar include: Pricing Architecture: The speaker emphasizes the concept of pricing the customer rather than the product. He introduces the idea that the structure of pricing (first, second, and third-class tickets) has a more profound impact on outcomes than the actual price point itself. Pricing Metrics: Various pricing metrics are explored, such as price per user, price per gigabyte, and price per API call. The importance of choosing metrics that align with customer needs and situations is highlighted. Focus on Price Points: Once the pricing architecture is in place, the speaker suggests shifting attention to the actual price points, discussing whether it should be, for instance, 15 or 17 dollars per user. He introduces three components of pricing metrics: operational viability, value, and fairness, later adding a fourth metric, density. Continuous Adjustments: The speaker advocates for ongoing adjustments in pricing, packaging, and bundling. He discusses the potential benefits of making these adjustments on an annual basis, particularly with Enterprise customers and within the context of contract frameworks. Challenges and Optimization: Challenges related to pricing metrics, structural discounts, technical definitions, and granularity are touched upon. The importance of testing and optimizing price points using data and a structured approach is emphasized, with the goal of achieving the best results, especially when dealing with large datasets and diverse customer segments.