Pricing Model for a New B2B SaaS Tool

For an Enterprise B2B SaaS tool integrated into the Microsoft stack, I propose three models: First, a flat Per-Seat license, which simplifies procurement but risks underpricing heavy users. Second, pure Usage-Based pricing, which is fair for variable workloads but creates budget uncertainty for large enterprises. Third, a Tiered Model based on feature sets, which segments customers but often leads to complex upsell paths. I argue that a Hybrid 'Base Seat + Consumption' model is superior for this specific context. In the enterprise sector, particularly within Microsoft's environment, CFOs require predictable baseline costs for their annual budgets, making the Base Seat essential. However, purely seat-based models fail to capture value from power users who drive disproportionate usage. By adding a consumption tier for API calls, storage, or compute, we align our revenue directly with the customer's success and scale. This mirrors Microsoft's own shift toward hybrid billing in Azure, reducing churn caused by perceived overpayment while capturing upside from high-value engagement. It balances the sales cycle ease of fixed pricing with the growth potential of variable revenue.