Tech Vendors Switch Up Pricing Models To Offset Rising Cloud Costs
CIODIVE, Friday, October 17th, 2025
Significant delivery costs for AI products and soaring cloud spend is driving providers to reassess pricing structures, according to a Revenera report.
The accelerating cost of deploying AI products and features is eating into tech vendor profits, according to 70% of technology executives surveyed in a Revenera report published Tuesday. As a result, 52% are planning new pricing models to mitigate rising cloud spend tied to keeping up with AI demands, the survey found.
Usage-based pricing represents a key emerging strategy for vendors offering cloud and embedded software deployments, the report found. More than half of respondents expect usage-based revenue to increase by 2027. Revenera surveyed 501 product leaders at global tech companies from April to June 2025.
'AI is transforming the software economy, but it's also testing the limits of traditional monetization strategies,' Revenera SVP and General Manager Nicole Segerer said in a release accompanying the report.