[thisismattsun]

Hey it's Matt here. So there is some research done by others showing that usage-based model has doubled its adoption in the past four years, and the acceleration has not slowed by even by a bit. Data points to the fact that it will become the mainstream five years down the road. Our personal experience speaks to the same observation. That's why we aim to solve the next gen challenge. :-)

Subscription billing is a solved problem, admittedly. Many existing software is doing a decent job, marginal improvement is needed. However, those old models are very different from usage-based model, because imagine what's the volume of change for a customer's subscription? It's probably at most once a month. But for usage-based model, the volume of events would be at a level of easily 10K per second. These are not the same kind of world. Other challenges include the underlying infra to support usage-based model, flexibility for pricing, integration with usage-based reporting of cloud marketplaces, etc.. all of those things are net new, and necessary for next gen SaaS model.