Model the Impact of AI on SaaS Revenues
The MGI Pricing Migration Model is an interactive tool for SaaS vendors to model, forecast, and evaluate the revenue impact of pricing evolution.
As AI becomes more reliable and increases productivity per seat, new revenue streams become available. MGI predicts the gradual replacement of “seat-based” revenues by pricing Agent Workflows, increasing leverage of platform fees, and an uptick in consumption and outcome pricing.
The dynamics visualized by this model are explained in detail in the MGI Research Note “Is the SaaS Business Model Dead?”
Interacting with the model
Sliders control input variables such as Starting Seats, Annual Seat Price, and Annual Seat Attrition, as well as price increase rates, AI/consumption/outcome adoption rates. Select a pre-established Bear and Bull scenario reflecting MGI’s anticipated dynamics across the next five years. Model inputs are reflected in three dynamic graphs:
| Revenue Stack | Dollar amounts of revenue per stream, stacked, across five years. |
| Revenue Mix | Percentages of total revenue per stream, stacked, across five years. |
| Growth & Seats | Line chart of seat count overlayed on a bar chart of revenue growth (percentage). |
For more information on each input variable, relationships between variables, assumptions, calculations, and pre-set scenarios, please reference the “Model Reference” page.
Making changes to your pricing model? MGI has helped hundreds of companies analyze, model, and construct new pricing and licensing models. Email [email protected] to get started today.