The great software pricing shakeout of 2026: What every IT leader needs to know

"In the year ahead, your relationship with your software vendors may change radically, perhaps even a greater shift than the switch from disks to Software as a Service. You may start paying only for the actual results the software delivers, versus simply paying a monthly charge that you pay even if the application sits on a shelf.Also: 6 essential rules for unleashing AI on your software development process - and the No. 1 risk"

"Of course, paying for results requires consistent, agreed-upon metrics to determine what exactly is being advanced, and this will be the challenge for users and their vendors. For example, for users of Zendesk's solutions, the business model defines success by "automated resolutions; when AI fully resolves a customer issue end-to-end, without human intervention," Chris Donato, president and chief revenue officer at Zendesk, told ZDNET. "It's a measurable, accountable way to tie pricing directly to results.""

"This has far-reaching implications for the software market of 2026, as explained in a recent analysis from West Monroe, also forecasting the end of per-seat licensing. "AI is rewriting the economics of the entire software industry," the report's authors explained. At least 12% to 15% of enterprise IT budgets now go to AI, for one, and the market is likely to increasingly favor AI-native service providers."

Software pricing is shifting toward outcome- and consumption-based models that charge for delivered results instead of per-seat licenses. Buyers and vendors must agree on consistent, measurable success metrics to determine payments. AI enables automated resolutions that can define success when it fully resolves customer issues end-to-end without human intervention. AI-driven purchasing agents and AI-native providers will reshape procurement and vendor economics. Analyses predict the decline of per-seat licensing and the rise of consumption pricing. Enterprises are already allocating 12–15% of IT budgets to AI, accelerating market preference for AI-capable service providers.

Read at ZDNET