Beyond the Subscription: Why Outcome-as-a-Service is the Next SaaS
Picture this. It’s a Tuesday morning back in October 2023, and I’m sitting in a cramped home office staring at a credit card statement. I noticed we were paying $2,400 a year for a “premium” data tool that literally nobody on my team had logged into for three months. That sinking feeling in my gut? That wasn’t just about the wasted money, it was the realization that the software world was kind of broken. We were paying for the existence of a tool, not for it actually doing anything for us.
Look, the subscription model felt like a dream ten years ago because it was better than buying disks at a store. But honestly, it’s starting to feel a bit like a gym membership you never use.
Why your subscription might be failing you
The thing is, we’ve reached a point where having “access” to software isn’t enough anymore. You’ve probably got twenty tabs open right now, half of them being apps you pay for but haven’t touched since Monday. (I know I do, and it’s a mess).
Actually, this is where Outcome-as-a-Service, or OaaS, comes into play. It appears to be the natural next step because it focuses on the “what” instead of the “how.” Instead of paying for a seat, you pay when the software actually hits a goal you care about.
Quick side note: I once worked with a founder who refused to pay for any marketing software unless it could prove a direct link to a sale. At the time, I thought he was being difficult, but now I realize he was just ahead of the curve.
Is the seat-based model doomed?
Basically, the old way of doing things is under fire. Why? Because the economy is weird right now and folks are tired of paying for “potential” value. A 2024 report from Vertice found that SaaS inflation hit 8.7%, which is pretty wild when you think about it. Companies are looking at these rising costs and wondering what they’re actually getting for their bucks.
The research isn’t entirely clear on how fast this shift will happen, but the signs are there.
I mean, if an AI agent can do the work of five people, does it make sense to pay for five “seats” anymore? Probably not. You’ll likely start paying for the “task” the AI finished.
What makes an outcome model different?
It’s kind of like the difference between hiring a trainer to stand next to you at the gym and hiring someone to actually lose the weight for you.
- You share the risk with the vendor.
- The price moves up or down based on your success.
- The software focuses on your specific wins.
The most valuable insight I’ve found in ten years of writing about tech is this: the best software isn’t the one with the most buttons. It’s the one that makes itself invisible while getting the job done.
The scary part of the pivot
Which brings me to the catch. Transitioning to this model is super hard for companies because they love that predictable monthly cash. Investors get nervous when they don’t know exactly how much money is coming in next month. (I learned this the hard way when I tried to pitch a performance-based fee to a client last year, they loved the idea, but their accounting department had a meltdown).
And then there’s the math. If your revenue grows, was it because of the software or just because you had a really good Tuesday? It’s somewhat hard to tell sometimes.
How to prepare for the shift
You don’t need to cancel all your subscriptions today, obviously. But you should start asking your vendors how they plan to prove their worth in 2026.
Trust me, the folks who keep selling “seats” are going to struggle. “The future of software is not about providing a platform, but about delivering a guaranteed business result,” says Tien Tzuo, the CEO of Zuora. He’s been beating this drum for a while, and it seems like the world is finally catching up to him.
So, next time you look at your software bill, ask yourself: am I paying for a tool or a result? If it’s just a tool, you might be overpaying.
