Tien Tzuo CEO speaking at Subscribed
Zuora CEO Tien Tzuo says the best cloud companies "have a mix of models that really accommodates all different customers."
  • Moving from boxed software to cloud-based subscriptions was a big change during the last recession.
  • While that's still widely used, a new usage-based pricing model has quickly gained popularity.
  • With another recession looming, experts say usage-based models will become standard.

When the Great Recession of 2008 hit, it proved to be a real opportunity for the tech industry to push a new business model: Instead of paying once for boxed software, companies like Salesforce, NetSuite, and even Google got their customers acclimated to getting billed as a monthly or annual subscription.