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ProductMay 22, 2026·2 min read

Per-seat pricing is losing its grip. 8x8 shows where it's heading.

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TL;DR

If your price is tied to seats but your value is tied to work done, the gap will show up in churn and in discounting.

What happened

In May 2026, the communications company 8x8 reported its fiscal 2026 results and talked about changing how it charges. It is moving away from per-seat licences toward pricing based on usage, interactions and outcomes.

Customers can pay as they go with no commitment, and a longer commitment earns a better rate per interaction, outcome or transaction. Coverage of the results lists several possible arrangements: pay per token or API call, per seat, a mix of seats and consumption, or a committed spend.

The numbers: full-year revenue was $735.8 million, up 3%. Usage-based revenue rose from 14% of the total in the previous year to 23%.

The CEO's reasoning was simple. AI agents now handle work that people used to do, so a fee per person is a poor fit. And buyers are tired of paying for seats nobody uses, which he said CFOs complain about.

So what for your business

Look at it from both seats at the table.

If you sell software, your price metric should track the thing your customer values. If an AI feature does the work of three people, but you bill for one login, you're giving away the value. If you bill for usage, your customer's bill becomes less predictable, and they'll notice.

If you buy software, expect your vendors to experiment. Predictable seat costs are giving way to bills that vary with activity. That needs budgeting you may not have done before.

Neither model is a clear winner. 8x8 is pointing at a hybrid, which keeps a base for predictability and adds usage for fairness.

What to do this month

  1. Write down your value metric. What does a customer actually get more of when they succeed: messages, reports, resolved tickets, hours saved?
  2. Compare it to your price metric. The wider the gap, the more pressure you'll feel.
  3. Model a hybrid. A platform fee for predictability plus usage above an included amount. Run your last twelve months of customers through it.
  4. Give buyers a ceiling. Caps, commitments and alerts remove the fear of a surprise bill.
  5. If you buy, ask for the usage drivers. Understand what moves your bill before it moves.

Source: No Jitter, May 20, 2026

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Per-seat pricing is losing its grip. 8x8 shows where it's heading. | Upfinity