TL;DR
Imagine your favorite streaming service that charges you a set fee for every family member who gets to binge-watch your favorite shows. PUPM pricing works the same way for software—each user gets access, and you pay a fixed monthly rate for every active account. It’s like ordering a pizza by the slice; you only pay for the slices you eat. This model makes budgeting simple because your costs grow in direct proportion to the number of users, ensuring you’re only paying for what you need. No hidden fees or surprise charges—just a straightforward, scalable way to manage your software expenses month by month.
Details for the Techies
Per User Per Month (PUPM) pricing is a subscription-based model tailored for SaaS platforms. Each licensed user incurs a recurring fee, making the model inherently scalable and predictable. This pricing structure aligns costs with user adoption, allowing companies to better forecast operational expenses as they add or remove users. It also simplifies financial planning by tying expenses directly to the number of active seats. Typically, this model may be tiered, offering additional features or higher service levels at increased rates. With usage-based pricing models like PUPM, vendors can also incentivize efficient use of the platform while ensuring that organizations pay only for the value they receive. For a deeper dive into SaaS pricing strategies and market offerings, visit Microsoft’s SaaS Offer Guidance and explore more at IBM’s Cloud Learn Center.
