The Pay-per-use model is a pricing structure that allows organizations to pay based on actual usage of Identity and Access Management (IAM) services, rather than a flat subscription fee. This model significantly lowers the entry cost of IAM solutions to about 1/10th of traditional models and reduces the total cost of ownership to approximately one-third. It also enables organizations to adjust payments according to the extent of service utilization, making it a more flexible and cost-effective option.

The Pay-per-use model provides detailed visibility into software consumption, allowing organizations to track costs by department, business unit, or individual user. This data-driven approach enables accurate budget planning for IAM and other software, as it reflects actual usage rather than estimated costs. Consequently, it helps CFOs make informed decisions and reduces the likelihood of arbitrary budget cuts.

Starting with a single module, such as Access Management or Identity Governance and Administration, allows organizations to significantly lower their initial costs, sometimes to just a few hundred dollars per month. This approach enables a gradual build-up of costs in line with actual consumption and usage, making it easier for organizations to manage their IAM expenses while still addressing their immediate needs.