Source: thenewstack.io
PLG Will Eliminate the Subscription-Based Software Model
I spent several years as a General Manager at https://aws.amazon.com/?utm_content=inline-mention and my teams launched two Tier 1 services: Amazon CloudSearch and Amazon OpenSearch. Like every product at AWS, these were scaled with a product-led growth (PLG) market motion: no gated features, no subscription tiers to choose from.
Despite the fact that the software landscape has evolved completely in recent years, one aspect that hasn’t kept up is the buying process. Since the shift from on-premises to cloud, vendors have relied heavily on a tiered subscription model in which product features are divided between tiers, and customers choose the tier that best suits their use case and number of users.
A PLG motion lowers customer acquisition costs by leading with the product rather than expensive salespeople and business development teams.
Despite the fact that the software landscape has evolved completely in recent years, one aspect that hasn’t kept up is the buying process. Since the shift from on-premises to cloud, vendors have relied heavily on a tiered subscription model in which product features are divided between tiers, and customers choose the tier that best suits their use case and number of users.
A PLG motion lowers customer acquisition costs by leading with the product rather than expensive salespeople and business development teams.
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