Glossary > Usage-Based Billing (UBB)
Usage-Based Billing (UBB)
Usage-Based Billing (UBB) is a cloud computing billing model that charges customers for the amount of time their applications are in use by their users. UBB is typically used by Software as a Service (SaaS) providers, but it can be adapted for any type of application or service.
UBB is growing in popularity because it allows SaaS vendors to charge end-users on a per-usage basis, which is more fair than traditional subscription billing models. With UBB, you pay for what you use and nothing more.
UBB also enables SaaS providers to offer flexible pricing plans to customers based on usage levels, which makes it easier for them to get started and scale up as they grow into enterprise customers with higher demands.
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