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▶ 0:20 · SaaS Business Models · Xero CEO: Hybrid pricing models will dominate as SMBs demand cost certainty
episode briefing
The Information

Is the SaaSpocalypse Over?

2026-08-31 · 1 company · 2 thematic
sentiment
1 bull0 bear0 neu
speakers
sukinder singh cassidy

CEO of Xero (ASX: XRO), former venture investor and serial entrepreneur who has led the company to Rule of 40 performance with $800M NZD free cash flow and an AI-first product strategy.

now playing · SaaS Business Models
SaaS Business Modelstailwindscore 7/10sukinder singh cassidy
Xero CEO: Hybrid pricing models will dominate as SMBs demand cost certainty
Pure consumption pricing creates uncertainty for SMB customers; hybrid fixed-plus-usage models will prevail as they balance predictability with AI feature monetization.
Enterprise AI Adoptiontailwindscore 8/10sukinder singh cassidy
Xero sees 6x API volume surge as AI shifts from embedded features to customer-built agents
AI adoption in vertical SaaS is bifurcating: mass-market users consume embedded AI features while power users build custom agents via APIs, driving platform stickiness and expansion revenue.