Blog Summary
This article argues that enterprise software companies like Salesforce, ServiceNow, and Workday have created a "shakedown" business model where they charge exorbitant license fees for bloated platforms, knowing that most users only utilize a fraction of the features. This pricing model, which is often based on per-user fees or "enterprise add-ons," is designed to punish utilization and maximize vendor revenue rather than reward the customer's success. The article suggests that with the rise of AI, this model is evolving into a new form of "license extortion," where companies are being charged extra for AI capabilities that should be standard. The author proposes an alternative: building targeted, custom solutions and paying for value consumed rather than for a full suite of unused features.
Key Questions Answered by the Article
1. Why are enterprise software licenses so expensive?
Enterprise software is expensive because companies have created massive, Swiss Army knife-style platforms with thousands of features to justify a high price point. They charge for the entire suite, even though most users only ever use a small percentage of the functionality, leading to a high cost for a low return on investment.
2. How are SaaS companies using AI to increase license fees?
According to the article, SaaS companies are leveraging AI as a new justification for price increases. They are packaging basic AI features as premium "add-ons" or requiring a user to upgrade to an expensive "AI-Enhanced Enterprise Plus Premium" package, effectively charging a new premium for capabilities that should have been integrated into the core platform.
3. What is the alternative to paying for bloated enterprise software?
The alternative is to build targeted, custom solutions that include only the features you need. Instead of paying for a massive platform, you can pay for the underlying cloud and AI services you actually consume. This model aligns pricing with the value you generate, allowing you to pay only for what you use and keep the value you create.
The SaaS License Shakedown: Why Enterprise Software is the New Mob Protection Racket
You're paying Salesforce $200 per user per month to use a glorified contact database and send some emails. Congratulations—you've been made.
Let's be brutally honest about what's happening here. Enterprise software companies have perfected the art of the modern shakedown. They've built bloated platforms with 10,000 features, knowing damn well you'll use maybe 500 of them, then charge you like you're accessing the entire suite. It's the digital equivalent of ordering a single slice of pizza and being forced to buy the whole restaurant.
And now, with AI on the horizon, these same companies are gearing up for License Fee Extortion 2.0.
The Great SaaS Swindle
Take a hard look at your software spend. You're probably paying Salesforce six figures annually for an expensive Rolodex with some automation. ServiceNow is charging you enterprise rates for glorified help desk tickets. Workday is extracting premium pricing for what should be basic HR functionality.
Here's the kicker: these platforms were designed in an era when building software was expensive and complex. So they created Swiss Army knife solutions—massive, unwieldy platforms that try to be everything to everyone. The result? You're paying 100% of the license fees to use 5% of the functionality.
It's like being forced to buy an entire toolshed when you only need a screwdriver.
The AI License Hostage Situation
Now these same companies smell AI money, and they're doubling down on the extortion. Want to add some basic AI automation to your Salesforce workflow? That'll be another $50 per user per month for "Einstein Analytics." Need ServiceNow to route tickets intelligently? Better upgrade to the "AI-Enhanced Enterprise Plus Premium" package.
They're not just charging you for AI capabilities—they're charging you AI premiums for accessing features that should have been built into the platform years ago. It's like your landlord suddenly charging extra for air because they installed a smart thermostat.
The Utilization vs. Punishment Model
Here's what drives me insane about this whole racket: these companies have designed their pricing to punish utilization rather than reward outcomes. The more value you try to extract from their platform, the more they charge you. Use more data? Pay up. Need more API calls? Fork over more cash. Want to automate more processes? Time for another "enterprise add-on."
It's backwards economics designed to maximize their revenue while minimizing your return on investment.
The Alternative That Makes Sense
Could you build exactly the features you use, skip the 95% of bloatware you'll never touch, and layer intelligent automation on top? What if the pricing model aligned with your success rather than punishing your growth?
That's not fantasy—that's possible today. Instead of paying for massive platforms designed for everyone and perfect for no one, you can build targeted solutions that do exactly what you need, exactly how you need it done.
The cost? You'll pay for the underlying AI services you consume, not some arbitrary license fee calculated by how many theoretical features you might someday use. More importantly, you'll pay based on the value you generate, not the vendor's need to hit their quarterly numbers.
Time to Stop Being the Mark
Every month you send license payments to Salesforce, ServiceNow, or Workday, you're paying protection money to access your data and processes. They've created artificial scarcity around software that should be commoditized and convinced you it's too complex to build yourself.
It's not. Today, the tools exist to build precisely what you need without vendor markup, feature bloat, or license extortion.
The enterprise software industrial complex has trained you to believe you need their massive platforms to run your business. You need targeted solutions that solve specific problems effectively and efficiently.
Stop paying for features you don't use. Stop funding vendor shareholder returns at the expense of your operational efficiency.
Build what you need. Pay for what you use. Keep the value you create.
The age of software serfdom is over—if you choose to end it.
.png)
.png)
.png)
