Outcome-based pricing shifts risk from the buyer to the supplier. The customer pays a share of the savings or a fee tied to a result, and the vendor is responsible for whatever technology delivers it. Examples include paying per hour of guaranteed compressor availability, per unit of energy reduction, or per pallet delivered within range.
The model only works when the outcome can be measured in a way both parties trust, which makes the IoT data itself part of the contract. It also requires a baseline, agreed up front, against which improvement is judged, and an SLA that handles disputes. For vendors it demands confidence in their ROI claims and a tolerance for delayed revenue. It is one of several IoT business models and usually follows a successful pilot.
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