Shift to Usage-Based AI Agents Threatens Zscaler’s Seat-Based Revenue Model
At Morgan Stanley’s Technology, Media and Telecom conference, Jensen Huang predicted a shift from traditional seat-based subscriptions to usage-based AI agents will expand the software market size. Zscaler shares fell during last month’s sector sell-off as investors weighed pressure on its seat-based cybersecurity model against evolving usage-based demand.
1. Jensen Huang Forecasts Software Transformation
At Morgan Stanley’s Technology, Media and Telecom conference, Jensen Huang outlined a future where AI agents replace traditional seat-based software, forecasting that usage-driven models will significantly enlarge the overall software market.
2. Gene Munster Highlights Usage-Based Models
Gene Munster underscored Huang’s view, warning that seat-based subscriptions will face headwinds as companies contract their knowledge workforces and predicting that firms offering rented AI agents and tokenized services will thrive.
3. Zscaler Share Reaction and Model Implications
Zscaler’s shares dipped during last month’s sector sell-off, reflecting investor concerns that its seat-based cybersecurity subscriptions may face pricing pressure as enterprise demand shifts toward flexible, usage-based software solutions.