Business Model
Why a consumption-based monetization model could benefit AI SaaS software vendors
Sofware pricing and challenges around it are an ongoing story among software vendors, and that will not go away anytime soon now with the emergence of AI and AI-infused solutions. I have been fortunate enough to witness and lead software pricing/packaging transformation projects for independent software vendors (ISVs) that transformed their software pricing from a…
Read MoreWill AI kill my wife’s cruise business?
My job is to help organizations envision solutions and business models. This includes infusing AI into business models and envisioning solutions that either create net new solutions or amend legacy solutions. This is part of my TELLUS International business model. I have written extensively about AI’s impact on this LinkedIn Newsletter channel and the TELLUS…
Read MoreThe Rise of Domain-Specific Large Language Models and Why it Matters to Organizations
It is clear that not many companies that can afford build their foundation models and large language models (LLMs); it is just too costly, and even large AI platform vendors are unclear when the investments are going to be paid off. If you wonder what the difference is between a foundation model and large language…
Read MoreWill AI break the business model for some channel partners?
Some writings on the web made me “compelled” to think about AI and how it might impact channel partners. To give some context to my thoughts, I should give some background. I have lived and breathed the channel for 30+ years within the software industry. My boutique consulting company, TELLUS International, has been the foundation…
Read MoreThe Evolution of Open-source LLMs and What it Means to Us
According to a recent Verge article, Meta has released the biggest and best open-source AI model yet. Meta claims that the new release of Llama 3.1outperforms GPT-4o and Anthropic’s Claude 3.5 Sonnet on several benchmarks. Furthermore, Meta’s CEO, Mark Zuckerberg, predicts that Meta AI will be the most widely used assistant by the end of…
Read MoreTraditional SaaS Software Pricing and Packaging Models will not work with GenAI solutions
Is your organization equipped to understand generative AI?
AI and your business model – have you reviewed yours? We have.
A year and a half ago, I realized that I would really have to dig deep into the topic and see how AI would impact my own boutique management consulting and advisory firm, TELLUS International, Inc. I decided to review each one of our workshop offerings to ensure that they were up-to-date with the latest, including the addition…
Read MoreDo you know how to monetize and price your AI solution?
AI is here to stay, and Generative AI has changed the landscape for many independent software vendors (ISVs). In my previous blog post, I mentioned how the OpenView Partners 2023 SaaS Benchmark Report shows that software organizations are releasing solutions based on GenAI, and only a fraction of these organizations have a monetization impact. This could…
Read MoreChanging business model due to external factors
Sometimes there is a need to change the business model due to some external factors that we can’t control. This morning I read an interesting article David Linthicum who is known to track the cloud market and write about current trends. Today, he wrote about the fight between Netflix vs. Verizon and how these companies…
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