Book Review: The Partner Operating Model – A Guide to Predictable Ecosystem Revenue
I live and breathe channels and have been doing that for 30+ years. I would only write this article here in Trophy Club, Texas (Dallas Fort Worth area) if I had been in channel business my entire career. In the first part of my career, I was the channel partner, then evolved to leading a…
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Are you leveled up for the AI Economy?
I was inspired to reflect on the AI economy after reading a great articleby Joe McKendrick, a contributing writer at ZDnet. I have been passionate about writing about our need to learn new things daily in the new AI economy. This applies especially to the generation that had to do things in a more labor-intensive…
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AI Pricing Strategies for SaaS Companies Offering Copilots including Microsoft
When Microsoft announced Microsoft 365 Copilot, many of us pondered how they would price the solution. Would it be per-user pricing, as it does with Office 365 bundles, or would Microsoft end up doing consumption-based pricing or a hybrid of these two? I mentioned in my blog posting that the challenge for software vendors is…
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Exploring the characteristics of Generative AI Solutions from a pricing perspective
In my previous article, I mentioned that Generative AI applications require a different and new approach to pricing. The reason is the solution’s changed cost dynamics and characteristics. I explained how GenAI pricing should be responsive (prices adapt quickly to the evolving configurations) and explainable (pricing is transparent and justified). Finally, pricing should be based…
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Software Vendors will face a new reality in software pricing when using GenAI
Independent Software Vendors (ISVs) face a new reality regarding pricing solutions, including consuming GenAI services. If the ISVs price the solution using traditional methods, they might lose money rather than make money. If you are a software vendor, you should really pay attention to where the GenAI market is pricing, as it is a different…
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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…
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Will 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…
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The 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…
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Are AI Agents taking over our jobs?
I saw an interesting article by Joe McKendrick, a contributing writer for ZDNET. In his article “AI agents are the next frontier and will change our working lives forever,” he refers to a recent McKinsey Quarterly article, “Why agents are the next frontier of generative AI.” We have all been bombarded with news of LLMs, AI,…
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Will 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…
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