Posts Tagged ‘Artificial Intelligence’
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…
Read MoreExploring 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…
Read MoreSoftware Vendors will face a new reality in software pricing when using GenAI
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 MoreAre 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,…
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 MoreAre GenAI developers running out of data to train LLM models?
I came across the New York Times article “The Data That Powers AI is Disappearing Fast” (sorry, but behind a paywall), and I wanted to share some of the perspectives that I have seen and learned from both the article and my work on AI. According to the Data Providence Initiative, content made available to…
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