Posts Tagged ‘Pricing’
The Concept of Total Monetization and Why It Matters
I have written several articles about monetization and also several articles about how monetization is changing with AI. The concept of Total Monetization is a concept that Zuora has introduced and they define it as follows: Total Monetization refers to a comprehensive strategy aimed at maximizing revenue by leveraging multiple streams and optimizing them in…
Read MoreNo One Knows How to Price AI Tools?
Is the subscription economy over, and what should software vendors and businesses do to stay relevant?
Is the software industry moving away from user-based pricing to agent-based pricing?
Ibbaka shared an interesting newsletter describing how Salesforce’s Mark Benioff (founder and CEO) is yet again redefining the software industry. Mr. Benioff became famous with his “No software” statements when leaving Oracle and forming Salesforce.com, which was purely based on SaaS and could not be installed in an on-premises environment. The software market has been…
Read MoreDo you know how to price your AI-powered solution?
The subscription-based economy is here, and traditional industries such as Honeywell, Bosch, ABB, Bridgestone, Schneider Electric, Siemens, Medtronic, Stanley Black & Decker, and many others are moving towards solutions with a subscription model. I have seen it; I have worked on many of these cases. With some of these, I have even had the pleasure…
Read MoreThe Cost and Pricing of AI
In this third video of the “Making AI Approachable” series, we focus on the money matters of AI. These webinars aim at decision-makers who approach AI from customer, product, and business perspectives. AI is technical, but we see technology as an enabler, not the primary purpose. We explore the cost elements when building an AI-enhanced…
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 MorePricing alone does not make your business model
Most software vendors (ISVs) struggle how to price their solution, specifically when moving the cloud. Many vendors are trying to “retrofit” the current model to the new cloud model, but this just does not work. You just can’t make your pricing to reflect your current business model where everything is based on higher cost structure…
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