Posts Tagged ‘Software Pricing’
No 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 MoreHow do you monetize your AI features and examples from known incumbent companies? A study of 44 companies (Part 1)
How AI apps make money – an interesting study of 40 companies
Every software vendor or organization creating intellectual property (IP) using AI should pay attention to the solution’s monetization. In my previous articles, I emphasized that the pricing of a solution with Generative AI embedded needs to be considered differently. It I wrote about the harsh reality that software vendors are facing a new reality in…
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
Traditional SaaS Software Pricing and Packaging Models will not work with GenAI solutions
Do 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 MoreSaaS pricing as foundation for sustainable growth and profitability – interesting study of 103 SaaS companies
Pricing of any software solution is a pain. During my 20+ year software career and tens of different market entries with both our own products as well as our clients, I have to say that pricing is one of the most difficult decisions to make. I will never forget the “friendly advice” I got from…
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