Posts by DrSalonen
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 MoreWhat frameworks can an incumbent solution vendor use to monetize AI features (Part 2)?
In the previous article (part 1), I reviewed a research study by Lenny and Broe, in which they studied 44 incumbent technology companies and their AI packaging strategy and monetization model. The study’s results were clear. The predominant strategy for incumbent companies is to bundle AI features into existing packages (59%), and the second most…
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 MoreScaling coaching and development to an entire organization powered by AI and LLM
What are the real upskill needs for software engineers in the AI Era?
I have been posting quite a few articles in which I have encouraged people in different professions to educate themselves on what AI means for them, their company, and the potential future of their work. Gartner says that generative AI will require 80% of the engineering workforce to upskill through 2027. AI will spawn new…
Read MoreAre 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…
Read MoreAI 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…
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