Business Model
Business models are changing for MSSPs and MSPs due to AI – threat or opportunity?
Each industry is facing pressure with the advent of AI. Based on my experience working in the channel for 30+ years, some channel partners will survive, and some will eventually become irrelevant. That is just the reality of business, and I saw this happening when some MSPs did not want to face the reality that…
Read MoreIs the subscription economy over, and what should software vendors and businesses do to stay relevant?
What business are you really in? Have you defined your north star in your business?
What business are you really in? Have you defined your north star in your business?
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 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
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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