Posts Tagged ‘GenAI’
What 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)
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 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…
Read MoreSoftware Vendors will face a new reality in software pricing when using GenAI
The 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…
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