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Generative AI Pricing Models: A Strategic Buying Guide

Publisher IDC
Published Mar 26, 2024
Length 20 Pages
SKU # IDC18658473

Description

Generative AI Pricing Models: A Strategic Buying Guide


This IDC Perspective provides a definitive overview of the generative AI (GenAI) pricing models to help IT and sourcing professionals budget for GenAI deployments across multiple types of use cases. The generative AI pricing landscape is complicated because of the interdependencies across the tech stack. In addition, the relative "newness" of this market means that it is going through rapid packaging and pricing evolution, which brings a level of volatility that makes it difficult to plan or budget for. Early AI technology movers employ a low discounting strategy, signaling ongoing pricing model refinement. Enterprises are advised to take a cautious "wait and see" approach for noncritical use cases. In the evolving market, enterprises should evaluate providers based on flexibility, transparency, and accessibility, considering various pricing structures."In this fast-moving GenAI pricing landscape, enterprises should evaluate providers based on flexibility, transparency, and accessibility, considering various pricing structures," says Philip Carter, group vice president of Worldwide Thought Leadership Research at IDC. "With this document, IDC aims to provide a definitive overview of the generative AI pricing models to help IT and sourcing professionals budget for GenAI deployments across multiple types of use cases."

Please Note: Extended description available upon request.

Table of Contents

20 Pages
Executive Snapshot
Situation Overview
Buying Considerations Across the Technology Stack
Infrastructure
The Model Layer
Applications
The Shift in IT Services Market
Negotiating Levers Across the Technology Stack
Five Burning Questions from Tech Buyers Answered
How Much More Should CIOs Be Budgeting for That Premium GenAI Pricing?
How Do You Define Consumption?
How Are Service-Level Agreements Changing Linked to GenAI?
How Does Credit Portability Work?
How Should Organizations Think About Measuring the Value and Efficacy of GenAI Features?
Advice for the Technology Buyer
Learn More
Related Research
Synopsis

Pricing

Currency Rates
How Do Licenses Work?

How Do Licenses Work?

The primary function of a report license is to define how many people within a company are authorized to use the purchased report. This is separate to how a report might be delivered. Unless specifically identified otherwise, the purchase option is Single User. Below is a helpful description of that license, along with a sampling of others most commonly offered.

  • This license allows only one user to have access to and to use/read the report. It is not one user at a time or one user group; it is an individual who will be reading and utilizing the report.

  • This license allows for the entire purchasing company to read and use the report. This is the license level that would allow for a report to be placed on an internal company shared drive for access by all employees of that direct company. This license does not extend to parent or sister company use.

  • This license is designed to allow an entire department within a company full access to a report. The departmental license is a great option for companies that have more than one location and the department is spread out all over the country/world

  • This license is for companies that have one location where they want the report to be accessible by all employees within that physical location.

  • This is the most flexible of the licensing options. Some publishers will allow you to get a license for a preset number of people (typically 5). These licenses are ideal for small work groups.

License options are at the discretion of each publisher. As such, not all licenses indicated above are available for every product. If you are uncertain of the best license for your needs or would like a license that is not proactively available, please contact us and we will be happy to assist.

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