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Navigating Tokenized Pricing Models

Publisher IDC
Published Jul 26, 2025
Length 10 Pages
SKU # IDC20220223

Description

This IDC Perspective explores how token-based pricing is transforming AI and cloud service monetization by converting complex usage patterns into transparent, metered units. It traces the evolution from seat-based and subscription models to prepaid and postpaid token approaches, highlighting real-world vendor implementations and buyer challenges around forecasting, governance, and contract fine print. By offering best practices ranging from benchmarking token rates to establishing cross-functional token governance, this document equips technology buyers with the insights needed to evaluate token offers, manage costs more effectively, and align AI spend with business outcomes.“Token-based pricing offers a clear path to align AI costs with actual usage; but without robust metering and governance frameworks, organizations risk unpredictable spend. By establishing transparent token metrics and negotiating fine print terms, technology buyers can unlock both flexibility and control as AI services continue to evolve.” — Tiffany McCormick, research director, Digital Business Models and Monetization at IDC

Table of Contents

10 Pages

Executive Snapshot

Situation Overview

Drivers of Adoption

Token Life-Cycle and Entitlement Management

Real-World Examples

Challenges

Accounting, Tax, and Revenue-Recognition Implications

Token Packaging and Governance

Cost Complexity and Forecasting Issues

Looking Ahead

Advice for the Technology Buyer

Learn More

Related Research

Synopsis

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