Pricing Dynamics for Artificial Intelligence Offerings: Rapid Emergence of Granular and True Consumption-Based Approach

Pricing Dynamics for Artificial Intelligence Offerings: Rapid Emergence of Granular and True Consumption-Based ApproachThis IDC Market Perspective provides an overview of the common scenarios and approaches that organizations employ to build their AI capabilities — from training to inferencing stages — and the emergence of new age granular and consumption-based pricing models."AI is a new and fast-moving industry, with rapidly changing capabilities and terminology and evolving standards and regulations. Traditionally, pricing of information technologies was based on the perpetual licensing model. Today, we are on the cusp of massive disruptive trend toward true consumption-based pricing pioneered by cloud service providers. Businesses are demanding more granular pricing, and transaction-based models seem to be the direction the market is going for AI services," says Ritu Jyoti, program vice president, Artificial Intelligence Strategies.

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Executive Snapshot
New Market Developments and Dynamics
Introduction
Industry Dynamics
Scenario 2a: Build and Training On-Premises
Scenario 2b: Build and Training on Public Cloud
Scenario 2c: Build and Training by an Outsourced Domain Services Provider
Scenario 2d: Tune a Pretrained Model Available as a Public Cloud Service
Scenario 3a: Inferencing — On-Demand
Scenario 3b: Inferencing — With Tuning of Pretrained Models
Scenario 3c: Inferencing at Edge with a Pretrained Model
Advice for the Technology Supplier
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Related Research
Synopsis

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