Report cover image

Pricing and Packaging Strategies for Generative AI

Publisher IDC
Published Sep 03, 2024
Length 16 Pages
SKU # IDC19146643

Description

Pricing and Packaging Strategies for Generative AI


This IDC Market Perspective provides an in-depth analysis of pricing and packaging strategies for generative AI (GenAI) software offerings, including foundation models as a service, automation workflows, and GenAI applications. It emphasizes the importance of understanding customer value, the economics of offerings, and the competitive landscape to devise pricing models that reflect short- and long-term objectives, thereby enabling technology suppliers to effectively navigate the GenAI market with innovative and intelligent pricing strategies."Technology suppliers will be better equipped to navigate the challenging GenAI market when they have a clearer understanding of the pricing landscape and how to set an innovative and intelligent pricing strategy that does justice to the transformative power of their GenAI software solutions," said Ritu Jyoti, GVP/GM, AI and Data Market Research and Advisory Services, IDC.

Table of Contents

16 Pages

Executive Snapshot

New Market Developments and Dynamics

How Do You Price Your GenAI Software Offerings?

Foundation Models

Consumption-Based Model

Automation Workflows

GenAI Applications

How Do You Learn and Leverage Emerging Best Practices?

Emerging Best Practices for Packaging Your B2B GenAI Feature

Core

Upgrade

Add-on

Importance of Predictability in Costs

Pricing Metric

Offer Some Form of Committed Consumption

Carefully Consider Overages

Sales

Offer True Ups

Product Capabilities

Customer Support

Proactive Engagement from Customer Success Managers

Conclusion

Advice for the Technology Supplier

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.

Head shot

Questions or Comments?

Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
Chat Now
Contact Us