per-seat pricing for agents is toast. Agree on the compute shift.
But the 'give it away' idea... that's a tough monetization path. How do you cover your cost if you're not charging up front and just waiting to become SOR?
And the budgeting part? That's a real adoption blocker for usage-based. Procurement moves slow. Even if individual leaders see 10x, getting budget for variable costs is a nightmare for most large companies. Governance will be another factor for larger companies, especially in regulated industries.
Really good piece - a lot of sellers that are sub-enterprise right now don’t quite understand how fast they’re going to need to redo their pricing models to fit this paradigm. Investors, make sure your portcos don’t need to be reactive.
Very well put, a fantastic blog entry. Each technological innovation also needs a new paradigm for GTM to fully succeed and I love the insight that SaaS incentives structures in terms of pricing are misaligned.
But can you please elaborate on the “winning strategy” — it’s not sufficiently clear to me what that entails. What is the platform and why should the interface remain unstructured? This feels dangerously analogous to RPA which stumbled over its own feet because of sprawling complexity that diminished all potential upside.
per-seat pricing for agents is toast. Agree on the compute shift.
But the 'give it away' idea... that's a tough monetization path. How do you cover your cost if you're not charging up front and just waiting to become SOR?
And the budgeting part? That's a real adoption blocker for usage-based. Procurement moves slow. Even if individual leaders see 10x, getting budget for variable costs is a nightmare for most large companies. Governance will be another factor for larger companies, especially in regulated industries.
Love this. Very insightful. Wrote a brief reflection here: https://www.linkedin.com/posts/ryansoosayraj_ai-is-changing-pricing-in-a-big-way-for-activity-7273843556987895808-uW2K
This is fantastic. Outcomes as a services is the future.
Really good piece - a lot of sellers that are sub-enterprise right now don’t quite understand how fast they’re going to need to redo their pricing models to fit this paradigm. Investors, make sure your portcos don’t need to be reactive.
Very well put, a fantastic blog entry. Each technological innovation also needs a new paradigm for GTM to fully succeed and I love the insight that SaaS incentives structures in terms of pricing are misaligned.
But can you please elaborate on the “winning strategy” — it’s not sufficiently clear to me what that entails. What is the platform and why should the interface remain unstructured? This feels dangerously analogous to RPA which stumbled over its own feet because of sprawling complexity that diminished all potential upside.