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Artificial Intelligence Pricing Strategies: Executive Summary

Robert Parker, Dave McCarthy, Peter Marston, Ritu Jyoti — Fri, 22 Nov 2024 05:00:00 GMT

This IDC presentation includes insights about GenAI and AI pricing from IDC's GenAI Pricing Models Survey and interviews with GenAI technology buyers and suppliers. This presentation is part of a multipart series of IDC special studies about buyer expectations for AI and GenAI pricing.

Artificial Intelligence Pricing Strategies: Infrastructure

Dave McCarthy — Fri, 22 Nov 2024 05:00:00 GMT

This IDC presentation includes insights about GenAI and AI services infrastructure pricing from IDC's GenAI Pricing Models Survey and interviews with GenAI technology buyers and suppliers. This presentation is part of a multipart series on buyer expectations for AI and GenAI pricing.

"Buyers of GenAI infrastructure are looking for well-defined, transparent pricing that is flexible as project needs change. Vendors that can offer a mix of fixed and variable pricing will be best positioned to address a wide range of customer requirements." — Dave McCarthy, research VP, Cloud and Edge Services, Worldwide Infrastructure Research at IDC

Artificial Intelligence Pricing Strategies: Services

Peter Marston — Fri, 22 Nov 2024 05:00:00 GMT

This IDC presentation includes insights about generative AI (GenAI) and AI services from IDC’s GenAI Pricing Model Survey and interviews with GenAI technology buyers and suppliers. This presentation is part of a multipart series on buyer expectations for AI and GenAI pricing.

"Organizations have highly varied expectations on GenAI-enabled services pricing requiring services providers to plan for pricing flexibility." — Pete Marston, senior research director, Worldwide Services, IDC

Artificial Intelligence Pricing Strategies: Software

Ritu Jyoti, Robert Parker — Fri, 22 Nov 2024 05:00:00 GMT

This IDC presentation includes insights about GenAI and AI software pricing from IDC's GenAI Pricing Models Survey and interviews with GenAI technology buyers and suppliers. This presentation is part of a multipart series on buyer expectations for AI and GenAI pricing.

“Pricing predictability remains a key barrier to investment in GenAI, but confidence grows with experience." — Bob Parker, senior VP, Enterprise Applications, Data Intelligence, Services, and Industry Research at IDC

Ignite 2024: Microsoft Announces Purpose-Built, Fast-Connect Windows 365 Endpoint for the Desktop

Tom Mainelli — Thu, 21 Nov 2024 05:00:00 GMT

As companies struggle to fill IT roles, more large companies are turning to Microsoft's Windows 365 service and the company's cloud-based desktops to manage its PC fleets more effectively. At this year's Ignite conference, the company announced a moderately priced desktop-focused endpoint called the Windows 365 Link that runs a lightweight, hardened version of Windows 11, specifically built to quickly connect to the service and provide a secure, stateless environment for deskbound users.

IDC Market Glance: B2B Digital Commerce, 4Q24

Mark Casidsid — Wed, 20 Nov 2024 05:00:00 GMT

This IDC Market Glance provides a comprehensive overview of the B2B digital commerce market, identifying key vendors in this space. It includes core digital commerce applications as well as complementary applications that support a wide range of B2B commerce use cases such as sales, marketing, fulfillment processes, payments, customer and partner engagement, and compliance.

Worldwide Monthly Technology Investment Monitor, August 2024: Economic and IT Spending Expectations, Critical Investment Areas for 2025, AI Pricing, Cloud Marketplace Use, and Security for GenAI

Rick Villars, Michelle Abraham, Dave McCarthy, Robert Parker, Tom Mainelli — Wed, 20 Nov 2024 05:00:00 GMT

This IDC Survey provides key findings from IDC's 2024 Future Enterprise Resiliency and Spending (FERS) Survey, Wave 8. This survey of 891 respondents in North America, Asia/Pacific, and Western Europe was conducted while IT leaders were developing their 2025 spending plans and weighing longer-term investment goals.

IT leaders continue to weigh the impact of potential economic/geopolitical disruptions while also starting to execute investment plans related to more effective use of generative AI (GenAI) and complex AI-infused apps/services. In early September 2024, IDC connected with IT leaders around the world to gain an insight into their initial 2025 IT spending priorities and the motivating factors behind any spending increases. IDC also asked enterprises to share more on their current and planned spending through cloud marketplaces and the impact of GenAI on security goals and operations.

Worldwide Monthly Technology Investment Monitor: July 2024

Rick Villars, Stewart Bond, Duncan Brown, Mary Johnston Turner — Tue, 12 Nov 2024 05:00:00 GMT

This IDC Survey provides key findings from the IDC’s 2024 Future Enterprise Resiliency and Spending (FERS) Survey, Wave 7, which focuses on issues related to AI adoption and its implications for IT investment. It’s the third of four (quarterly) presentation that will investigate the implications of AI adoption across regions, technologies, and industries. This survey of 881 respondents in North America, Asia/Pacific, and Western Europe was conducted in early August 2024, while IT leaders were midway in executing GenAI plans and making longer-term strategic AI choices.

Hyper-experimentation with generative AI (GenAI) dominated the conversations of business and technology leaders in organizations of all sizes, across all industries, and in all countries for the past 18 months. As enterprises began to access early results and prepare for 2025 budget planning, IDC wanted to better understand their priorities when it came to accelerating AI adoption in general.

How Are Organizations Addressing Their Technical Debt?

Daniel Saroff — Wed, 30 Oct 2024 04:00:00 GMT

This IDC Tech Buyer Survey Spotlight examines how organizations are addressing their technical debt. Technical debt is like financial debt. It can be used strategically (like financial leverage), but it eventually needs to be paid down. IDC's CIO Sentiment Survey shows that only 24% of organizations are tracking tech debt with confidence, which means organizations are taking an ad hoc or reactive approach to managing it. As organizations digitally transform, this inattention to addressing technical debt inhibits innovation, market responsiveness, customer loyalty, and adoption of emerging technologies like generative AI.

Business Consulting Services Vendor Survey Spotlight: Which Pricing Model Do Buyers Care About Most Based on the Advent of GenAI?

Bill Latshaw — Thu, 26 Sep 2024 04:00:00 GMT

This IDC Survey Spotlight pulls its data from IDC's Business Consulting Services Provider Survey from May 2024. It asked buyers the question: How important is it that you know the extent your business consulting services provider is using GenAI to produce outcomes for your project across (five) pricing models?

Business consulting services providers have spent billions of dollars investing in their GenAI capabilities to support their businesses and clients. The efficiency of GenAI in reducing workload and producing faster results can cause buyers to argue that providers should pass that savings onto them in the form of reduced price paid and/or quicker project completion. While this argument seems to make sense, buyers are not getting these advantages for free.