THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

An AI Monetization Glossary

The concept blend of generative AI, monetization, pricing and customer value management is bringing together terms not often used together. Tokens are an important part of transformer models and are also being used as a pricing metric. The Ibbaka AI Monetization in 2025 includes a handy glossary to keep track of these terms.

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Steven Forth Steven Forth

AI Monetization in 2025

Ibbaka’s second Annual report on AI Monetization is now available. The report is based on a survey of more than 300 B2B companies that are bringing AI enabled or AI applications to market. It includes four mini case studies, proposes four emerging packaging patterns and defines three different approaches that companies are taking. The report is essential reading for anyone in the B2B AI applications space.

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Steven Forth Steven Forth

From tokens to tasks - how will OpenAI price o3?

OpenAI has released its newest reasoning model o3. How will it be priced? Will OpenAI move from token pricing to task pricing? How would task based pricing work for o3? How would it impact pricing of agents and applications using o3?

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Steven Forth Steven Forth

Customer Value Management in 2025

The year of the wood snake, 2025, is to be a time of transformation, wisdom, and renewal. This is especially true of customer value management (CVM) which is becoming a strategic way to introduce new products and technology (like AI) and to sustain that revenue over time. Value to Customer (V2C) is the key metric in CVM and is a compelling way to organize operations.

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Steven Forth Steven Forth

Why pricing is part of customer value management

Customer Value Management (CVM) is a rapidly growing category of B2B software. These platforms are used to measure the value being delivered to a customer (Value to Customer or V2C) and manage value communication, delivery and documentation. Pricing is integral to value management as customer see value in relation to price and price in the context of value.

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Liam Hannaford Liam Hannaford

Ibbaka Wrapped 2024: Webinars & Podcasts

Our Wrapped 2024 webinar and podcast recap of cutting-edge strategies in AI monetization, Net Revenue Retention (NRR), and value generation for B2B SaaS. From expert tips, industry leader conversations and interviews - content to make you and your customers a sales and value creation powerhouse.

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Steven Forth Steven Forth

Will agents replace integrations?

Agentic technology or AI agents are one of the emerging themes for 2025. What functions can be packaged as agents? How will agents be priced? Integrations are a useful case study. Agentic AI approaches to integration offer more value than automation and will likely take over the highest value applications.

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Steven Forth Steven Forth

Will Amazon trigger a price war for foundation models?

Amazon is making some big plays as it tries to establish a growth flywheel for AWS in the generative AI era. This includes offering its own chips as alternatives to Nvidia, offering its own models, and supporting the idea that no one model will or should win. Amazon’s pricing for its own models is generally cheaper than the alternatives. How will this impact packaging and pricing in 2025? We offer some suggestions.

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Steven Forth Steven Forth

Is customer success the killer app for B2B GenAI?

Is customer support the killer app for B2B generative AI? We have some early results from the AI Monetization in 2025 survey that suggest widespread adoption of this class of solutions. This is also where we are seeing the strongest evidence for outcome based pricing. Will the success of customer support cascade over into other B2B applications?

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Steven Forth Steven Forth

Does insurance provide a model for cybersecurity pricing?

One way to think about cybersecurity is as a form of insurance. What lessons can be taken from insurance pricing for cybersecurity solutions? We present a concept blend that suggests a new approach to cybersecurity pricing and advocate for a shared framework for cybersecurity modeled on the insurance industry’s ACORD framework.

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Steven Forth Steven Forth

Can Cybersecurity Companies Leverage Outcome Based Pricing?

Outcome or results based pricing is a dominant theme in B2B SaaS these days. But can cybersecurity companies leverage this? How does one price for what you prevent happening? Cybersecurity pricing will evolve over the next decade to use outcome based pricing where possible.

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Steven Forth Steven Forth

Agent AI - an emerging packaging pattern

AI agents are emerging as a standard way to deliver AI functionality, especially in B2B. This has been underlined by Salesforce’s recent Agentforce announcements. Agent pricing is evolving from inputs and number of agents to actions and outcomes. This evolution is framing how we think about pricing generativeAI.

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Steven Forth Steven Forth

AI monetization in 2025 survey opens

There have been large investments in AI since the release of ChatGPT 3.5 back in November 2022. VC firms have poured money into startups and existing firms have shifted R&D priorities to implement AI-based functionality. We are now seeing the emergence of second generation generative AI apps for B2B and new approaches to pricing. In the second edition of this survey we ask about shifting attitudes towards AI and emerging monetization paradigms.

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Steven Forth Steven Forth

Ibbaka AI Monetization Roundtable Survey Report

Ibbaka conducted a survey to help inform the AI Monetization Roundtable with Michael Mansard from Zuora and Kyle Poyar from Growth Unhinged. The survey results are shared here. Key insights include (i) Pricing approaches for horizontal and vertical applications are diverging sharply , (ii) the most common approach to pricing is value based and (iii) The B2B SaaS community is divided on the future impact of generative AI.

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Amar Dhaliwal Amar Dhaliwal

What’s a Customer Value Manager and why you need one

Value-based selling has become a cornerstone strategy for many businesses. Executing this strategy effectively without a robust, detailed, validated, and configurable value proposition presents significant challenges. Central to overcoming these challenges is the development and utilization of value models. These models are essential for articulating the unique value a product or service offers and ensuring alignment with customer needs.

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Steven Forth Steven Forth

Key findings from the PeakSpan Ibbaka Net Revenue Retention Research

What were the key findings from the PeakSpan Ibbaka NRR Survey for 2024? There is a growing cluster of disruptive companies with emergent patterns. Some companies in this cluster have the unexpected pattern of high churn with high revenue expansion. Dedicated teams responsible for expansion revenue are outperforming. There are early indications that Machine to Machine companies will have strong NRR performance. Packaging patterns have an impact on NRR performance.

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Steven Forth Steven Forth

Generative pricing: agent pricing evolution

AI agents are emerging as a standard way to deliver AI functionality, especially in B2B. This has been underlined by Salesforce’s recent Agentforce announcements. Agent pricing is evolving from inputs and number of agents to actions and outcomes. This evolution is framing how we think about pricing generativeAI.

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Steven Forth Steven Forth

Ibbaka PeakSpan NRR Survey Report for 2024

This is the second year that PeakSpan and Ibbaka have collaborated to understand benchmarks and best practices in B2B SaaS. Continuity is important because it allows us to see trends in the data. The report documents the disruption being caused in B2B SaaS by generative AI.

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