THE VALUE & PRICING BLOG
The latest stories, blog articles, and pricing news from the Ibbaka team
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.
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.
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.
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?
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.
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.
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.
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.
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.
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.
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.
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.
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.
Adobe positions its approach to generative AI pricing
Adobe is investing heavily in generative AI and has begun to signal how it will approach pricing. It is taking an incremental approach. Price remain anchored in a per seat price, but plans are becoming more flexible, and more expensive!
NRR Research: Churn vs. Expansion Revenue
NRR dynamics differ depending on market stage. In markets that are being disrupted and where new use cases are emerging you can see high Net Revenue Retention and high churn occur together. This post summarizes a key insight from the forthcoming Peakspan Ibbaka NRR Survey for 2024.
Generative pricing for AI is a blend of dynamic pricing and value based pricing
Conventional approaches to pricing are not fit for purpose when it comes to pricing generative AI applications for B2B. A new process is needed. Ibbaka is proposing generative pricing, a mashup (or concept blend) of dynamic pricing and value based pricing.
B2B SaaS discounting: Should you discount fixed or variable pricing metrics?
Discounting is a fact of life for most B2B companies. As pricing models become more complex and come to include usage or consumption components, what should get discounted? We use scenario planning to think through this question.
Will Salesforce’s stance on agent pricing frame AI pricing generally?
Salesforce has announced that it will use consumption pricing for its AI agents going forward. Why is Salesforce taking this approach? What are the implications for other Vertical AI companies? Results of our LinkedIn poll.
The Crucial Role of Value Models in Value-Based Selling
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.
Monetizing GenAI Roundtable Webinar: On-Demand Recording
Ibbaka had the pleasure of hosting a roundtable discussion on Monetizing Generative AI, featuring two industry luminaries: Michael Mansard from Zuora and Kyle Poyar from OpenView Partners. Generative AI is going to transform how we build B2B applications, how we configure them, how we move to dynamic configuration, and all of that is going to have a huge impact on both monetization and pricing.
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