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?

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.

Commercialization of B2B generative AI is coalescing around four patterns: Co-Pilots, Agents, Generators and Service as Software. Which pattern will dominate in 2025? How does one price each of these patterns? Prepare for change in 2025.

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.

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.

The rapid of evolution of B2B SaaS and generative AI mean we need new ways to chart and navigate a changing environment. Ibbaka is responding by upgrading its investment in research and community. We are adding research reports and generating value models for many solutions based on publicly available information.

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 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?

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.

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.

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.

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 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 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.

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.

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 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 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.

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.

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.