Tag: pricing
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“this is the voice of American business that is being channeled through me”
“Livid” was the word he used to describe enterprise customers who are “paying for tokens that create no value,” while handing over their data to the major firms and, in the end, taxing the public who will end up paying for it in some form. The reason, he ventured, was the “models have completely… irresponsibly…
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🤖 Forrester: Capping AI Spend Won’t Fix Your Token Bill – Your Real Problem Is Context Debt, and It Needs a New Discipline Called ContextOps
Original: Your AI Bill Is A Context Problem by Forrester. Summarized by AI on Jun 11, 2026. The AI bill shock hitting enterprises isn’t a pricing problem you can cap your way out of – it’s the metered cost of your own knowledge not being machine-readable, forcing agents to rebuild missing business context on every…
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The AI Replaces Services Myth – If your software saves your customers money, then you’re not getting all of the former TAM, you’re often getting much less. // Also, people want simple pricing that matches how the software helps them, or at least as simple to understand as pizza pricing.
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Patience, plumbing, and the pricing of everything
Relative to your interests When was peak message in a bottle? – Only 80s kids will get this: “grandfather clocks; suits of armour; quicksand; spontaneous human combustion.” Also: big foot and UFOs. Is it Euro-poor, or Ameri-poor? – Checks out on both sides. Pricing: A List of Tactics – Some mind-tricks to play with pricing.…
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Pricing: A List of Tactics – Some mind-tricks to play with pricing.
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[Learning from my mistakes…](https://substack.com/home/post/p-156657600) – It’s tough to monetize content that has near zero value or originality, and be easily pirated. This especially true if the price is wrong. That sort of applies to every product. // “In the end though, you can’t optimise your way out of a black hole, the gravity is too…
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There’s a lot of apps running in private cloud – surveys and charts
Fun with charts: Relative to your interests How Cloud Ingestion Pricing Eats Your Budget – ”Essentially, yes, the cloud can be cheaper — but only if you’re using it the right way.” Microsoft and Google Are Forcing Customers to Adopt AI at a Premium Price: What Customers Need to Know – “84 million customers x…
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Google Workspace business getting full Gemini, price increase – Instead of charging $20 to 30 extra a month of AI, give it to everyone and raise everyone’s price by $2. // Teams pricing going up similarly.
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The Presentation Mistake You Don’t Know You’re Making – ’If your very expensive luxury hotel rooms offer ocean views, silk sheets, and a Jacuzzi, don’t mention the ironing board in the closet or the coffeepot.’ // Seems a little too turns out… // This replication study show that it sort of works. Furthermore that if…
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Notes on how to use LLMs in your product. – “Even the most expensive LLMs are not that expensive for B2B usage. Even the cheapest LLM is not that cheap for Consumer usage – because pricing is driven by usage volume, this is a technology that’s very easy to justify for B2B businesses with smaller,…
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The Poetry of Pricing – “Pricing is a signal. It’s a conversation between seller and buyer containing information that both parties will exchange. On the part of the seller it suggests both the cost of the offering and the value it provides. Buyers are inclined to see if they can stretch to the next higher…
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When “customer Value” is weird framing, if not dangerous
Don’t get hung up on “customer value” and “business value” I feel like this metaphor of “customer value” (and “business value”) has gone too far. It’s become something that people think is real, not just metaphor. Instead of “value” what we’re talking about is something like “is useful at a price the customer will pay.”…
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Oracle’s revised Java licensing terms 2-5x more expensive • The Register – ’a hypothetical organization with 49,500 employees, all of whom are applicable for the “Named User Plus” (NUP) license as per the legacy subscription model. That organization is also running Oracle JDK on 5,000 processors, and as such would pay $742,500 for NUP licenses…
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Two things infrastructure and developer tools product people ignore too much
Pricing determines your business model First, check out this post on pricing from Jason – it’s great! The two things I’ve seen infrastructure and developer tools product people ignore too much are: the need for customers to use the tool in minutes, self-service pricing as a feature and strategy driver. Sellers think of pricing as…
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Link: AT&T’s ‘Public-Cloud First’ Proclamation a Stake in the Ground
For AT&T to now start the process of adopting the public cloud for what are admittedly “non-network applications” is a big move. It shows that even the most stodgy industry verticals are on board with moving to the public cloud. This will provide a significant new revenue stream for those cloud providers but at the…
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Link: Why Did WOW Air Fail?
For one, there’s tons of competition on transatlantic routes. Not only from ultra low cost carriers, but the reality is that nowadays even legacy airlines have incredibly low transatlantic fares, because they know they have to compete. $400-500 roundtrip fares on major carriers are the norm in the off season. When fares are that low,…
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Link: THE EMERGING THREE-TIER PRICING MODEL FOR PRIVATE CLOUD
Private clouds owned and self-managed by enterprises can be cheaper than public cloud. The magic number to beat is about $25 per VM-month at 100% utilization. If the cost of the whole stack comes in under this number, then even with the addition of labor to manage that private cloud, it should be cheaper than…
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Link: What makes a good deal?
“The rule of thumb is that there should be at least a 20 percent discount. That’s the number people think is a really good deal.” Original source: What makes a good deal?
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Link: IT vendors slash prices in LatAm as users seek savings
“the uptake of offerings like cloud [$3.9bn market in LATAM] is still timid across the region. This is because businesses lack the revenue to make the shift to the cloud or do not have sufficiently skilled people to use them” Original source: IT vendors slash prices in LatAm as users seek savings
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Link: The Bezos-Buffett-Dimon health care venture: Eliminate the middlemen
“There’s ample room to replicate that success in health care, because the system in the U.S. has long been plagued by excessive transaction costs – the expenses incurred when buying or selling goods and services. These include irrational pricing, as evidenced by the price of services varying wildly for hospitals, insurers and patients. This, along…
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