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TECH SUPPLIER Aug 2019 - Market Perspective - Doc # US45428419

Pricing Dynamics for Artificial Intelligence Offerings: Rapid Emergence of Granular and True Consumption-Based Approach

By: Ritu JyotiProgram Vice President, Artificial Intelligence Strategies

Abstract

This IDC Market Perspective provides an overview of the common scenarios and approaches that organizations employ to build their AI capabilities — from training to inferencing stages — and the emergence of new age granular and consumption-based pricing models.

"AI is a new and fast-moving industry, with rapidly changing capabilities and terminology and evolving standards and regulations. Traditionally, pricing of information technologies was based on the perpetual licensing model. Today, we are on the cusp of massive disruptive trend toward true consumption-based pricing pioneered by cloud service providers. Businesses are demanding more granular pricing, and transaction-based models seem to be the direction the market is going for AI services," says Ritu Jyoti, program vice president, Artificial Intelligence Strategies.


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