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ZDNET's key takeaways
Software pricing is moving to outcome-based models.
Users and vendors need to agree on success metrics.
The nature of software engineering work is evolving.
In the year ahead, your relationship with your software vendors may change radically, perhaps even a greater shift than the switch from disks to Software as a Service. You may start paying only for the actual results the software delivers, versus simply paying a monthly charge that you pay even if the application sits on a shelf.
Also: 6 essential rules for unleashing AI on your software development process - and the No. 1 risk
Of course, paying for results requires consistent, agreed-upon metrics to determine what exactly is being advanced, and this will be the challenge for users and their vendors. For example, for users of Zendesk's solutions, the business model defines success by "automated resolutions; when AI fully resolves a customer issue end-to-end, without human intervention," Chris Donato, president and chief revenue officer at Zendesk, told ZDNET. "It's a measurable, accountable way to tie pricing directly to results."
A couple of months ago, we discussed the changes in the way software is being purchased, based on a McKinsey analysis that predicted that per-seat software licenses may soon be obsolete. Consumption- and outcome-based pricing models would be the basis for software charges, and much of the purchasing would be performed by AI agents.
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