Amalgam Insights specializes in Technology Consumption Management with a focus on how companies can align IT purchases and subscriptions to the relevant consumption models. This can and should include options for enterprises to purchase not only on a per-server or per-core basis, but also on a duration, user, resource, usage unit, feature, or baseline capacity basis. In this light, AI was especially interested in evaluating HPE’s Flexible Capacity billing capabilities across storage, computing, and networking as well as HPE’s new launch of Project New Stack.
Price is the ultimate test of value. Amalgam cannot emphasis this enough. No matter how valuable you think your product or service is, the ultimate business test of that value is whether someone is willing to buy it at the listed price.
One of my favorite topics in enterprise software is pricing. Despite the work done in value-based pricing over the past 50 years, the vast majority of pricing exercises still start with either a very basic cost-plus or percentage-based ROI model. This assumption has a key issue: it assumes that your product is a commodity. To explain why and to explain how to take a more value-based approach, consider what a price is.
There are many ways to break down price and many roles that price plays from a marketing and sales perspective. But as a starting point, the model AI uses to translate value into price comes from 3 basic components: Reference Price, Differentiated Value, and Price Positioning