4 Predictions on the Future of IT Consumption

AritificialFictionBrain

At Amalgam Insights, we have been focused on the key 2018 trends that will change our ability to manage technology at scale. In Part 1 of this series, Tom Petrocelli provided his key Developer Operations and enterprise collaboration predictions for 2018 in mid-December. In part two, , Todd Maddox provided 5 key predictions that will shape enterprise learning in 2018. In the third and final set of predictions, I’m taking on key themes of cloud, mobility, telecom, and data management that will challenge IT in terms of management at scale.

  1. Cloud IaaS and SaaS Spend under formal management will double in 2018, but the total spend under formalized management still be under 25% of total business spend.
  2. The number of cellular-connected IoT devices will double to over one billion between now and 2020.
  3. Technology Lifecycle Management will start to emerge as a complex spend management strategy for medium and large enterprises.
  4. Ethical AI will emerge as a key practice for AI Governance.

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Amalgam Insights’ primer on value-based pricing

money-graph
money-graph

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
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