The AI/ML commercialization just begun. We’ve seen several big announcements at CES-2025. Laptops announced at CES-2025 are packed with powerful CPUs, GPUs, NPUs, and AI capabilities. Let’s dive into some of the latest models. Intel-based Laptops AMD-based Laptops Nvidia-based and Nvidia GPU powered Laptops What conclusion we can make from [...]
In Part 1 of the serie we discussed existing issues for SaaS software approach and why it will end its existence very soon. In this Part 2 we will discuss a reasonable business model for Agentic AI and its APIs.
Firstly, Agentic business model is use case oriented and KPI based. In other words, a consumer can make a business decision based on the following criterias:
If we take a look at SaaS business model, one rents an infrastructure or(and) access to a software regardless of business case efficiency. Whether your virtual machine usage is overrated, internet traffic is unpredictable or type of instances isn’t a fit for your business cases, companies are afraid of changing anything provided it works already. We can notice rare instances when customers perform SaaS cost optimizations and save $ millions for a given time-frame. The most frequent cases are companies overpay for what they consume regardless how efficiently their businesses run.
The root cause for that SaaS busines model is all about technology accessebility and not about efficiency of your business through those technologies. There is no orientation on business KPI calculated dynamically, say on a monthly basis.
In contrast, Agentic API is use case oriented and customers are able to decide how efficient it is for your business in a dynamic manner( bi-weekly, monthly etc). If a given use case is not profitable for a company, Agentic business model can be down-scaled immediately( on a monthly basis ) or eliminated altogether.
When we are talking about SaaS business model, customer would need to setup Cloud infrastructure firstly. Then to select a specific SaaS subscription for its business cases. There is no guarantee though that selected Cloud and SaaS software will fit your specific use cases within observable time frame. Because SaaS business model doesn’t care about your business and its efficiency. You can only get an access to a given infrastructure and software. That is it.
In the case of Agentic API subscription model, a customer is able to quickly decide whether it is a match and how efficiently it satisfies his requirements. Because it is use case oriented and Agentic API profit is fully dependent on effectiveness of the business case implementation. For instance, Security Monitoring Agentic API will not suit RAG based use cases or vice versa.
When we are talking about Agentic API, there is a direct correlation between the business model and efficiency of customer businesses. The more effective is the Agentic API, the more profitable is customer business. Hence the more profitable is Agentic API vendor. It is a win-win from the first step forward.
Agentic API subscriptions are the most obvious choices for the business model. The main differentiator here is that a given subscription must fully suit certain use cases for a customer. Should a mismatch found during a POC phase, it is immediately and efficiently handled afterwards i.e. Agentic API subscription removed.
Depending on given use cases and markets, the subscriptions are much differentiated. For a pharmaceutical business case the nature of Agentic API is different than for a retail or security business cases.
Also, within the same technology stack of a given Agentic API there might be several levels of subsctiptions. In this case, there is no differencies here with SaaS subscriptions and Agentic business models just accept the legacy handed over.
Depending on use cases, there are the following subscription packages:
On the diagrams below presented a difference in features available for SMB and Enterprise subscriptions for one of supported business cases.
SaaS end of life to be declared soon Current Software as a Service business model exploits a concept of technology accessibility for more than two decades. After dotcom bust at ...
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