Welcome to Episode 41 of the Cloud Wars Horizon Minute — featuring news and commentary hosted by Acceleration Economy analyst Tom Smith. Each episode provides insights into one or more Innovation Accelerators on the Cloud Wars Horizon. This episode addresses significant changes taking place at C3 AI.
Highlights
00:55 — In its earnings report, C3 AI delivered solid results but placed the most emphasis on a new usage-based pricing model.
01:13 — CEO Tom Siebel gave a detailed rationale for the moves, noting customers are scrutinizing big deals as never before. So, now is a good time to launch usage or consumption-based pricing.
01:30 — C3 AI will charge new customers based on CPU use per hour, similar to pricing models used by Google Cloud, AWS, and Microsoft Azure.
02:05 — Siebel refers to the existing sales model as “elephant hunting” and not well-suited to the current environment.
02:24 — The new model begins with a six-month pilot project where the customer puts their first application into production, then ongoing pricing is 55 cents per CPU hour.
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