Hi, I’m Keith Kirkpatrick, research director, enterprise applications for The Futurum Group. Today, I’d like to talk to you about the market and offer a bold prediction that I have for 2025. Now, there’s a lot going on in the enterprise application market. Generative AI is predicted to deliver exponential productivity, efficiency and accuracy, and in large measure, has dominated nearly every buying conversation.
Now, GenAI technology is being delivered either as an add-on feature at an additional cost, or as a fully integrated or embedded capability directly into business applications, such as CRM, ERP, CDB, and countless other line of business applications – though without a discrete additional charge on top of the base license. Now, how generative AI is actually being delivered to customers is largely dependent upon the individual vendors, technology stack, and footprint.
Some vendors such as Oracle or Zoho, well, they own the entire technology stack, including the data centers and compute that will power AI model training, tuning, and inference testing, all the way to the end user-facing applications.
Now, other vendors, they only own the application itself. They have to procure or cobble together compute resources, AI model training, and development, and other ancillary services to actually deliver real value to organizations. This latter group, there are significant concerns around balancing these costs being earned for delivering AI, while actually ensuring that they can deliver new innovations on a continuous basis, not just on a quarterly cadence, but a continual basis to satisfy their customers’ thirst for quickly utilizing new innovations.
My prediction for 2025, is that we’re going to witness the introduction and growing usage of new packaging and pricing models in terms of how software is actually delivered to the market. This will largely be based around the growing utilization of generative AI co-pilots for assistance, AI agents and embedded AI technology.
Now, if you’d like to learn more, please be sure to download our eBook, Futurum Research 2025, Key Issues and Predictions. Thanks, and we’ll see you throughout the year.
