Navigating Tokenized Pricing Models

This IDC Perspective explores how token-based pricing is transforming AI and cloud service monetization by converting complex usage patterns into transparent, metered units. It traces the evolution from seat-based and subscription models to prepaid and postpaid token approaches, highlighting real-world vendor implementations and buyer challenges around forecasting, governance, and contract fine print. By offering best practices ranging from benchmarking token rates to establishing cross-functional token governance, this document equips technology buyers with the insights needed to evaluate token offers, manage costs more effectively, and align AI spend with business outcomes."Token-based pricing offers a clear path to align AI costs with actual usage; but without robust metering and governance frameworks, organizations risk unpredictable spend. By establishing transparent token metrics and negotiating fine print terms, technology buyers can unlock both flexibility and control as AI services continue to evolve." - Tiffany McCormick, research director, Digital Business Models and Monetization at IDC