Emanuel Martonca

Fractional Pricing Manager for B2B, Business Strategist

Emanuel is a seasoned expert in software services and technology negotiations, with experience in over 350 deals since 2012, representing both buyers and sellers. He provides insights on navigating the evolving landscape of software development, shaped by economic uncertainty, hybrid work models, and the rise of AI.

Recognizing the limitations of traditional pricing models like hourly billing and cost-based pricing, he advocates for more agile and effective approaches.

His expertise is built on real-world experience, helping businesses adapt to shifting market dynamics and operational challenges.

Presentation : From IT Services to Software Products in the age of AI

AI will change the business of selling and delivering IT & software services.

Official statistics show that only about 5% of companies in the US use AI in production, to solve real business problems. That’s looking across all industries and sectors, for all types of companies and sizes. 

If we isolate tech companies and the software industry, we see that the adoption rate is much, much higher. In a recent survey (end of 2024), 78% of software engineers in the US declared they are using AI at least weekly.

AI will kill the billable hour. Companies need to move from charging for inputs (time) to billing outputs and outcomes. You can charge for time when most of the input for delivering the service comes from people applying their skills and expertise. 

But when you use technology to accelerate the process or to improve the quality of the work, and you have to pay for that technology, charging for time is not sustainable anymore.

Let’s explore together what are the options: stick to a pure services model? Invest in software products? Offer productized services? There are many options. Some of them good. Some bad. Some just plain ugly