Dassault Syst\u00e8mes SE is undertaking one of the most consequential shifts in its business model in decades, moving away from traditional per-seat software licensing toward a more fluid, artificial intelligence-driven pricing structure based on outcomes, usage and value delivered.<\/p>\n
The transition, outlined by Chief Executive Pascal Daloz (pictured) in a briefing with journalists at Dassault\u2019s 3DExperience conference last week, is creating near-term pressure on the company\u2019s financials and stock price, which is down more than 30% this year amid a broad selloff in software stocks. Last month, the company\u00a0last month reported fourth-quarter revenue that missed estimates<\/a>, sending its shares down more than 20% in one day.<\/p>\n Daloz, who was elevated to the chairmanship only one month ago, was unequivocal in asserting that the strategy is necessary in the long term.<\/p>\n At the core of the shift is the maker of three-dimensional design and simulation software\u2019s focus on \u201cvirtual twins,\u201d or digital equivalents of real-world objects. Twins can be used for design, testing and modifications at a small fraction of the cost and time needed to construct physical models. Dassault\u00a0 Syst\u00e8mes believes the benefits are so compelling that customers will be willing to pay based on value rather than traditional metrics.<\/p>\n The company also recognizes that the historic pricing model of charging per named user no longer aligns with how AI-powered engineering software will be consumed. That model breaks down in a world where virtual users, such as AI agents and what Dassault Syst\u00e8mes calls \u201ccompanions,\u201d increasingly perform work alongside or instead of humans.<\/p>\n To address this evolution, the company is introducing a multidimensional pricing framework built around what Daloz describes as \u201cunits.\u201d These include \u201cunits of knowledge\u201d that reflect the sophistication of an AI companion. They also include \u201cunits of know-how\u201d that relate to domain specialization and \u201cunits of work\u201d that ties pricing to usage. In effect, the more capable and active the AI, the higher the price.<\/p>\n Outcome-based pricing<\/p>\n More radically, the company is exploring outcome-based pricing tied directly to the value its software delivers. \u201cMy dream is to price the object, which has been generated automatically, based on the value,\u201d Daloz said. He cited one example in which Dassault Syst\u00e8mes priced the automated design of an automotive headlamp using digital twins at a share of the engineering cost savings rather than on a per-seat price.<\/p>\n This new approach involves a philosophical shift away from selling tools to selling results, Daloz said. \u201cThe twin is becoming, in a way, a currency,\u201d he said. Instead of monetizing access to software, Dassault Syst\u00e8mes aims to monetize the intellectual property and outcomes generated by its platform.<\/p>\n The transition coincides with a broader move to subscription-based revenue, a move most major software companies have already completed, but which is still in process at Dassault Syst\u00e8mes. Subscription pricing spreads income over time rather than recognizing it upfront. That creates a temporary drag on financial performance but makes revenue more predictable.<\/p>\n The company is navigating these changes amid broader investor concerns about the impact of generative AI on traditional software models. Daloz was blunt about market sentiment: \u201cThe investors believe we are [vulnerable]. Look at the share price. That\u2019s the underlying reason,\u201d he said.<\/p>\n Slowdowns in the automobile manufacturing industries, which have historically been the core of Dassault Syst\u00e8mes\u2019 business, are also putting pressure on shares.<\/p>\n But Daloz frames the company\u2019s strategy through a long-term lens shaped by customer behavior. The life sciences sector is now the biggest piece of the company\u2019s business, and the investments customers make in skills to use advanced engineering software make platform decisions last for decades.<\/p>\n \u201cOur customers make these decisions every 20 years,\u201d Daloz said. Once adopted, those systems are \u201csuper sticky,\u201d creating durable revenue streams.<\/p>\n That long-term dynamic underpins the CEO\u2019s confidence that Dassault Syst\u00e8mes will weather short-term market cycles. In effect, he\u2019s betting that AI will not commoditize its business, but instead transform its software from a tool into a value-generating platform. How patient investors are in waiting for those proof points is the central question.<\/p>\n Photo: Paul Gillin\/SiliconANGLE<\/p>\n Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE\u2019s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.<\/p>\n 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more About SiliconANGLE Media<\/p>\n SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE<\/a>, theCUBE Network<\/a>, theCUBE Research<\/a>, CUBE365<\/a>, theCUBE AI<\/a> and theCUBE SuperStudios \u2014 with flagship locations in Silicon Valley and the New York Stock Exchange \u2014 SiliconANGLE Media operates at the intersection of media, technology and AI.<\/p>\n Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.<\/p>\n","protected":false},"excerpt":{"rendered":"Dassault Syst\u00e8mes SE is undertaking one of the most consequential shifts in its business model in decades, moving…\n","protected":false},"author":2,"featured_media":25038,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13061],"tags":[4664,8057,18303,16975,12929],"class_list":["post-25037","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dassault-systemes","tag-dassault","tag-dassault-systemes","tag-dassault-systemes-pricing-overhaul-weighs-on-shares-but-signals-long-term-ai-pivot","tag-paul-gillin","tag-siliconangle"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/25037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/comments?post=25037"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/posts\/25037\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media\/25038"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/media?parent=25037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/categories?post=25037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/france\/wp-json\/wp\/v2\/tags?post=25037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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