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Flamingo’s AI Token Pricing Model Shifts Margin Risk for MSPs – With Rich Freeman
A growing shift is materializing in the IT services market as software vendors move away from traditional fixed software pricing and towards models based on AI token consumption, effectively redefining the sources of margin and exposing providers to variable cost structures. This transition is embodied by companies such as Flamingo, which has constructed an MSP software suite and prices access at $1 per device per month, including a token allotment, but whose actual profits—and partner costs—are derived from overage on AI token consumption. The fundamental mechanism is that margin is…
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