business-model
factory
pricing
licensing

AI Factory Business Model¶

This document describes how the ConnectSoft AI Software Factory is sold and licensed. It is written for product managers, sales, and anyone defining pricing and licensing strategies for the Factory.

The Factory can be monetized through hosted SaaS, dedicated instances, or enterprise self-host licenses. This document outlines what customers get, deployment options, pricing approaches, and how the Factory business model relates to code ownership.

Decision

The Factory runtime and templates are ConnectSoft's proprietary IP. All code generated into customer Azure DevOps repositories belongs to the customer. See Code Ownership Model for details.

What Customers Get¶

When customers subscribe to or license the Factory, they receive:

Access to the Factory - Either as a hosted service (ConnectSoft runs it) or as a licensed deployment (customer runs it)
Ability to generate microservices - Complete bounded contexts with Clean Architecture, DDD, event-driven patterns
Library generation - Reusable components following ConnectSoft patterns
Infrastructure generation - CI/CD pipelines, Infrastructure-as-Code (Bicep), deployment configs
Documentation generation - ADRs, runbooks, API docs, architecture diagrams
Azure DevOps integration - All artifacts generated directly into customer's Azure DevOps organization

Customers get full ownership of all generated code, pipelines, and documentation in their repositories. The Factory runtime and templates remain ConnectSoft's IP.

Deployment & Licensing Options¶

Hosted SaaS (ConnectSoft Runs the Factory)¶

Model: ConnectSoft hosts and operates the Factory. Customers access it via web console and API.

Benefits: - No infrastructure management - Automatic updates and improvements - Scalable and reliable - Faster onboarding

Target: Most customers, especially those starting with the Factory

Dedicated Instance / VNet-Isolated¶

Model: Customer gets a dedicated Factory instance, isolated in their own VNet or Azure subscription, but still managed by ConnectSoft.

Benefits: - Network isolation for security - Dedicated resources - Custom compliance configurations - Still managed by ConnectSoft

Target: Enterprise customers with strict security or compliance requirements

On-Prem / Self-Hosted (Enterprise License)¶

Model: Customer runs the Factory in their own infrastructure (Azure subscription, on-premises, or private cloud).

Benefits: - Full control over data residency - Complete infrastructure control - Custom compliance configurations - No data leaves customer infrastructure

Target: Regulated industries, government, enterprises with strict data residency requirements

Important

The Factory runtime is proprietary and closed-source. Customers receive a license to use it, not ownership of the runtime code. However, all code generated by the Factory into customer repositories belongs entirely to the customer.

Pricing Approaches¶

Factory pricing can be structured in several ways:

Per-Project or Per-Product Line¶

Base subscription includes a certain number of active projects
Each project can generate multiple microservices
Example: "5 active projects, unlimited microservices per project"

Usage-Based¶

Factory credits consumed per generation run
Pricing tied to:
Number of agent runs
Generated lines of code / modules
CPU/GPU minutes
Knowledge storage (vector DB, metadata)
Example: "10k credits/month, blueprint generation = 100 credits, microservice scaffold = 500 credits"

Tiered Subscription¶

Starter - Limited projects, basic agents, standard templates
Pro - Unlimited projects, advanced agents, custom templates, private marketplace access
Enterprise - Self-hosted or VNet-isolated, SSO, RBAC, audit logs, dedicated support

Per-Seat + Per-Project¶

Seats for architects/developers who use the Factory console
Project quotas: number of active projects / microservices generated
Example: "5 seats, up to 10 active projects"

Tip

Start with simple SaaS pricing (per-project or per-seat), then add self-host options for enterprise customers who need data residency or compliance control. Keep pricing transparent and easy to understand.

Value Drivers¶

Customers pay for the Factory because it delivers:

Time-to-service - Generate production-ready microservices in days, not months
Consistency & quality - Every service follows the same architectural patterns
DDD/EDA/observability baked in - Best practices enforced by templates, not optional
Reduced risk - Architectural safety reduces rewrites and technical debt
Self-improving system - Knowledge system learns from every generation, making future work faster

The Factory's value isn't just code generation—it's architectural consistency, speed, and reduced risk at scale.

Example Engagement Models¶

Pilot for 1–2 Bounded Contexts¶

Model: Customer starts with a pilot project generating 1–2 microservices

Pricing: Lower initial cost, typically 3-month commitment

Outcome: Proof of concept, learn Factory workflows, validate architecture

Next step: Expand to ongoing subscription if pilot succeeds

Ongoing Subscription for Internal Platform Teams¶

Model: Customer's platform team uses Factory to generate standardized microservices for internal teams

Pricing: Monthly subscription based on project volume or usage

Outcome: Consistent microservices across organization, reduced platform team workload

Example: "Platform team generates 5–10 microservices per month for product teams"

Factory + Squads Combined¶

Model: Customer subscribes to Factory access plus an AI Squad for managed outcomes

Pricing: Factory subscription + Squad subscription

Outcome: Direct Factory access for custom work, plus managed Squad for ongoing feature development

Example: "Factory for custom microservices, Growth Squad for feature development"

Relationship to Code Ownership¶

The Factory business model aligns with ConnectSoft's code ownership model:

Factory runtime & templates = ConnectSoft IP (proprietary, licensed)
Generated code in customer Azure DevOps = Customer IP (100% owned by customer)

This separation is critical for customer trust and competitive differentiation. Customers own their code, while ConnectSoft retains IP in the Factory and templates.