Integrating Billing and Licensing in a Cloud Environment

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Integrating Billing and Licensing in a Cloud Environment

  1. 1. Integrating Billing and Licensing in a Cloud Environment LicensingLive London 2012 Luke Glen Name Insert Your Todd Steel Director European Sales – Aria Systems Insert Your Title Sr Product Manager – SafeNet th March Date 2012 March 20th 2012 Insert 20© SafeNet Confidential and Proprietary
  2. 2. Enabling the Software Monetization Lifecycle Plans & Pricing Feature BundlingCustomer Acquisition EntitlementsSubscriptions & Billing LicensingInvoicing & Payments Provisioning Usage Rating Usage Control, Customer Care Tracking & AnalyticsAnalytics & Reporting
  3. 3. So How Do Software ProvidersSucceed in this New World in the Cloud?
  4. 4. Introducing the NewSoftware Monetization Lifecycle Package Renew Deliver Bill/Payment
  5. 5. Step #1: Package Your Offering Licensing & Package Entitlements • Bundle features • Define limits of allowed rights Renew Deliver • Select a license model Bill/Payment Subscription Billing • Define product • Build pricing plans • Choose business model • Tie to acquisition activities
  6. 6. Step #2: Deliver Your Service Licensing & Package Entitlements • Provision rights • Authorize use • Collect usage Renew Deliver Bill/Payment Subscription Billing • Quote / Order • Create Subscription • Activate use
  7. 7. Step #3: Bill & Collect for Your Service Licensing & Package Entitlements • Customer Intelligence • Compliance Reporting • Deliver Usage Renew Deliver Bill/Payment Subscription Billing • Invoice • Collect Payment • Billing Operations
  8. 8. Step #4: Drive IncrementalRevenue/Renewals Licensing & Package Entitlements • Upgrades/add-ons • Additional users/new models • Provision changes Renew Deliver Bill/Payment Subscription Billing • Upgrade/add-ons • Update subscription • Customer care
  9. 9. & Drive Your Business Forward9
  10. 10. Topics Why Does Recurring Revenue Matter? Lessons Learned 1. Billing is only one part of the puzzle 2. Expect change 3. Solution must play nice Customer Use Cases10
  11. 11. What’s the Value of Recurring Revenue? High Value Predictable Competitive Customers Revenue Advantage › Build long-term › Raise company value to › Meet a growing customer relationships investors preference › Reduce customer churn › Improve negotiation › Easily keep up with position with suppliers changing customer › Deepen revenue requirements potential from customers › Improve cash management11
  12. 12. Lesson 1: Think Bigger Than Billing Billing is just one piece of the puzzle….. Recurring revenue is a multi-step process offering: Analyze & Acquire  More customer touch Report Customers points  Increased innovation opportunities Bill & Activate Payment Services  Lower cost of business Deliver & Track Usage12
  13. 13. Move Beyond Billing to Recurring Revenue Billing is only one part of subscription lifecycle Product & Plan management Rates & pricing Subscription Billing Capabilities Payment processor access Integrate with other systems Usage tracking Reporting - analytics Reduce revenue leakage Reduce risk of errors Make changes on the fly Optimize recurring revenue Increase profitability of current customers Drive costs out of your business model13
  14. 14. Lesson 2: Expect (Want) Change to Occur Think about your business today and where $$ will it be tomorrow? Accelerate Expand Stabilize Initiate time Introduce service and Grow with optimal Expand portfolio Establish a repeatable, test price/packaging price/packaging mix and/or enter new scalable, predictable combinations markets or regions sales model14
  15. 15. Changing Up Revenue Model for Growth New business models drive market leadership New Business Models New Innovations / /15
  16. 16. Choice Enables Change Combine the multiple monetization model components into the right business model for your company…and iterate Market Ready Offer Pick a channel strategy Pick a Model • Distributor network • Standard Subscription • Geographic segmentation Pick a price strategy • Limited Time Offer • Home / work / schools • Flat rate structure • Freemium Overlay a contract • Multiple Edition • Tiered rate structure • Contractual requirement • Tiered / Volume Based • Usage component • General conditions • Bundled Offering • Pre-paid • Terms16
  17. 17. Platforms No Longer Stand Alone APIs It’s critical that the Usage/ solution you choose GL / Tax Rating can play nice within your ecosystem… CRM Recurring Events Lifecycle Deploy Payment Security17
  18. 18. Seamlessly Leverage Your Existing Systems FRONT OFFICE BACK OFFICE ERP Financials Invoicing & Journal Entries, Products & General Ledger, Website Pricing Payments Payments/Credits Self-service, Web Orders Payment Processing CRM System Charges, Payments, Accounts, Subscriptions, VISA, MasterCard, Invoice Summary, Orders PayPal, RBS WorldPay, Payment Cards, ACH Subscriptions & Analytics & BI Systems Recurring Billing Reporting Service Delivery Pre-built reports Systems Service 1, Service 2… Usage, Activation Channel Management Customer Care Management18
  19. 19. The Right Solution Meets Your Challenge One item with a fixed fee Large variety of product and plans recurring monthly Recurring fees across multiple time No discounts or promotions frames: quarterly annually monthly A monthly recurring fee on a Usage bundling across several service predefined set of services. types requiring real time bundling No discounts or promotions and discounting Recurring fees across multiple time frames: quarterly annually monthly19
  20. 20. Transforming an Industry: Issuu Key Challenges Monetizing 2.8B monthly page “ Issuu serves a large, global audience and we needed a platform that could scale with our growth and support our various revenue views and 33M monthly readers models. The Aria Platform was the clear Managing free and paying users choice for rapid deployment and short term “ in a large-scale “freemium” results as well as the flexibility and reliability model to deliver long-term success. Results Huge revenue increase in 12 months Automated management and Deciding Factors billing of free and paid users Robust user self-service tools Platform maturity and reliability20
  21. 21. Addressing New Markets: VMware Key Challenges Increasing mid-market “VMware has a dynamic and rapidly growing SMB business, and we needed a monetization partner that could keep pace with the penetration through new increasing customer demands of our subscription pricing subscription-based solution. Aria provides a Managing sales through huge functionally complete, robust and flexible global reseller channel cloud-based monetization platform that helps “ us reliably monetize the service while helping us plan for future growth. Results Automated monetization for SMB market Automated billing for resellers Deciding Factors and distributors Multi-channel architecture Pricing and plan flexibility21
  22. 22. Succeeding with Aria Systems Social Media Consumer Media & High Cloud Services & Collaboration & Retail Entertainment Technology & Telecom22
  23. 23. Deep Billing Experience and Expertise Proven Successes • 50% Customers running their businesses on Aria for 4+ years • Most Fortune 500 / Global 2000 customers A Comprehensive Approach A 2011 OnDemand 100 • Focus on “Best Practices” for implementations Top Private Company • Easily integrated with client processes • Enterprise class security compliance “Cool Vendors in Telecom Operations Management Expertise & Experience Systems, 2010” Report • Product and executive leadership from Top 10 Startup in the Software category23
  24. 24. Thank You!24

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