Zuora’s first birthday! 1 year later…100 new customers, 100 ways to grow your subscription business –
In a very short amount of time the world has changed. 18 months ago no one talked about subscriptions. There were a few disruptors Salesfore moved the world away from Software. Netflix dirupted the idea of buying DVD’s Zip car – very interesting disruptor… why buy a car when you can subscribe to netflix. If you met with us on year ago you hear us saying… the world is moving to Subscriptions. We talked about netflix, zipcar and salesforce….one year ago billing
E year ago no one talked about billing… it was not top of mind. to build their own billing systems. It was teams of people and millions of dollars to build sub businessesBuild out large ops teams to process orders and do monthly billing (show lots of people processing lots of paper/excel sheets)Had limited pricing & packaging options due to their home grown systems (show sfdc per user pricing only, show netflix # movies out only, etc)
So now what do we see? We’ve gone from those 3 companies to seeing subscription disrupters in every imaginable >>>> from socks, filtered water EVEN antiques as a services. And of course I am sure you have seen the news about Google now offering a Sub service along with Appstore.We used to only talk about 3 –now look how mnay are out there!
Introducing Zuora
The First Subscription Billing & Payment
Solution For Cloud Computing
June 2009
Slide 1 − Zuora Confidential, not for distribution beyond intended recipient
One Year Ago: Business Model Disruptors Emerge
Slide 2 − Zuora Confidential, not for distribution beyond intended recipient
Subscription Businesses Need
Robust Pricing & Packaging
Example: Example:
Slide 3 − Zuora Confidential, not for distribution beyond intended recipient
The Order-to-Cash Process for Subscriptions is Complex
Customer Initial Order Change Order #1
Add 25 Users
Enterprise Edition
March 25, 2008
Purchases 100 Users Change Order #2
Enterprise Edition
January 15, 2008 Add New Product
Storage
March 25, 2008
Change Order #3
Add More Storage
Storage
May 11, 2008
Order-to-Cash in a Subscription Business
Slide 4 − Zuora Confidential, not for distribution beyond intended recipient
Billing is critical to Subscription Businesses
Complex Pricing & Getting Visibility
Packaging to Key Metrics
Need Click to
Managing Multiple Subscribe to Collect
Orders & Change Cash Faster
Requests
Manual Billing & Need for Flexible
Invoicing Payment Options
Slide 5 − Zuora Confidential, not for distribution beyond intended recipient
Disruptors had to build their own billing systems
Slide 6 − Zuora Confidential, not for distribution beyond intended recipient
A Different System is Needed
All Designed for a Manufacturing, Product-Centric World
Slide 7 − Zuora Confidential, not for distribution beyond intended recipient
The World is
Moving to
Subscriptions!
Subscription
Businesses Should
not have to Build
Their Own Systems!
Slide 8 − Zuora Confidential, not for distribution beyond intended recipient
Our Vision: Subscriptions Made Easy
Web
Pricing Orders ACH
Packaging Direct Orders Invoices
Promotions Channel Orders Credit Cards
Customers Developers Partners
Slide 9 − Zuora Confidential, not for distribution beyond intended recipient
Introducing Zuora: The Leader in Cloud Commerce
Fastest-growing On-Demand Subscription and
Billing Payment Service; 100+ customers since
May 2008
Led by veteran executives from Salesforce and
WebExand ADP
Funded by Benchmark Capital, Shasta Ventures,
TenayaCapital &Marc Benioff
Board Member Scott Thompson, President of
PayPal; Advisors from eBay, Cisco, Accenture
Slide 10 − Zuora Confidential, not for distribution beyond intended recipient
A Complete Suite for the Subscription Economy
Launched with Launched with
On-Demand Billing & Integrated Payment Solution Sync and Quoting Tools
Subscription Management for Subscriptions 100%Native force.com
Product Catalog for Pricing Secure Transaction Generate sales quotes and
and Packaging Processing create orders in Z-Billing
Customers, Subscriptions & Integrates to your Bank Synchronization of invoices,
Amendments Account payments, & subscriptions
Automated Billing & Invoicing Supports credit cards, debit 360 degree visibility to sales
cards, ACH, and PayPal reps and customer service
Reports and Metrics
Exceptions, Dunning &
Collections
International Payment
Methods
11
Slide 11 − Zuora Confidential, not for distribution beyond intended recipient
One Year Later: A World of Subscription Services
Everything-as-service
Electric car-as-a- Socks-as-a Luxury bags-as-
Service service Water-as-a-Service
a-Service
Google-as-a-Service Produce-as-a-Service Textbooks-as-a- Vitamins-as-a-Service
Service
Slide 12 − Zuora Confidential, not for distribution beyond intended recipient
One Year Later:
Traditional businesses are embracing Subscriptions
United announces Elite
membership
February 2006
“Starbucks Gold.
Customers asked for it,
Starbucks delivered.”
November 2008
GM offers OnStar to
other automakers
February 2009
Slide 13 − Zuora Confidential, not for distribution beyond intended recipient
One Year Later:
Cloud Computing Moving IT industry to Subscriptions
“IBM's Open Cloud “Sun Microsystems turns
Manifesto” to Cloud Computing”
InfoWorld, April 2009 Bizjournals.com, March
2009
“HP's Cloud Assure Looks
“EMC Unveils Cloud- to Compete Against
Computing Division” Google, Amazon, Sun”
The Street, November 2008 eWeek, March 2009
Larry Ellison says cloud is “Adobe Erects Photoshop
a fad…but then announces on the Cloud”
Cloud Computing Strategy Websphere Journal, June
WSJ, March 2009 2008
“Symantec Launches “Microsoft Unveils Cloud
Cloud Storage for Strategy Called Azure”
Consumers” NY Times, October 2008
ComputerWorld, March
2009
Slide 14 − Zuora Confidential, not for distribution beyond intended recipient
One Year Later: 100 Customers
Our Customers
Slide 15 − Zuora Confidential, not for distribution beyond intended recipient
Sun’s cloud computing initiative chooses Zuora
Business Challenge
Sun needed a robust cloud commerce platform to
support the launch of their cloud computing initiatives
Chief among Sun’s requirements was speed to market
Solution that enabled usage-based charge models to
monetize their cloud offerings
Integration to an international sales tax
management solution was imperative
Solution
Zuora provided a feature-rich cloud commerce solution to
meet their enterprise requirements within an aggressive launch
schedule
Thanks to Z-Billing's usage-based billing option, Sun will
charge users of their cloud computing service on consumption
Integrating Salesforce CRM to enable sales quoting and is
taking advantage of Z-Billing 2.0’s new tax module,
integrating with Sabrix for tax management.
Slide 16 − Zuora Confidential, not for distribution beyond intended recipient
What can Zuora Do For You?
Operational Efficiency
Revenue Growth “Help you lower costs,
reducebilling errors&manual
“Help you launch new processes – without adding
products and pricing, headcount.”
grow top line revenue &
respond to
competition.”
Metrics
“Help you get to the right metrics
like MRR, renewals, DSO and
churn to make the right business
decisions.”
Slide 17 − Zuora Confidential, not for distribution beyond intended recipient
Empower Revenue Growth
Optimize Pricing Launch Products to
& Packaging Market Faster
Automate Direct & Web Up Sell, Cross Sell and
Orders Manage Renewals
Slide 18 − Zuora Confidential, not for distribution beyond intended recipient
Lower Costs and Drive Operational Efficiency
Eliminate Manual Automate Sales Quoting Automate Invoice &
Processes to Create Orders Payment Operations
Initiate Manage
Web Orders Self Service
Grow Your Business Without Adding
Incremental Headcount!
Slide 19 − Zuora Confidential, not for distribution beyond intended recipient
Key Metrics to Make the Right Business Decisions
• Bookings • MRR • Renewals by $
• Billings • ACV • Renewals by #
• Payments • TCV • Churn
• Revenue • Seats
Slide 20 − Zuora Confidential, not for distribution beyond intended recipient
A Single Platform for Managing Your Operational
Infrastructure
Direct
Sales Web
Orders Orders
Accounts
Subscription Subscription &
Products Amendments Self Service
Invoices/Payments
PRODUCT CATALOG
Provisioning Charges
Your SUBSCRIPTIONS & AMENDMENTS
Service Metering /
BILLING & PAYMENT OPERATIONS
Payments
Usage Data
OPERATIONAL & FINANCIAL METRICS
A/R Post
Monthly Invoices Payments/
CC Transactions Credits
AR
GL
Slide 21 − Zuora Confidential, not for distribution beyond intended recipient
Implementation:
Configure, Deploy and Run Billing Operations In Weeks
Product Orders & Billing & Payments
Catalog Subscriptions Invoicing & Credits
Go
Live
No Coding 100% Configuration Implementation in 2 - 4 Weeks
* Excluding data migration & external integration
Week 1 Week 2 Week 3 Week 4
Slide 22 − Zuora Confidential, not for distribution beyond intended recipient
Immediate ROI Delivered with Z-Billing
ROI 8 ROI CONSIDERATIONS
LAUNCH NEW PRODUCT
GAIN MARKET SHARE W/ NEW PRICING
INITIATE WEB ORDERS
IMPROVE CROSS-SELL & UP-SELL
REDUCE CUSTOMER CHURN
ELIMINATE MANUAL PROCESSES
REDUCE BILLING & PAYMENT ERRORS
REDUCE HEADCOUNT
60 Days 90 Days
30 Days TIME
Breakeven to Positive ROI within 30-60 days
Slide 23 − Zuora Confidential, not for distribution beyond intended recipient
Build vs. Buy?
Build = Over Investment Subscribe = Lower Risk & Cost
Slide 24 − Zuora Confidential, not for distribution beyond intended recipient
About TalentSpring
Mike Hayes, VP Sales
• Unique Candidate Sourcing Solution
• Talent Spring is a start-up, utilizing semantic
search technology built uniquely for the
recruiting industry
• We help all your recruiters become Top Notch
Candidate Sourcers
• Use information gleamed from Searching
multiple sources
• Per seat license/SaaS solution
Slide 25 − Zuora Confidential, not for distribution beyond intended recipient 25
Zuora minimized resources required to deploy SaaS solution
Business Challenge
With limited resources, company wants to focus all efforts on product development around candidate
sourcing not company infrastructure
Needed the ability to build all business processes quickly and seamlessly through Salesforce
Needed a product that could provide both offline (first) and then on-line quoting and billing system and that
would integrate with Quick books
Solution
Z-Billing is used to provide all rate-plans associated with product options
Z-Billing is used to produce all customer quotes, Salesforce is used to manage approvals once a quote is
accepted by client
Z-Payment is used to process credit card information / Quickbooks integration assures deals are
connected into TalentSpring’s accounting system
Result
TalentSpring has been able to build, test, quote, close, collect cash and invoice through Zoura’s
integration with Salesforce.com. First few deals processed in May.
Clients have the opinion that TalentSpring has more substance and capability than a company of our size
and resources would imply
No additional resources were required, all implementation and all testing was completed by VP Sales
Slide 26 − Zuora Confidential, not for distribution beyond intended recipient 26
Thank You!
Slide 27 − Zuora Confidential, not for distribution beyond intended recipient
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