Transition to Monika. Monika will welcome Bruce and invite him to tell the audience a little bit about Firehost.
Monika will tell the audience a little bit about why Zuora was born
Monika will summarize, then loop in BruceBruce: Auditing's, Legal Entities and Expansion into different geographies.
Bruce: The market can shift at any given moment. Firehost has a very complex pricing structure. Firehost needed the ability to stay at the forefront of the market by providing the most up to date pricing strategies. Point out that changing your pricing and packaging strategies is a very complex process . How has Zuora made the ability to rapidly change your pricing strategies easier for Firehost?
Chris Drake has mentioned in a past webinar: "We have customers that expand continually with their business, they are adding more services, and what Zuora has allowed us to do is to add more services easily on our business…But the real competitive advantage for us is the flexibility of the model. We have customers that not only upgrade but they downgrade, and that's actually a real competitive advantage. For example, we have a customer that's a pizza company and they have to expand their infrastructure with us for Nascar, for Super Bowl, and for big events so they have to upgrade their environment service, but then the subscription service allows them to downgrade really easily. This is a big competitive advantage because other subscription services don't allow downgrades, just upgrades. Allowing your customers to have the ablity to ramp up or down at the drop of a hat, is mission critical. Flexibility is key.
Does your customer success managers leverage credits, discounts, and promos to prevent churn and increase customer satisfaction? Being able to not charge for full month when they cancel mid month.Percentage discounts are powerful, varies from customer to customer
Monika sums up the results of these 3 pain points.
Firehost’s Journey Speed up and lock down accounting periods.
What we’ve found is that as a subscription business there are 17 key processes, that span commerce, billing and finance that you need to manage in order to be successful. Z-business is a relationship business management platform that consists of 3 completely integrated applications that manage those 17 processes:Z-Commerce allows your product marketing teams to quickly define new pricing/packaging and, enable multi-channel go-to market strategiesZ-Billing allows your billing operations teams to easily manage complex rating, invoicing, currency rounding, global taxation and automated collections, regardless of what your growth strategies are. Z-Finance allows your finance and accounting teams to measure the health of your business, accelerate the month end close process, and manage revenue recognition, without drowning in spreadsheets, and without becoming a bottleneck to your growth.
Accelerate Accounting Close w/ Firehost
AccelerateAccounting Close Featured Guest: FireHost
Meet the Panel Monika Saha Aaron Somer Bruce MacFadyenProduct Marketing Sales Engineering Chief Operating Officer http://www.zuora.com http://www.firehost.com @zuora @FireHost
Building the Next Great Enterprise Software CompanyGROW: FLOW: KNOW:Build and grow your Run and flow your Have the right metrics tosubscription business subscription business optimize your subscriptionand revenue. processes efficiently. business. Built by Experts Used by Leaders
• Our mission is to provide the most secure and high performance cloud hosting solutions for mission-critical deployments around the world. • We provide fully managed security and support, offering the most transparent service and tools in the industry. • Facilities in Dallas, Phoenix, London and Amsterdam Brands That Trust FireHost4
Noted in Gartner’s 2012 Magic Quadrants forMANAGED HOSTING & PUBLIC CLOUD
Zuora Was Built on the Prediction of a “Subscription Economy” BUY NOW 1999 2012+
The Subscription Economy Requires A Shift In TheApproach To Building Businesses BUY NOW Customer Focus is to Sell Units (Long-term, adoption, loyalty) Plan Based Billing/Pricing is SKU Based (Editions, Bundles, Usage) Commerce is One-Time Recurring Transactions (Subscription, add-ons, renewals)
And the shift to the Subscription Economy is placing a burden on finance teams… PAIN in the accounting close process “It takes us 17 days and multiple spreadsheets to close our books” PAIN in the revenue recognition process “We’re doing all our revenue recognition in spreadsheets. This isn’t scalable and we can’t grow our business this way” PAIN in the audit process “I have to pull data from 9 spreadsheets to reconcile our data for auditors” PAIN in the forecasting process “I have no visibility into future cash. It takes me hours to get a cash forecast for budgeting and planning” PAIN in the GL summarization process “My general ledger doesn’t understand subscriptions. I can’t feed it un-billed deferred revenue”8
2: Subscription Lifecycle Commerce I get to sell into my install base. Love those easy upgrades and renewals. Finance Team11
3: Customer-Centric Billing Demands I offered a credit to prevent churn and increase customer satisfaction. Finance Team12
Result: It takes Weeks for finance teams to close the books We need more time - Finance Team13
FireHost’s Journey with Zuora + Time to Implement 1 Month More Customers to Bill Instantaneously Expand Internationally Instantaneously Month End Close Accelerated Reliance On Spreadsheets Reduced • We have done all of the above at the same time: 200% annual growth • Zuora removes the roadblocks to growth • Allow billing & finance ops to rapidly scale in multiple dimensions • Delivers ‘One Truth’ view across legal entities and countries • Zuora can support FireHost to $100M and beyond • No billing system changes14
Z-Finance Is Built On A New Foundation Multi dimensional Ledgers Spread revenue over time Differentiate between one time and Intelligent Algorithms recurring revenue Revolutionary Data Model Calculates key subscription metrics Powerful Rules Engine Adapts to subscription changes16