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Defogging the Cloud webinar


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Defogging The Cloud where you'll hear Publisher Alex Leslie, as well as our own billing expert Jason Mondanaro walk through best practices for choosing the right monetization solution for your business.

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Defogging the Cloud webinar

  1. 1. 1 Defogging the Cloud
  2. 2. 2 Welcome Alison MacLaughlin Moderator Marketing Director, MetraTech Use the chat window to submit your questions for today’s webinar. Follow the conversation on Twitter #defogthecloud
  3. 3. 3 Your Presenters Alex Leslie Publisher Jason Mondanaro Director of Product Management MetraTech
  4. 4. 4 Traditional and Evolving Answers  Hosted  Cloud-based  Application Service Provider  Software as a Service  Managed Services  Outsourced  Billing as a Service
  5. 5. 5 Hosted Billing  In the cloud  Customizable for each customer  Longer contracts Enterprise software configured for each customer
  6. 6. 6 Software (Billing) as a Service  Not customizable per customer  Multi-tenancy  Upgrades dependent on provider not customer Levels of complexity vs. business model sophistication
  7. 7. 7 Managed Services  Partnership based on trust  Hosted at provider or customer  Software either provider’s or customer’s Outsourcing day-to-day management responsibilities
  8. 8. 8  Where will your billing system be physically?  Who is going to operate each layer of your technology cake?  Balance of exclusives or sharing?  What does it need to do? Beyond the Labels
  9. 9. 9 The Trade-Offs of Location Resilience Elasticity Incremental Capex Opex In Your Own Facilities Low/Depends Low Very High Low In a Co-Lo Medium Low Medium Low In the Public Cloud High High Low Medium What characteristics are important for your billing solution infrastructure?
  10. 10. 10 Who’s In Control? Infrastructure Infrastructure Operations Application Application Operations Customer Provider IaaS Vendor OS and Base Systems Customer Provider Customer Provider Customer Provider PaaS Vendor Who will operate the components of your solution?
  11. 11. 11 Balance of Custom and Upgrades We’ll get right on that feature! Features are free! As soon as you sign this SOW… But we only work on cool ones, and they come on Thursdays… You get what you pay for, but not everything you want may be for sale.
  12. 12. 12 What is Billing to You? And that is the supplier revenue share portion of the global contract discount rebate… OR Just price times quantity? Or do you need to run complex contractual billing and settlement?
  13. 13. 13 Can a Single Number Do it All? Service Provider Desires:  Cover Costs  Maintain margins  Grow Business Customer Desires:  Receive Value  Be treated fairly
  14. 14. 14 Value Curve in a 3rd Dimension Amount Willing To Pay Functionality Utilization Flat Subscription Price Bigger Cheapskates Gobblers Lost Opportunity Cheapskates Potential Opportunity Customers Waiting for Something Better One price but unlimited functionality -- what is the market perception?
  15. 15. 15 The Subscription Cliff  Customer’s behavior changes  Adding more price points introduces more decisions  Potential Increase Churn
  16. 16. 16 Flat Fees By Another Name Consumption models may automatically scale with your customers, but the market may wash your margins out with the tide.
  17. 17. 17  Need to track more forms of utilization and establish new measures of value  Need to allow customers to use more if they want to but be aware of consequences Go Beyond Single Prices
  18. 18. 18 Establishing New Measures  Boundaries are everywhere in business.  But there are consequences to crossing  They are intentionally permeable
  19. 19. 19 Customer Perception Matters Influencer “Now Cast” EnforcementInformation
  20. 20. 20 Driving Customer Behavior Peak and Off Peak Promotion Periods SurchargesCo-Pay SLAs Commits Volume Bundling Cash Flow TRANSPARENCY
  21. 21. 21 Big Data Is Not Enough Is this data or information? With one day left in the bill cycle, how does this information help me?
  22. 22. 22 Behavioral Billing™  Operational data must be in a business context that matters
  23. 23. 23 Now-Casting and Notifications  Shared language for value  Configurable thresholds and limits for notifications
  24. 24. 24 Turn it Up a Notch What if APIs were used for data-driven product creation & pricing rather than data synchronization?
  25. 25. 25 Intelligent Product Configurator Product Costs Profitability Goals User Behavior Intelligent Product Configurator Real-time Offers Product Managers Package Changes Customers Now-Casting Real-time Notifications Automating new Product Development based on Customer Behavior
  26. 26. 26 Science Fiction Not Fact  Airlines’ yield management systems  Amazon Web Services spot pricing  Geolocation driven coupons  Exchange Powered Business Models Prices vary up and down customers pay on value not on equal price.
  27. 27. 27 Questions