This document provides a summary of a presentation about integrating billing and licensing in a cloud environment. It discusses the new software monetization lifecycle, which includes 4 steps: 1) packaging your offering, 2) delivering your service, 3) billing and collecting for your service, and 4) driving incremental revenue and renewals. It also covers lessons learned, such as billing being only one part of recurring revenue and the need for solutions to integrate with other systems. Customer use cases from Issuu and VMware are presented that highlight their challenges and successes with Aria Systems.

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. Enabling the Software Monetization
Lifecycle
Plans & Pricing Feature Bundling
Customer Acquisition Entitlements
Subscriptions & Billing Licensing
Invoicing & Payments Provisioning
Usage Rating Usage Control,
Customer Care Tracking & Analytics
Analytics & Reporting

3. So How Do Software Providers
Succeed in this New World in the
Cloud?

4. Introducing the New
Software Monetization Lifecycle
Package
Renew Deliver
Bill/Payment

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. 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. 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. Step #4: Drive Incremental
Revenue/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. &
Drive Your Business Forward
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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 Cases
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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 management
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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
Usage
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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 model
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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 model
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15. Changing Up Revenue Model for Growth
New business models drive market leadership
New Business Models
New Innovations
/ /
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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
• Terms
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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
Security
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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 Management
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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 monthly
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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 reliability
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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 flexibility
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22. Succeeding with Aria Systems
Social Media Consumer Media & High Cloud Services
& Collaboration & Retail Entertainment Technology & Telecom
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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 category
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24. Thank You!
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