Introducing Zuora  The First Subscription Billing & Payment  Solution For Cloud Computing October 2009
Introducing Zuora:  The Leader in Cloud Commerce Fastest-growing  On-Demand Subscription and Billing Payment Service; over  100 customers  since May 2008 Founded by veteran executives from  Salesforce  and  WebEx Funded by  Benchmark  Capital,  Shasta  Ventures,  Tenaya  Capital &  Marc Benioff Board Member Scott Thompson, President of  PayPal ; Advisors from  eBay ,  Cisco ,  Accenture
2009: The Year of the Cloud Wars?  “ IBM's Open Cloud Manifesto” InfoWorld, April 2009 “ EMC Unveils Cloud-Computing Division” The Street, November 2008 Larry Ellison says cloud is a fad…but then announces Cloud Computing Strategy  WSJ, March 2009 “ Microsoft Unveils Cloud Strategy Called Azure” NY Times, October 2008 “ Adobe Erects Photoshop on the Cloud” Websphere Journal, June 2008 “ HP's Cloud Assure Looks to Compete Against Google, Amazon, Sun” eWeek, March 2009 “ Symantec Launches Cloud Storage for Consumers” ComputerWorld, March 2009 “ Sun Microsystems turns to Cloud Computing” Bizjournals.com, March 2009
But How Do Cloud Businesses Make Money? “ But  … how do you  monetize  all of  these technology cloud services?” “ Building new apps and products  using the technology cloud is easy!” Everyone is talking about the  Technology Cloud  But … Where is the  Business Cloud ?
Cloud Computing Requires New Business Models Usage  Pricing Models Quarterly Pricing Monthly Pricing Tiered Pricing Volume Pricing Overage Pricing Variable Usage by Units Usage by Units Subscription  Pricing Models  Annual Pricing Multiple Rate Plans One-time + Recurring Fees Usage + Recurring Fees One-time + Usage Fees B2B SaaS Consumer Internet Cloud Infrastructure
Subscription Businesses Need Pricing & Packaging  to drive Competitive Differentiation Example: Example:
Subscription Businesses Have a Complex  Quote-to-Cash Process Traditional Order-to-Cash Flow Quote Order Invoice Accounts Receivable Quote Initial Order Accounts Receivable Subscription Apr Invoice May Invoice June Invoice Change Order #1 Change Order #2 Change Order #3 + 5 licenses Add Storage Change Plans
Subscription Businesses Need  Different Key Metrics  to run their Business Bookings Billings Payments Revenue MRR ACV TCV Seats Renewals by $ Renewals by # Churn
Subscriptions are Hard  Complex Pricing & Packaging  Click to Subscribe to Collect More Cash Need for Flexible  Payment Options  Manual Billing & Invoicing  Multiple Orders & Change Requests  Visibility to Key Metrics
The Shift to Subscriptions is not just about the Cloud Water-as-a-Service  Electric car-as-a-Service  Socks-as-a service Cars-as-a-Service  Everything-as-service Vitamins-as-a-Service  Textbooks-as-a-Service  Produce-as-a-Service  Luxury bags-as-a-Service
Existing Systems are  Inadequate for the Job All Designed for a Manufacturing, Product-Centric World
Our Vision: To Create the Next Commerce Platform Online Retailing Platform Online Advertising Platform Online Payment Platform Online Subscription Platform
The Zuora Product Suite  Quote to Cash  Subscription Management  Payment Operations  Pricing & Packaging  Account Management  Billing Operations  Pricing Products Price Plans Change Models Volume & Tiers Offers Quotes Billing  Bill Runs Usage Pro Ration Billing Triggers Taxation Multi-Currency  Orders Subscription Change Orders Renewals Auto-Renewals Add-on Orders Audit Trail  Accounts Bill-to / Sold-to Payment Methods Subscriptions Invoices Payments Adjustments  Z-Customization Engine  (Configuration, Custom Fields, Custom Templates) Payments  Payment Runs Usage  Payment Methods Multiple Gateways Workflow Notifications Alerts Z-Commerce API Layer  (SubscribeNow, Provisioning, Usage) Multi-Tenancy  PCI Level 1 Compliance  Security  Redundancy Out-of-the-Box Payment Gateway Integration Out-of-the-Box CRM Integration Accounting Systems eCommerce Website Standard API Integration Customer Service Partner Portal Website
A  Single Platform  for Managing Your Operational Infrastructure  AR GL Subscription & Amendments A/R Post Monthly Invoices CC Transactions  Payments/ Credits Metering / Usage Data  Provisioning Service Charges  Payments  PRODUCT CATALOG SUBSCRIPTIONS & AMENDMENTS BILLING & PAYMENT OPERATIONS OPERATIONAL & FINANCIAL METRICS Direct Sales Orders Accounts Subscription Products Invoices/Payments Web  Orders Self Service
Use Cases for the Z-Commerce Platform  “ I am a force.com developer and building a native application that needs to be  monetized   and marketed on the AppExchange.” “ I am building apps using Google AppEngine.  To go to market, I need to have  online payments  with  flexible payment terms .”  “ AWS is hosting my entire business.  I need a set of  API’s  to connect to  payment gateways  and to automate commerce.”  “ I am building a on-demand collaboration suite for Office products  which I want to charge for them on a  subscription  basis. ”
The Future of Cloud Commerce
The Zuora Difference Don’t Buy, Subscribe:  Subscriptions are the Future Subscription Businesses are Different:  When not done well, it holds back your business  Our Experience Counts: The Right Vision:  A new platform powering a new world of subscriptions The Right People:  We know how to run  and  scale subscription businesses The Right Product:  Flexible, powerful, and delivering a fully integrated, recurring quote-to-cash process We make it easy to build, manage, and grow subscription businesses

Zuora Overview

  • 1.
    Introducing Zuora The First Subscription Billing & Payment Solution For Cloud Computing October 2009
  • 2.
    Introducing Zuora: The Leader in Cloud Commerce Fastest-growing On-Demand Subscription and Billing Payment Service; over 100 customers since May 2008 Founded by veteran executives from Salesforce and WebEx Funded by Benchmark Capital, Shasta Ventures, Tenaya Capital & Marc Benioff Board Member Scott Thompson, President of PayPal ; Advisors from eBay , Cisco , Accenture
  • 3.
    2009: The Yearof the Cloud Wars? “ IBM's Open Cloud Manifesto” InfoWorld, April 2009 “ EMC Unveils Cloud-Computing Division” The Street, November 2008 Larry Ellison says cloud is a fad…but then announces Cloud Computing Strategy WSJ, March 2009 “ Microsoft Unveils Cloud Strategy Called Azure” NY Times, October 2008 “ Adobe Erects Photoshop on the Cloud” Websphere Journal, June 2008 “ HP's Cloud Assure Looks to Compete Against Google, Amazon, Sun” eWeek, March 2009 “ Symantec Launches Cloud Storage for Consumers” ComputerWorld, March 2009 “ Sun Microsystems turns to Cloud Computing” Bizjournals.com, March 2009
  • 4.
    But How DoCloud Businesses Make Money? “ But … how do you monetize all of these technology cloud services?” “ Building new apps and products using the technology cloud is easy!” Everyone is talking about the Technology Cloud But … Where is the Business Cloud ?
  • 5.
    Cloud Computing RequiresNew Business Models Usage Pricing Models Quarterly Pricing Monthly Pricing Tiered Pricing Volume Pricing Overage Pricing Variable Usage by Units Usage by Units Subscription Pricing Models Annual Pricing Multiple Rate Plans One-time + Recurring Fees Usage + Recurring Fees One-time + Usage Fees B2B SaaS Consumer Internet Cloud Infrastructure
  • 6.
    Subscription Businesses NeedPricing & Packaging to drive Competitive Differentiation Example: Example:
  • 7.
    Subscription Businesses Havea Complex Quote-to-Cash Process Traditional Order-to-Cash Flow Quote Order Invoice Accounts Receivable Quote Initial Order Accounts Receivable Subscription Apr Invoice May Invoice June Invoice Change Order #1 Change Order #2 Change Order #3 + 5 licenses Add Storage Change Plans
  • 8.
    Subscription Businesses Need Different Key Metrics to run their Business Bookings Billings Payments Revenue MRR ACV TCV Seats Renewals by $ Renewals by # Churn
  • 9.
    Subscriptions are Hard Complex Pricing & Packaging Click to Subscribe to Collect More Cash Need for Flexible Payment Options Manual Billing & Invoicing Multiple Orders & Change Requests Visibility to Key Metrics
  • 10.
    The Shift toSubscriptions is not just about the Cloud Water-as-a-Service Electric car-as-a-Service Socks-as-a service Cars-as-a-Service Everything-as-service Vitamins-as-a-Service Textbooks-as-a-Service Produce-as-a-Service Luxury bags-as-a-Service
  • 11.
    Existing Systems are Inadequate for the Job All Designed for a Manufacturing, Product-Centric World
  • 12.
    Our Vision: ToCreate the Next Commerce Platform Online Retailing Platform Online Advertising Platform Online Payment Platform Online Subscription Platform
  • 13.
    The Zuora ProductSuite Quote to Cash Subscription Management Payment Operations Pricing & Packaging Account Management Billing Operations Pricing Products Price Plans Change Models Volume & Tiers Offers Quotes Billing Bill Runs Usage Pro Ration Billing Triggers Taxation Multi-Currency Orders Subscription Change Orders Renewals Auto-Renewals Add-on Orders Audit Trail Accounts Bill-to / Sold-to Payment Methods Subscriptions Invoices Payments Adjustments Z-Customization Engine (Configuration, Custom Fields, Custom Templates) Payments Payment Runs Usage Payment Methods Multiple Gateways Workflow Notifications Alerts Z-Commerce API Layer (SubscribeNow, Provisioning, Usage) Multi-Tenancy PCI Level 1 Compliance Security Redundancy Out-of-the-Box Payment Gateway Integration Out-of-the-Box CRM Integration Accounting Systems eCommerce Website Standard API Integration Customer Service Partner Portal Website
  • 14.
    A SinglePlatform for Managing Your Operational Infrastructure AR GL Subscription & Amendments A/R Post Monthly Invoices CC Transactions Payments/ Credits Metering / Usage Data Provisioning Service Charges Payments PRODUCT CATALOG SUBSCRIPTIONS & AMENDMENTS BILLING & PAYMENT OPERATIONS OPERATIONAL & FINANCIAL METRICS Direct Sales Orders Accounts Subscription Products Invoices/Payments Web Orders Self Service
  • 15.
    Use Cases forthe Z-Commerce Platform “ I am a force.com developer and building a native application that needs to be monetized and marketed on the AppExchange.” “ I am building apps using Google AppEngine. To go to market, I need to have online payments with flexible payment terms .” “ AWS is hosting my entire business. I need a set of API’s to connect to payment gateways and to automate commerce.” “ I am building a on-demand collaboration suite for Office products which I want to charge for them on a subscription basis. ”
  • 16.
    The Future ofCloud Commerce
  • 17.
    The Zuora DifferenceDon’t Buy, Subscribe: Subscriptions are the Future Subscription Businesses are Different: When not done well, it holds back your business Our Experience Counts: The Right Vision: A new platform powering a new world of subscriptions The Right People: We know how to run and scale subscription businesses The Right Product: Flexible, powerful, and delivering a fully integrated, recurring quote-to-cash process We make it easy to build, manage, and grow subscription businesses