Zuora Z-Tour Palo Alto 2010 may 19


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Presentation from Zuora's lunch in Palo Alto, May 19 2010

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Zuora Z-Tour Palo Alto 2010 may 19

  1. 1. Powering Today’s Subscription Economy Z-Tour - Palo Alto May 29, 2010
  2. 2. Introducing Zuora: Leader in Subscription Billing <ul><li>Leader in on-demand subscription management and billing solutions for the Cloud Computing era. </li></ul><ul><li>Leadership from Salesforce.com, WebEx, eBay and Vitra </li></ul><ul><li>Investors Benchmark Capital, Shasta Ventures, Marc Benioff </li></ul><ul><li>Headquartered in Silicon Valley, CA; Denver, Boston, New York </li></ul><ul><li>Nominated by Morgan Stanley as AlwaysOn Top 100 Private Technology Company </li></ul>Our Company Our Customers Our Investors & Board Marc Benioff CEO Scott Thompson President
  3. 3. Our Vision: A Subscription Economy Software-as-a-Service Cloud Computing Online Services Media & Digital Content The World is Moving to Subscriptions
  4. 4. What Is Happening Today? <ul><li>Single Perpetual Order </li></ul><ul><li>One-Time Fees </li></ul><ul><li>Paper-based Sales Order </li></ul><ul><li>Paper Invoice Only </li></ul><ul><li>No Change Options (Perpetual) </li></ul><ul><li>No Metrics </li></ul>Manufacturing Economy Subscription Economy <ul><li>Multiple Subscription Order(s) </li></ul><ul><li>One-Time+ Recurring + Usage Fees </li></ul><ul><li>Order Online or via CRM </li></ul><ul><li>Online Invoices + Credit Cards </li></ul><ul><li>Change Anytime (Cancel/Upgrade) </li></ul><ul><li>Subscription Metrics (MRR, TCV, etc) </li></ul>
  5. 5. (1) Customers Want Flexible Pricing and Packages
  6. 6. (2) Customers are Driving New Usage Models
  7. 7. (3) Today’s Customer Lifecycle is Different Customer 1 Product Monthly Recurring Usage Monthly Billing Term 12 Months Change Order #1 (Add Product) Add 2 nd Product Co-Term Change Order #2 (Upgrade) Upgrade to Annual Prepay for full year Proration Renewal Order (+ Upgrade) Renew 3 years Upgrade to New Plan 1 Month Free Trial Promotion: Free Trial Subscription Initial Subscription
  8. 8. (4) Pricing for Your Customers Must Be Rolled Out Across Multiple Channels & Partners Configure Once Deploy Everywhere Website CRM Partner Portal For all of your direct sales reps For online orders For all of your partners
  9. 9. (5) Customers Want to Buy Online Securely Click Here to Sign Up Online! vs.
  10. 10. (6) New Metrics Are Required for the Cloud “ CMRR” Committed Monthly Recurring Revenue “ Cash Flow” “ Churn” “ CAC” Customer Acquisition Cost “ CTLV” Customer Total Lifetime Value
  11. 11. Traditional ERP Systems Not Built for Subscriptions ERP SYSTEMS: Unit X Price SKU-based No concept of product catalog No rate plans, no charge models Single Order No recurring element No concept of change orders No concept of terms No Usage No concept of usage No concept of rating/billing No concept of bill cycles for usage
  12. 12. Build from Scratch Is Non-Productive Charlie Peters, CFO Redhat Pacific Crest Securities Conference, August 4, 2008 Hardware Software Consultants Infrastructure Dedicated Staff Upgrades <ul><ul><li>Product Catalog </li></ul></ul><ul><ul><li>One-Time Pricing </li></ul></ul><ul><ul><li>Recurring Pricing </li></ul></ul><ul><ul><li>Volume Pricing </li></ul></ul><ul><ul><li>Tiered Pricing </li></ul></ul><ul><ul><li>Overage Pricing </li></ul></ul><ul><ul><li>Billing Frequency </li></ul></ul><ul><ul><li>Billing Triggers </li></ul></ul><ul><ul><li>Billing Notifications </li></ul></ul><ul><ul><li>Rating & Billing </li></ul></ul><ul><ul><li>Usage </li></ul></ul><ul><ul><li>Proration </li></ul></ul><ul><ul><li>Taxation </li></ul></ul><ul><ul><li>Multiple Currency </li></ul></ul><ul><ul><li>Invoice Calculation </li></ul></ul><ul><ul><li>Invoice Templates </li></ul></ul><ul><ul><li>Invoice Generation </li></ul></ul><ul><ul><li>Credit Card Processing </li></ul></ul><ul><ul><li>ACH Support </li></ul></ul><ul><ul><li>Wire Transfer Support </li></ul></ul><ul><ul><li>Debit Card Support </li></ul></ul><ul><ul><li>PCI Compliance </li></ul></ul><ul><ul><li>Credits </li></ul></ul><ul><ul><li>Refunds </li></ul></ul><ul><ul><li>Adjustments </li></ul></ul><ul><ul><li>Revenue Recognition </li></ul></ul><ul><ul><li>CRM Integration </li></ul></ul><ul><ul><li>Financials Integration </li></ul></ul><ul><ul><li>Localization </li></ul></ul><ul><ul><li>Quoting </li></ul></ul><ul><ul><li>Custom Fields </li></ul></ul><ul><ul><li>Search </li></ul></ul><ul><ul><li>Unit of Measurement </li></ul></ul><ul><ul><li>User Interface </li></ul></ul><ul><ul><li>Gateway Support </li></ul></ul><ul><ul><li>Provisioning Support </li></ul></ul><ul><ul><li>Metering Support </li></ul></ul><ul><ul><li>ISO Compliance </li></ul></ul><ul><ul><li>Post & Lock Capabilities </li></ul></ul><ul><ul><li>APIs </li></ul></ul><ul><ul><li>Online Portal </li></ul></ul><ul><ul><li>Self Service </li></ul></ul><ul><ul><li>Renewals </li></ul></ul><ul><ul><li>Upgrades </li></ul></ul><ul><ul><li>Change Orders </li></ul></ul>Why Would You Build This?
  13. 13. This is why we started Zuora 2.5 years ago
  14. 14. Vision: A Single On-Demand Platform to Build, Run, Manage and Monetize a Subscription Business Website Order Account Created Payment Processed Financials Subscriptions Quote Website Provisioning Usage Data Internal Systems Website Order Self Service
  15. 15. Create Multiple Packages with Pricing Flexibility <ul><li>10x growth in 2 years to 500+ customers </li></ul><ul><li>Launched 3 editions and multiple pricing tiers, including free trials </li></ul><ul><li>Adjusting pricing in real-time to react to competition </li></ul><ul><li>Online orders and ability for direct reps to quote subscription orders in Salesforce CRM </li></ul>Phil Fernandez, CEO & Co-Founder, Marketo
  16. 16. Launch Pay-as-you-Go Models with Automated Usage and Metering April 27, 2010 <ul><li>10,000+ customers </li></ul><ul><li>Launched usage based pricing with new products, including LiveOffice Personal Archive </li></ul><ul><li>Complete automation of usage and metering to calculate monthly arrears invoicing </li></ul><ul><li>End-to-end integration with Salesforce CRM & Authorize.net </li></ul>
  17. 17. Stay On Top of Your Customers w/ Robust Subscription Management <ul><li>2M+ users, 30,000+ paying customers </li></ul><ul><li>Automate online upgrades and change orders </li></ul><ul><li>Provide pricing incentives and discounts to upgrade </li></ul><ul><li>Complete subscription audit history for all Box.net customers </li></ul>Dylan Smith, CFO Box.Net
  18. 18. Distributes Pricing Across All Channels Globally including 1-click to Salesforce.com <ul><li>Europe’s largest online and offline publisher </li></ul><ul><li>Standardize pricing for 400+ publications, 200+ online properties </li></ul><ul><li>Distribute pricing changes across all sales channels via Zuora’s pre-integration with Saleforce CRM </li></ul><ul><li>End-to-end integration with Salesforce CRM & Oracle </li></ul>Dan Oilley, CIO, Reed Business
  19. 19. Launch an Online Sales Initiative w/o Burden of PCI Compliance & Scalability <ul><li>Launched online sales portal with 4 products and multiple plans </li></ul><ul><li>Online portal for managing customer account and orders </li></ul><ul><li>Eliminated burden of expensive and timely PCI compliance </li></ul><ul><li>End-to-end integration with Salesforce CRM, Oracle and Chase Paymentech </li></ul>Zuora provides us the capabilities to enable commerce with PCI compliance and our online website so that we can make it easy for ccustomers to buy our product. Yuki Uchida– VP DocumentMall
  20. 20. Provide 360 Degree Visibility and Subscription Analytics & Intelligence Across the Entire Organization <ul><li>2,000+ customers </li></ul><ul><li>Subscription analytics: bookings, aging, MRR, ACV, TCV, renewals </li></ul><ul><li>Provide visibility to sales and sales ops for renewals and upsells </li></ul><ul><li>Out-of-the-box sync with Salesforce </li></ul>Michael McMahon, Corporate Controller
  21. 21. Quote to Cash Subscription Management Payment Operations Pricing & Packaging Account Management Billing Operations Product Catalog Products Price Plans Charge Models Volume & Tiers Offers Quotes Billing Operations Bill Runs Usage Proration Billing Triggers Taxation Multi-Currency Subscription & Amendments Subscription Change Orders Renewals Auto-Renewals Add-on Orders Audit Trail Account Management Bill-to / Sold-to Payment Methods Subscriptions Invoices Payments Adjustments Metrics Customization (Configuration, Custom Fields, Custom Templates) Payment Operations Payment Runs Usage Batch or Real Time Payment Methods Gateway Integration Payment Exceptions API Layer (Create/Read/Update/Delete, SubscribeNow, Provisioning, Usage) Multi-Tenancy PCI Level 1 Compliance Security Redundancy Out-of-the-Box Payment Gateway Integration Out-of-the-Box Salesforce Integration Our Products Taxation Module Hosted PCI Storefront
  22. 22. Our Ecosystem Tax, Integration, Reporting CRM Payment Gateways Accounting Systems
  23. 23. Monthly Innovation Cycle <ul><li>12 major releases per year </li></ul><ul><li>100+ features in last 6 months </li></ul><ul><li>Public, online product release notes </li></ul>
  24. 24. Incredible Growth and Momentum <ul><li>400% Growth Year Over Year </li></ul><ul><li>Cash Flow Positive in Current Quarter </li></ul><ul><li>Global Enterprise Clients – EMC, Ricoh, Reed Elsevier, & others </li></ul><ul><li>B2C Client with 45million Registered Users </li></ul><ul><li>Proven Scalability – 9million transactions/day </li></ul><ul><li>$1billion in Net New Committed Revenue Transactions in Q1! </li></ul>SaaS Online Media Cloud Computing Telcom Open Source Wireless
  25. 25. Summary <ul><li>We live in a Subscription Economy today </li></ul><ul><li>New tools & systems are required for businesses to succeed in the subscription economy </li></ul><ul><ul><ul><li>Why Zuora? </li></ul></ul></ul><ul><ul><ul><ul><li>Proven platform for subscription management </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Proven team to execute on opportunity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Proven customers deployed </li></ul></ul></ul></ul>
  26. 26. Customer Testimonials
  27. 27. About Xactly Roberta Jester, Vice President Finance <ul><li>Founded in 2005 Xactly is the world leader in on-demand Sales Performance Management </li></ul><ul><li>More than 250 customers and 130+employees </li></ul><ul><li>Products include Xactly Incent, and Incent Express built on Force.com </li></ul>Leader in SaaS sales performance management Fastest growing provider Strong domain experience Managing >$4 billion in compensation annually
  28. 28. <ul><li>Clear financial payback through improved billing, better visibility to sales data and metrics, increased finance staff efficiency and more. </li></ul><ul><li>“ With Zuora, our billing system is a whole order of magnitude better than what we had before.” Christopher Cabrera </li></ul><ul><li>A flexible, high quality billing and payment solution from Zuora, with integration to existing tools and minimal up-front investment. </li></ul><ul><li>Complete Ecosystem Integration (See next slide) </li></ul><ul><li>Xactly had a cumbersome manual billing process </li></ul><ul><li>How to stop revenue leakage </li></ul><ul><li>Maintaining an accurate and timely customer invoice process with complex billing scenarios during a period of rapid company growth. </li></ul>Customer Snapshot: Marketo Xactly Prospers with Zuora for Billing and Payments Business Challenge Solution Benefit
  29. 29. Ecosystem Z-Force 360 Website Order Account Created Payment Processed Financials Revenues Subscriptions Quote
  30. 30. About EMC Scott Webster, Business Ops Principle <ul><li>Founded in 1978, EMC is the world leader in information management </li></ul><ul><li>Launched EMC’s Atmos Online Cloud Initiative 2010 </li></ul><ul><li>Helps companies leverage a multi-tenant storage environment to build your own on-premise cloud services, or leverage a public cloud to deliver content and information services anywhere in the world. </li></ul>
  31. 31. <ul><li>EMC was up an running in less than 12 weeks on Z-Billing all while using only 1 engineering resource </li></ul><ul><li>Zuora handles EMC’s “Cloud Point Currency” model easily without having to hire more staff </li></ul><ul><li>EMC is able to manage 100 concurrent users, 200K metering uploads and 100K tax records with Zuora </li></ul><ul><li>EMC is considering leveraging Zuora technology as part of a cloud-in-a-box Service Provider offering </li></ul><ul><li>Zuora met EMC use cases right out of the box </li></ul><ul><li>EMC is able to plug into their CyberSource gateway as designed </li></ul><ul><li>Zuora passes EMC scalability stress test with flying colors </li></ul><ul><li>Zuora met all EMC timelines and EMC developers found Zuora API’s to be flexible and easy to work with </li></ul><ul><li>EMC struggled to launch new cloud computing division and wanted partnership with a proven billing vendor </li></ul><ul><li>Current Oracle process could not handle subscription model, nor handle promos and dynamic bundling </li></ul><ul><li>Needed to handle multiple payment options in a PCI compliant way </li></ul><ul><li>EMC had to find a vendor who could pass all tax, legal, security, compliance and business reviews </li></ul>Customer Snapshot: Marketo EMC Launches Cloud Computing Division with Zuora Business Challenge Solution Benefit
  32. 32. About Quova Jay Webster, Chief Product Officer <ul><li>Quova provides the highest quality, most accurate IP intelligence and geolocation data on the market today </li></ul><ul><li>Quova’s customers include Fortune 1000 companies, including the “big three” search engines </li></ul><ul><li>Quova powers financial institutions, governmental organizations, web design & development firms, retailers/eTailers, ad agencies, and application developers </li></ul><ul><li>Billions of queries per day = Billions of transactions </li></ul>
  33. 33. <ul><li>Quova’s product team can now change packaging and pricing on the fly – with Zuora we were able to deliver our Quova on Demand solution. </li></ul><ul><li>Billions of queries per day = Billions of transactions </li></ul><ul><li>Chose Zuora for the ability to set up our complex subscriptions and complex recurring billing requirements, and the integration with salesforce.com </li></ul><ul><li>Had a fairly complex usage based subscription model and wanted to launch an online service for smaller customers while decreasing overall cost of sales. </li></ul><ul><li>Product had to deliver on plan they had promised their CEO, and building it themselves just seemed too hard </li></ul>Business Challenge Solution Benefit Quova XXX