SaaS / Media and Subscription Billing Real World Implementations

Transcription

1 SaaS / Media and Subscription Billing Real World Implementations

2 Webinar Topics Revenue is moving to SaaS and subscription models Billing for complex products and rate plans Need for flexibility in billing plans across products Why online pricing is difficult for your GL and ERP systems Why the in house solution is the most expensive How to grow SaaS without excess headcount for billing Case Study: 2 real world billing deployments

3 Speakers Jeff Yoshimura is an expert in online billing and subscription services. He has more than 15 years of experience as a product and sales/marketing expert. Jeff was Director of the AppExchange Strategic Alliances program at Salesforce.com. Christopher Cabrera is Founder, President and CEO of Xactly Corporation. He is a seasoned executive with more than two decades of successful senior management experience at both early-stage and public companies. At these companies, he has managed sales, marketing, operations and business development. Patrick Block is Emma's in-house financial analyst, crunching the allimportant numbers and dropping in-the-know phrases like "How's that P&L?" and, "We'll see what the balance sheet has to say about that" on unsuspecting colleagues and office passersby.

4 Revenue Moving to SaaS and Subscrip5on Total 2013 Subscription Revenue will exceed $40B (Cable TV Excluded) Gartner Enterprise SaaS Projection is $14 Billion in 2013

5 Software Online Services Video & Movies Existing Products and Assets Online Go Pricing Online Evolves with Subscription into Powerful, Plans Market Serving Pricing Variations. This new market power generates revenue, but quickly becomes complex. First Online Offerings Rapid Package Evolution & Multi-Use Pricing Models

6 A New Set of Rules for Business Success The Consumerization of Pricing and Packaging. Time to Market. Speed of Change. Recurring Customer Relationships driven by Renewals and Upsells. Price and Feature differentiation. Freemiums

7 ERP & GL Solu,ons Not Built for Subscrip,ons Designed for Manufacturing & Logis,cs One time sales based on invoice Great for inventory management, not good for recurring sales Weak product catalog support No Subscrip,on Support No support for contract term, monthly, quarterly, annual No variable billing base on usage Powered by People GL & ERP systems assume human management of payments Tend to drive up FTE costs for subscription billing models ERP & GL SYSTEMS

8 In House Solu5on Hey, our engineers say they can build this themselves. Time & Risk PCI Multi Currency In House TCO Non Core R&D Opportunity Cost Eco System Integration In House Solutions Require More People

9 The Future of Billing Needs to Be Flexible Easy to Implement Secure & Scalable On-Demand Price Anything Configuration PCI Compliance 99.9% Availability Bill Anything Subscribe to Anything Manage Change No Coding Pre-Integration Time to Market SAS70 Safe Harbor Available Anywhere Multi-Tenant Open APIs

10 Enabling Customers to Achieve Revenue Op5miza5on Launch New Products Adjust Pricing in Real Time Upsell Customers Collect Cash Faster Configura)on, not Coding Full Automa)on & Self Service

11 Complete Subscrip5on Value Chain Customers Sales Team Your Website Your CRM Product Catalog Account Management Subscrip)on Management Amendments Usage Billing Opera)ons Payment Opera)ons Taxa)on Pro Ra)on

12 Open Web Services APIs for Flexible Integra5on & Interoperability

13 Con,nuous Innova,on and Long- Term Value

14 About Xactly Christopher Cabrera, Founder & CEO Founded in 2005 Xactly is the world leader in on-demand Sales Performance Management More than 250 customers and 100 employees Leader in SaaS sales performance management Fastest growing provider Strong domain experience Managing >$4 billion in compensation annually Products include Xactly Incent, and Incent Express built on Force.com Zuora listens to our needs, and as a SaaS vendor is able to quickly iterate and release new capabili:es without us having to go through any sort of painful so>ware upgrade process. Christopher Cabrera 14

15 Customer Snapshot: Marketo Xactly Prospers with Zuora for Billing and Payments Business Challenge Xactly had a cumbersome manual processes Maintaining an accurate and timely customer invoice process with complex billing scenarios during a period of rapid company growth. Solution A flexible, high quality billing and payment solution from Zuora, with integration to existing tools and minimal up-front investment. Complete Ecosystem Integration (See next slide) Benefit Clear financial payback through improved billing, better visibility to sales data and metrics, increased finance staff efficiency and more. With Zuora, our billing system is a whole order of magnitude better than what we had before. Christopher Cabrera 15

16 Ecosystem Website Order Subscrip)ons Account Created Quote Z-Force 360 Payment Processed Revenues Financials 16

17 About Emma Patrick Block, Head of Finance Leader in SaaS marketing and communications $15M Annual Revenue 30,000+ customers (ad agencies, direct advertisers) Short list of customers: DHL United Way NYU Atlanta Falcons Gibson Guitars 17

18 Customer Snapshot: Marketo Zuora Allows Emma to Focus on Our Business Business Challenge Needed a PCI Compliance business solution Required pricing flexibility and complexity to adjust for market challenges Needed to open up financial data from behind a db and into the decision making process Solution Zuora solution integrates website orders, salesforce.com, and Paypal. Zuora runs 12K+ invoices per month flawlessly, with less reliance on personnel generated data Zuora provides the flexibility to easily & quickly incorporate new product offerings Benefit Automated Billing Operations - 2 days to complete monthly cycle today vs. 6 days in the old system We are now able to focus valuable development resources on our core competencies We are able to alter our product offerings, incorporating new changes in our model in real-time We saw an increased collections rate thanks to the payment automation tools provided in Zuora 18

19 Zuora: Market Leader for Subscrip5on Billing Our Company Leader in on-demand subscription management and billing solutions for the Cloud Computing era. Leadership from Salesforce.com, WebEx, ebay and Vitra Investors Benchmark Capital, Shasta Ventures, Marc Benioff Headquartered in Silicon Valley, CA; Denver, Boston, New York Nominated by Morgan Stanley as AlwaysOn Top 100 Private Technology Company 125+ Customers

20 Zuora is Ready to Help You Grow Your Subscription Revenue

21 Ques,ons? To Contact Us Website Phone: (650)

22 Media Files Online Links to the web event recorded on 23 April