2016 state of recurring revenue survey
TRANSCRIPT
Confidential: ©2016 Aria Systems Inc. All rights reserved.
Recurring Revenue 2016:Usage Billing Takes ItsPlace at the Table
Confidential: ©2016 Aria Systems Inc. All rights reserved. 2
From car sharing to software, subscription and consumption-based billing are becoming go-to models for generating recurring revenue.
According to Gatepoint Research, many organizations lack the technology and systems to take advantage…
The current state of billing inside the enterprise
Confidential: ©2016 Aria Systems Inc. All rights reserved.
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Renewals and subscriptions lead, but many still rely on one-time sales.
Renewals and subscriptions most often used
52%
52%
67%
68%
69%Renewals
Subscriptions
One-time Sales
Add-ons
Consumption & Usage
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11%
14%
17%
21%
24%Consumption & Usage
Add-ons
Subscriptions
Renewals
One-time Sales
In the future, very few respondents will use one-time sales; consumption models will be twice as popular.
Consumption on the increase while one-time models dwindle
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Other
Transverse
MetraTech/ Metanga
Vindicia
Zuora
Aria Systems
Magento
NetSuite/ Monexa
SAP Hybris Billing
SAP: Electronic Bill …
Oracle: Billing & …
Custom built
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
9%
1%
1%
1%
4%
4%
5%
6%
7%
34%
37%
46%
Homegrown and on-premises systems still reignMost still use homegrown or on-premises solutions, but they lack agility and flexibility.
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Other
Best unassisted selling features
Better assisted selling features
Better account/product promotions and discounts
Flexible product catalog
Consumption/usage based pricing
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
5%
22%
31%
32%
39%
43%
Companies want more flexibility
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Cloud billing to the rescue43% of responders plan to turn to SaaS or Cloud-based billing to enhance their subscription/recurring revenue billing capabilities.
Undeterminedat this point
34%
We plan on addressing all of these
needs in the cloud
14%
We plan on addressingsome of our
needs in the cloud
29%
No23%
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See how the Aria Crescendo platform defines the new standard for cloud-based monetization with multi-dimensional customer choice.
Find out more here or at www.ariasystems.com
Aria has the solution
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The research was conducted by Gatepoint Research, an independent third-party research firm. Between May and August 2016 they invited IT executives to participate in a “Recurring Revenue Billing Strategies” survey. 327 executives have participated to date. Of the participants, management levels represented are predominantly senior decision makers: 7% hold the title CxO, 14% are VPs, 62% are Directors, and 17% are Managers. All responders participated voluntarily. None were engaged using telemarketing.
Survey participants come from a wide variety of industries including business services, high tech manufacturing, financial services, retail trade, general and primary manufacturing, media, telecom services, wholesale trade, healthcare, consumer services, and transportation.
Responders work for firms with a wide range of revenue levels: 68% work in Fortune 1000 companies with revenues over $1.5 billion; 15% work in Large firms whose revenues are between $500 million and $1.5 billion; 17% work in Mid-Market firms or Small companies with less than $250 million to $500 million in revenues.
About this Research