Challenges in Recurring Revenue · ¾Gatepoint Research invited selected business services, telecom, high tech, and retail executives to participate in this survey. ¾Candidates from

Summary Results • August 2013

Challenges in Recurring Revenue

Summary Results | August 2013

Observations from the Companies Utilizing Recurring Revenue – A Study


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Overview

2013

Gatepoint Research invited selected business services, telecom, high tech, and retail executives to participate in this survey.

Candidates from companies with a recurring billing model were invited via email and 103 executives have participated to date.

Respondents are predominantly employed in product, operations, and finance functions. 45% hold the title of Manager; 51% are Directors and 4% are VPs or CxOs.

Of the companies represented by survey participants, 72% have annual revenues of less than $250 million; 8% between $250 and $500 million; 10% between $500 million and $1.5 billion, and 10% greater than $1.5 billion.

100% of respondents participated voluntarily; none were engaged using telemarketing.



Observations and Conclusions

42% of respondents use homegrown billing systems in their organizations. Of those, 40% had low levels of satisfaction with their system (3 or below on a 5 point scale).

34% manage more than 10,000 subscribers.

67% of respondents invoice using a flat subscription model.

Most companies manage their recurring billing systems through their Finance or IT departments.

Respondents most value , tiered usage models (52%), a flexible product catalogue (47%), and channel/reseller management (43%), all features Aria offers.

80% of respondents use, or plan to use, SaaS or cloud-based billing solution services. 31% consider themselves “mature users” of SaaS.

Of those who have not yet moved to the cloud, 35% report being unhappy with their current solution (3 or below on a 5 point scale).

2013



In general, how satisfied are you with your current recurring billing system?(Rate 1 to 5, 1 = unsatisfied, 5 = very satisfied)

2013

33% report to being barely or less than satisfied with their current recurring billing system. * 25% of those queried did not answer

*4% *4%

*25%*22%

*20%

0%

5%

10%

15%

20%

25%

30%

1Unsatisfied

2 3 4 5 Very

satisfied



Which of the following billing systems are present in your organization?

2013

42% of respondents use homegrown billing systems in their organizations. No one vendor dominates in the rest of the market. * Respondents chose one or more answers

*42%

*17%

*15%

*15%

*11%

*10%

*3%

*2%

*2%

*1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Homegrown

Other

Oracle: Billing & …

NetSuite

Zuora

SAP: Electronic Bill …

Amdocs

Covergys

Aria Systems

Vindicia



How many subscribers do your systems currently manage annually?

2013

34% manage more than 10,000 subscribers.

28%

38%

13%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 to 1,000 1,001 to 10,000 10,001 to 100,000 100,000+



What types of invoicing best describes your recurring revenue model?

2013

67% of respondents invoice using a flat recurring revenue model. * Respondents chose one or more answers

*67%

*52%

*29%

*28%

*5%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Flat subscription

Usage-based

Add-ons

One-time

Other



Which department in your company is responsible for managing your recurring billing system?

2013

Finance and IT manage most companies’ recurring billing systems.

53%

25%

8%

7%

6%

0% 10% 20% 30% 40% 50% 60%

Finance/Operations

IT

Marketing/Sales

Other

Engineering/Development



What capabilities are or would be most valuable for your recurring revenue model?

2013

Respondents most value tiered usage models, a flexible product catalogue, and channel/reseller management. * Respondents chose one or more answers

*52%

*47%

*43%

*25%

*23%

*8%

0% 10% 20% 30% 40% 50% 60%

Consumption/tiered usage models

Flexible/configurable product catalogue

Channel/reseller management

Foreign currencies/languages

PCI compliance

Other



Where is your organization with regards to adoption of SaaS or cloud-based billing solution services?

2013

80% of respondents use or plan to use SaaS or cloud-based billing solution services.

31%

19%

18%

18%

12%

0% 5% 10% 15% 20% 25% 30% 35%

We are mature users of cloud-based apps

We are moving apps to the cloud now, but not all

We plan to move some apps to the cloud

No plans to move apps to the cloud

We’ve moved apps to the cloud, eventually most



Profile of Respondents: Revenue

2013

72% of respondents come from companies with revenues less than $250 million.

<$250 million72%

$250 -500

million8%

$500 million -

$1.5 billion10%

>$1.5 billion10%



Profile of Respondents: Job Level

2013

Responders are primarily Managers and Directors with product, operations, and finance functions.

VP & CxO 4%

Director 51%

Managers in Product, Operations, Finance

45%



Aria Systems sponsored this survey. Aria provides cloud billing for recurring revenue

management . The Aria Cloud Billing Platform is the industry's only enterprise class solution

that transforms billing into a strategic advantage for enterprises. For more info, visit

www.AriaSystems.com

Gatepoint Research, a subsidiary of SimplyDIRECT, designs, drafts and deploys opt-in,

invitation-only surveys to management-level executives within leading technology

companies. Using web, phone and email-based data collection its cutting-edge IT trends

research and data analysis help in the generation of custom reports and thought-leadership

content. Gatepoint has deployed over 500 surveys since 2000 and engages over 10,000

decision-makers each year.

2013

http://www.ariasystems.com/

http://www.simplydirect.com/demand-lead-generation/

Documents

Challenges in Recurring Revenue · ¾Gatepoint Research invited selected business services, telecom, high tech, and retail executives to participate in this survey. ¾Candidates from