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Recurring Revenue 2016:Usage Billing Takes ItsPlace at the Table

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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

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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