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Defogging the Cloud

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Welcome

Alison MacLaughlinModerator

Marketing Director, MetraTech

Use the chat window to submit your questions for today’s webinar.

Follow the conversation on Twitter

#defogthecloud

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Your Presenters

Alex LesliePublisher

Billingviews.com

Jason MondanaroDirector of Product Management

MetraTech

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Traditional and Evolving Answers

Hosted Cloud-based Application Service Provider Software as a Service Managed Services Outsourced Billing as a Service

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Hosted Billing

In the cloud Customizable for each customer Longer contracts

Enterprise software configured for each customer

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Software (Billing) as a Service

Not customizable per customer Multi-tenancy Upgrades dependent on provider not

customer

Levels of complexity vs. business model sophistication

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Managed Services

Partnership based on trust Hosted at provider or customer Software either provider’s or customer’s

http://www.billingviews.com/heck-cloud-billing-anyway/

 Outsourcing day-to-day management responsibilities

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Where will your billing system be physically?

Who is going to operate each layer of your technology cake?

Balance of exclusivesor sharing?

What does it need to do?

Beyond the Labels

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The Trade-Offs of Location

Resilience ElasticityIncremental

Capex Opex

In Your Own Facilities Low/Depends Low Very High Low

In a Co-Lo Medium Low Medium Low

In the Public Cloud High High Low Medium

What characteristics are important for your billing solution infrastructure?

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Who’s In Control?

Infrastructure

InfrastructureOperations

Application

ApplicationOperations

Customer Provider IaaS Vendor

OS and Base Systems

Customer Provider

CustomerProvider

CustomerProvider

PaaS Vendor

Who will operate the components of your solution?

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Balance of Custom and Upgrades

We’ll get right on that feature! Features are free!

As soon as you sign this SOW…But we only work on cool ones, and they come on Thursdays…

You get what you pay for, but not everything you want may be for sale.

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What is Billing to You?

And that is the supplier revenue share portion of the global contract

discount rebate…

OR

Just price times quantity? Or do you need to run complex contractual billing and settlement?

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Can a Single Number Do it All?

Service Provider Desires: Cover Costs Maintain margins Grow Business

Customer Desires: Receive Value Be treated fairly

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Value Curve in a 3rd Dimension

Amount Willing To Pay

FunctionalityUtilization

Flat Subscription Price

Bigger Cheapskates

Gobblers

Lost Opportunity

Cheapskates

PotentialOpportunity

Customers Waiting for

Something Better

One price but unlimited functionality -- what is the market perception?

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The Subscription Cliff

Customer’s behavior changes Adding more price points introduces more

decisions Potential Increase Churn

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Flat Fees By Another Name

Consumption models may automatically scale with your customers, but the market may wash your margins out with the tide.

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Need to track more forms of utilization and establish new measures of value

Need to allow customers to use more if they want to but be aware of consequences

Go Beyond Single Prices

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Establishing New Measures

Boundaries are everywhere in business.

But there are consequences to crossing

They are intentionally permeable

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Customer Perception MattersInfluencer

“Now Cast”EnforcementInformation

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Driving Customer Behavior

Peak and Off Peak

PromotionPeriods

SurchargesCo-Pay SLAs

Commits

Volume Bundling Cash Flow

TRANSPARENCY

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Big Data Is Not Enough

Is this dataor information?

With one day left in the bill cycle, how does this information help me?

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Behavioral Billing™

Operational data must be in a business context that matters

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Now-Casting and Notifications

Shared language for value

Configurable thresholds and limits for notifications

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Turn it Up a Notch

What if APIs were used for data-driven product creation & pricing rather than data synchronization?

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Intelligent Product Configurator

Product Costs

Profitability Goals

User Behavior

Intelligent Product

Configurator

Real-timeOffers

Product Managers

PackageChanges

Customers

Now-CastingReal-time

Notifications

Automating new Product Development based on Customer Behavior

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Science Fiction Not Fact

Airlines’ yield management systems Amazon Web Services spot pricing Geolocation driven coupons Exchange Powered Business Models

Prices vary up and downcustomers pay on value

not on equal price.

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Questions