defogging the cloud webinar
DESCRIPTION
Defogging The Cloud where you'll hear Billingviews.com Publisher Alex Leslie, as well as our own billing expert Jason Mondanaro walk through best practices for choosing the right monetization solution for your business.TRANSCRIPT
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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