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Agile Billing Buyers Guide - Market Rating Report (MRR)

Agile Billing Buyers Guide and MRRThis Agile Billing Buyer’s Guide & MGI 360 Market Ratings Report (MRR) provides ratings of leading suppliers of Agile Billing software and provides strategy and product selection recommendations for organizations evaluating providers in this market.

The report attached below summarizes MGI 360 scores of 16 leading suppliers using a quantitative rating (0 to 100) and a qualitative Outlook (Positive, Neutral or Negative). Vendors whose ratings are presented in this MRR include:

  • Amdocs (Optima)
  • Aria Systems
  • BillingPlatform
  • ChargeOver
  • Chargify
  • Ericsson AB
  • Fusebill
  • Gotransverse
  • JustOn Gmbh
  • NetSuite (div of Oracle)
  • OpenCell
  • Oracle (BRM)
  • Recurly
  • RecVue
  • SAP SE
  • Zuora
Several other suppliers covered by MGI Research but not yet rated (e.g., Salesforce.com, Apttus, Chargebee, Logisense, et. al.) are also discussed. 
 
This Buyer’s Guide is aimed at helping users make better, more informed and timely strategy and purchasing decisions. The report details growth drivers and barriers to growth, key market segments, major requirements for billing software solutions, outlines a path to evolving legacy to agile billing solutions, and highlights strategies and best practices for success. 
 
WHY RATE TECHNOLOGY SUPPLIERS 
Business technology investment decisions are complex processes involving large amounts of money, time, and risk. As is the case with the market for monetiza-tion tools, buyers face an ever-expanding roster of suppliers. Many are well funded and covered by press and industry analysts. There is no lack of information, but the challenge for business and technology decision makers has been to extract signal from industry noise, to separate fact from marketing hype, to get truly inde-pendent advice. Clarity is often a casualty of a well-funded technology market. Technology buyers are caught in a dilemma: spend too little time on evaluating a solution and one can put a business at risk, but spend too much time and one can put a budget and time-to-market at risk. The risks faced by buyers in this context are significant. No executive wants to be in a situation where a long-term technological and financial commitment is made, only to realize later that the company with which the executive made the commitment is a financial sham, or that its business practices reflect a nickel-and-dime approach to customer service, or that the company strategy leads to a technological dead-end. In 2013, to help technology buyers intelligently navigate through complex markets, MGI Research introduced the MGI 360 Ratings - a uniform 0 to 100 supplier rating system. Whether applied to new purchases or to an existing solution portfolio, MGI 360 is a consistent, clear supplier rating scale that helps business, finance and IT executives save time, reduce risks and costs, get a head start on supplier due diligence, speed up sourcing and improve vendor relationships.
 
KEY ISSUES FOR AGILE BILLING
  • What drives the business case for Agile Billing? 
  • What are the emerging Agile Billing requirements? 
  • What is the role of Agile Billing in Agile Monetization Platform (AMP)? 
  • What is the relationship between Agile Billing and other AMP disciplines such as Configure-Price-Quote (CPQ), Automated Revenue Recognition (ARR), and Contract Lifecycle Management (CLM)? 
  • What are the strategic priorities for Agile Billing in terms of investment, human capital, supplier partnerships, and business strategy? 
  • What are the best practices for evaluating, adopting, and implementing Agile Billing? 
  • What are the costs associated with evaluating, implementing, and operating an Agile Billing solution? 
  • What are the different market segments of Agile Billing? 
  • Which suppliers will emerge as leaders in Agile Billing? 
 
ABOUT MGI RESEARCH
 
MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. The firm was founded in 2008 by a group of senior analysts and executives from firms such as Gartner, Soundview and Morgan Stanley. MGI Research analysts typically bring with them over twenty+ years of tech industry experience as IT and/or supplier executives, Wall Street professionals, management consultants, or academics. 
 
Through its research, ratings, advisory engagements, industry studies, and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimizing technology risks. 
 
Since its founding, MGI Research emphasized application of highly quantitative and structured methods in creating decision-support frameworks for its clients. MGI has since created a number of proprietary industry metrics, benchmarks, and indices such as the MGI 10KScore, MGI Cloud30 Index, and the MGI 360 Ratings. 
 
For additional information or to schedule a confidential consultation, call +1 888 801-3644 or visit www.mgiresearch.com 
 
ABOUT MGI 360 RATINGS 
 
MGI 360 Ratings is a comprehensive structured system for evaluating technology companies. 
 
The MGI 360 scores reflect analyst opinions based on a scale of 0 to 100 combined with an analyst outlook (Positive, Negative, or Neutral) across five key pillar scores: 
  • PRODUCT: How strong is the product competitive position? 
  • MANAGEMENT: How competent and experienced is the management team? 
  • CHANNELS: Does the company have a sales capability and channels needed to bring products to market? 
  • STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success? 
  • FINANCE: Is the company growing and profitable? 
Each of the five equally weighted pillar scores ranges from 0 to 20 points. Each pillar score is subdi-vided into numerous sub-categories – in total, over 147 criteria are combined to generate a single MGI 360 rating. We frequently emphasize that the MGI 360 scale is very demanding and companies need to be exceptional in their market in every aspect of their business in order to command higher scores. 
MGI 360 ratings are revised continuously as important developments occur. 
 
Companies can have multiple scores – one for each market as well as a history of scores. 
 
MGI 360 rating system is comprehensive but is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud, or stock performance. It is not under any circumstances a recommendation or an offering to buy any securities of any supplier reviewed, nor is it an endorsement. Rating research in-cludes but is not limited to interviews with company executives, customers, investors, partners, competitors, product demos, site visits, etc. All MGI 360 Rat-ings undergo highly critical internal peer reviews. More information is available in Appendix A. 
 
Table of Contents
SUMMARY ....................................................................................................................................................................... 1
WHY RATE TECHNOLOGY SUPPLIERS........................................................................................................................ 1
KEY ISSUES FOR AGILE BILLING ................................................................................................................................ 2
ABOUT MGI 360 RATINGS ............................................................................................................................................. 4
INTRODUCTION .............................................................................................................................................................. 9
AGILE BILLING AS A KEY ELEMENT OF MONETIZATION .......................................................................................... 10
KEY GROWTH DRIVERS AND BARRIERS ................................................................................................................... 12
GROWTH IN SPENDING ON AGILE BILLING ............................................................................................................... 15
MONETIZATION SOFTWARE CONTINUES TO BE A MAGNET FOR INVESTORS ..................................................... 16
AGILE BILLING - TRANSFORMATION OF PRICE/PERFORMANCE ............................................................................ 17
KEY MARKET SEGMENTS ............................................................................................................................................. 19
KEY FUNCTIONAL REQUIREMENTS FOR AGILE BILLING .......................................................................................... 23
AGILE BILLING SOLUTION SELECTION STRATEGIES AND SELECT BEST PRACTICES ......................................... 26
SOLUTION SOURCING RECOMMENDATIONS – KEY TAKEAWAYS FOR POTENTIAL BUYERS .............................. 28
MGI 360 RATINGS SUMMARY ........................................................................................................................................ 30
CURRENT MGI 360 RATINGS FOR AGILE BILLING ...................................................................................................... 30
FOCUS ON PRODUCT .....................................................................................................................................................33
FOCUS ON THE MANAGEMENT TEAM ..........................................................................................................................36
FOCUS ON CHANNEL ......................................................................................................................................................40
FOCUS ON STRATEGY ....................................................................................................................................................44
FOCUS ON FINANCE .......................................................................................................................................................48
HISTORY OF MGI 360TM RATINGS PEER SCORES FOR AGILE BILLING SUPPLIERS .............................................52
MGI 360 RATINGS – DETAIL ............................................................................................................................................54
RATINGS OF INDIVIDUAL SUPPLIERS: SAP SE ............................................................................................................54
RATINGS OF INDIVIDUAL SUPPLIERS: ORACLE (BRM) ...............................................................................................58
RATINGS OF INDIVIDUAL SUPPLIERS: AMDOCS (OPTIMA) ........................................................................................62
RATINGS OF INDIVIDUAL SUPPLIERS: Ericsson AB (ECB) ...........................................................................................66
RATINGS OF INDIVIDUAL SUPPLIERS: Aria Systems, Inc. ............................................................................................70
RATINGS OF INDIVIDUAL SUPPLIERS: Zuora, Inc. ........................................................................................................74
RATINGS OF INDIVIDUAL SUPPLIERS: Gotransverse, Inc. ............................................................................................78
RATINGS OF INDIVIDUAL SUPPLIERS: BillingPlatform, Inc. ...........................................................................................82
RATINGS OF INDIVIDUAL SUPPLIERS: OpenCell Software ...........................................................................................86
RATINGS OF INDIVIDUAL SUPPLIERS: RecVue, Inc. .....................................................................................................90
RATINGS OF INDIVIDUAL SUPPLIERS: NetSuite (SuiteBilling).......................................................................................94
RATINGS OF INDIVIDUAL SUPPLIERS: Fusebill .............................................................................................................98
RATINGS OF INDIVIDUAL SUPPLIERS: Chargify ..........................................................................................................102
RATINGS OF INDIVIDUAL SUPPLIERS: Recurly ...........................................................................................................106
RATINGS OF INDIVIDUAL SUPPLIERS: JustOn GmbH................................................................................................. 110
RATINGS OF INDIVIDUAL SUPPLIERS: ChargeOver ................................................................................................... 114
BILLING SOLUTION SUPPLIERSSUPPLIER UNDER COVERAGE BUT NOT RATED ............................................... 118
Apttus .............................................................................................................................................................................. 118
BluLogix .......................................................................................................................................................................... 118
Chargebee ...................................................................................................................................................................... 119
CSG Systems International, Inc. ..................................................................................................................................... 119
ChikPea .......................................................................................................................................................................... 120
Cerillion ........................................................................................................................................................................... 120
FinancialForce................................................................................................................................................................. 121
Rev.io .............................................................................................................................................................................. 121
IDI Billing Solutions ......................................................................................................................................................... 122
LogiSense........................................................................................................................................................................ 123
Matrixx Software ............................................................................................................................................................. 124
LogNet Systems .............................................................................................................................................................. 124
NetCracker Technology Corp. ......................................................................................................................................... 124
Optiva Inc. (formerly Redknee Solutions, Inc.) ............................................................................................................... 125
SaaS Optics .................................................................................................................................................................... 125
Salesforce.com ............................................................................................................................................................... 126
Stripe .............................................................................................................................................................................. 127
Tecnotree Corporation .................................................................................................................................................... 127
Vindicia (a division of Amdocs Ltd.) ............................................................................................................................... 128
Zone and Company .........................................................................................................................................................129
RELATIONSHIP BETWEEN BILLING AND CONFIGURE-PRICE-QUOTE (CPQ) ........................................................130
RELATIONSHIP BETWEEN BILLING AND FINANCIALS APPLICATION SUPPLIERS ..................................................131
Sage Intacct ......................................................................................................................................................................131
Workday.............................................................................................................................................................................131
Legacy Financials and ERP Vendors - Epicor, Infor, Microsoft Dynamics, QAD, Unit4, et. Al. ........................................132
RELATIONSHIP BETWEEN BILLING AND REVENUE RECOGNITION SUPPLIERS .................................................. 133
RELATIONSHIP BETWEEN BILLING AND DIGITAL COMMERCE, MERCHANT OF RECORD (MOR) SUPPLIERS .. 134
RELATIONSHIP BETWEEN BILLING AND MEDIATION SUPPLIERS ........................................................................... 135
APPENDIX A - About MGI 360 Ratings............................................................................................................................ 136
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