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MGI 360 Ratings - Agile Billing Market Rating Report (MRR) Feb 25 2016

MGI 360 RatingsThe attached MGI 360 Market Ratings Report (MRR) on the Agile Billing Market provides structured quantitative ratings on a scale from 0 to 100 for suppliers competing in this dynamic space. It includes ratings and analysis of the following vendors: Aria Systems, Chargify, Ensim, Fusebill, goTransverse, Magnaquest, MetraTech (Ericsson), Monexa (Netsuite), Oracle, Recurly, SAP SE, Vindicia and Zuora and commentary on many more.

This MRR helps users make more informed and timely strategy and purchasing decisions. It details key requirements for billing software solutions, presents the MGI 360 Ratings of the vendors that at present have the biggest visibility in the marketplace, and provides recommendations for users evaluating suppliers in this market. This analysis is based on continuous research, analysis and field advisory work conducted by MGI Research analysts with input from clients, suppliers, ecosystem partners and industry practitioners.  

Companies mentioned in this report: Aria Systems, Chargify, Ensim, Fusebill, goTransverse, Magnaquest, MetraTech (Ericsson), Monexa (NetSuite), Oracle, Recurly, SAP SE, Vindicia and Zuora, Amdocs, AsiaInfo, Billing Platform, CSG International, ChikPea, Cerillion, Overgroup, IDI Billing Solutions, OnCommerce GmbH, LogiSense, Matrixx Software, LogNet Systems, NetCracker Technology, RedKnee, Tecnotree Corporation, Apttus, Steebrick (Salesforce.com), CloudSense, BigMachines (Oracle), NetSuite,FinancialForce.com, Intacct, Rootstock, Workday, Epicor, Infor, Microsoft (Dynamics), Oracle (Fusion Financials, BRM, Peoplesoft, JD Edwards), QAD, Sage, Unit4, Leeyo, RevStream, SaaS Optics, Softrax, Avangate, AppDirect, Digital River, Stripe, Digital Route, Comptel, Openet.  

On April 20th 2016 at the Monetization Summit in San Francisco, CA  MGI Research will present the Agile Monetization Scenario and the latest MGI 360 Ratings on all key suppliers. Join you peers fro case studies and best practices from leading companies - hosted by MGI Research.  

Why Rate Technology Suppliers  

Business technology investment decisions are complex processes involving huge amounts of money, time and risk. As is the case with the market for monetization tools, buyers are facing an ever-expanding roster of suppliers. Many are well-funded and covered by press and industry analysts and in many ways buyers are facing a stream of often conflicting messages and industry noise. 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 your 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 when a long-term technological and financial commitment is made to a supplier only to realize later that the company 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. To help technology buyers extract signal from market noise, in 2013 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 vendor rating system that can help IT organizations get a head start on supplier due diligence, speed up sourcing, reduce risks and improve vendor relationships.   

Agile Billing   

MGI Research pioneered the concept of agile billing in late 2013 and defines it as follows:  

  • Agile Billing is a capability to rapidly monetize new and evolving business opportunities

For organizations of all sizes, billing, revenue management, and monetization are central to driving revenue growth and profitability. The flexibility and configurability of these new solutions offer the promise of business agility – making the billing system a core enabler rather than a barrier to business change. Over the last two years agile billing has evolved into a credible product category. Today, many parts of the organization benefit from agile billing, and as such, it is common to see finance, product management, IT, and line of business executives and staff involved in the purchasing decision. For leading companies, agile billing investments are taking priority over other business technology priorities including on-premise and cloud-based systems for ERP, HR/HCM, salesforce automation, CPQ, and others.   

We expect the adoption of monetization tools and platforms to accelerate rapidly over the next two to three years with over 20% of F1000 companies adopting an Agile Monetization Platform (AMP) by 2020 with new business opportunities driving these deployments.  

Prior to the advent of cloud-based systems, complex billing capability was the domain of large enterprises able to spend tens of millions of dollars on sophisticated, semi or fully custom solutions. Today, the billing software market is awash with cloud-based and on-premise solutions that simplify subscriptions and automated recurring billing. While many agile billing solutions are cloud-based, not every cloud-based billing system is agile. There is a large installed base of legacy solutions aimed at specific vertical markets such as telecom, utilities (water, power, fuel), entertainment and gaming industries and government (tax and fee payments and collections). Many of the newer products that enable agile billing offer levels of pricing and billing flexibility that previously were available only via an expensive, customized, on-premise solution. As the agile billing products scale and suppliers mature, increasing numbers of users will consider replacing their existing systems.  

Demand for billing management solutions is accelerating as business goes online, products and services are offered as a subscription, and as organizations launching new business initiatives with innovative pricing and billing models are frustrated by their current solutions and look for more agile alternatives with significantly shorter implementation cycle vis-a-vis traditional on-premise solutions. The early adopters of agile billing were mostly online, digital business models and “as a service” tech firms. Today, businesses of all types, - even traditional industrial companies, are packaging their product and support offerings into consumable services with an ever-expanding range of ways customers can acquire and pay for these packaged services.  

Agile Billing is a key component of Agile Monetization Platform (AMP) space – a collection of software markets, mostly cloud-based, that also includes 9 core disciplines:

  • Agile Billing
  • Configure-Price-Quote (CPQ)
  • E-Commerce Platforms
  • Revenue Recognition
  • Mediation
  • Contract Management
  • Order Management
  • Customer Service Management
  • Financials

A number of Agile Billing suppliers are beginning to add other AMP functional capabilities to their suite through acquisition, OEM and partnerships. Similarly, companies in areas such as CPQ, E-Commerce and Financials are building out their AMP portfolios by adding Agile Billing functions. We see growing demand for agile billing from companies marketing a complex mix of physical and digital products, subscription and usage-based services and accelerating deployment of as-a-service, pay-for-outcome pricing models for traditional capital-intensive products such as heavy equipment, transportation and machinery. While significant hype continues to engulf the adoption of Internet-of-Things (IoT), we have now seen several successful examples of how companies are monetizing basic IoT opportunities in both consumer and the industrial areas. Agile Billing prospects related to commercialization of IoT may prove to be one of the biggest opportunities over the next five years.  

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 bring over twenty-five years of tech industry experience as IT and/or vendor 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 minimize 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. It is based on a simple scale of 0 to 100 combined with an analyst outlook (Positive, Negative or Neutral). Companies can have multiple scores – one for each market as well as a history of scores. MGI 360 ratings are revised continuously – as important developments occur. 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 vendor reviewed and neither is it an endorsement. Rating research includes but is not limited to interviews with company executives, customers, investors, partners and competitors, product demos, site visits, etc. All MGI 360 Ratings have to undergo highly critical internal peer reviews.  

The MGI 360 scores reflect analyst opinions in five key areas:

  • 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 carries from 0 to 20 points. Each area is subdivided 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.   

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