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MGI 360 Ratings - Digital River in Commerce and Payment Platforms Sep 17 2019

MGI 360 LogoRATING UPDATE: We are raising the MGI 360 Rating of Digital River in the e-Commerce Platforms Merchant of Record segment from 51 to 58 and maintain a Neutral outlook.
OPINION: After a period of decline and consolidation the company is once again growing and has returned to profitability. Digital River is evolving the Merchant of Record concept into a feature of its service offering and added a Seller of Record capability. The firm provides an all-in-one commerce platform including order capture and order management on a rev-share model. The product has been transformed to a much more modular agile monetization platform (AMP) approach and an open partnership strategy (e.g. with Salesforce, BillingPlatform) that allows to integrate best of breed components.
USE CASE: Revenue operations from $5Mil to $500Mil+ that need at scale, global fulfillment of B2C and B2B digital and physical goods with tight integration of CRM, order management and e-Commerce systems as well as global tax, fraud and compliance management. Digital River supports full stack, headless and Merchant/Seller of Record deployments.
COMPANY DESCRIPTION: After pioneering the Merchant of Record (MoR) industry, Digital River is attempting to transform it into a Commerce-as-a-Service solution with MoR as one of its deployment features. Digital River is a portfolio company of Siris Capital.
COMPETITORS: cleverbridge, 2Checkout, FastSpring, Nexway and best of breed Agile Monetization tool suppliers
MGI 360 Ratings is a comprehensive system for evaluating technology companies. IT organizations use MGI 360 to track suppliers, assess purchasing risks and identify promising new vendors. Vendors utilize MGI 360 to track their markets and evaluate partners. Institutional investors use MGI 360 for independent assessment of tech companies. MGI 360 ratings help lower costs, save time, reduce risks, and identify new opportunities. 
The MGI 360 ratings are on a scale from 0 to 100 and reflect company opinions of MGI analysts in five key areas on a scale of 0 to 20:
  • 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 these key criteria is subdivided into numerous sub-categories. In total, over 149 criteria are combined to generate an MGI 360 rating in each specific market space. Companies can have one or more MGI 360 rating - one for each market. MGI 360 ratings are revised as important developments occur. While the MGI 360 rating process is comprehensive, this scoring system is not meant to be a predictor of company solvency, liquidity, absence of accounting fraud or stock performance. Access to MGI 360 Ratings is by subscription.
MGI Research is an independent industry research and advisory firm focused on disruptive trends in the technology industry. Through ratings, industry benchmarks, best practices groups, subscription research, market forecasts, advisory engagements, industry studies and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. MGI Research analysts work closely with business and technology organizations to help make timely go/no-go IT investment decisions, optimize vendor relationships, and create practical strategies for new initiatives in agile billing, payments management, order management, CPQ, contract lifecycle management and other elements of agile monetization platform (AMP).
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