MGI Research

Wednesday, Jul 26th

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MGI 360 Ratings - MetraTech FEB 16 2016 Billing Management Systems

MGI 360 RatingsWe are maintaining MetraTech rating at 60 and trimming the outlook to Neutral pending review of its revised strategy.

On July 29, 2014 Ericsson acquired MetraTech for an undisclosed amount. The company has become a division of Ericsson which itself is transforming into software and services play beyond telecom. MetraNet will become a core Ericsson product outside of telecom and Metanga (the SaaS version of the product) is being re-worked. The deal gives MetraTech a much larger global channel but also places a lot of demand for time from within the new parent. If Ericsson can maintain MetraTech as a true product company as opposed to a loss leader, then the outlook for the company will remain bright. The ability of Ericsson to retain MetraTech 140 employees, invest in direct sales and marketing and timely re-release of Metanga will be key indicators of its ability to successfully absorb the company We re-iterate our view of MetraTech as a very capable meta-data based supplier of real-time billing functionality that can cover highly complex use case scenarios.   MetraTech provides billing and monetization management solutions for mid-size and large organizations. MetraTech has some of the deepest domain expertise in the billing software market and addresses a wide range of billing needs. It is not a good fit for small organzations under $10 million in revenues seeking an off-the-shelf self-service solution. MetraTech has the most international implementations compared to its peers and across a broad range of industres such as cloud infrastructure, financial services and transportation among others.   

Competitors: SAP, Oracle, RedKnee, Aria Systems, Monexa (Netsuite), Zuora, Billing Platform, goTransverse, Ensim and a handful of larger billing management systems. MetraTech's multi-tenant SaaS offering competes with the low-end recurring billing management solutions. See MGI Research's Market Rating Report for full ratings and long-list and short-list competitors.   

About MGI360 Ratings: 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 147 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.  

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