We 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.
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