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MGI 360 Ratings - SAP SE in Billing Management JUNE 1 2018

MGI 360 RatingsRATING UPDATE: We re-affirm the MGI360 Rating of SAP Hybris Billing On-Premise/Hosted solution in the Billing Management market at 63 and maintain POSITIVE outlook.
OPINION: SAP remains the top rated vendor in our Billing Management coverage. Yet, product score declined from 12.81 to 12.51 as competitors gained capability vs SAP. Management, Channel and Strategy scores are unchanged. Finance score increased from 9.96 to 10.18 reflecting higher EBITDA margin while the growth rate hovers around 18-20%. In March 2017, SAP rolled out its new SAP Hybris Revenue Cloud strategy and product. While significant and competent resources were devoted to the new cloud version, after about 15 months there are still many unanswered questions about its dependence on the on-premise version and on the rest of the SAP ecosystem and what the go-forward winning strategy is. MGI will rate the cloud version of the solution once SAP has reference customers. We see many current SAP Hybris Billing customers looking to cloud-native solutions in this area for any new business initiatives.
USE CASE: We continue to view the on-premise SAP Hybris Billing product as a premiere high-end real-time billing solution for large, complex enterprises willing to trade off agility and ease of use for the benefits of a proven, high-performance SAP-centric solution that tightly integrates billing, core financials, and BI.
COMPANY DESCRIPTION: SAP Hybris is an SAP SE division focused on customer engagement, commerce and monetization. SAP Hybris Billing grew out of a combination of internal high-volume billing development plus the 2009 acquisition of a French BSS provider Highdeal – a company originally spun off from a France Telecom R&D lab in 2000. Product provides sophisticated multi-party settlement and pricing abstraction capabilities and close integration with SAP financial and analytics products such as SAP HANA. SAP has been able to retain many of the original Highdeal technologists and the division continues to grow faster than the rest of SAP.
COMPETITORS: Amdocs, Aria Systems, BillingPlatform, Ericsson, goTransverse, OpenCell Software, Oracle BRM, Zuora
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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