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MGI Forecasts - AGILE MONETIZATION PLATFORMS (AMP) 2016-2020

This MGI FORECAST provides a quantitative estimate of the total addressable market (TAM) for Agile Monetization Platform software from 2016 to 2020.

Included in this report are world-wide annual estimates of spending, growth rate, with detailed breakdown by AMP categories, geographies, economic sectors, analysis of market size based on company size, impact of Internet of Things (IoT), Digital Transformation, and growth and technology spend profiles among others. The research report includes estimates and annual forecasts for cloud-based software products covering agile billing, configure-price-quote (CPQ), e-commerce, customer service, contract management, revenue recognition, order management, customer support, and mediation. The report is based on data from almost 35,000 companies in 116 countries and 66 industries across all major economic sectors. The data contained in this report is also available separately through an interactive Global Analytics Model tool available from MGI Research by subscription. Contact MGI Research at gam@mgiresearch.com for additional information.

The market for Agile Monetization Platform (AMP) software represents a new, large, expanding, all-season opportunity with a total addressable market (TAM) of over $102 billion over five years from 2016 to 2020 and beyond. MGI Research expects AMP spending to rise from $8.5 billion in 2016 to near $36.75 billion in 2020. The shift to new business models that are in large part based on recurring and or usage based pricing schemes, together with increased impact from adoption of Internet of Things (IoT) will be the key drivers for AMP adoption. Leading organizations primarily in North America are already making the move to AMP today, and they comprise the bulk of the spending currently underway. Over the next 24 months, geographic markets beyond North America will accelerate, and fast-following firms and middle of the road organizations in North America will ramp up their spending on AMP. Given the critical nature of AMP – it affects topline growth, profitability, and customer satisfaction – it is one area of technology spend that is being prioritized. This report details the sectors and vertical industries that are most impacted by major trends like IoT (“Internet of Things”), and the adoption of subscription business models.
 
Fueled by the Digital Revolution, the very nature of competition today is changing radically. Product innovation and growth opportunities are only bounded by the imagination. Once-protected pools of profit are now at-risk. Product cycles and market opportunities come and go in less than five years – with the majority of benefits accruing to a limited few. Organizations of all sizes want greater transparency and control in their business relation-ships. The demand for custom pricing models and flexible terms is counter-balanced by the challenges of delivering these capabilities at scale. Across most key world economies, the number and complexity of regulatory and audit requirements are mounting while the timeframes to reach compliance are getting shorter. Against this rapid-ly accelerating backdrop, product innovation and revenue optimization are the key levers for growth and profitability. In the face of these opportunities and threats, progressive organizations are focusing on key processes and new monetization tools to sharpen their edge. 
 
Increasing regulation, digital disruption, activist investors, and ever-demanding customer needs are pushing legacy IT systems and processes beyond their capacity to respond to these new requirements. Individuals and businesses alike want to consume services – not just purchase products – and their preference for pricing models and payment modalities are changing. Subscriptions, demand-based price models, pay-per-use, and increasingly complex enterprise agreements with a litany of unique entitlements now are the norm. Technology disruption accelerates the demand for these new pricing models, and it is everywhere – from the Internet of Things (“IoT”), to autonomous vehicles, artificial intelligence, and digital disrupters like Netflix, Airbnb and Uber. Fortune 10 companies and the corner store alike are not immune to this revolution. Reacting to these new business needs, organizations are looking to revamp their core business systems, particularly in the area of monetization. 
 
Monetization is how efficiently and effectively market demand is created and translated into revenue, profits, and competitive differentiation.
 
The process of monetization reaches across the organization – from product development, marketing, sales, finance, billing, even into customer support. Monetization is not a single product, but a business discipline that combines business processes, tools, and skilled human resources to efficiently and effectively create and translate market demand into revenues, profits, and competitive differentiation. The term Agile Monetization was introduced by MGI Research in 2015 and originally evolved from a concept of Agile Billing pioneered by MGI Research in late 2013. In the monetization context, agility refers to ability to create and evolve new offers by iterating rapidly, thus accelerating velocity with which a business can bring new product offers to market.
 
The full report is available to MGI Research subscribers.
 
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 is the only firm with a dedicated practice around agile monetization, including billing, CPQ, financials, and revenue recognition. 
 
Through its research, ratings, forecasts, advisory engagements, industry studies and conferences, MGI Research helps clients identify opportunities for reducing IT costs and minimize technology risks. 
 
MGI Research analysts have over twenty-five years of tech industry experience as IT and/or vendor executives, CIOs, Wall Street professionals, management consultants, and/or academics. 
 
MGI Research emphasizes the application of highly quantitative and structured methods in creating decision support frameworks for its clients. MGI has built a number of proprietary industry metrics, benchmarks, and indices such as the MGI 10KScore, MGI Cloud30 Index, and the MGI 360 Ratings.
 
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