MGI Research

Sunday, Aug 25th

Last update09:30:32 PM GMT

Software-as-a-Service (SaaS)

From buzzword to a multi-billion dollar market, software as a service (SaaS) has grown explosively.

  • Will the SaaS revenue growth continue?
  • Can SaaS software move beyond departmental/horizontal applications and displace legacy ERP systems?
  • What are the limits of SaaS applications?
  • How should CIOs evaluate the risks and benefits of SaaS vs on-premise solutions?
  • How can on-premise software vendors successfully transition to SaaS?
  • How can CIOs effectively balance SaaS with their legacy application software portfolios?
  • What are the best practices for evaluating and implementing SaaS solutions?
  • How should SaaS companies be valued? What are the best SaaS valuation metrics?

These are some of the topics addressed in MGI’s research agenda for SaaS.

Companies covered include Salesforce.com, Kenexa, Success Factors, RightNow, WorkDay and many others - public and private.

Ericsson Buys Into Agile Billing – Acquires MetraTech

On Tuesday, July 29, 2014 Ericsson announced the intent to acquire Waltham, MA-based MetraTech Corp. Terms were undisclosed.   MetraTech (MGI 360 Rating: 60) is a provider of agile billing solutions to select vertical industries.  This deal may trigger further acquisitions of cloud billing vendors, as legacy on-premise billing suppliers and ERP vendors seek to meet customer demand for agile solutions. The deal is a bold move for Ericsson – it effectively doubles its addressable market for billing systems, and gives it an early advantage in monetization solutions for the emerging Internet of Things and M2M growth opportunities. Whereas many enterprise software deals have been about consolidation, Ericsson’s purchase of MetraTech is about growth and innovation. We view this transaction as a positive for Ericsson and MetraTech clients.

Billing Solutions Buyer Guide Part I: Translating Agility into Business Velocity

A robust billing function has evolved into a must-have enterprise capability for companies of all sizes. A key driver behind this trend is the proliferation of new products and services and the business requirement for flexible, configurable billing solutions that can handle a wide variety of consumption-based and subscription-based business models, among others.

Billing Systems: 2014 Top 10

We expect ten major events will shape the billing solutions market in 2014. First on the list, a high profile IPO or M&A deal may thrust cloud billing into the mainstream media, Agility, analytics, and vendor viability are three topics that users need to scrutinize. Users and vendors will be impacted by these ten events, and should anticipate their impacts immediately. The report (attached below) provides unique user recommendations.
Attachments: (For Subscribers)
File
Download this file (MGI Research - Billing Solutions 2014 Top 10.pdf)Billing Solutions 2014 Top 10

Chargify Continues Profitable Growth and Expansion

We recently caught up with Chargify CEO Lance Walley. The company has landed two large companies as customers, continues to make progress with its product roadmap, and maintains a strict focus on profitability. While this governs the pace of growth, Chargify will post 40%+ growth in 2013 while keeping churn under 5%. For companies seeking a recurring billing solution with more capabilities than what is offered by the merchant account/payment gateway providers, Chargify is a viable short-list candidate.

Attachments: (For Subscribers)
File
Download this file (MGI Research - Chargify Continues Profitable Growth and Expansion Dec 2013.pdf)MGI Research Update on Chargify Dec 2013

Billing System Selections: Key Issues and Common Mistakes

All too often, selecting a billing system is a rushed process as a new product/service is being launched.  With advanced planning and work upfront, the potential risk of selecting the wrong vendor and/or a failed implementation can be mitigated.  This Research Note highlights underscores how important it is for users to be well-prepared for running a competitive evaluation and negotiation process, and highlights how organizations can reduce the odds of experiencing negative budget “surprises” or outright project failure. We provide practical prescriptions on how to optimize the evaluation and selection process.

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