Cloud providers are ushering in an unprecedented era of flexible computing. The benefits of this extend beyond technical capabilities as their customer CIOs are being asked to deliver IT more cost-effectively, to free up budgets for digital transformation and to improve IT agility – all of which can be accomplished via cloud solutions at often vastly reduced costs.
Just a few years ago, CIO Magazine reported that IT leaders were spending 80% of IT budget (and undoubtedly countless resource hours) merely maintaining legacy hardware and software. Fast forward to today, in an annual CIO survey produced this year, Piper Jaffray observed that CIOs increased cloud service investments for three consecutive years, with 68% of CIOs growing their cloud investments again in 2017.
A “perfect storm” has now been created for cloud providers as they are faced with monetizing the tsunami of demand for their public, private, hybrid, IaaS and PaaS offerings while mitigating the many potential pitfalls of serving such a burgeoning market:
- How do they cover, track and allocate costs for software, services, storage, networks and power as customer demand increases elastically?
- How can they assess margins and profitability at a macro and micro (client) level if their monetization engines don’t have granular tracking, rating, and allocation capabilities?
- How do they accurately measure and monetize what each and every customer consumes?
- How do they avoid a high rate of customer churn for undifferentiated services?
Moreover, while innovating their offerings, cloud providers must differentiate:
- How do they innovate and evolve their offerings with the time-to-revenue to stay ahead of their competition?
- How do they extend pricing flexibility to their customers such as tiering, pooling, prepaid and post-paid?
- How do they rapidly bundle existing services to deliver new offerings?
- How do they sell, monetize and settle 3rd party services that make their services stickier and more compelling?
Smart cloud providers are setting themselves apart with intelligent billing and dynamic monetization platforms, which allow:
- Multivariate pricing for limitless monetization with near-time rating
- Flexible product catalog for infinite bundling
- Monetization and settlement of complex reseller, partner and 3rd party ecosystems
- Intuitive configuration (not coding) for fast time-to-revenue
- Sophisticated customer hierarchies to bill how customers budget
- International capabilities for taxation, payments and currency exchange
- Rules-based engine to comply with complex revenue recognition rules
Amazon is good example of importance of adopting agile monetization. They recently announced that they’re monetizing their EC2 offering with billing in one second increments. This allows end customers the flexibility to focus on their applications and innovation, instead of trying to optimize spend.
At goTransverse we have the preeminent intelligent billing platform to monetize cloud providers’ public, private, hybrid, IaaS and PaaS offerings. We work with some of the world’s largest brands to help them get to market faster, scale more quickly, monetize a limitless combination of sophisticated billing and pricing models, and differentiate themselves from their competition.
For more information about how we can help you weather this perfect storm, and differentiate yourself from the pack, contact us at firstname.lastname@example.org today.