Every service provider has a real challenge in addressing the requirements of the customers but are they addressing the revenue leakages?
Organizations move towards Cloud-based services which dramatically reduce their software and other computing costs. And the recent reports/source indicates or predict that Interest in the SaaS (software as a service) delivery model is growing to the point that by 2018, almost 85 percent of new vendors will be focused on SaaS services, according to new research from analyst firm IDC. Also by 2015, some two-thirds of new offerings from established vendors will be sold as SaaS, IDC said. Cloud computing revenue numbers also will jump up by 2014, according to the analyst firms.
So service providers moving on to cloud computing business means organizations may have some existing legacy applications or make the necessary architectural changes to meet the customer requirements. Some of the major requirements which the legacy systems can’t support are
- Inability to add/have richly interactive (web based) and required modules to legacy apps.
- Rapidly changing consumer requirements and business models
- New standards/compliance/regulations/reporting can’t be implemented/supports on time
- Longer Manual integration processes
- Merger and Acquisition – need to integrate business processes
- High cost of maintaining legacy systems reducing available budget
So a legacy system does not have the agility that most businesses require to support changes in their processes and it is costing far too much to maintain. Organizations of all types are confronted with what to do with their legacy billing systems. Some have attempted to evolve their installed systems, while others are capping their usage and adopting new solutions to support business initiatives going forward. However, there is a growing shift towards maintaining the legacy billing solutions that support existing products, and implementing new billing engines for new business initiatives. This is partly due to the agility that is provided by the latest cloud-based solutions. Among the large ($1Bil+) organizations, there was recognition that having multiple billing systems will be a reality for some time to come.
To overcome the above mentioned deficiency service providers do build or buy some third party applications which fit into the existing ecosystem to run the business smoothly. While making the necessary changes Organizations do suffer some revenue leakages. So service providers need help in identifying the sources/points of leakage, quantifying the volume of revenue loss and also in minimizing/avoiding revenue leakage.
Revenue Leakage can occur due to incorrect pricing, operational inefficiencies, missing transactions, non priced transactions, uncollected revenues, etc. In various stages of the customer relationship life cycle, such as prospecting, on-boarding, transaction processing, billing and recovery, monitoring and service closure, there can be cracks that give rise to revenue leakage. So an efficient system should be in place in order to track/overcome the leakages. Pay per use requires a granularity so fine that it allows visibility on exactly what resources were consumed. The Cloud Provider then charges for these resources, not more and not less. Hence billing and monetization Platform helps to overcome the leakage loopholes.
So a legacy system does not have the agility that most businesses require to support changes in their processes and it is costing far too much to maintain. Do you agree with this statement? In most of the cases it may be supportive and for some may not. Why ones existing system does become obsolete?
SURE!, after years of experience in the Pay TV, Broadband and VoIP billing has come up with a billing software for cloud. We enable our customers to bring out flexible price plans that can help them optimize their resources. They can spend more time building their business rather than billing for their customers. To know more about our offering, please check below URL.