Secrets to Innovative Pricing and Packaging

Secrets to Innovative Subscription Pricing

and Packaging

Building the Next Great Enterprise Software Company

Zuora Signs Over $1 Billion In Subscription Revenue In Q1

Built by Experts Used by Leaders

Meet the Panel

Kyle ChristensenSr. Director Product Marketing

http://codesion.com@guy_marion

http://www.zuora.com@kylechristensen

Guy MarionVP & GM CollabNet Cloud Services

http://www.Collabnet.com/




http://www.zuora.com/

Subversion

Open ALM Platform

Founded

Agile

Dev Cloud

Development

Communities

Collaborative

ALMALM

Hybrid Cloud Development

Platform

1999 2000 2007 2008 2009 2011 2012

dPaaS

10,000+ Customers

Innovators in Software Development in the Cloud

Trusted by Leaders

Background • Best of breed development tool

hosting, integration, and management • Replaces Codesion Cloud Platform

(acquired in 2010) + 4,000 customers• Integrates cloud and on-premise• Business Grade platform

Business Model• B2B SaaS/Cloud: Subscription Revenue• Direct: Self-service + transactional • Channels: Marketplace, product

integrations, and Platform Partners• SaaS acquisition/BI engine

CollabNet Cloud Platform

CloudForge – the development platform (dPaaS) for managing hosted, integrated, and deployed applications

Commerce Has Evolved.

2001 2011

BUY NOW

By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models.

April 2011: Building a Strategy for the Subscription Economy

The World is Shifting From Products to Services

We call this the Subscription Economy™

Technology Transportation? Retail? Music?

Video? Voice? Legal?

A

Healthcare?

The Subscription Economy Imposes a Completely Different Set of Operating Rules on Business Systems

Sell Units

Product Economy Subscription Economy

Monetizing Customer Relationships

Forced to Pick a Customer Segment

Price Per Unit

One-Time Orders

Silos of Financial Data

Pay-as-you-Go Pricing Plans

Multiple Orders Over a Lifetime

Sell to Consumers & Businesses

Time-Based, Interrelated Bookings, Billings, & Revenue

The Subscription Economy Demands a New Platform

BUY NOW

http://www.readwriteweb.com/cloud/2010/06/zuora-announces-z-commerce-for.php

The World’s First Application Suite Built for the Subscription Economy

Commerce Billing FinanceSubscription Subscription Subscription

We found Zuora and the light bulb went off: a business operations platform designed especially for subscription businesses like ours.

How Are Companies Pricing in the Subscription Economy?

Strategy #1: Freemium Upsell Strategy

Start with free and upsell to paid.

Strategy #2: Multiple Edition Strategy

Multiple editions for

different audiences.

Strategy #3: Promotional Strategies

Start with a free trial.

2-months free with annual

prepayment.

Strategy #4: Pay-as-you-Go Strategy

Pricing based on consumption

units.

Strategy #5: Overage Strategy

Overage pricing applied beyond allocated usage.

Strategy #6: Bundling Strategy

Create flexible

pricing & packaging bundles.

Strategy #7: Segmentation Strategy

US PricingA Asia PricingB

Have unique pricing for different markets and/or different types of customers.

CollabNet’s Cloud Journey

2004: CVSDude- CVS & Subversion

Hosting(“Freemium”)

CollabNet Cloud Journey


2008: Enterprise-grade SCM & Deployment Services

(“Multiple Edition”)





2010: SaaS business expansion & automation(B2B SaaS – Velocity Sales)




2012: CloudForge- development Platform as a

Service (dPaaS)(+ Product-Driven Conversion)









Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)









Next: Hybrid Cloud Ecosystem (Hybrid Subscription + Utility)






2000% Revenue Increase


What Else Can We Tell You?

Sign Up for a Free Trial at http://codesion.com

Sign Up for a Free Trial at www.zuora.com

Thank You!

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Date post:	20-Aug-2015
Category:	Technology
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