Cloud Billing and the Subscription Economy

A couple of weeks ago I was out in the Bay Area to attend Giga OM’s Structure event.  One of the interesting individuals I met there was Tien Tzuo, CEO and founder of Zuora.  Zuora, which counts’s Marc Benioff as an investor, “bills” itself as the leader in subscription billing and payment solutions.  Here is what Tien had to say:

Some of the topics Tien tackles:

  • Zuroa as the “ for online billing” (they are a hosted SaaS offering with a point and click interface.
  • Their focus on companies that have a recurring subscription based business model e.g. SaaS, cloud, online media…
  • Their launch of Zcommerce for the cloud which provides billing, reoccurring payment capability and subscription management capability for cloud environments.
  • The great variety of pricing and packaging models when it comes to cloud payment: an arrears model, a minimum volume commitment model a pre-pay model etc.
  • The concept of moving from a product-centric society to “The subscription economy,” you see it in transportation, music, computing …

Extra-credit reading

Pau for now…

3 Responses to Cloud Billing and the Subscription Economy

  1. Indeed, Zuora is an interesting company. I spoke with them at GigaOM and again today.


  2. Smith says:

    Cloud service providers should be capable of billing automatically based on any billing cycle. But one must
    not ignore the pains of a cloud service provider in calculating the usage of each and every customer, applying a specified rate plan, and generating a bill. So there should be a proper mechanism in generating a statement of account or invoice/bill.


  3. Adam says:

    I have never looked close at zuora, but I may have to take a look.


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