Innovative Business

Models that Increase

Revenue:
Is a Consumption-Based Strategy
the Silent Game Changer?

© Transverse LLC. All rights reserved.

Innovative Business Models that
Increase Revenue:
Is a Consumption-Based Strategy the Silent Game
Changer?
Unlike a decade ago, subscription-based billing models have become a common strategy.
Subscription-based billing gives consumers a cost-effective and convenient way to take
advantage of goods and service offerings. They get the ease and convenience of regularly
needed goods and services paid for, ordered and delivered without the time and effort
that they used to have to expend. For businesses, it provides a steady and predictable
revenue stream from recurring fees, and they gain new possibilities when it comes to
innovatively packaging and pricing offerings to maximize speed-to-market, revenue and
customer satisfaction.

In 2000 Salesforce.com® disrupted the entire software industry with its per-user, per-
month pricing model. Today this is a standard offering for most software providers, and a
growing multitude of businesses of all kinds are shifting from transactional sales to recurring
revenue models. What’s more, consumers are growing more accustom to “pay only for
what you consume” options like utility usage or mobile phone plans. Businesses are being
forced to re-think their go-to-market strategies even further. Industry-leading enterprise
organizations are looking beyond the simple subscription model to a subscription offer with
consumption-based services added on top of it.

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Subscription + Usage for Pricing, Billing,
Volume Discounting and More
Recent research from MGI Research provides evidence of this shift. Its
State of Monetization 2016 study shows offering one-time fixed charges
and simple subscription pricing models will decline by 50% and 17%
respectively by 2018. This same study reveals that those models will be
replaced by subscription offers coupled with consumption-based services
and sophisticated pricing models (subscription, usage, tier and volume
discounts), rising 33% and 27% respectively by 20181.

Traditional and digitally native companies such as software, data centers,

messaging, energy management and digital advertising are quietly
experimenting with subscription + consumption strategies and preparing
to launch at scale. Trends in the Internet of Things (IoT) and Over-
the-Top (OTT) services strengthen the shift from one-time and simple
subscription to the more sophisticated subscription plus consumption
models as a revenue-generating differentiator.

Is consumption-based pricing and billing the next big pricing strategy

disrupter? This white paper explores this question and what it takes to
successfully support subscription plus consumption pricing and billing in
your business.

What pricing plans does your company offer NOW and which will it offer in 12 to 24 months?

NOW - 2016

IN 12-24 MONTHS

A - Fixed One-Time Fee B - Simple Subscriptions C - Usage-based Pricing

D - Comlex subscription plans withusage tiers
E - Complex combination of subscription, usage, tier, volume discounts, etc.

What is Consumption-Based Billing?

Consumption-based pricing and billing provides the ultimate flexibility to
package and price products in the way that maximizes value for both the
business and customer. According to Gartner, “The next generation of
business/pricing models will be hybrid models that offer a combination
of subscription and pay-as-you-go and give rise to a la carte pricing
scenarios, where providers will have the ability to charge for additional
features, more bandwidth and so forth.” 2

3
5 Benefits of Drive Revenue:
3 Businesses can grow
Consumption-Based incremental and net-
Pricing: new revenue by capitalizing on
new, untested or under-valued
products, services or features.
Consumption-based Providers who add consumption-
pricing and billing to based services to offerings create
provides the following additional revenue on top of their
standard subscription-based
benefits: model. The subscription gives the
predictability, while consumption
gives the upside.
Disrupt Competitors:
1 Long entrenched
industries are being
disrupted every day with more Attract New Customers:
nimble digital natives. They are 4 Pay-as-you-go models
fundamentally shifting customer have risen in popularity,
expectations based on service, particularly with Millennials who
convenience, experience and prefer renting and “experiences”
value. Introducing consumption- over ownership. By offering
based pricing and billing can consumption-based pricing and
provide a level of transparency billing, businesses are capitalizing
and differentiation when on these trends to capture a new
customers are evaluating benefit generation of buyers.
versus cost. This can begin to
erode competitor value and take
market share.
Adapt to Changing
5 Customer Preferences.
Having the capabilities
Experiment with Digital required to offer consumption-
2 Offerings: Consumption- based pricing and billing has
based pricing and billing another benefit: the ability to
is a great model to experiment track, analyze and act based on
with new or transformative digital product or service use. This real-
products and services. It better time feedback can help increase
aligns the cost of the initiative to customer life-time value and keep
the value generated, and gives companies relevant in the market.
the market an opportunity to ‘test
drive’ the offering based on usage
rather than a lengthy, up-front
commitment.

4
What are the Considerations of
Consumption-Based Services?

Adopting consumption-based pricing and billing does not come

without its challenges, especially for established businesses
accustomed to one-time charges and basic subscription services
such warrantees, maintenance or support. Here are a few
things business line owners must think about before launching
consumption-based offerings:

Bill Shock: Bill shock is a term used to describe a

negative reaction a subscriber has to unexpected charges
on a bill making it higher than anticipated. The most
widely experienced example of bill shock is from wireless
carriers for data or roaming charges on a mobile device.
Companies moving to consumption-based billing should incorporate
usage alerting functionality as well as sophisticated rate plans such as
tiers and pooling (see pg. 13 for more information) to ensure customers
are not surprised and/or churn.

Customer Engagement: While usage is often paired

with a one-time purchase or subscription, the most
successful pay-as-you-consume models continuously
monitor and encourage customers to fully extract value
from their consumption-based services. Promotions,
discounting, alerts and product/services innovations need to be
considered as part of the go-to-market strategy to maximize revenue
potential.

Pricing Metrics: Some B2B subscription providers

price their products based on employee count or revenue
transacted through the system. These metrics do not
align well for consumption-based charging as they do not
reflect usage of any particular component or feature. For
net new customers, adjusting metrics to reflect one-time, subscription
and consumption-based charges is easy. For existing customers, this
transition can have a negative impact as it often results in additional
costs. New negotiations, grandfathered contracts and phased migrations
need to be planned in advance of any pricing metric changes.

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 Revenue Recognition: Subscription services are
a predictable, recurring revenue stream which makes
revenue recognition relatively easy. With consumption-
based services, the revenue can be ‘lumpy’ and difficult
to forecast. Usage tiers, e.g. ranges of consumption, can
help minimize revenue fluctuations, but some level of unpredictability
will always exist. Additionally, consumption-based revenue must be
recognized in the time frame by which it was consumed. Near real-
time usage monitoring, rating and revenue recognition capabilities can
streamline the process and provide clean audit trails.

Penny Chasing: Emerging markets like the Internet of

Things are experimenting with consumption-based pricing
for connectivity, data uploads, etc. Yet new advances in
technology such as low power, low bandwidth sensors
and network capabilities are quickly commoditizing
and reducing service costs to fractions of pennies. For consumption-
based services to yield revenue, they need to be kept at the feature,
application or service level.

Supporting Systems: Consumption-based services

require a different set of systems and processes than
traditional one-time or basic subscription services.
Near real-time usage monitoring, mediation and rating
capabilities as well as entitlements, provisioning and
revenue recognition are necessary to offer these services at scale.
Cloud-based intelligent billing systems offer this functionality and can
stand-alone or act as an adjunct engine to the existing CRM and
ERP applications.

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 Market Leaders Embracing
Consumption-Based Services
As previously mentioned, the telecommunication and utilities industry
have long embraced usage-based pricing models for long-distance
calls, data services and kilowatts consumed. Other high tech businesses
who have entered the consumption-based services space charge based
on the number of transactions completed, number of API requests,
amount of storage consumed and number of active users. This is the tip
of the iceberg for consumption-based pricing and billing because with
the right technology and connectivity, if it can be measured, it can be
billed, literally.

Amazon Web Services (AWS) 3 Current, powered by GE 4

Amazon has embraced the pay-as-you- GE, one of the most respected companies in
go approach for their 70+ cloud services. the world and an icon of the industrial sector,
The value proposition is compelling: rather is re-inventing itself as a digital innovator. Its
than building costly data centers that insulated start-up, Current, is working to deliver
have large, up-front expenses and often “energy-as-a-service” and enable a diverse
go underutilized, customers only pay for set of customers from retail to healthcare to
what is used for as long as needed. They government to better understand and proactively
require no long-term contracts, complex manage their energy consumption. To make this
dependencies or licensing requirements a reality, Current’s platform supports the ability
across their broad set of global compute, to manage highly granular rating and billing of
storage, database, analytics, application power usage while also providing insights into
and deployment services. Tiered pricing and the economics of power consumption. Its efforts
volume discounting options gives customers are bringing a level of intelligence to the energy
economies of scale as their needs change sector never seen before.
and grow.

LED
Energy Solar
Optimizing
Enfrastructure
Businesses are realizing
their own ability to reduce,
produce and shift energy
use by deploying financed
on-site equipment to ensure
immediate cash-flow benefits

EV Charging Energy Storage

(Source: Current, Powered by GE)

(Source: AWS)

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 Trend Micro 5
Trend Micro Deep Security-as-a-Service delivers hosted security
capabilities for cloud environments. It augments the cloud provider’s
security controls and certifications with proactive intrusion detection and
prevention (IDS/IPS), firewall, anti-malware, web reputation, integrity
monitoring and more. Trend Micro uses a pay-per-use model for its deep
security services, charging by the hour. Its pay model matches that of
AWS and Microsoft Azure, allowing customers to scale up and down its
security services as they do its cloud computing.

HOURLY PRICE (USD) PER

AWS EC2 INSTANCE SIZE MICROSOFT AZURE VIRTUAL ACHINE
INSTANCE
Micro, Small, Medium 1 core: A0, A1, D1 $0.01 US
Large 2 cores: A2, D2, D11, G1 $0.03 US
4+ cores: A3-A11, D3-D4, D12-D14,
Xlarge and above $0.06 US
G2-G5, D3, D4, D12-D14, G2-G5

(Source: Trend Micro)

Progressive Snapshot 6
Pioneered by Progressive Insurance Company and General Motors
Assurance Company, usage-based insurance is a way to align
driving behavior with premium rates for auto insurance. In-vehicle
telecommunication devices (telematics) measure a variety of usage-
based elements such as miles driven, time of day, location, rapid
acceleration, hard breaking, hard cornering and airbag deployment7.
Snapshot rewards drivers for safe driving, helping their customers save
hundreds on insurance premiums.

Limit hard brakes Avoid 12am - 4am on weekends Drive less overall
This also includes rapid accelerations. Just go Driving between 12am - 4am on weekends can This one’s tough. If you’re a low-mileage
easy on the gas pedal and avoid slamming on be more dangerous. Try to limit your trips during driver or can carpool, you could be on your
your brakes. that time. way to a big discount.

(Source: Progressive)

These are just a few examples of how technology, connectivity and

consumption-based pricing are helping businesses differentiate
themselves while capturing revenue and market share.

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 Mechanics of Consumption-Based Pricing
and Billing

Consumption-based pricing and billing seems straightforward yet the

mechanics are quite different than supporting one-time or subscription-
based offerings. Although these mechanisms where deeply intertwined
in the telecommunication or utilities proprietary systems historically, new
cloud-based intelligent billing systems are bringing consumption-based
functionality to the modern-day business.

Operating as a stand-alone system or as an adjunct engine to the

existing technology stack, intelligent billing and dynamic monetization
systems are tuned to process usage data at scale. Usage processing
can occur in batch or in near real-time, depending on the need. There
are eight core tenants of consumption-based billing:

Define Collect Mediation

Meter Rate

Verify Re-Rate Invoice

“Consumption-based services require a

different set of systems and processes than
traditional one-time or basic subscription
services.”

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The Eight Core Tenants of
Consumption-Based Billing:
1. Define the Quantifiable Metric(s): A measurable unit that can be
defined/calculated and tracked must exist. Examples of quantifiable
metrics include: number of transactions, number of hours, number of
API calls, amount of storage used, etc. Metrics that will be billed by
consumption are often called ‘events.’

2. Collect the Data: Mechanisms to track, collect and, if necessary,

store the data.

3. Normalize the Data (Mediation): This process formats, enriches,

aggregates, de-dupes, etc. raw event data from disparate sources in
multiple formats. The result is normalization for validation, rating, billing
and reporting.

4. Meter the Data: Metering is the continuous monitoring of event data

for thresholds and notifications/warnings. It often is associated with a
rate of data collection (per sec/min/hour/day/etc.).

5. Rate the Data: This process determines the costs applied to the
event and applying a charge to them. A rating engine controls rules for
rate plans, rollovers, allowances, balances, quality of service (QoS),
time-of-day, ‘special’ days, etc. The ability to rate multiple variables on
one usage type prevents usage unit proliferation.

6. Verify the Data: Quality assurance steps including voiding, editing or

preparing the data for re-rating.

7. Re-Rate the Data: A critical step that quickens processing time for
rating and invoicing. The re-rate function is typically invoked as part of
the requirements for usage pooling, shared allowances or tiered pricing.
In these scenarios, the usage must be re-evaluated across many
services based on complex rating parameters, and crossing into higher
tiers requires the re-rating of all previous events with the new rate.

8. Invoice: Produce an itemized bill that includes the consumption

amounts, rates, individual charges and total charges with corresponding
terms to be paid.

It is these steps that allow for creative packaging and pricing strategies,
as discussed in the next section.

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Packaging, Pricing and Rating Models for
Consumption-Based Services

The rating engine, one of the eight core components of consumption-

based billing, is a major enabler of dynamic monetization. It provides
the ultimate flexibility in pricing while having clean, clear lines to billing
and revenue recognition. This allows for innovation in how consumption-
based services can be packaged to maximize adoption. Here are the
most common consumption-based models:

Flat Rate
Flat rate is the simplest consumption model. It is a fixed price per
consumption unit that does not vary with volume, time of use, repeat
customer or any other factor.

Time-based
This model uses effective dates and/or times of day the service is
consumed to determine the rate to charge. For example, using a
rideshare service such as Uber or Lyft during rush hour can cost more
than using the service mid-day. Another example could be the price
online stores pay for bandwidth during peak shopping times such as the
holiday season.

Volume-based
This is another simple model where the price fluctuates based on
the volume consumed. Typically, discounts are given for higher
consumption. Examples of this can be seen in tiered and tapered
models described on page 13.

Demand-based
Sometimes referred to as surge or dynamic pricing, this model
capitalizes on the high demand of a finite resource. Examples range
from airfare to cloud computing.

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Allowance-based
An allowance is a pre-determined consumption amount included as
part of a subscription service. In this case, a customer is charged the
same amount per period up to the exact allowance amount. A common
example is cell phone plans which often have a data component to their
service. This allows for a set amount of data usage per month. Going
over or under the allowance, or starting a new service mid-period, could
trigger the following scenarios:

Overage charges are fees incurred by going over the allotted

allowance. These fees could be a fixed amount per consumption
unit or a flat or variable fees based on consumption ranges.

Roll over is when the unconsumed balance from the previous

period is added to the allowance for the next period.

Proration controls what percentage of the allowance is applied in

the first period of service provided the service was ordered after
the period had begun. A simple example would be a service that
allows a subscriber to watch 30 movies per calendar month. If
the subscription started on January 20, then the allowance for the
remainder of January would be 10 movies since only 30 percent of
the period remains. On February 1, the allowance would be
reset to 30.

Minimum
Minimum is a contracted base amount of consumption over the period.
If the minimum is not reached, then the business charges a fee. The fee
can be a set amount or the difference between the actual and committed
consumption amounts.

Stored Value
This model is most commonly applied to pre-paid services. In this case,
a service has set number of consumption units and each unit is given
a value. As the service is consumed, the balance is ‘drawn down’ until
it reaches pre-defined threshold. At this threshold, the consumption
can be suspended until the balance is replenished or it can trigger an
automatic payment. A familiar example is toll road easy pass services.
With each use of a toll road, the easy pass balance is decremented
by the toll amount. When the balance falls below the threshold, the
customer’s credit card is charged to replenish the balance to the
original balance.

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Tiered
With tiered models, prices are set for various ranges, or levels, of
consumption. In the case of standard tier rating, the price is based on
the most recent tier the consumption unit falls into. For example, hosting
company ACME Services charges for their cloud storage services in the
following way:

Gigabyte (GB) Consumption Ranges Price Per Gigabyte (GB)

0 – 50 $1.00
51 – 100 $0.75
101+ $0.50

If a client consumes 40GB over the course of their service period, the
charge will be $40 (40 x $1). If the client consumes 75GB over the course
of their service period, then the charges use the next tier of pricing. In this
case, the charge will be $56.25 (75 x $0.75).

Tapered
Like tiered models, tapers also have prices are set for various ranges of
consumption. The difference is in how the price is calculated. Usage
will be charged at one price for the first range, then charged at a different
price for the next range, and so forth. Continuing with the per
gigabyte example:

Gigabyte (GB) Consumption Ranges Price Per Gigabyte (GB)

0 – 50 $1.00
51 – 100 $0.75
101+ $0.50

40GB of consumption over the service period is still $40 (40 x $1). In a
tapered model, however, 75GB of consumption costs $68.75. The charge is
calculated by moving “up” through the ranges. The first 50GB are charged
at $1/GB ($50). The remaining 25GB is charged at the new rate of $0.75
($18.75). This is added together for a total of $68.75.

Flat Rate Tiered and Tapered

Tiers and tapers can also be established that have flat rates. Rather than
charging a cost per consumption unit, the cost is at a fixed rate for the
entire consumption range. A flat rate cost structure for storage at ACME
Services may look like the following:

Gigabyte (GB) Consumption Ranges Price

0 – 50 $1.00
51 – 100 $0.75
101+ $0.50

With a tiered model, 40GB consumed would cost $1 whereas 75GB

would cost $0.75. In a tapered model, 40GB would still cost $1, but 75GB
would cost $1.75 (first 50GB would cost $1 and the next 25GB would cost
$0.75 for a total of $1.75).

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Enabling Consumption-Based Services with
Intelligent Billing & Dynamic Monetization
Systems

Consumption-based services require a different set of systems and

processes than traditional one-time or basic subscription services. Near
real-time usage monitoring, normalizing, rating, verifying and invoicing is
at the heart of an intelligent billing system. To fully enable consumption-
based services, enterprises need to manage the entire quote-to-cash
workflow, from initial order to revenue recognition, at scale.

Here are five characteristics of a sophisticated intelligent billing system.

1. Flexible Product Catalog

The product catalog is used to list and maintain all
the information needed to sell products and services.
This includes the relationships, dependencies and/or
prerequisites between the products and services, how
they are sold, what is sold, and for what price. Product
catalogs in traditional systems (ERP/CRM) are not
natively architected to support dynamic and adaptive business models
such as consumption, resulting in product catalog proliferation, also
known as SKU sprawl. This is a major pain point for companies as it
leads to customer confusion, missed cross-sell or up-sell opportunities,
wrong orders, product cannibalization and ultimately missed revenue.

Intelligent billing systems offer a sophisticated and flexible product

catalog that scales to support future products, services and growing
business volumes without adding additional SKUs for things like
different countries, currencies or even price overrides. They allow
businesses to create and manage limitless combinations of products
and services, along with a flexible pricing structure that enables a wide
array of discounts, subscriptions and usage charge rules. Intelligent
billing systems should also accommodate the unprecedented volume of
unique billing configurations made possible by new consumption-based
services and support a wide array of order configuration—from simple
subscriptions, to complex, multi-product purchases.

2. Smart, Real-time Rating Engine

Because the rating engine is at the crux of
consumption-based services, it is worth discussing
two other attributes that allow for sophisticated
usage models: rules-based (smart) and near real-
time.

A rules-based rating engine, or smart rating engine,

allows businesses to apply logic to rate calculations. The best engines
use an intuitive and self-testing user interface to describe the complex

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rating rules. Rules can include multiple and unlimited attributes (or
variables) about the usage data which then can be parsed, processed,
combined, etc. to determine the final rates for the service. Additionally,
the values of the attributes can be used to access external data such
as external rate tables, customer negotiated rate tables and discount
tables. A rules-based rating engine makes complex rating simple,
maximizing pricing flexibility while automating consumption-based
billing.

Near real-time rating is the ability to process usage and apply charges
as fast as the rating engine can receive the event. Near real-time rating
gives businesses the following advantages:

• Notify customers when consumption tiers are reached or

crossed to help avoid bill shock

• Advise end-customers of the actual costs of the service(s)

before, after or as the service is being used (aka Advice of
Charge capabilities)

• Actively manage stored value balances which are drawn down

in real-time, triggering the automatic replenishing of the account
or suspending service

• Know the status of the company’s consumption-based revenue

at any given point in time

• Speed invoice processing time by distributing the rating

processing time over the entire service period instead of
processing it in bulk at the end

Some intelligent billing platforms are flexible enough to serve as an

adjunct rating engine, sitting beside and augmenting an existing billing
system rather than replacing it. For very large enterprises, adjunct
rating engines are often the most cost-effective solution to rapidly bring
consumption-based services to market.

3. Native Revenue Recognition

The need to have standardize accounting practices
for companies around the globe has been a
major catalyst for the FASB and IASB to jointly
develop new revenue recognition standards,
namely ASC 606 and IFRS 15. In these new
standards, the traditional “rules-based” approach for
recognizing revenue is replaced with a “principle-
based” approach which will rely more upon the judgement of financial
professionals. With these new accounting standards being adopted,
combined with the increasing popularity of new business and pricing
models, there is a growing need for companies to automate revenue
recognition to ensure accurate, reliable and timely revenue reporting.

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Intelligent billing and monetization systems have a configurable,
native accounts receivable (AR) subledger to handle complex revenue
recognition effortlessly and within compliance. Daily or periodic
revenue recognition can occur for consumption-based services while
also taking into consideration various factors including but not limited
to: service period, agreement length, customer lifetime metrics and
milestones. Partner settlements, revenue sharing and allocations based
on consumption/usage data can occur all within the native revenue
recognition functionality.

The ability to analyze consumption data, at the most

granular detail, helps companies reduce customer
churn and ultimately improve the average lifetime
value of their customers.

General ledger (GL) rules engines and pre-configured revenue

recognition posting rules help finance automate the process, quicken
the overall time-to-market for launching services with consumption-
based components. Typically, intelligent billing systems have an
extensive library of APIs and pre-configured connectors to sync the
relevant general ledger information to the master ERP. This visibility
into the smallest increments possible means better future forecasting,
cleaner audit trails and faster times to close the books, especially for
consumption-based offerings.

4. Granular Invoicing
Billing disputes are a major source of pain and
frustration for companies and customers alike. MGI
Research found that almost 60% of companies cite
billing disputes as a significant source of customer
friction and another 30% of companies indicating
that billing issues are impacting their financial
results8.

Generating highly-detailed, clear customer invoices starts with the

right mechanisms—product catalog functionality, rating engine, ability
to handle massive usage at scale, etc.—upstream from the invoice
artifact. This helps prevent obscure line items that produce more calls
to customer support than payments. It also gives customers a clear
itemization of all their charges in a single, comprehensive invoice.
Intelligent billing systems natively streamline invoicing and chargebacks
with support for complex hierarchical models and consolidate billing for
all offers and charges on a single invoice. This is critical for supporting
‘mix and match’ rating models for consumption-based services.

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 5. Business Intelligence, Analytics and
Reporting
Intelligent billing systems with strong consumption-
based support provide a window into usage at
any given point in time. This data can be exposed
externally through customer portals for self-
monitoring and self-service, helping to prevent bill
shock or billing disputes.

Consumption data is also crucial for internal teams. With usage trends,
businesses can identify the best customers to target for cross-selling
of additional products or services. They can predict, with a high degree
of accuracy, which customers are likely to accept an upsell to a higher
level of service. Usage data also can reveal customers with patterns of
low usage who may be unsatisfied or who may not be fully utilizing a
particular product or service.

This visibility into the smallest increments possible

means better future forecasting, cleaner audit trails
and faster times to close the books, especially for
consumption-based offerings

The ability to analyze consumption data, at the most granular detail,

helps companies reduce customer churn and ultimately improve the
average lifetime value of their customers.

Another key capability of intelligent billing systems is forecasting

capabilities, particularly “what-if” analysis on consumption. What-if
analysis can help both customers and businesses see the effects of
changing consumption patterns. For example, a grocery store can
simulate the energy savings or incremental costs associated with frozen
inventory restocking times.

These five characteristics are just a few key features to consider when
evaluating intelligent billing systems to support consumption-based
offerings. To learn more, our Executive Guide steps through decision
criteria, technology considerations, build vs. buy, the vendor landscape
and more when evaluating intelligent billing platforms.

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Conclusion

Is the ability to bill by consumption a silent game changer for the 21st century? We
think so. While the bill (or invoice) is the artifact, it is the upstream ability to price,
package and sell in innovative new ways that is the new competitive differentiator.
Industry giants like Amazon, GE and Progressive are already capitalizing on the pay-
as-you-go models, with more companies adding consumption-based services to their
portfolio of offerings every day.

The ability to monetize usage data stems from the ability to capture, analyze, and
rate the data intelligently. This technology was once only available in propriety
behemoth applications for telecommunications and utilities. Today, cloud-based
intelligent billing systems are leveling the playing field, allowing businesses to pursue
and experiment with offering consumption-based services to drive their adoption,
stickiness and revenue.

goTransverse has an unmatched reputation for powering the most stable and
reliable dynamic billing relationships between enterprise organizations and their
consumers. We give you the flexibility and control to produce new revenue streams
from cross-sells, up-sells, renewals, and net-new revenue by unlocking your billing
intelligence. Our scalable, highly configurable intelligent billing platform reduces your
costs over time, and is shareable across functional enterprise groups, allowing you
to capture incremental revenue from your existing customer base in near real-time.
Now you can rapidly launch new products, configure bundled products and services,
and produce dynamic promotions quickly and easily — including sophisticated
consumption-based services.

1
MGI Research, State of Monetization 2016
2
Gartner. Disruption in Software Business Models Creates New Opportunities for Monetization
3
https://aws.amazon.com/pricing/
4
https://www.gotransverse.com/blog/gotransverse-to-power-ges-intelligent-energy-initiatives/
5
http://www.trendmicro.co.uk/products/deep-security-as-a-service/#flexible-pricing
6
https://www.progressive.com/auto/snapshot/
7
http://www.naic.org/cipr_topics/topic_usage_based_insurance.htm
8
MGI Research, State of Monetization 2016

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