TECH SUPPLIER Mar 2019 - Conference Proceeding: Tech Supplier - Doc # DR2019_T5_MT

Monetization as a Service: Monetizing at the Speed of Cloud

By: Mark ThomasonResearch Director

Abstract

These event proceedings were presented at the IDC Directions conferences in Santa Clara and Boston in March 2019.

By 2022, IDC estimates that over 50% of software revenue will come from the subscription/consumption business model, with most of this revenue coming from SaaS applications. However, many companies still have multiple older monetization systems in place that cannot easily support new business models and pricing is being managed manually. Homegrown/spreadsheet solutions that manage monetization functions like usage, pricing, and revenue recognition are also relied on, which further constricts innovation and scale. Today's SaaS-based monetization systems include the latest technology (ML and AI) and easily integrate with your existing systems to provide what is essentially becoming monetization as a service. Companies are also exploring ways to use the SaaS model, combined with their anonymized customer data, to drive new opportunities around marketing and data as a service. Mark Thomason takes you through several business model scenarios and discusses the benefits and best practices of key functions in monetization as a service.


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