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Model N Predictions 2017: The New Revenue Management as a Service Model

VMblog Predictions 2017

Virtualization and Cloud executives share their predictions for 2017.  Read them in this 9th annual series exclusive.

Contributed by Sandy Joung, Senior Director Corporate Marketing, Model N

The New Revenue Management as a Service Model

Gartner estimates that more than 80 percent of software vendors will go from traditional license and maintenance platforms to subscription-only by 2020. As Laurie Wurster, research director at Gartner, writes, "A hybrid cloud/on-premises model is rapidly becoming enterprises' deployment model of choice, and most software providers are becoming businesses that deploy using a cloud model."

As we saw in 2016, on-premise/legacy systems no longer cut it when it comes to handling massive data volumes and providing the type of sophisticated governance the market requires. As we look ahead towards 2017, the need for vendors to deliver privately hosted applications will become par for the course amongst software provides. As more and more companies move from an on-premise solution to a cloud-based model, companies will need a host of enterprise-grade solutions that can be rapidly deployed, updated at a predictable cost and used across a variety of functions.

Nowhere is this more true than in the category of revenue management, which includes everything from pricing and quoting (CPQ), contract lifecycle management, channel data management and business intelligence.

By shifting ownership of the technical aspects of operating a cloud-based revenue management solutions directly to the vendor, companies can focus on what they do best- their business, accelerate time-to-market and reduce upfront costs while maintaining the flexibility to scale their products and service offerings as the market and regulatory environment changes.

As 2017 draws closer, we will see an increased demand from companies to move the entire suite of revenue management applications from on-premise to the cloud, and as a result, more and more SaaS vendors that operate in the revenue management arena will begin to compete on cloud offerings and services. How quickly vendors adapt to this model may very well determine their ability to retain existing customers and attract new ones in the year ahead.

Published Monday, December 26, 2016 9:01 AM by David Marshall
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