Recurring Revenue Market Disruptions to Continue in 2014

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Cloud

The cloud will assume an even more pivotal role in the area of recurring revenue as new service brokers emerge to help companies monetize services ranging from providing movies to music to obtaining credit scores.

These brokers and other businesses will cause pressure to standardize a dizzying array of pricing methods (451 Group estimates that on Amazon Services alone there are 5,000 different price points for a virtual machine with operating system) and SLA and usage variations. The result? The cloud and the IaaS (Infrastructure as a Service) option will become more accessible and even more strategic.

The trend of companies adopting recurring revenue surged in 2013, with brand names ranging from Adobe and Amazon to Target and Toyota using new billing and pricing models to grow sales and deepen customer loyalty. This surge will continue this year as more companies adopt recurring revenue models because of their flexibility and convenience for customers. Today, recurring revenue expert Aria Systems issued a projection on the industries poised for further disruption via recurring revenue in 2014 and beyond.

“Businesses large and small, across many sectors, are adopting the flexibility of recurring revenue,” said Tom Dibble, president and CEO, Aria Systems. “It’s not a fad anymore; it’s the new way to do business.”

“From ordering produce from local farmers to leasing appliances and cars, the way we connect with products and services will be transformed by new pricing and billing models,” added Dibble. “This will present unlimited market opportunities for those businesses, large and small, across virtually every industry. Innovations in recurring revenue management are making this possible for businesses and paving the way for continued disruption across all market sectors.”

According to Incyte Group, nearly half (47%) of U.S. businesses have adopted or are weighing adoption of recurring revenue models. This will force new innovations that could include those highlighted in this slideshow.

 

Related Topics : SharePoint, Web Video and Voice Conferencing, UK, MySpace, Intranets

 
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