Leading Analyst Firm Validates Accelerating Growth of the Subscription Economy
San Mateo, Calif. – November 27, 2017 – Zuora, Inc., the leading SaaS provider of subscription order-to-cash solutions, was named a Leader in the IDC MarketScape: Worldwide Subscription Relationship Management 2017 Vendor Assessment (Doc #US43172417, November 2017). Among the nine vendors evaluated, Zuora® was described as having leading SRM capabilities.
The Subscription Economy® is here. In recent years, several reports have documented glimpses of a global subscription movement. In 2013, The Economist found that 80 percent of customers are demanding new consumption models and moving away from traditional ownership. In 2015, Credit Suisse reported that people in the U.S. spent $420 billion on subscriptions, up from $215 billion in 2000. And those companies that use subscription business models are seeing up to eight times the revenue growth compared to traditional product-focused companies.
The IDC MarketScape report states, “60% of providers of digital products and services are developing subscription business models to give customers more ways to buy, according to IDC’s Digital Business Models Survey. However, only 20% have the right systems in place to support this.”
“This technology is essential for companies that are monetizing digital products and services. For many companies, the shift from physical products to digital services is ‘make or break,’” states the IDC MarketScape. “The heavily customized, hard-coded solutions of yesteryear do not meet the needs of today’s fast-moving digital enterprises.”
The Zuora Central subscription order-to-cash platform is the system enabling success for more than 900 companies in the Subscription Economy. According to the report, “Customers interviewed for this IDC MarketScape cited the breadth of functionality as a key feature of Zuora. In addition, customers were happy with the strong pace of innovation and the clear communication of the road map and quarterly release cycles.”
Zuora Central integrates six essential engines that power the real-time updates across Zuora’s expansive product portfolio (Zuora Billing, Zuora RevPro, Zuora Collect, Zuora CPQ, and Zuora Insights), third party applications, and the more than 100 apps in the Zuora Connect Marketplace.
Zuora is highlighted as having a transparent SaaS solution. The IDC MarketScape states, “All settings and configuration options are exposed to the customer. Zuora’s configurability of products, billing rules, revenue rules, invoice templates, and so forth are designed to lend to ease of administration and fast time to go live.”
The IDC MarketScape also notes that “Leeyo has become Zuora RevPro, bringing capabilities such as unbilled revenue accounting, backlog forecasts, Standalone Selling Price (SSP) analysis, automated recasting of historical contracts, and parallel viewing of contracts under both old and new guidelines, all of which are key capabilities that will help companies make the transition to ASC 606/IFRS 15.”
“Companies large and small across all industries have shifted their business models from shipping products to delivering subscriber services and experiences,” said Tom Krackeler, SVP of Product at Zuora. “We believe that, in the future, growth will only come from subscriptions and we will continue to invest and innovate to ensure our customers flourish in the future of the Subscription Economy.”
- CLEAR Co-Founder & President, Ken Cornick: “At CLEAR we are obsessed with the customer experience at every touchpoint and the on-boarding and renewal elements of our customers’ journey, which are powered by Zuora, are crucial. The Zuora platform capabilities and support have helped take our billing and subscription management to the next level, setting us up for success as we go through significant growth ourselves.”
- Procore Senior Director of Financial Systems Kevin Spinelli: “We selected Zuora to support our aggressive growth initiatives, and within three months we’ve seen clear improvements to the efficiency of our software orders and financial close processes. Zuora functions as our system of record for measuring the metrics that truly matter for a subscription business – bookings, churn and retention.”
- Inspirato SVP of Technology Sebastian Gnagnarella: “From the very beginning, we knew we needed a cloud-based solution that had a robust API we could integrate with. We were also looking for a disruptor in the market because we pride ourself on being disruptors in what we do. And Zuora checked all the boxes.”
“The Subscription Economy: A Business Transformation” by Tien Tzuo, CEO of Zuora
SlideShare: “Drivers of Success in the Subscription Economy”
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About Zuora, Inc.
Zuora, the leading Subscription Economy® evangelist, provides the only SaaS platform that automates all subscription order-to-cash operations in real-time for any business. Companies in any industry can launch new businesses, shift products to subscription, implement new pay-as-you-go pricing and packaging models, gain new insights into subscriber behavior, and disrupt market segments to gain competitive advantage. Zuora serves over 900 companies around the world in a wide range of industries, including Box, Komatsu, Rogers, Schneider Electric, Toshiba, Xplornet and Zendesk. The Subscription Economy Index™ (SEI) demonstrates that SEI companies are growing revenues approximately nine times faster than the S&P 500. Headquartered in Silicon Valley, Zuora also operates offices in Atlanta, Boston, Denver, Frisco (Texas), New York, San Francisco, San Jose, San Diego, London, Paris, Beijing, Sydney, Chennai, Tokyo, and Munich.
About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.
© 2017 Zuora, Inc. All Rights Reserved. Zuora and Subscription Economy are trademarks of Zuora, Inc. Third party trademarks mentioned above are owned by their respective companies. Nothing in this press release should be construed to the contrary, or as an approval, endorsement or sponsorship by any third parties of Zuora, Inc. or any aspect of this press release. To learn more about the Zuora platform, please visit www.zuora.com.