Axiom MRC has updated all it's market research reports with the Economic Impact Analysis of COVID19 Pandemic on the market. Our team of analyst are following Comprehensive Three Dimensional (3D) Research Methodology along with large number primary interviews with key industry participants to bring insightful market reports to meet the current market requirements.
Cloud billing is the method of generating bills from resource usage data using a set of predefined billing policies. Depending on the cloud computing general policies, the bill can either be for real money or it can refer to an abstract notion of exchange. It provides solutions for digital and non-digital cloud services. Cloud services are those which are made available to the users through the internet from cloud computing provider’s servers. These services are wholly managed by the cloud services provider and are designed to provide easy, scalable access to applications, services and resources.
A dominant trend in industry, cloud-based process automation and optimization is an important area for billing management. Cloud billing market growth will continue to be driven by developments in e-commerce, virtualized and smart workplaces, advancement in technologies, cost-effectiveness, flexibility and scalability to up-scale with an increase in the number of the customers and increase in need for the reduced capital expense and operating expense, which is increasing the need for simplified operations and transparency in billing processes. Cloud-based billing solutions manage the difficulty associated with the delivery of both digital and non-digital services as well as facilitate robust support for integration with key business systems such as accounts receivable.
Demand for an enhanced process, lower capital, and operational expenses, convergence, and centralization are anticipated to favour its growth. A benefit such as real-time management of a large amount of data is anticipated to propel the market growth over the forecast period. These solutions help in avoiding over and under-charging by supporting dynamic price plans, granular billing, and sophisticated rating, by extending support for variable billable units.
The pandemic had a positive impact on the cloud billing market. Due to the COVID-19 outbreak, cloud billing solutions have gained traction, especially usage-based billing, as organizations have changed their budgets and preferences to survive during this pandemic. Moreover, organizations across the world are investing more in cloud billing solutions to continue operations. Governments are announcing packages to help businesses during this pandemic, with a special focus on SMEs. The COVID-19 pandemic has also boosted cloud adoption across industry verticals as users move to leverage cloud benefits, such as scalability and cost. During the outbreak of COVID-19, four out of five subscription companies are still growing despite the economic slowdown, while 50% of subscription companies are growing at the same pace without any negative impact due to the COVID-19 pandemic.
As the pandemic endures four months later, organizations are becoming more strategic about cloud investments, relying on service providers to help identify opportunities that progress beyond survival mode and enable data-driven business outcomes. In an online panel hosted by AWS, managed service provider partners AllCloud, BRLink and Cloudticity shared how customers are making this transition by leveraging public clouds, automation, data analytics, and ML and AI to improve business processes and end-user experiences.
The report analyses the cloud billing market based on component, deployment, billing type, application, platform, industry, organization size and geography.
Cloud billing solutions help to capture the value of the cloud services portfolio with automated recurring billing for a license and usage-based accounts, resulting in increased operational efficiency. Based on the component it is bifurcated into solutions and services. The solution segment is creating dominance in the forecast period.
However, the major drawbacks of manual billing, such as time consumption and risk, are the major factors pushing organizations towards adopting cloud billing solutions, as these solutions provide detailed visibility and insights into cloud services. Cloud billing solutions help organizations to market faster and increase product line revenue.
The cloud billing market by deployment is segmented into three types SAAS, PAAS and IAAS.SAAS segment is predicted to play a major role during the forecast period. SaaS refers to a cloud-based method of providing software to users. Users subscribe to an application rather than purchasing it once and installing it. Users can log into and use a SaaS application from any compatible device over the internet. The actual application runs in cloud servers, instead of each user having to install the software on their device. This model deploys, reduces the costs of, scales, and upgrades business applications more rapidly than maintaining on-premises systems and software. It can be used to offer enterprise applications, such as ERM, CRM, HCM, SCM, and collaboration. SaaS businesses need to send professional invoices through predesigned templates, as this helps in building healthy customer relationships. Cloud billing solutions for SaaS service model process the core operation of the business as the product to generate the bills.
The market is bifurcated into Subscription Billing, Metered Billing, Cloud Service Billing, Provisioning, and Others. The subscription-based billing is anticipated to contribute significantly to the growth of the global cloud billing market. The growth of the said segment is attributed to the increasing focus of companies on a service-centric approach. However, lack of awareness in its benefits and due to increasing security concerns are the major factors which are increasing the growth of the market.
The market is bifurcated into account management, revenue management, customer management, and others. The customer management segment is expected to grow at the highest CAGR during the forecast period. Moreover, the proper establishment of cloud services is essential to sustain through intense competition and avoid revenue leakage. Examples of cloud services include web-based e-mail services, database processing, online data storage and backup solutions, hosted office suites and document collaboration services and managed technical support services.
The public cloud segment accounted for a majority chunk of the global market share and is expected to grow at the highest in upcoming years. Moreover, using this system helps in monitoring customer subscription that may be weekly, monthly or yearly. This process helps in tracking the whole payment system of customers along with sending timely reminders regarding the due payment further reducing chances of deferred payment.
However, various resources, such as applications, storage, virtual servers, and hardware, are available to client enterprises over the internet. The services offered through the public deployment model are either free or offered under a subscription model. It helps organizations meet their demands for scalability, provides a pay per usage pricing model, and ensures ease of deployment. Enterprises can utilize public clouds to make their operations significantly more efficient. Clouds customers generally waste an estimated 45% of spend, and cloud billing solutions are expected to help reduce this wastage. Cloud billing solutions generate bills for public cloud service consumption and also provide daily, weekly, and monthly performance reports.
The global Cloud Billing market by industry includes information technology, telecommunication, BFSI, education, healthcare, retail, manufacturing and logistics. The telecommunication industry is expected to play a major role in the forecast period. It is a challenge for telecommunications providers to manage this data and retain existing customers as well as enhance customer experience and gain new subscribers. In the telecommunications sector, the majority of companies are using out-dated billing systems that cannot be integrated with newer technologies. On the other hand, these companies are focusing on streamlining revenue loss. Cloud billing solutions will help telecommunications companies integrate user data with a rating and invoicing.
Organization size is segmented into two parts larger enterprises and SMEs. Large enterprises are witnessing an increased need to deploy cloud billing solutions and services to efficiently manage their large number of assets spread across geographies. The adoption of cloud billing solutions and services in large enterprises is high as compared to SMEs. The high adoption is due to the affordability and high economies of scale of large enterprises that enable organizations to leverage Cloud Billing solutions and services. In today’s highly competitive world, large enterprises particularly leave no stone unturned to capture a larger market share. Hence, large enterprises spend significant amounts on becoming technologically proficient.
Geographically, the Cloud Billing Market is studied across the countries of key regions such as, North America, Europe, Asia Pacific and Rest of the world regions which includes Latin America, and Middle East & Africa. North America is likely to hold the dominant position and is also expected to be the fastest-growing regional market in global Cloud Billing Market during the forecast period The dominance of the North American region is credited to the increase in cloud-based solutions and mandatory government regulations.
Some of the vital players operating in this market include Oracle (US), SAP (Germany), Salesforce(US), Zuora(US), Aria System(US), BillingPlatform(US), Recurly(US), Jamcracker(US), Cerillion(UK), CGI(Canada), ConnectWise(US), Zoho(India), AppDirect(US), CloudBilling(Netherlands), Chargebee(US),RecVue(US),Cloud Assert(US),CloudXchange.io(India), and Chargify(US), Blusynergy(US), Blulogix(US), Comarch(Poland).
The report analyses the cloud billing market based on deployment, billing type, application, platform, industry, organization size and geography. Components include solutions and services. By billing, it consists of subscription billing, usage-based billing, one-time billing and others. The application of this market includes account management, revenue management and customer management. The industry segment comprises of BFSI, education, healthcare, retail, Information technology, telecommunication, manufacturing and logistics. The vertical segment is classified into process manufacturing and discrete manufacturing. Based on organization size it is segmented into large enterprises and SMEs. Based on a platform it is bifurcated into the public cloud, private cloud and hybrid cloud.
Some of the major players operating in the market Oracle (US), SAP (Germany), Salesforce(US), Zuora(US), Aria System(US), BillingPlatform(US), Recurly(US), Jamcracker(US), Cerillion(UK), CGI(Canada), ConnectWise(US), Zoho(India), AppDirect(US), CloudBilling(Netherlands), Chargebee(US),RecVue(US),Cloud Assert(US),CloudXchange.io(India), and Chargify(US), Blusynergy(US), Blulogix(US), Comarch(Poland).
Geographically, the cloud billing market is studied across the countries of key regions such as, North America, Europe, Asia Pacific and Rest of the world regions which includes Latin America, and Middle East & Africa.
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