With a history that goes back nearly a half-century, revenue management isn’t the new kid on the financial block. It has, however, undergone numerous transformations and is once again evolving to meet changing requirements. From its earliest days, revenue management was designed to optimize the revenue potential of assets regardless of market conditions. Filled with intricacies, revenue management is typically described as selling the right product, to the right customer, at the right price, through the right channel. Focused on predicting demand and optimizing price and availability, a revenue management strategy consists of numerous components. While historical revenue management systems met the needs of yesterday’s businesses, today organizations are finding themselves at a crossroad. Competition is fierce, technology continues to advance at an accelerated pace, expenses are skyrocketing, and market demands continue to rapidly change. On top of these challenges, many companies are facing the financial ramifications resulting from the pandemic. To rise above the challenges and improve profitability, many forward-thinking companies are adopting cloud-based revenue management.
Is the Solution to Revenue Management Challenges Found in the Cloud?
Antiquated, on-premise revenue management systems simply can’t handle the demands of today’s dynamic businesses. Are you struggling with billing cycle visibility, high IT costs, error-prone manual processes, meeting the dynamic needs of customers, revenue leakage, etc.? If so, cloud-based revenue management may be just what you need to rise above the competition and improve profitability.
You need a revenue management solution that can not only handle today’s dynamic and challenging requirements, but position you to achieve future goals. Across nearly every business function, organizations are increasing the pace of cloud migration. In fact, a survey conducted by Flexera determined that 50% of decision-makers plan to increase cloud usage and spend. With no signs of slowing, public cloud adoption continues to accelerate, with 36% of enterprises spending more than $12 million per year on public clouds and 90% of enterprises expecting cloud usage to exceed previous plans.
The Advantages of Embracing Cloud-Based Revenue Management
While there are multiple reasons for cloud migration, it comes down to one thing – the cloud simply works better than on-premise systems. At its most fundamental level, the cloud offers greater efficiency. This means you’ll achieve maximum results with minimal expense. Aside from efficiency, you’ll receive additional benefits by migrating to cloud-based revenue management, including:
- Reduced Cost: Since cloud-based systems are more powerful than their older on-premise counterparts, revenue leakage is minimized, and in some cases completely eliminated. Additionally, on-site systems are expensive to maintain and costly when up scaling is required. With its nearly infinite set of resources, cloud infrastructure was built to quickly scale up and down, enabling you to make capacity adjustments on the fly. Finally, cloud-based revenue management systems don’t require hardware purchases, drastically reducing IT infrastructure capital investments.
- Increased Agility: Agility and flexibility go hand-in-hand, and cloud-based revenue management enables you to quickly respond to changing business needs. It’s been estimated that the cloud provides on-demand access to more than 99% of the IT resources you may need. Improved agility enables you to outpace competitors that still rely on in-house revenue management solutions, which can take weeks and sometimes even months to receive and install new hardware components.
- Enhanced Security: With no signs of slowing, 2021 saw a record number of security breaches. While attacks can and do happen in the cloud, the cloud provides additional protection that is difficult to implement and maintain on in-house systems. An area of focus for cloud-based revenue management providers, you’ll benefit from best practices that only cutting-edge technology can provide. Plus, top-notch security practices encompass policies, technology updates, and controls that are frequently reviewed and updated.
- Improved Performance and Reliability: By moving to cloud-based revenue management, latency becomes a thing of the past. In addition, if a security breach takes place the cloud provides unmatched data backup and disaster recovery.
- Lower CapEx: Since you won’t be investing in expensive hardware that depreciates in value, you’re able to significantly reduce capital investments and shift from a CapEx to an OpEx model.
- Deliver Better Customer Experiences: The agility of the cloud enables you to modify business processes, configure workflows, and add new data fields without having to rely on IT. This, in turn, gives you the power to create and implement more personalized product bundles, pricing, and billing processes to meet and even exceed customer expectations.
Cutting-edge technology, market dynamics, and customer expectations continue to fuel changes in revenue management. These advancements are delivering a range of benefits that enable you to reduce costs, increase agility, enhance security, improve performance and reliability, lower CapEx, and deliver outstanding customer experiences.
Not All Cloud-Based Revenue Management Solutions are Equal
You have choices when it comes to migrating revenue management to the cloud. Whether you’re actively looking for a cloud-based revenue management solution, prioritized it as a 2022 goal, or are just beginning to think about it; due diligence is required before making a purchase.
Some cloud-based revenue management solutions were not natively built in the cloud. This means that despite best efforts, you won’t receive the same advantages and benefits as with software that was built as a cloud-hosted solution. From billing, pricing, accounts receivable, revenue recognition, and more – BillingPlatform’s revenue management is a ‘true cloud’ solution. Let us show you more with a customized demo of our solution.