Welcome!

Microservices Expo Authors: Flint Brenton, Liz McMillan, Elizabeth White, Yeshim Deniz, Pat Romanski

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Agile Computing, @DXWorldExpo, SDN Journal

@CloudExpo: Article

Everything-as-a-Service Demands New Approach to Accounts Receivables

Today’s increasing service complexity is best handled by an integrated complete solution for monetization

When we first built our MetraNet billing platform our customers (large enterprises and service providers) generally offered services that were clearly defined in terms of character and scope, with fairly stable setup charges, usage charges, and periodic recurring charges. Back then, with some exceptions, it was normal to issue regular periodic invoices that consolidated all of those charges. The invoice would then trigger an entry in the service provider's Accounts Receivable (AR) ledger. That in turn, again with a few exceptions, would constitute the point at which Revenue Recognition would take place. The few exceptions (for example, an invoice for a payment in advance for a service set-up charge) would be handled by adding a matching journal entry in Deferred (or unearned) Revenue until such time as the services had been delivered. The adjustment could be handled automatically (triggered by a flag from order management or billing) or manually.

Things have moved on from there and the metadata driven character of MetraNet has enabled MetraNet to support new requirements fluidly and easily. A few years ago, we developed a capability to handle the increasingly more complex requirements of services-related AR. In discussions with customers on AR, it is becoming clear that the additional power and flexibility delivered by our approach to AR will no longer be an exceptional need - it will be an everyday requirement for most service providers.

I have written a lot recently about "Everything as a Service" (XaaS) and the closely linked concept of the "Internet of Things." These labels are helpful in crystallizing in our minds what has been going on for some time. We are observing changes on multiple fronts. Products and devices increasingly become tools for the delivery of services. Services can be delivered by Agents that interact with other Agents to deliver more complex service bundles, or strip out service components to recombine them with other components to create new services. It's conceivable that Cloud Service Brokers will evolve into brokerage networks, collecting and representing services for adaptation and resell in a way that compensates multiple contributors along the value chain. At the same time services providers have to do all this while continuing to operate, and be seen to operate, within the regulatory rules.

Periodic invoices just seem so slow for this kind of environment!

As invoicing becomes more flexible and more complex, the way we handle Accounts Receivables needs to keep up. MetraTech's AR solution (MetraARTM) abstracts accounting securely from the dynamic business modeling of the billing system and enables solid and auditable integration with our customers' accounting systems.

What is special about MetraTech's metadata-driven approach? For one thing, it provides a flexible and pragmatic way around the all-or-nothing choice usually available with traditional systems. The traditional approach forces a choice between Invoice Accounting and Line Item Accounting. Invoice Accounting doesn't provide sufficient granularity when reselling supplier services, selling or re-selling regulated services, or in any case where different parts of the invoice have varying contractual or legal demands for prioritization. On the other hand, Line Item Accounting becomes completely unwieldy and difficult to scale when used on enterprise accounts or for any high-volume, event-based service.

Within MetraAR we have built on our innovative patent-pending "Demand for Payment" (DfP) technology. This enables a service provider to select the most appropriate level of granularity for managing receivables. Rather than being forced into an all-or-nothing choice, a service provider can segment different components of the invoice into separate DfPs without having to go down to the line item detail. For example, perhaps you are reselling cloud services from different vendors. One vendor has a net 30-day contract with you and the other a net 45. You would want to distribute payment against the receivables associated with the Net 30 supplier, but you don't want to track the hundreds or thousands of line items that wound up on your channel partner's wholesale invoice. Instead you can group all the charges into a single Demand for Payment and manage that group as one entity.

It doesn't stop there. Each Demand for Payment can be further split as needed to handle partial payments, payments on account, disputes, and any other events that affect receivables. A single customer payment can be apportioned across multiple DfPs in whatever way is required.

The MetraNet billing platform already provides a complete and flexible system for handling subscriptions to the most complex accounts. With the added MetraAR functionality, we provide even more scope for handling those "exceptional" needs that are rapidly becoming normal everyday business. It is now even easier to set up custom payment plans, reassign and consolidate debt, and manage external debt. The use of DfPs enables Aging to be managed more accurately, with a range of aging algorithms that ensure that priority is given to the right accounts for collection and follow-up.

Our customers realize that today's increasing service complexity is best handled by an integrated complete solution for monetization, rather than a fragmented approach using separate point products. At the same time, the solution needs to work smoothly with financial accounting systems. The latest evolution of MetraNet with MetraAR does all this, and does so in a way that enables the service provider to introduce more complexity only where complexity is really needed, and to keep things simple where simple is the smarter way.

More Stories By Esmeralda Swartz

Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

Comments (1)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@MicroservicesExpo Stories
Don’t go chasing waterfall … development, that is. According to a recent post by Madison Moore on Medium featuring insights from several software delivery industry leaders, waterfall is – while still popular – not the best way to win in the marketplace. With methodologies like Agile, DevOps and Continuous Delivery becoming ever more prominent over the past 15 years or so, waterfall is old news. Or, is it? Moore cites a recent study by Gartner: “According to Gartner’s IT Key Metrics Data report, ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Docker is sweeping across startups and enterprises alike, changing the way we build and ship applications. It's the most prominent and widely known software container platform, and it's particularly useful for eliminating common challenges when collaborating on code (like the "it works on my machine" phenomenon that most devs know all too well). With Docker, you can run and manage apps side-by-side - in isolated containers - resulting in better compute density. It's something that many developer...
JetBlue Airways uses virtual environments to reduce software development costs, centralize performance testing, and create a climate for continuous integration and real-time monitoring of mobile applications. The next BriefingsDirect Voice of the Customer performance engineering case study discussion examines how JetBlue Airways in New York uses virtual environments to reduce software development costs, centralize performance testing, and create a climate for continuous integration and real-tim...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
"This all sounds great. But it's just not realistic." This is what a group of five senior IT executives told me during a workshop I held not long ago. We were working through an exercise on the organizational characteristics necessary to successfully execute a digital transformation, and the group was doing their ‘readout.' The executives loved everything we discussed and agreed that if such an environment existed, it would make transformation much easier. They just didn't believe it was reali...
"Opsani helps the enterprise adopt containers, help them move their infrastructure into this modern world of DevOps, accelerate the delivery of new features into production, and really get them going on the container path," explained Ross Schibler, CEO of Opsani, and Peter Nickolov, CTO of Opsani, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
The purpose of this article is draw attention to key SaaS services that are commonly overlooked during contact signing that are essential to ensuring they meet the expectations and requirements of the organization and provide guidance and recommendations for process and controls necessary for achieving quality SaaS contractual agreements.
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Archi...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...