|By Elizabeth White||
|February 13, 2014 07:00 AM EST||
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:
- Food producers bypassing grocery stores to sell directly to consumers on a subscription basis, a model pioneered by AmazonFresh and Goodeggs.com. With the fast-growing enthusiasm for locally-grown farm products as part of the "locavore" movement, many growers within 100 miles of their customers could adopt recurring revenue to cover the cost of delivery for fresh, organic foods directly to hungry consumers. And look for the arrival of new services for the "couch potato" sports fans, such as food and beverage deliveries, on a subscription basis during baseball and football seasons.
- From kitchen appliances to at-home thermostats to automobiles, and anything else connecting to the Internet, expect to see consumers paying as they go for those services and appliances as the "Internet of Things"
- Automakers are expected to follow the lead of Toyota Europe in offering subscriptions for features like GPS and "infotainment," or the streaming of preselected programming and playlists. Other car makers are close to adopting subscription services to cover the cost of providing detailed information about internal car operations to new car buyers.
- More states following the lead of the North Carolina State Lottery and 12 other states in launching a subscription service for the sale of lottery tickets.
- More commercial airlines following the lead of United Airlines, which now charges $349 annually for an Economy Plus Subscription plan, entitling subscribers to free checked luggage and membership at United Club facilities at airline terminals, as well as other perks.
- Pharmaceutical companies selling allergy medicines directly to consumers on a monthly basis, with the dosage amount varying by season or severity of symptoms.
- 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.
Dibble noted that forward-thinking enterprises that are using recurring revenue models over the past 12 months included such important innovators as World Wrestling Entertainment (WWE), Issuu and StitchFix.
Indeed, he said one of the biggest "takedowns" so far this year came when WWE announced that it was offering a $10 monthly subscription for viewing its live events on mobile devices.
"Recurring revenue management opens the door to innovation like never before for companies to expand and compete," added Dibble. "The changes that recurring revenue brings will effect a permanent, significant impact on the way business is conducted and how our lives are lived well into 2014 and beyond."
If you are within a stones throw of the DevOps marketplace you have undoubtably noticed the growing trend in Microservices. Whether you have been staying up to date with the latest articles and blogs or you just read the definition for the first time, these 5 Microservices Resources You Need In Your Life will guide you through the ins and outs of Microservices in today’s world.
Jul. 30, 2016 04:30 AM EDT Reads: 4,178
Before becoming a developer, I was in the high school band. I played several brass instruments - including French horn and cornet - as well as keyboards in the jazz stage band. A musician and a nerd, what can I say? I even dabbled in writing music for the band. Okay, mostly I wrote arrangements of pop music, so the band could keep the crowd entertained during Friday night football games. What struck me then was that, to write parts for all the instruments - brass, woodwind, percussion, even k...
Jul. 30, 2016 01:45 AM EDT Reads: 2,380
This digest provides an overview of good resources that are well worth reading. We’ll be updating this page as new content becomes available, so I suggest you bookmark it. Also, expect more digests to come on different topics that make all of our IT-hearts go boom!
Jul. 30, 2016 12:45 AM EDT Reads: 3,783
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Jul. 30, 2016 12:30 AM EDT Reads: 2,344
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Jul. 29, 2016 10:00 PM EDT Reads: 1,292
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 29, 2016 08:00 PM EDT Reads: 2,749
There's a lot of things we do to improve the performance of web and mobile applications. We use caching. We use compression. We offload security (SSL and TLS) to a proxy with greater compute capacity. We apply image optimization and minification to content. We do all that because performance is king. Failure to perform can be, for many businesses, equivalent to an outage with increased abandonment rates and angry customers taking to the Internet to express their extreme displeasure.
Jul. 29, 2016 03:45 PM EDT Reads: 1,689
Right off the bat, Newman advises that we should "think of microservices as a specific approach for SOA in the same way that XP or Scrum are specific approaches for Agile Software development". These analogies are very interesting because my expectation was that microservices is a pattern. So I might infer that microservices is a set of process techniques as opposed to an architectural approach. Yet in the book, Newman clearly includes some elements of concept model and architecture as well as p...
Jul. 29, 2016 02:45 PM EDT Reads: 9,831
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
Jul. 29, 2016 12:00 PM EDT Reads: 1,843
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 29, 2016 11:30 AM EDT Reads: 1,306
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 29, 2016 11:15 AM EDT Reads: 1,353
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 29, 2016 09:45 AM EDT Reads: 1,493
No matter how well-built your applications are, countless issues can cause performance problems, putting the platforms they are running on under scrutiny. If you've moved to Node.js to power your applications, you may be at risk of these issues calling your choice into question. How do you identify vulnerabilities and mitigate risk to take the focus off troubleshooting the technology and back where it belongs, on innovation? There is no doubt that Node.js is one of today's leading platforms of ...
Jul. 29, 2016 08:30 AM EDT Reads: 667
Let's just nip the conflation of these terms in the bud, shall we?
"MIcro" is big these days. Both microservices and microsegmentation are having and will continue to have an impact on data center architecture, but not necessarily for the same reasons. There's a growing trend in which folks - particularly those with a network background - conflate the two and use them to mean the same thing.
They are not.
One is about the application. The other, the network. T...
Jul. 29, 2016 04:45 AM EDT Reads: 3,733
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Jul. 29, 2016 04:45 AM EDT Reads: 2,381
This is a no-hype, pragmatic post about why I think you should consider architecting your next project the way SOA and/or microservices suggest. No matter if it’s a greenfield approach or if you’re in dire need of refactoring. Please note: considering still keeps open the option of not taking that approach. After reading this, you will have a better idea about whether building multiple small components instead of a single, large component makes sense for your project. This post assumes that you...
Jul. 29, 2016 04:15 AM EDT Reads: 4,289
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 29, 2016 04:15 AM EDT Reads: 2,700
In his session at @DevOpsSummit at 19th Cloud Expo, Yoseph Reuveni, Director of Software Engineering at Jet.com, will discuss Jet.com's journey into containerizing Microsoft-based technologies like C# and F# into Docker. He will talk about lessons learned and challenges faced, the Mono framework tryout and how they deployed everything into Azure cloud. Yoseph Reuveni is a technology leader with unique experience developing and running high throughput (over 1M tps) distributed systems with extre...
Jul. 28, 2016 10:15 PM EDT Reads: 2,256
Sharding has become a popular means of achieving scalability in application architectures in which read/write data separation is not only possible, but desirable to achieve new heights of concurrency. The premise is that by splitting up read and write duties, it is possible to get better overall performance at the cost of a slight delay in consistency. That is, it takes a bit of time to replicate changes initiated by a "write" to the read-only master database. It's eventually consistent, and it'...
Jul. 28, 2016 08:30 PM EDT Reads: 2,365
Jul. 28, 2016 07:15 PM EDT Reads: 3,977