Welcome!

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Agile Computing, @BigDataExpo, 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.


Latest Stories
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Column Technologies will exhibit at SYS-CON's @DevOpsSummit at Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a global technology solutions provider with over 400 employees, headquartered in the United States with offices in Canada, India, and the United Kingdom. Column Technologies provides “Best of Breed” technology solutions that automate the key DevOps principal...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...