Zuora Venturing Into Cloud Computing

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  • Topic: Cloud computing, Everything as a service, Economics terminology
  • Pages : 4 (1419 words )
  • Download(s) : 384
  • Published : May 14, 2012
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Zuora Inc: Venturing into Cloud Computing

Zuora Inc. is a leading start-up company in the Software as a Service (SaaS) billing and payments area, which needs to strategically position itself in the face of the emergence of Cloud Computing. There is a need to identify the market segments that would provide Zuora with the quickest growth opportunity in order to strengthen its lead position, and they must decide how fast to scale the company given the changing market dynamics. These decisions will have implications for when the next round of funding must be secured, and top management must carefully assess what the effects of the timing of the funding decision will have on the valuation of the company. It would be recommended that Zuora take on a balanced risk and Growth strategy approach which is offered by Expanding to capture the broader Cloud computing trend. This will allow for continuing growth and profit as well as help the company move into an area of new technology that could open many additional opportunities. CURRENT SITUATION

Zuora Inc in only a short 14 month period has positioned itself as a leader in the Software as a service (SaaS) billing and payment area. In only 9 months of the launch of the first product, Z-Billing, there were 70 Clients. Now faced with an economic slowdown and changes in the market dynamic, Zuora is in need of setting its next target. Cloud Computing is a market that is beginning to overshadow the SaaS billing market but since it is a technology that is not clearly defined making it is difficult to target and sell to this market. The Software as a Service industry is based on web based applications replacing the traditional software which was purchased and installed. This type of service is considered highly reliable and is cost effective. The subscription based operations is this model is a type of pay as you go service, there are many different plans to monitor and fee structures. If you look at...
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