Maximizing Revenue Assurance in Cloud Services with Decision Intelligence

xfactrs

Vishal Augustine, VP of Product Development

Santosh Venkat, Associate Director of Products

xfactrs Revenue Leakage of Cloud Services

IaaS and PaaS have revolutionized how organizations operate. With increased pressure on profit margin, the ability to safeguard and optimize revenue streams has become highly important to Cloud Service Providers. Decision Intelligence (DI) platforms like xfactrs can not only protect revenue leakage but also guide cloud service providers on where to focus. Let us find out how.

Revenue and Business Risks in Cloud Services

Complexities arise within cloud services due to various reasons viz. dynamic resource usage, diverse pricing models, service variety. Even with state-of-the-art billing or CRM or Order Management systems, gaps can arise. Ineffective observability mechanism to measure the gaps and its revenue impact, can lead to under billing or over billing, under utilization or over utilization of capacity, lack of customer transparency and ultimately revenue loss.

Some IaaS/PaaS vendors come up with their own unit of measure. E.g., Databricks uses Databricks Units (DBUs), Snowflake uses Snowflake Credits. Revenue leakage can occur when these units are incorrectly calculated because of inaccuracies in usage aggregation or system limitations. The accuracy of these units can get impacted because of diverse range of jobs and workloads across large clusters, ultimately causing discrepancies in the billing process.

 

Sample Use-Cases

Missing units

Service provider is unable to consistently monitor and record the usage across all virtual machines (VMs), this could result in incomplete or inaccurate data (missing Units) being sent to the Billing System. 

Wrongly accounted usage and wave-offs

Service provider charges a customer for a service and/or usage, which is incorrect. The realization happens when the customer contacts the customer service team, thereby increasing the support cost. No proactive measures are in place to signal such scenarios.

Credits’ misuse

Credit programs of IaaS/PaaS are effective mechanisms to upsell or to onboard new prospects. However not having proper checks can lead to misuse of the credit program, and thereby resulting in revenue loss of the Service Provider.

Over charging

In some Data Centres, the billing system uses the allocated resources (viz. CPU, memory, storage) over actual resources activated. E.g., A Customer has requested and billed for 4 CPU cores and 16 GB of RAM but enabled/activated only 2 CPU cores and 8 GB of RAM.

 

Decision Intelligence in Revenue Assurance

When applied to Revenue Assurance in Cloud Services, DI acts as a compass, guiding organizations through crucial aspects that directly impact Revenue Protection.

Sample Use Cases:

 

Credit program worthy prospects

A prospect is being evaluated for the credit program provided by IaaS/PaaS vendor. Before deciding the credit volume and term, verify the risk profile of the prospect. The inputs to the decision intelligence will be a combination of client details and attributes, business rules, history of similar customers, etc.

Revenue leaking accounts

For a specific revenue leakage scenario, provide the probability figure on whether that scenario holds good for an account. This will be based on features/attributes of the past problematic accounts.

Contact center loading

Immediately after the bill run, or during the sample bill run, the bill pattern is analysed. Based on the anomalies – which could come from bill amount, new offer etc. – prescribe the Contact Centre load.

Revenue leakage affinity promotions or discounts

Based on past promotions and discounts, the probability of new promotions/offers resulting in revenue leakage gets indicated. The duration, volume of discount, target segment etc becomes an input to train the model.

 

Conclusion

Decision Intelligence can play a key role in Revenue Assurance strategies for Cloud Services, enabling businesses to not only protect their revenue streams but also provide proactive Business Assurance. Organisations can navigate the complexities of the cloud landscape with precision and agility using the power of predictive analytics, decision-making and data driven insights.

Relevant Blogs

Analytics Tools Vs Revenue Assurance Platform

Analytics Tools Vs Revenue Assurance Platform

Kiran MohanWe have an analytics tool, why do I need a revenue assurance platform? More or less, that’s what we hear from many conversations we have. I don’t blame them as we are comparing apples vs oranges. The concept of revenue assurance is new to the subscription...

Impact of Technology Silos on Revenue Leakage

Impact of Technology Silos on Revenue Leakage

Kiran MohanThe current subscription landscape relies on various technology systems such as CRM, sales force automation, billing systems, financial systems, and payment gateways to manage their operations and drive revenue growth. However, a significant challenge that...

xfactrs Launch at the Subscription Insider Show

xfactrs Launch at the Subscription Insider Show

Ravin Checker and team has launched xfactrs - the most awaited decision intelligence platform for subscription businesses. The event took place at the Subscription Insider Show 22. Here is the transcript from Ravin's presentation. .... Drip. Drip. Drip. That is the...

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