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NetSuite Recurring Billing Overview

Changing Business Landscape - Moving to Cloud

Software

Hardware

Storage/ Documents

Platform

Media

Driving different behavior

Pay-as-you go and Usage-based pricing

I want to pay less for

off-peak hours

Pricing package for

my business

I want to pay for usage

Prorate my bill based

on vacation

Perpetual

Subscription

Fixed

Metered

Direct

Multi-tier

Offline

Online

New Requirements - Pricing Flexibility

Customers want flexible pricing & packaging

New Revenue Models

By 2015, 35% of Global 2000 companies will generate revenue through subscription-based services and revenue models

— Gartner, Building a Strategy for the Subscription Economy, April 2011

Subscription-based businesses Require….

Multiple, complex pricing/billing models11

22

33 Real-time visibility in to business

Flexible, Customer-centric recurring billing platform

Current Solutions in the Market

Too Expensive/cumbersome

Inflexible/ Not Scalable

Not Integrated

Current options are inadequate

Ecommerce

CRM

Billing

Warehouse

Business Cloud - ‘Hairball’

Financials Marketing

Over time: more money, more resources, more integrations

22

11

33

44

55

Support new usage models & complex invoicing

Effectively manage recurring billing & revenue recognition

Provide accurate billing in timely manner

Leverage new metrics to run subscription business

Get a clear visibility in to business

The Result – You can’t…

Risks with inadequate Billing solution

Can’t keep up with Cash Flow due to big DSO

Inaccurate Revenue Recognition – misstating revenue

Incorrect & late Invoicing

No visibility in to MRR, Churn, Renewables, ACV

Lack of customer trust and satisfaction

NetSuite Recurring

Billing Solution

Comprehensive Business Suite:Billing is not a separate process

Billing

© NetSuite Inc. 2012 Confidential

NetSuite Recurring Billing - Supports

Feature Business BenefitCustom pricing and discounting plans

Offer right mix of services to target customers

Automate invoicing Integrate Rev. Rec and update GL automatically

Multiple renewal options Up-Sell and Cross-sell opportunities

Flexible proration Align invoice items with pro-rated charges

Multiple perpetual billing Accurate billing and timely collection of payments

NetSuite Recurring Billing Advantages

Integrates recurring billing with CRM, ERP, eCommerce

Automates recurring and usage based billing processes

Adapts to changing billing needs

Integrates revenue recognition with recurring billing

Quote

Contract

Configurable Billing Terms

Usage Based Invoicing

Financial Reporting

Renewal

Cross-Sell / Up-sell

© NetSuite Inc. 2012 Confidential

NetSuite Recurring Billing Advantages

Centralizes multiple revenue sources

Embeds analytics at multiple touchpoints

Integrated & Real-Time Reporting

© NetSuite Inc. 2012 Confidential

NetSuite – Advanced Billing & Pricing

Supports pricing, discounting, proration and policies

Allows billing frequencies– monthly, quarterly semi-annually, yearly,

biennial, triennial billing

Supports anniversary & day of month billing

Easily configurable billing terms & renewal options

© NetSuite Inc. 2012 Confidential

NetSuite – Usage Based Billing

Supports rate pricing on historical usage

– Trailing periods, custom date range, within a subscription

Provides minimum or maximum threshold charges

Allows multiple ways to record usage

Enables flexible billing

– Flat rate, cumulative tiered rate & price, volume rate & pricing – multiple rating models

© NetSuite Inc. 2012 Confidential

Why NetSuite?

Reference Slides

1. Term must be divisible by billing frequency

2. Term

3. Billing frequency

4. Migrate on renewal– Used to change price plan upon renewal

5. Subscription cancels at– End of billing period

– Immediately

Pricing − Initial discount period− Initial discount amount

Invoice Options− Use custom template− Invoice email timing

Proration− On sale, on termination

Penalty− Early termination

Renewals− Auto− Manual− Create opportunity− Term renewal options

– No term– Same term– New term

Rate Plans

Price Plans

Rate Plans

Ratable Unit– The dimension of the usage data that is to be rated

– Dollars, minutes, texts, trucks, alarms, etc

Charging models– Flat rate

– charge = rate x use

– Cumulative tiered– tier charge = tier rate x tier use– charge = sum of tier charges

– Volume tiered – Highest tier usage selects tier rate– charge = highest tier rate x total usage

Thresholds– Included usage, subtracted before tiering and rating

– Minimum usage charge

– Maximum usage charge

Filtering

– Saved searches can be used to filter usage data prior to rating

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