Usage Data Demands of the Software Industry

June 19, 2023

The industry reveals their strategies in managing data complexity to protect, improve, and scale their businesses.

Edwin Ryan Poquiz
Reading time: 4 minutes

Introduction and Challenges

The data landscape is growing and evolving yet again, and FAST, and the changes are right on the tail of the software industry (and most other industries, really). Data volume and complexity are nail-biting concerns for all, and they have voiced out their challenges, concerns, needs, and strategies, and this blog post is their collective wisdom in how they’re planning to tackle the changes and basically avoid getting their… errr… tails bitten.

Statista forecasts that 120 zettabytes worth of data will be generated this year. And to think that back in 2020, that figure was only at 64.2 ZB. So 120 ZB is like… A LOT.

Which makes the software industry’s concerns legit. I mean, with that volume of data, we’re talking potential complexity in partner settlements, error-prone manual processes, missed revenue opportunities, and the list goes on. And at the customer end of things, there’s dissatisfaction and subscription fatigue, which result to churn.

Bad, scary stuff.

Industry-Wide Needs and Focus

The industry is all about staying ahead of the game by tracking customer usage, kicking churn rate to the curb, and boosting revenue and growth. The same overall concerns, but below are some of the main stuff they want to put their energy and resources on:

    Proactively keeping tabs on how and how much their customers use their software to help them identify churn patterns and deliver personalized offerings and experiences that say, “We got what YOU need.” or “We hear ya, and we’re gonna make things (even) better for you.”

    Being quick to react at tackling accounting and billing mishaps that can munch away precious revenue.
    Precision. Accuracy. Squeaky-clean data — all that good stuff to keep customers happy and their operations legal and compliant.


    Handle those revenue splits fair and square when buddying up with other SaaS folks or platform providers.



    So really, what software and SaaS companies want is a world where analysis is a cakewalk, decisions are on-target, the products that they build are revered by customers while dodging compliance risks, and that their friends in the business can have their fair share of the cake as well. 

    Variable Focus by Function, Revenue, and Company Size

    By Function

    • Tech teams are all about proactive approaches in launching game-changing new business models, understanding service usage, and taming data complexity.
    • Finance teams will be also proactively focusing on innovation, revenue protection, and pricing magic.

    By Revenue

    • High revenues suggest more resources and capabilities, so these companies will lean more towards proactive measures. Their efforts will likely include monitoring usage frequency closely and staying relevant and competitive thru the usage data that’s feeding their marketing intelligence.
    • The ones with smaller revenue say they are more likely to lean more towards reactive approaches, which helps them make more informed decisions when improving their services, for instance.
    • The playing field is level for companies regardless of their revenue, and they all face the same data challenges. It’s an obstacle course that sparks the creative genius in everyone.

    By Company Size

    • Don’t underestimate the smaller players who are light-footed but proactive, plugging revenue leaks and taming data complexity.
    • The giants of the industry play their cool, cracking the code of balance between stability, compliance, and growth with a mix of proactive and reactive initiatives.
    • Mid-sized companies? They are locking down stability with reactive chops, while their proactive savviness is fueled by usage data.

    Usage Data Management: The Bottom Line

    Now, let’s talk about the meat of all this – usage data management. You probably already know that being on top of service usage and consumption can lead to those sweet “a-ha” insights for improving your offerings, jacking up business growth, cooking up the next big thing, and… we can go on and on here. All super important, of course, but… 

    …BUT HOLD UP, managing all that data jazz can be a wild ride. It’s like sailing the seas of data complexity, my friend. That’s where reactive approaches come in, giving you temporary relief from billing system pressures with snazzy interim fixes like customizing iPaaS or ETL solutions, or maybe some homegrown solution. Nice! But…

    …BUT imagine your business growing like crazy. More products, more services, more payments, more partners, more everything, and the data volumes continue to spike to the point where your once-shiny interim solutions, maybe the patchwork of solutions that was stitched up together, y’know, the ones where you went “Well… this’ll do for now”, can no longer handle the load. What you need is proactivity and purpose-built solutions that keep those errors at bay and provide enough room for… heck, ALL the room you need for growth.

    So yeah. INTELLIGENT USAGE DATA MANAGEMENT. That’s what’s up. Oh… and being proactive.


    And now you know all the whos, whats, and hows  in the data complexity world. Collecting, analyzing, and leveraging usage data to uncover bankable insights about your customers, fine-tune pricing strategies, identify new revenue streams, ensure compliance and stuff – not a walk in the park, for sure. But it can be! So, make sure to invest in the right tools (the intelligent, sophisticated, and purpose-built kinds) and the right talent to make that usage data hum to the sweet tune of << say your favorite guilty pleasure song >>.

    Okay. So that’s all for now. If you want to know more, and if you’re the type who likes looking at lots of graphs and numbers and all that (oh hey… DATA!), then feel free to download our report—The Evolving Landscape: Understanding Usage Data Demands in 2023—below. Everything above is based on the report. Just a little clickety-click and off you go. 

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    Edwin Ryan Poquiz

    Content Marketing Manager @ DigitalRoute

    Edwin Ryan is a 360° marketing strategist, content producer, UX designer, and hobbyist. He has produced content for The Wharton School, SFSU, and several startups and non-profit organizations both in the US and in Sweden. 

    When he’s not doing his nine-to-five, he’s usually out enjoying every opportunity to unplug from the urban jungle he calls home to go bouldering, bikepacking, kayaking, skiing, hiking, and ice skating, among others. 

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