Enterprises launching usage-based services drives DigitalRoute’s best year ever
DigitalRoute, the leader in empowering companies to monetize usage data, saw sales grow 17 percent in 2019, due to more enterprises adopting usage-based services. DigitalRoute’s enterprise business grew 100 percent year on year, making up 44 percent of the company’s total sales. New customers include a newly launched, popular streaming service and a travel booking software provider. DigitalRoute’s Usage Data Platform will now process data from 80 percent of all travel bookings worldwide.
DigitalRoute’s breakthrough year reflects a cross-industry trend, where demand for subscription and usage-based business models grew significantly in 2019.
According to Zuora’s latest edition of its Subscription Economy Index™, measuring the health and growth of subscription businesses, the subscription economy has grown 350 percent over the last 7.5 years. Companies with usage-based pricing, making up between 1 to 50 percent of their overall revenue, grew by 28 percent year on year. That is 1.5 times higher growth than companies with no usage-based pricing.
“Since consumers increasingly want to use a service rather than own a product, companies must be able to bill with full transparency and high granularity based on specific usage,” says Andreas Zartmann, CEO at DigitalRoute.
DigitalRoute’s Usage Data Platform has been supporting the telecom industry’s ability to charge for and launch usage-based services for 20 years. The platform is designed to process millions of transactions per second, regardless of how complex the usage data is or what system it comes from.
“Already five years ago we saw an emerging trend in enterprises shifting their business model from selling products to selling services,” Zartmann says. “Our technology at an early stage solved the complexity of usage, helping companies like Adobe build tremendous growth as a result of bold decisions to switch to usage-based subscription models. Based on this trend, we decided to double down and bring our 20 years of experience in monetizing usage data in the telecom industry to other enterprises.”
During the last years, DigitalRoute invested heavily in organization and new cloud native technology, in order to change the company’s direction to focus more on enterprises. In 2019, new multinational enterprises became DigitalRoute customers. A new global streaming service that competes head-to-head with Netflix now uses DigitalRoute’s Usage Data Platform. The streaming service has a flexible, usage-based business model that enables customers to pay only for what they use.
The Usage Data Platform was also implemented in a global travel booking software provider in 2019. Combined with other travel booking software customers, DigitalRoute’s platform will now process the usage data of more than 80 percent of all travel bookings worldwide.
“This year we have seen real proof that the strategic shift we made to our business a few years ago was the right decision,” Zartmann says. “The growth in our enterprise business clearly stands out. We are proud that market-leading enterprises choose our Usage Data Platform to enable business model innovation. DigitalRoute is on a mission to simplify consumption-based commerce across industries.”
DigitalRoute helps global companies, across various industries, capitalize on the growing wave of consumption-based commerce with its Usage Data Platform. DigitalRoute has been the leader in this space, historically called billing mediation, for 20 years. Over 400 companies worldwide use DigitalRoute’s Usage Data Platform to deliver accurate usage-based business models. We meet demanding requirements for speed, accuracy and scale in some of the largest, most complex environments in the world. Our customers trust our technology to operate in the critical area of monetization.
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