Answer To Qs 2
Date : February 12th, 2013
To : Graphic Designers’ Studio
Subject : Options for sourcing internet services
Over the years the business of Graphic Designers’ Studio has grown many folds, resulting in a need to move from “home-based” business model, to an office where the 3 support staff and 2 customer service reps and 15 designers can be consolidate at one location.
DEMAND OF ONE OFFICE CONSOLIDATION
One office consolidation, has generated a need of having
1. High-speed Internet access
2. E-mail accounts for everybody
3. Web access for e-mail
4. Ability to handle up to 10 MB attachments
5. Ability to download and upload large graphic files (up to 100 MB) to customers…show more content… Cheng was also working with Rao at WebEx.
Because of their background, knowledge of the billing systems and understanding of the market needs, they were well aware of the “Software As A Services (SaaS)”, its future as well as the opportunities and the obstacles. They had also envisaged the market need for an efficient billing system. Their vision was to provide an e-commerce platform that powers the service industry at a low cost
Zuora Inc. as a business
To achieve their vision, Zuora opted to go with the strategy, to go for a “SaaS” through “Subscription Method of Business “. This Strategy, allowed them to achieve their objective of offering a low cost, efficient billing system to the market.
For customers, because of Subscription method, the cost of buying and installing the software went down and with “SaaS” in place, the maintenance cost of the software and the cost of buying hardware also went down. Hence it was a win – win situation both for the customer, in terms of cost saving and for Zuora, in terms of good return on their investment. This is evident from the fact that within 9 months of their launch of their first product, Z-Billing, they had 70 clients. In a short span they launched
a) Z-Billing – To create and handle different types of billing methods
b) Z-Payment – Subscription payments business to manage recurring payment lifecycle
c) Z-Force – Billing and