Zuora Venturing Into Cloud Computing Essay

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Zuora Inc: Venturing into Cloud Computing EXECUTIVE SUMMARY Zuora Inc. is a leading start-up company in the Software as a Service (SaaS) billing and payments area, which needs to strategically position itself in the face of the emergence of Cloud Computing. There is a need to identify the market segments that would provide Zuora with the quickest growth opportunity in order to strengthen its lead position, and they must decide how fast to scale the company given the changing market dynamics. These decisions will have implications for when the next round of funding must be secured, and top management must carefully assess what the effects of the timing of the funding decision will have on the valuation of the company. It would be…show more content…
This is where there is a need for SaaS billing and prior to Zuora’s entrance into the market there was no software in the market with such high capacity to accommodate the billing and payment of SaaS products. Many companies had tried to experiment with their own programs costing those companies millions. In light of Zuora’s success they must make a move in growth opportunities. To date they has issued Series A bonds after the company had grown tremendously. As the market leader in the SaaS Billing, the company has looked to the Cloud computing industry to expand its services. With the current economic upturn and with a range of funding sources for Zuora issued Series B in order to develop new products and acquisitions that the company wants. Benefits of Cloud Computing for Zuora: 1. Cloud computing services need a billing and payment solution 2. Small to medium business are comfortable with the transition to SaaS, as this is seen as a trend towards Cloud computing 3. Companies are becoming more comfortable with paying for services online increasing the consumer adoption of SaaS 4. Cloud computing markets are potential huge With the current situation facing Zuora there are three scenarios to be considered 1. Continuing to focus on billing for the SaaS market 2. Expand to capture the broader Cloud computing trend 3. Grow big fast and try to capture the broader subscription opportunity CRITERIA When evaluating

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