With increasing number of software solutions moving to SaaS, the way to charge, collect the fee for the service is also changing. License (lump-sum) fee is being replaced by (monthly/annual) subscription fee. If the architecture, data management, service uptime (SLAs) are not challenging enough, SaaS companies now also have to deal with subscription pricing, billing and tiered offerings which is not the core competency of most SaaS businesses. To meet this this challenge, a new category of software offering called Subscription Management (aptly also SaaS) which specialize in providing robust billing, pricing capabilities has emerged.
A friend who runs a SaaS company, which is growing fast and has outgrown their in-house process/technology of managing subscriptions, was beginning to evaluate a Billing Service. He asked me to help with characterization of what an ideal service should be capable of and baseline the needs that they need to assess. Thought it might be