Welcome!

Recurring Revenue Authors: Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz, Xenia von Wedel

Related Topics: @CloudExpo, Mobile IoT, Agile Computing, Recurring Revenue, @DXWorldExpo

@CloudExpo: Blog Feed Post

Recurring Revenue Still Flying High By @AriaSystemsInc | @CloudExpo

Innovative companies who provide their products and services on a recurring basis have continued to generate new sales

By Tim Clark

Innovative companies who provide their products and services on a recurring basis have continued to generate new sales and drive greater profits since Aria Systems published its Big Book of Recurring Revenue Innovators e-book in Spring of this year. From established names such as Microsoft, ESPN, Toyota, and United Airlines to start-ups like JustFab, recurring revenue-based companies continue to show the potential for tremendous growth.

JustFab, which sells women’s shoes, handbags, jewelry, denim, and athletic gear by subscription, joined the Billion-Dollar Club of companies in August with a venture capital valuation of $1 billion or more. JustFab, and its brands ShoeDazzle, FabKids, and Fabletics, expect to do $400 million in revenue in 2014 and more than $500 million in 2015, with 90% from subscribers, according to co-founder Adam Goldenberg.

The August 2013 JustFab-ShoeDazzle merger made it into The Big Book of Recurring Revenue Innovators this year as the pair joined forces to build the world’s largest fashion subscription eCommerce company. Through $40 monthly subscriptions, the company aims to grab 15% market share among 18-35-year-old women who buy clothes online.parachute

A Sept. 8, 2014, study from IdeaWorks found that United Airlines generated $5.7 billion in ancillary (non-airfare) income in 2013, five times more than United’s 2013 profit of $1.084 billion. Ancillary income includes United’s subscription revenue for checked bags, more legroom, and access to its in-airport red-carpet lounges providing 4.9% of United’s $38.2 billion in overall revenues, or $40.97 per passenger. The report ranks United’s ancillary revenue as No. 1 among global airlines.

Microsoft has pushed its online Office 365 software applications into the market for Apple’s iPads by offering a variety of subscriptions. Since Sept. 2, Microsoft has allowed Office for iPad subscribers to pay monthly, rather thanannually-only. Although Office 365 is free to iPad owners for viewing documents, a monthly subscription of $7-10 allows users to create new documents or reformat existing ones. Office 365 subscriptions for Android tablets are expected from Microsoft before the end of 2014.

The Big Book of Recurring Revenue Innovators recognized Microsoft for achieving $1 billion per year in annual sales through three separate subscription-revenue streams: Office 365, the Azure cloud computing Platform as a Service (PaaS), and Lync, Microsoft’s enterprise-oriented communications suite.

Meanwhile, sports media giant ESPN is considering selling online access to live Major League Soccer games to consumers who don’t have pay TV subscriptions. This effort to expand ESPN’s direct-to-consumer revenue with a subscription model would add to their existing repertoire of subscription services, which includes ESPN Insider and ESPN Magazine.

ESPN appeared in The Big Book of Recurring Revenue Innovators for using a subscription model to stem the flow of its audience from TV to online broadcasts. This is strategically important for ESPN as they seek to add more web-based subscribers without cannibalizing existing pay TV revenue.

Toyota made The Big Book of Recurring Revenue Innovators for Toyota Europe’s trial program of quarterly GPS map updates by subscription, but that’s not all they are doing with recurring revenue. In Japan this summer, Toyota beefed up its subscription, in-vehicle telematics system by adding automated voice activation. The new T-Connect service, available only in Japan, builds on Toyota’s G-Book system, which integrates a driver’s mobile phone with the car’s console. Meanwhile, Toyota-owned brand Lexus upgraded its telematics system to make high-speed internet standard. The service is free for three years with the purchase of new Lexus vehicles.

As Fortune reported last month, subscription-based sales are on the rise as the G200 as well as young start-ups understand the amazing gains that can be had with recurring revenue models.

The post Recurring Revenue Still Flying High appeared first on Recurring Revenue Blog | Aria Systems.

More Stories By Aria Blog

The Aria blog is the place for news, commentary and discussion on monetization, agile billing and IoT. We cover a variety of topics including forces of market disruption, the Monetization of IoT, billing best practices, trending news and what monetization will look like in the future. Our hope is that you’ll become better informed, be entertained and in turn share your thinking, ideas and comments.

IoT & Smart Cities Stories
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...