Billing is a infrastructure problem, and it's shifting fast! Chat with Alvaro from Orb
Jan 30, 2024
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Alvaro, CEO of Orb, discusses the evolution of billing as an infrastructure problem, from traditional seat-based to usage-based models. They explore how modern pricing trends are impacting sales strategies and the importance of aligning billing infrastructure with growth goals. The podcast also delves into the challenges of transitioning to dynamic billing systems to support evolving pricing models.
Orb simplifies billing processes for companies by offering usage-based and hybrid pricing options.
The shift to usage-based billing driven by customer mindset and cloud technology requires strategic operational changes.
Deep dives
Orb: Revolutionizing Billing for Modern Pricing Models
Orb, a flexible building engine designed for modern pricing models, offers usage-based billing and hybrid pricing options, aiming to simplify billing processes for companies like Recel, Replet, and Materialize. The company was founded on the insight gained from experiences at Asana, highlighting the need to decouple business logic from codebases for better monetization control. By automating billing processes, Orb allows companies to focus on product development rather than billing intricacies.
Transition to Usage-Based Billing
The shift from traditional seat-based models to usage-based billing is driven by the evolving customer mindset seeking value-aligned payment structures. The rise of cloud technologies enables granular usage tracking and flexible pricing, catering to dynamic business needs. Opportunities and necessity, especially in times of rapid product innovations and market uncertainties, propel businesses towards adopting usage-based models for enhanced flexibility and customer value alignment.
Challenges and Opportunities of Credit-Based Models
Credit-based models address the predictability and procurement challenges of usage-based billing, providing customers with upfront spending commitments for easier budgeting. This approach streamlines sales processes by simplifying billing discussions and enabling fine-grained buyer-seller interactions. The transition to credit-based models also necessitates a shift in sales team compensation structures to align with customer lifetime value and consumption patterns, driving operational changes in go-to-market strategies.
Infrastructure Evolution and Pricing Transformation
Innovations in billing infrastructure, like Orb's focus on evolving billing systems, highlight the need for adaptive and scalable solutions in pricing changes. The merging of billing and analytics functionalities in products anticipates a future trend towards consolidated offerings that address customer problems comprehensively. As businesses navigate the changing landscape of usage-based models, a strategic shift in product development, sales operations, and go-to-market approaches is crucial to stay competitive and align with evolving customer expectations.
Ian and Tim sat down with Alvaro (CEO of Orb) about how he dived into the Billing problem as a engineer, and now building a company Orb that's powering a developer facing infra for Billing.
Come join our discussions to talk about how Billing has evolved, why it's a infra problem, and how having a infra powers billing and everything around it for companies to move much faster than before.
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