Subscription billing software provider Zuora Inc. is heading for the cloud with the launch of new platform called Zuora Central that automates enterprises’ financial operations and eases the burden on their existing information technology infrastructure.

The platform is touted as a “completely new architecture” that aims to upend the traditional enterprise resource planning software market, which Zuora says is rapidly becoming outdated in today’s subscription economy.

Many of the world’s largest companies are seeing huge benefits as they roll out new digital services, Zurora said. Indeed, in its latest Subscription Economy Index, Zuora noted that the revenues of subscription-based companies grew around eight times faster than that of the S&P 500, and that companies with revenues of $100+ million grew the fastest, at about 40 percent more than the index average.

But the problem is that many of these companies can’t grow fast enough. One of the main factors holding them back is their reliance on antiquated ERP technology platforms that Zuora says are unsuited for today’s subscription-based business models. The company highlights a number of drawbacks found in ERP systems that it says are holding enterprises back, including their inability to support dynamic business models, markets and subscriber relationships.

For example, ERP software doesn’t allow for real-time changes across applications for updates in pricing, packaging and services, and it can’t adapt to the velocity and breadth of subscriber changes. This means companies are unable to ensure a positive customer experience and optimize business and subscriber growth, Zuora said.

“In this new digital world, companies require an entirely new order-to-cash architecture to manage massive recurring revenue complexities,” said Zuora founder and Chief Executive Officer Tien Tzuo. “That’s why we built Zuora Central as the first platform to orchestrate all critical financial operations, setting a new standard in dynamic enterprise software in a post-ERP world.”

The company said Zuora Central can be thought of as an “intelligent hub” that sits between existing ERP and Customer Relationship Management software, and simplifies the management of complex, recurring and hybrid revenue business models. Features include a Subscription Orders Engine that manages multiyear and multisubscription changes over subscribers’ life cycles, and a Subscription Metrics Engine that can visualize key subscription metrics in real-time such as monthly recurring revenue, net retention and average revenue per account.

“Organizations of all sizes are finding it increasingly difficult to rely on a cocktail of spreadsheets, manual effort, and customized ERP systems to meet their needs for business agility and timely, accurate financial operations,” said Andrew Dailey, managing director of MGI Research.

Image: Zuora