San Francisco, CA - Jun 27, 2013
Aria Systems today calls attention to yet another business producing exceptional results with recurring revenue products: Red Hat, the world’s leading provider of open source solutions, reported first quarter revenue of $363 million, of which $316 million, or 87% of those earnings, came from subscription services. Red Hat joins a rapidly growing list of high-profile companies with recent announcements concerning recurring revenue, including such industry giants as Apple, Google and YouTube. Businesses in diverse sectors are taking notice of the impact recurring revenue has on the bottom line, as evidenced by responses from many industries, including a recent announcement from United Airlines.
Red Hat, originally known for their popular version of the Linux operating system software, has moved strongly into the cloud space with multiple offerings including OpenShift, their platform as a service (PaaS) solution. Apple’s iRadio and Google’s All Access both offer their new streaming music services by subscription, while YouTube has recently added subscription-based premium channels to their video juggernaut.
“As cloud billing specialists, we find our customer Red Hat’s success with their innovative approach to product development and monetization remarkable,” said Andy Eliopoulos, Sr. Director of Product Marketing, Aria Systems. “As they progress in offering new services and an increasingly robust solution stack, it makes perfect sense for their revenue stream to tilt away from one-time transactions and toward ongoing recurring revenue. Red Hat’s success adds another data point among many proving that subscription offerings provide value for customers and profits for businesses who offer them.”
Aria expects to see adoption of recurring revenue models to not only continue but accelerate. The necessary technologies for implementation and monetization are available and affordable. Aria is seeing rapid change in the way companies conduct business with each other and individual customers. Belief in the benefits of focusing on retaining customers and lifetime revenues from those relationships is reflected in Aria’s flagship cloud billing platform. There’s no denying that the advantages of ongoing customer relationships are changing the way the world does business.
If you’re new to subscription billing, consider downloading this e-book, Subscription Billing for Dummies. To better understand how to buy the right subscription commerce solution for your company, read Six Key Buying Considerations e-Paper. Learn more about businesses like Red Hat that rely on recurring revenue from this whitepaper The Anatomy of Recurring Revenue Model.
Aria Systems delivers the full power of subscription commerce to transform business by creating new opportunities, improving customer relationships and providing more revenue predictability. The Aria Subscription Billing and Management Platform is used by brand name companies such as Pitney Bowes, AAA NCNU, Experian, Red Hat, Ingersoll Rand, EMC, VMware, and HootSuite to evolve their company’s subscription business while delivering outstanding customer experiences.