1. IS 485 Clyde Barnett Adrienne Braganza Chris Capozzi Pamela Gustavson Brody Milne Will Ruiz Clyde Barnett Adrienne Braganza Chris Capozzi Pamela Gustavson Brody Milne Will Ruiz

2. 2007 Zuora is Founded by Tien Tzuo (top), Cheng Zou (Middle), and K.V. Rao (Bottom) Long term vision: to enable any business, including small businesses such as lawyers and plumbers, to operate under a subscription-based business model.

3. Tien Tzuo Cheng Zou K.V. Rao

4. Zuora Inc. became the established leader of SaaS What the heck is SaaS?SaaS – Software as a ServiceThe replacement of traditional software with a web-based application that could be accessed through the internet Two Models Pertinent to SaaS Technology Model Revenue Model -Multi-Tenancy -Real-Time, consistent updates -Decreased storage requirements -Pay-as-you-go Model -Operating expense vs. capital investment

5. The Need for SaaS Billing – An Example Lease a Modem $10.00/m Sports Subscriptions $12 - $32 Sports Subscriptions $12 - $32 Spanish Packages $33 - $68 Spanish Packages $33 - $68 International Channels $11 - $24 International Channels $11 - $24 Three-Way Calling $1.45/use Three-Way Calling $1.45/use Movie Packages $14 - $41 Movie Packages $14 - $41 Voice Mail $7.99 Voice Mail $7.99 Call Waiting ID $15 Call Waiting ID $15 Caller ID $9 Caller ID $9 Long Distance $2 - $4 Long Distance $2 - $4

6. Cloud Computing – What? Phenomenon in which computing, networking, storage, and application services are provided as services with seemingly infinite capacity over the Internet

7. Development Offshored in Beijing, China Fast, cheap, requires a lot of communication Sales Generate product awareness Get sales leads on website Management Many decisions based on consensus Important decisions made by core team

8. Economic and Financial Crisis of 2008 Funding/ cash flow a major issue Can opportunity arise from crisis? Economic and Financial Crisis of 2008 Funding/ cash flow a major issue Can opportunity arise from crisis? Keeping the Lead in the SaaS Billing Industry Innovation key to staying ahead of competition Aria, Opsource, Evapt, traditional billing systems Keeping the Lead in the SaaS Billing Industry Innovation key to staying ahead of competition Aria, Opsource, Evapt, traditional billing systems Cloud Computing Slowly Eclipsing SaaS Must keep up with other leading cloud platforms Amazon Web Services w/ DevPay, Force.com w/ Checkout, Microsoft Azure, Google App Engine Cloud Computing Slowly Eclipsing SaaS Must keep up with other leading cloud platforms Amazon Web Services w/ DevPay, Force.com w/ Checkout, Microsoft Azure, Google App Engine After such success, what next?

10. What do you think? They should … Zuora Inc. could…

11. “Mix of all Three” Decision Embraced Cloud Computing Benefits Capture Subscription Billing Opportunity SaaS Billing Focus

13. Goal: Triple staff National offices in 15 countries 10 New applications in 2 years Funding: 2010: $20 million – Series C 2011: $36 million – Series D Total $82.5 million Reality: 400% growth annually Awards

14. July 2008: Introduces Z- Billing Oct 2008: Z- Payments Received $15 mil in Series B Funding Nov 2008: Z- Force

15. Jan 2009: Z- Commerce Apr 2009: Z- Billing 2.0 – built with PayPal Nov 2009: Z- Payments 2.0 Nov 2010: Raises $20 mil in Series C funding Nov 2011: Broad European Expansion, over 2Bil Euro in contracted subscriptions Nov 2011: Raises $36 mil in Series D funding

16. Tien Tzuo, CEO “In the last 10 years, there's been a dramatic shift in the way both consumers and companies want to do business. Today, people would rather subscribe to services than to buy products. It's happening everywhere. And it will have a dramatic affect on your business.”

17. Case Study: Evolution of the Music Industry 1.Traditional Brick and Mortar Business Model 2.iTunes (Pay Per Use) 3.Spotify + Pandora (Subscribe for all you can use) Key Motivator being Convenience (True for Businesses too!)

19. What do you think? Because … Zuora Inc. provides…

21. What do you think? It will…It will… It won’t…

22. Who are my customers? How can I price this service the way I want to? Where’s the renew button? Why can’t I sell to everyone? What is going on with my financials?

23. Perhaps traditional ERP, but not purpose-built ERP Room for improvementERP can be customer centered