Transactional pricing models from Vicorp

What are transactional pricing models?

Transactional pricing models go by many names: on demand, pay-as-you-go, value based pricing, utility or royalty-based pricing formulae.  Whatever the name, the concept is the same: you pay us as you use the products and services instead of paying upfront. We refer to these models generally as being on demand.

Historically, individuals and businesses have been used to paying for telephone calls as they make them.  That basic model tends to reflect back on all the suppliers in the telephony value chain.  However, where operators or large enterprises have to make considerable capital investments up front for services that only pay back over an extended period, it becomes a serious challenge to produce an effective business case. 

As the world of voice services becomes increasingly competitive, each stakeholder wants to avoid the risk of capital investments and have early visibility of how their margins are made.  So, on demand pricing models are becoming more popular.

Vicorp offers on demand pricing

Vicorp is pleased to offer all of its products with on-demand pricing models.  These can vary considerably from one operator to another and across different enterprises; so Vicorp is able to offer flexible pricing that will suit your business needs.

Value based pricing

Vicorp also offers to price its applications and software based on how much the client will save from using the applications.   This is usually arrived at by agreeing how much time a transaction takes to complete via an agent and then agreeing how much cost is saved by using a self-service application.  With this approach our customers can easily see the benefits of self-service.

Why pay on demand for voice applications?

Any new voice application will need capacity on a media platform somewhere in order to operate.  However, predicting the call volumes is a difficult task – the use of the application may be seasonal or require high usage for short periods of time (such as televoting).  Buying licenses and (possibly) server capacity outright for applications with unpredictable volumes can be challenging and may ultimately be a barrier to implementing otherwise viable speech solutions, especially when the finance department wants to see a high return on investment.

Most enterprises just want to pay for applications as they are used rather than make an investment that can be difficult or even impossible to recoup.  So, paying per minute, or per call, or per port is always going to be easier when forming a business case. Furthermore, it usually allows for very easy comparison against existing costs.

FAQ: Vicorp on demand pricing model
  • What can I buy from Vicorp under an on demand model?
    Vicorp can package anything from a one-stop NIVR (Network Interactive Voice Recognition) solution to a product from our portfolio. .  We can supply the entire IVR solution stack and virtually all of the associated licensing under an on demand pricing agreement.  We also help with constructing the business case and the returns associated with implementing speech self-service.

    The following can be included:

    • reporting and analytics   
    • third party application licensing
    • application servers
    • media servers
    • xMP service delivery platform
    • speech and text-to-speech licensing
    • 24 x 7 support and upgrades bundled with the above
  • Do I need to pay anything up front?
    It’s unlikely that you will need to pay anything up front but if you are contemplating a major IVR installation with many thousands of ports, we will ask for an installation fee and after that you will be able to pay monthly.
  • OK – so what’s my commitment?
    Instead of paying out capital up front you will sign up to a transactional agreement that will run for two or more years.  You can estimate the minimum level of traffic that you will expect from our platform or applications across the period and set that as a steady payment option and then pay for peak additional traffic or other variations as they arise each month.
  • What do I save by doing this?
    One of the main benefits is that you can deploy applications that may have occasional high use, without having to make an equivalent high investment in licensing and platform technology that will remain unused for much of the time.  Your utilisation will always be 100% and there will be no wasted capacity.  Compared to buying all of the capacity you need to handle peaks in traffic, you may end up saving a very considerable amount of money.  The cost of on demand services can be 75% less than the equivalent upfront investment based on typical utilisation rates.
  • Can you give me some examples?
    Mass calling
    Take a TV or radio phone-in service as an illustration.  There may be many thousands of calls taking place over a short period of time, after which the platform / applications remain unused.  The TV company will want to charge callers per call and it will usually suit them to pay for the services on the same basis so that their margin is clear.

    Similarly public service requirements that arise in times of health threats, flooding or emergencies can place huge demands on voice service platforms but may only occur on an ad hoc basis.  The operators who run these services usually get paid according to call volumes, so they in turn prefer to purchase voice applications on the same basis whenever possible.

  • Benefits for managed service providers
    • Achieve immediate lowest cost per minute or per port
    • Offer highly flexible on demand capability to the market, not just for simple mass-calling applications but also for sophisticated self-service within call centres
    • Offer any mix of advanced speech recognition or speech-enabling technology vendors to clients.  Buying up front forces you to commit to one vendor, whereas on demand models can cover the widest vendor choice
    • On demand applications can be changed and maintained easily because support is always included in the price
    • Language options can be added as required, rather than purchased outright
    • On demand means driving better utilisation with the ability to flex resources and adapt to needs as they emerge
    • On demand can extend across a range of third party ‘plug-in’ services that can then be combined into rich service offerings but still with simple pricing structures
    • On demand is the first step towards ’virtualising’ the cost of licenses and gaining greater economies of scale.
In summary

If you are interested in Vicorp’s products and services but don’t think capital outlay is justified for your business, talk to us about your ideas and we’ll find a transactional pricing model that suits your needs.

 

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