Welcome to The Margin, a newsletter designed to keep you on the leading edge of monetization.

In business, the difference between being ahead of the curve or slow to adapt is anything but marginal. The Margin aims to be the most useful, timely, and incisive ping that hits your inbox all week. It includes critical research and analyst insights to inform short and long-term decision making.

Research Spotlight

2024 Review

2024 Wrapped

MGI Research is known for its analysis and coverage of the agile billing markets. As companies expand their needs to replace or upgrade capabilities across the quote-to-cash spectrum, clients have asked for more research in areas beyond billing. MGI has covered the broader AMP disciplines for many years, and 2024 saw a flood of research in contract lifecycle management (CLM), configure price quote (CPQ), and automated revenue management (ARM).

 

MGI published 90 research notes and hosted 12 webinars last year, including three Buyer’s Guides, 12 MarketLens™ reports, and 50 individual MGI 360 Ratings™. Here are some of the highlights across core AMP disciplines:

 

Contract Lifecycle Management (CLM)

 

Configure Price Quote (CPQ)

 

Automated Revenue Management (ARM)

 

Other Agile Monetization Platform (AMP) Research

 

To browse research by market, follow the links below:

 

Tune In to MGI

Interviews with Eric Carrasquilla and Jane Koltsova

Companies spend months, even years, creating new products and services, investing millions of dollars along the way. But when it comes to pricing these new offerings, they struggle mightily, often failing to capture the full value of their efforts.

  • MGI recently interviewed Eric Carrasquilla, CEO of Vendavo, a CPQ and price optimization vendor.
  • Eric is a software industry veteran, and he shared his perspective on how companies could optimize pricing without risking a drop in customer satisfaction.
  • Watch the webinar here.

 

This month, MGI is interviewing finance and accounting leader Jane Koltsova. She was on the revenue accounting team at Salesforce and was responsible for quote-to-cash at PagerDuty.

Join us on Wednesday, February 26 at 10am PT / 1pm ET to learn about Balancing Risk and Growth: Strategies for Controllers and CAOs.

The interview explores:

  • Strategies for improving finance’s relationship with sales teams
  • How to build consensus for investing in modern quote-to-cash tools
  • Practical approaches to making finance more of a business enabler
  • And more

 

Register for the webinar here. 

A Story You Can't Afford to Miss

Market News

On January 28, startup CPQ provider Nue closed a $20 million Series A. The round was led by Inovia Capital.

  • MGI has been following Nue for some time, and the company is among a handful of emerging players aiming to provide a streamlined way to manage product catalogs, quoting, and billing.
  • This is an increasingly crowded end of the market – it will undoubtedly consolidate.
  • In the short term, there is an opportunity for Nue and its direct competitors as larger vendors like Salesforce and NetSuite struggle to bring new innovation to market.

 

Salesforce announced a new round of layoffs on February 4, eliminating 1,000 positions (approximately 1.5% of its workforce) – while simultaneously hiring AI sales roles.

  • It joins Meta, Microsoft, and Amazon in announcing RIFs last month. Meta is eliminating 5% of its workforce (roughly 3,600 jobs), while Microsoft and Amazon have not yet revealed exact numbers.
  • Payments and finance automation platform Stripe also cut 300 jobs in January, primarily affecting product, engineering, and operations roles.
  • Is 2025 shaping up to be a repeat of 2023’s “year of profitability?” How will this trend, combined with sweeping reductions to the US federal workforce, impact the outlook for employment and GDP growth in 2025?
  • Clients can connect with an MGI analyst to get the latest macro outlook and discuss its implications.

 

CPQ vendors DealHub and Tacton announced new product capabilities.

  • DealHub (MGI 360 Rating: 48) introduced a new API-first, headless quoting architecture.
  • Tacton (MGI 360 Rating: 52) launched a Service Sales Solution aimed at quoting for professional services.
  • Services automation represents a significant untapped opportunity. MGI projects spend on Services CPQ will reach $2 billion in 2025, while the broader market for professional services automation (PSA) will exceed $26 billion this year. (Read more on the PSA market here.)

On the Horizon

Monetization A to Z, The Margin podcast, and new Agile Billing 360 Ratings™

We are excited to announce the upcoming publication of several exciting projects in the first half of 2025:

 

Monetization A to Z is a project aimed at providing executives with practical insights across the spectrum of quote-to-cash.

 

  • The project is comprised of video interviews, an e-book, and individual reports on topics ranging from AI to multi-tier channel management to usage billing.
  • Some of the experts and leaders interviewed to date come from companies like Zuora, PROS, RightRev, and BluLogix, among others.
  • The e-book, as well as standalone reports, will be available to MGI clients or for purchase.
  • Mark your calendars: Monetization A to Z will be published on April 22.

 

The Margin Podcast launches on May 6.

  • Featuring biweekly conversations with business, finance, and IT leaders, The Margin podcast will primarily focus on helping companies find new avenues for growth and profitability.
  • Launch episodes include Conga’s Grant Peterson, PROS’s Michael Wu, LogiSense’s Adam Howatson, Zuora’s Tien Tzuo, and Amberflo’s Puneet Gupta.
  • The Margin will be available wherever you listen to podcasts.

 

Is your billing vendor keeping pace? Which billing solutions are appropriate for your use cases? Are any billing vendors delivering practical AI applications?

Answers to these questions and more can be found in MGI’s 2025 Agile Billing Top 50 Buyer’s Guide.

  • The MGI analyst team is deep in the rating process, and the updated Buyers Guide and associated ratings and MarketLens analyses will be available on May 1.
  • The Buyer’s Guide will feature updated MGI 360 Ratings™ on suppliers like BillingPlatform, Chargebee, Oracle, Salesforce, Workday, Zuora, and many others.

So What Have I Missed?

That’s it for this issue of The Margin. If you’ve made it this far, we’ll certainly see you next time.

Warm wishes,

MGI Research

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