OpSource shows it has billing rhythm with Mumboe

Back in February, OpSource, the software-as-a-service enabling managed service provider, acquired Ireland-based LeCayla Technologies. OpSource identified billing as a major challenge for most companies and the purchase was aimed at giving OpSource the ability to provide customized, automated SaaS on-boarding and billing solutions to end users for a wider range of applications. The investment saw its first return this week, with Mumboe, a document collaboration software provider, implementing the first OpSource billing application as a stand-alone. The service lets SaaS providers offer subscription management, metering and payment capabilities to their customers.

The billing system is a good fit for online companies like Mumboe. The company's SaaS offers an on-demand application that lets companies organize and share sensitive legal documents in a secure central location. Customers can sign up for a free Mumboe account and begin using the product immediately, then upgrade as their business grows for a monthly fee. OpSource's billing methodology fits the bill perfectly for this paradigm with its success-based pricing model - a unit-based pricing model that allows businesses to begin with a modest minimum commitment and scale expenses as revenues increase. Mumboe uses OpSource billing to process customer subscriptions and credit card payments giving Mumboe an automated solution for adding users, generating complicated invoices and collecting revenue online.

This leaves Mumboe to focus on refining its enterprise contract management systems application and reduce operating expenditure. Mumboe lets customers upload documents to a secure online repository (256-bit encryption), share them with authorized users, track changes and do searches. Tracking and then billing for these services can quickly get complicated. The difficulties with billing systems come from the ability to integrate all of the back-end systems that a company has - which can become more convoluted with legacy products. Competitors in the automated on-demand billing world include Locus Technologies, ModernBill, Aria Systems, Fog Creek Software's Fogbugz, Sapienter Billing Software and Zuora. Each one of these companies has found its niche segment of customers seeking on-demand billing solutions, and all created due to the increasing complexity involved in online applications. OpSource is not segmenting itself vertically yet, but the ability to have a stand-alone billing system outside of its traditional services looks like a strong move considering the space it is targeting, albeit a highly competitive one.