Q2C Indiana Jones

2024: What a Year for Quote to Cash!

How is it possible I am attending my 35th College reunion next month?  Does that really mean I have been working for three and a half decades... can I finally say I am a grown up!?

After notable career chapters working for some of the world's leading tech companies, I've recently had more time to spend fishing and thinking about life's big questions, like, "Did the bear go over the mountain? And more importantly, did the bear notice how many pockets this vest has?"
Q2C Indiana Jones

As I reflect on my 3+ decades in the Quote to Cash space, I recall some crazy periods—transformative times when the industry felt like it was in constant upheaval, and helping clients navigate their options was, to say the least, a real head-spinner.

A few that immediately come to mind:

  1. Post-Telecommunications Deregulation (1996-2001):
    The telecom space exploded, with billing companies forming seemingly overnight to keep up with the rapidly evolving wireless and deregulated wireline sectors.  Companies were deciding between Geneva, Kenan, Daleen, Portal, and many more.  CPQ wasn’t even a thing yet—billing systems were the centerpiece for launching new products, services, and monetization strategies.

  2. SaaS vs. On-Premise CPQ and Billing (2008-2012):
    The early days of SaaS Quote to Cash providers were like the wild west.  Comparing Zuora or Aria with Oracle BRM, or Big Machines with SAP Variant Configuration, was like comparing apples to zebras.  This was a time of battle between SaaS upstarts and traditional powerhouses, each trying to carve out their share of the market.

  3. Salesforce Enters the Quote to Cash Arena (2015-Present):
    When Salesforce acquired SteelBrick CPQ in late 2015, a new era of Quote to Cash began.  The choice between the simplicity of an all-in-one platform or integrating sophisticated point solutions became front and center for clients.  From 2016 to the early 2020s, clients had more options than ever, but with more complexity.

2024: Another Critical Inflection Point

Now, in 2024, it feels like we’re facing another pivotal moment in the industry.  I have a theory that enterprise clients today are in the most challenging position since I started in consulting in the late 1980s.  They are faced with supporting rapid business model and monetization evolution, and now more than ever they need Quote to Cash solutions that are keeping up with this pace of change.  Clients need their entire Lead to Revenue stack—CRM, CPQ, CLM, Order Management, Commerce, Billing, and more—to work harmoniously, and it’s no longer just about getting those components right.  Now, you’ve got to layer on RPA, process mining, and generative AI to drive efficiency.  As always, Quote to Cash, specifically CPQ and Billing, sit right in the middle of this extended process, at the foundation of end to end success.

What a year 2024 has been for Quote to Cash software providers! It was a good year to be in research / discovery / investigation mode as I charted my next chapter, forming Craton Consulting.  Some notable highlights (so far):

  • ServiceNow entered the Quote to Cash space with expansion to Customer and Industry Workflow and introduction of Sales and Order Management (SOM).
  • HubSpot introduced Commerce Hub, expanding into Quote to Cash for the SMB market.
  • Zilliant acquired In Mind Cloud CPQ, pairing leading Price/Revenue Optimization strategy with CPQ critical path processing.
  • Logik.io expanded beyond Configuration into P&Q, providing a fresh but experienced CPQ option.
  • New entrants like Continuous Technologies arrived with some unique solutions in the billing space.
  • Conga continued its resurgence with renewed focus on client success and expanded product footprint.

The Salesforce Situation

Salesforce, a key leader in this space, finds itself in a tricky position.  As we enter the last quarter of 2024, the future of Salesforce Quote to Cash is… murky. Promising, but murky.  Revenue Cloud customers are coming to grips with the state of their monetization platforms built on the Revenue Cloud managed package.  New customers are kicking the tires of the component SKUs that represent the recently announced Revenue Lifecycle Management (RLM), soon-to-be re-rebranded Revenue Cloud?!  We’re all anxious to see how Salesforce evolves in this space.

Looking Ahead

For CROs, CFOs, and CIOs, there’s a lot to consider when choosing technology partners to fuel business operations and keep pace with their evolving needs.  Over the next few weeks, Craton Consulting will publish viewpoints to help clients make more informed decisions.  We will be addressing timeless classics like Omni-channel Selling & Customer Engagement, Craton Outcomes framework, state of the CPQ market, and more!  If you’d like to discuss the future of Quote to Cash, feel free to reach out to me on LinkedIn or via email at [email protected].

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