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Colocation Solution Overview [PDF] 

Calming the Colocation Relationship Chaos [BLOG]
 

 
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The complex, highly negotiated nature of your B2B commercial relationships has made under- and overbilling your colocation products and services an ongoing problem. Billing errors erode your profit margins, frustrate your customers, and threaten precious revenue and customer retention.

If your billing and account management teams don’t understand what products and customers are being supported in which data centers, and the most recent terms they’ve contracted, how can they make the most effective pricing decisions and protect your margins?

 

 
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Spotlight on Billing Accuracy:
Ensure an accurate bill every time

Billing errors create a no-win situation. Underbill and you lose out on potentially tens of thousands in monthly recurring revenue (MRR). Overbill and you run the risk of frustrating customers to the point of losing them!

It’s not your billing or account management team’s fault. It’s a massive lift for someone to find, interpret and compare contracted terms and entitlements against what product or services are actually billed, let alone reconcile the differences and determine how to permanently correct them.

That’s where Pramata comes in.

With Pramata’s Billing Accuracy solution, you can have confidence that the most up-to-date billing terms and variables are included in every bill. And that you are always billing for the right product or service at the right time and for the right amount to the right business entity.

 

How do we do it?

A unique combination of our cloud-based software and precision managed services is at the core of Pramata’s automated, systematic solution, which delivers unmatched Billing Accuracy via four essential steps:

  1. Commercial Relationship Baseline

  2. Audit & Reconcile

  3. Resolve Exceptions

  4. Implement Changes & Track Performance

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In a recent Impact Analysis for a $350 million colocation company, Pramata discovered $10 million in leaking revenue just related to missed price increases.

 

When it comes to MACDs, potential for errors exist with every event

 

Move a product/service. 

Revenue risk: Changes to an account could be missed or not charged; a fee type or quantity gets misapplied, or the move is not recorded as a change to the relationship, so your billing team over- or underbills the customer.


Add a new product/service.

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Revenue risk: Install fees are omitted or not charged per the contract, or the wrong service or product is record—maybe it’s never even recorded/amended in the agreement, so it’s not even billed. 


Change to accommodate customer requirements.

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Revenue risk: The change is made on standard pricing list even though the customer could have negotiated pricing. Change fees are missed, change restrictions are missed, incorrect service level is applied, or the change is made to the wrong product or service.  Additionally, the commercial relationship is not amended to reflect changed assets, so billing is inaccurate and current state is nearly impossible to reconstruct.


Disconnect An Asset.

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Revenue risk: Disconnect is not recorded in the relationship or asset management system, so you continue to bill for those services, or the wrong products or services are disconnected. Early Termination Fees aren’t easy to find, which frequently causes missed opportunities for negotiation leverage and revenue.

 
 

Pramata Solutions for Colocation Companies

 
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Billing Compliance

Trace each transaction and customer asset back to the Commercial Relationship Baseline

  • Compile all contracts, order forms, amendments and documents, organize into a relationship hierarchy, establish order of precedence among documents, and create an always up-to-date commercial relationship baseline that includes current account pricing and billing terms.

  • Map each transaction and asset-location down to the prevailing contractual documentation and terms.

  • Finally have confidence in an accurate baseline of product, service, fee type, price, volume, location and timing for every commercial relationship across your portfolio.

  • Easily see where tiered pricing may be misapplied or there is an incorrect bundling of services.

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Revenue Assurance

Identify all of the revenue you should be collecting 

  • For each product, identify all economic levers such as CPI uplift, early termination fees, change fees, cost pass-throughs, and price holds that apply to maximize recurring revenue. 

  • Identify contracted or provisioned products for which you are not billing, or deactivated and non-contracted products you should stop supporting.

  • Stop unentitled incentives like expired rebates, discounts, and price holds, or discounts on missed revenue or usage commitments and payment terms.

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Special Pricing Compliance

Understand the true error rate in your portfolio and stop errors going forward 

  • Conduct audits on the fly with minimal effort to produce complete reports as requested.

  • Quickly identify potential MFN violations and reduce compliance risks.

  • Let Pramata manage an ongoing process of evaluating and identifying price change opportunities, integrating those changes with billing systems and automating updates to bills for faster, more accurate customer billing every time.

 

Take steps now to improve billing accuracy and
stop revenue leakage in the next 90 days.