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News Analysis: High-Tech Product Price Management Gets Nichey

Posted on Thursday, June 15, 2006 1:45:00 PM                                  Digg This Article   Add to Delicious

The price management software business is dominated by a preponderance of smaller companies that are carving out mind- and market-share in the key disciplines of price optimization and contract management.

And on some level, they are all concentrating on similar issues such as managing price elasticity, revenue leakage, and policy enforcement. Even SAP America recently got into the act with its partnership with Vendavo Inc., while technology holding company, Symphony Technology Group, recently acquired another small player, Metreo Inc.

Amid the din, Model N (South San Francisco, CA), a revenue management specialist, is using its recent acquisition of another small player -- Azerity -- to tackle the complex pricing challenges of high-tech manufacturers. Its new Global Price Management suite, Version 7.4, is chock full of price management accoutrements that cater to chip, subassembly, and/or systems manufacturers, such as design registration for custom parts development and procurement, a Web-based interface for channel partner quoting, and debit processing. Model N's goal: help high-tech manufacturers to conduct more profitable transactions by reducing revenue leakage, eliminating overpayments to channel partners, and closing other business process gaps caused by more generic approaches to price management.

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