Zuora announces SAAS billing platform

I got an email a few days ago from a colleague Jeff Yoshimora, letting me know he had left a senior position with the Salesforce.com incubator to join a SAAS billing start up in Palo Alto named “Zuora“. I was curious to say the least, so after snooping around on the site (not launched yet publicly), I immediately dropped him an email, and set up a quick call to get the low down.

Toby: So what is “Zuora” Jeff?

Jeff: Zuora is a new SAAS (Software As A Service) company with a specific focus on billing, but not just billing, but specifically for “subscription” billing. The company will initially launch with three types of billing modules or web services; catalog billing, subscription, and rate plans. Customers don’t just purchase products anymore, they subscribe. They don’t buy everything from the shelf, they subscribe over the Internet to services, like software, communications, and entertainment.

Toby: You mentioned entertainment billing, will your service support micropayment for digital content sales? Most of the digital content sales now are 1.00 or below, and with platforms like facebook selling digital goods, there is an obvious need for developers.

Jeff: Not at this time, we plan on supporting Micropayment in the very near future.

Toby: Jeff who is your competition right now?

Jeff: We actually have no competitor in our direct space right now, we are the only SAAS company focused only on providing low cost billing solutions, especially subsciption services. Paypal is the closest thing, and they just are not scalabe or cost effective.

Toby: Alright Jeff, I know you a busy man, I want to thank you for taking the time to give me this interview, and I look forward to seeing the API once you guys go public!