Chargify, the subscription billing platform, announced today that it has acquired event streaming company Keen for an undisclosed amount. An interesting aspect of this business is that both companies are part of the Scaleworks Private Equity company's stable.
Keen gives Chargify an event streaming company that takes advantage of this by adding an event-based billing component to the platform.
Paul Lynch, CEO of Chargify, believes that event-based billing is the next step in pricing subscriptions. Just as the serverless architecture offers a way to only pay for the infrastructure resources you use and no longer, event billing offers a way to pay for the software services you use and nothing more.
"It's a unit-based billing model where you pay to the very last unit of consumption," he said. This means that you no longer pay a fixed monthly or annual price for services that you may or may not use. Instead, you only pay when you open the service and actually use it.
It sounds logical, but he says that actually solving it without the technology that Keen provides is a difficult problem. “Nobody delivers event-based billing. So I wondered why and because the Keen component, the event data management component, is so difficult to create and manage, ”said Lynch.
He says that Keen in the same building and part of the same corporate family certainly helped make the deal happen. “The fact that it was owned by Scaleworks is obviously a huge advantage. Going out and buying a company, finding the company to acquire is super difficult. The fact that Keen was sitting in the hallway was an incredibly stealthy advantage, ”he said.
However, the acquisition still included all types of steps, hurdles, and due diligence that would be required for a similar exercise. "You still go to the board. You are still making price forecasts for the board. You are still looking for board approval," he said.
While Keen's technology will become an integral part of the Chargify platform with the acquisition, Lynch said the company will continue to operate as before to serve its 800 customers and build on its product range.
The event-based billing function is available today.