VANCOUVER, April 2 /CNW/ - IP Applications Corporation (TSX-Venture: IPX) announces that it has signed contracts with five Software-as-a-Service ("SaaS") companies for billing and payments services during the first quarter of 2009. Billing and variable recurring payments will be processed for SaaS companies providing software development tools, CRM, Twitter-enabled recruiting, online coaching and enterprise software suites for small and medium businesses.
John Jacobson, President and CEO said, "We won these contracts in competition with other alternative billing and payment solutions. Five new SaaS customers in the quarter demonstrates the depth of demand for our online service and its competitive strengths: our unique SaaS reseller capability combined with our powerful and comprehensive rating engine backed by a team with ten years of hands-on SaaS delivery experience.
We expect revenue from our new SaaS clients to grow as they succeed and their revenues multiply. Two of these new customers are already using our application and the other three will go live through Q2 and Q3 2009. In terms of long-term value to IP Applications, the lifetime value of a client's recurring revenue grows as their business grows. To speed up this process we provide the tools they need, from subscriber storefronts to administration portals to payment processing, so that their success becomes our success as quickly as possible."
SaaS and Cloud Computing delivery technology for software applications is gaining momentum. Recently announced new products like Azure(R) from Microsoft(R) and BlueCloud(R) from IBM(R) are attractive because they reduce enterprise IT operating costs. A critical component of the delivery process is a metering and billing solution that allows the service provider to deliver invoices and collect payment on a usage basis. IP Application's online billing application is meeting this need for a rapidly growing number of companies.
About IP Applications
IP Applications Corp. (www.ipapplications.com) delivers billing, payments processing and technical support services for online businesses. The Company's on-demand billing and payments application delivers variable recurring payments processing and subscriber lifecycle management for Software-as-a-Service (SaaS) and Cloud computing companies. Established in 1998, the Company has a client roster that includes Sprint Nextel, Bell Mobility, Amway Corporation and AOL Canada, a division of Time Warner.
Forward-Looking Statements
This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions altering or eliminating product usage, changes in exchange rates affecting profitability, and competitor's product enhancements reducing IP Application's competitive advantage. Forward-looking statements are based on management's estimates, beliefs, and opinions. The company assumes no obligation to update forward-looking statements.
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