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Industry: System Software & Services
Annual Rev: $2.41B
Employees: 7,100
VMW (Nasdaq Traded)
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| VMware, Inc. provides virtualization infrastructure software solutions and related support and services primarily in the United States. The company s virtualization software solutions support a range of operating system and application environments, as well as networking and storage infrastructures.
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| http://www.vmware.com |
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| Vmware |
| revstreamTM solution to streamline revenue recognition & reporting globally |
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revstreamTM implementation at Vmware is a text-book project – it went smooth, on-time and within budget - Aquarius is a great partner who delivered on their commitments. revstreamTM platform delivered a high degree of automation considering the level of complexity with our product offerings and a high degree of configurability to support future growth/expansion
Senior Manager, Revenue & Finance Operations |
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| Overview |
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| Vmware has a unique set of product and service offerings which continues to evolve as the company is growing rapidly. Revenue operations team currently reviews each order/deal manually and applies the necessary revenue treatment/rules (applying the software revenue recognition guidelines including SOP 97-2 etc.) and determines the breakdown of revenue by product and the recognition schedule. This manual revenue recognition process is not only not scalable but also error prone, resource intensive and delays the entire quarter-end and year-end close process. |
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| Challenge |
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 Manual excel based process: The entire revenue recognition process is managed in excel manually
Resource Intensive: Analyzing each order/deal and applying the revenue recognition rules appropriately is a very time consuming and resource intensive process. Supporting this process manually in future will require significant number of resources and is not cost effective.
Accuracy of Revenue Data: Considering the manual excel based process, the accuracy and integrity of the data is always questionable.
Compliance Risks & Audit Costs: Resulting from the manual process are higher audit costs and greater compliance risks due to lack of systematic controls and detailed audit trail
Complex Revenue Recognition Rules: Complex and rapidly changing revenue recognition rules make it very difficult to review and apply the appropriate revenue recognition treatments to each transaction and line item
Revenue Forecasting & Reporting: Manual aggregation and reporting of revenue forecast and actual data is very time consuming and often not timely as the data would have changed by the time reports are manually generated. |
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| Solution |
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revstreamTM was selected as the revenue platform to streamline the revenue recognition process and forecast/revenue reporting. revstreamTM was implemented in a very aggressive timeline with the following
key capabilities:
Fully configurable revenue rules engine
Seamless integration to Oracle order management, service contracts and receivables for source data loads
Highly automated revenue process (load transactions, apply rules/treatments, generate schedules, automated approvals/thresholds, posting to GL)
Extensions to enable a number of complex and unique business scenarios very specific to Vmware
Enabled Audit & Compliance features including SOD, Audits and Approvals
Revenue management reporting including forecasting on a daily basis
Exception management and overwrite capabilities with adequate controls and approvals |
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| Results |
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Highly automated, efficient and accurate revenue scheduling, allocation and accounting process
Single source of truth for revenue across the company
Flexible & configurable platform to enable future changes to product offerings and revenue recognition rules/guidance
Highly scalable platform to process high volume of revenue transactions supporting future growth
Ability to obtain daily revenue snapshots, forecasting capabilities – enabling accurate and timely management reportig
Compliance risks minimized and mitigated with the use of approvals, exception reporting, audit trail and SOD
Increased productivity of Finance team – revenue analysts can now focus on high-value revenue analysis tasks |
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