There is something invigorating in the billing company MaxBill – something different from other Israeli and foreign billing companies. They define themselves differently, view the market differently, and have no shortage of dreams.
MaxBill developed unique telecommunications system technology that includes customer care and billing services for cellular telephony, line telephone, video and cable systems. A few months ago, MaxBill raised $8 million at a company value of $15 million, after money, from the T3 Technology Venture fund.
MaxBill sold its first billing system to the Liechtenstein telephone company LTN last February. The company has two products. One, “MaxBill”, provides ordinary billing services for telephony companies. The second, “Autonom-e”, offers billing applications for IP and Internet networks, including content. MaxBill signed a cooperation agreement with Israeli IP mediation company XACCT Technologies.
MaxBill was founded by Micha and Hadar Himmelman and Kirill Richter. Micha Himmelman serves as president and chief scientist, and is actually the developer of its billing system. His brother Hadar, serves as chairman and in business development. Richter is the R&D director.
The company’s owners are currently divided between its founders (almost 50%), T3 Venture (20%), Dynamic Ventures (10%), employee options (15%), the Azritech fund (almost 5%) and CMZ Technology (almost 5%).
“Globes”: What is unique about MaxBill’s billing system?
Micha Himmelman : “We developed a five-layered architecture that enables sewing the product to the customer. We are careful to guarantee customer care both online and with customer relations. Customer Relations Management (CRM) systems usually only deal with customers, not the services offered them. Our perspective is that CRM and customer care are one and the same.
“It is very hard for Amdocs (NYSE: DOX) to compete against small companies. It doesn’t know how to offer small companies what they want. It like comparing a commando unit to an infantry brigade. If you need a company with know-how and fast time-to-market capability, you look for a company like MaxBill. We work fast in order to submit bids quickly.”
Who’s Max?
“Max is my friend who taught me programming at university.”
Is Bill from Clinton?
(laughing) No. Bill is from billing.”
Do you want to be Amdocs?
“I see myself as bigger than Amdocs. We are not just a telecom billing company. We are a financial solutions company. We recently completed development of an bookkeeping system that is now at the beta stage.”
Is your vision to overtake Amdocs?
“Our vision is to be one of the largest software companies in Israel, and a world leader too. We are not dilettantes but serious. We are a company of R&D people; technology people.”
The billing market seems to be rather saturated. There is no lack of veteran companies in it, and new ones pop up all the time. Why should you be the one to break out, surpass Amdocs and lead the world?
“There are many billing companies, but they have a lot of dissatisfied customers. The bigger the company, the bigger the problems. We come along and solve these problems. We are not building the company according to the needs of our investors, but our customers. We believe that in the world of technology, it isn’t the big fish eating the little ones, but the quick eating the slow.”
Do I understand that you – the quick – want to eat Amdocs the slow?
“Why Amdocs? Why not bigger companies?”
Who do you want to be when you grow up?
“When I look at who I would like to be, I see Microsoft, Oracle, SAP. These companies make their money by developing technologies. I am a big fan of technology. We buy nothing. We develop everything in-house.”
There has been recent movement in the billing market. Himmelman says, “Portal Software bought SOLUTION42 for $300 million. SOLUTION42 specializes in wireless voice mediation, provisioning and rating technologies. This was an significant act that put me on alert.”
Why?
“It meant that Portal Software, a giant in the field, is moving from IP to wireless. There is no movement in our field without a reason.”
Can you describer the billing market from your perspective?
“The market is divided into three parts. There are the market heavies such as Amdocs, CSG, CHS, Kenan Systems and AMS. These companies are manpower-intesive, and offer solutions to major corporations. Then there are the second generation companies. This is the class that MaxBill wants to enroll in. The next generation of solutions are based on advanced technology. Companies such as Geneva Technology and SOLUTION42 are in this area.
Finally, there are billing companies that offer solutions to all comers. Beginning companies. There are a million names with very cheap, very fast systems, but which do not allow for growth in an era of high competition. To write a program for a flexible system is an art.”
Your division is essentially by volume. Is there also a division by sector?
“Yes, there is a division by sector, such as IP, wireless, cable television, etc. We object to this worldview. Our system is neutral in terms of service. We are not a service company. We will always come to the customer with a manpower-intensive partner who will provide the service.”
Published by Israel's Business Arena on 10 January 2001