As Salesforce phases out its legacy Configure, Price, Quote (CPQ) and Billing solutions, organizations face critical decisions about how to manage their revenue operations going forward.

Explore what this change means to the current landscape and the four major options for going forward, including potential hybrid approaches, with the following insights.

The Salesforce CPQ and Billing Evolution: What You Need to Know

Salesforce’s journey with CPQ and Billing began with the acquisition of SteelBrick, which became the foundation for their CPQ offering. Over the years, Salesforce expanded into billing and subscription management, culminating in a robust but legacy add-on package solution.

Recognizing the need for modernization, Salesforce introduced Revenue Cloud Advanced (RCA) in 2024, a fully native platform solution designed to replace the older CPQ and Billing packages.

Key points about the transition:

• Salesforce has ended innovation and major upgrades on legacy CPQ and Billing.
• RCA is built natively on the Salesforce platform, offering modular, API-first architecture.
• Current CPQ and Billing users should consider transitioning to avoid future disruptions.
• No direct upgrade path exists; migrating to RCA requires a full rip-and-replace reimplementation.

Option A: Stay with Salesforce CPQ and Billing

For organizations with stable CPQ and Billing implementations, staying the course remains a viable option in the short to medium term.

Advantages

• Proven, well-understood architecture with a large ecosystem of experienced implementation and support resources.
• Continued Salesforce support for security and bug fixes, though no new features or AI enhancements.
• Avoids the complexity and cost of a major system overhaul.
• Suitable for organizations with critical use cases not yet supported by Revenue Cloud Advanced.

Considerations

• Limited innovation and no AI-driven automation enhancements.
• Potential compatibility risks with future Salesforce platform updates, especially for highly customized environments.
• Billing functionality may be insufficient for organizations seeking GL-impacting transactions outside of Salesforce CRM.
• Organizations not fully implemented on CPQ or Billing might find migration easier than anticipated.

Option B: Migrate to Revenue Cloud Advanced

RCA represents Salesforce’s strategic vision for revenue lifecycle management, offering a modern, extensible platform with advanced capabilities.

Advantages

• Native Salesforce platform integration with three annual releases and ongoing innovation.
• AI-powered features, like Contracts AI, promise enhanced automation and scalability across sales, ordering, and billing.
• Headless API architecture enables better off-platform integrations, such as ERP, payment processors.
• Modular design allows for highly customizable workflows and processes.
• Eliminates the need for add-on packages, simplifying licensing and support.

Considerations

• Requires a full rip-and-replace reimplementation, often a significant investment in time and resources.
• Not yet mature; many use cases require custom development rather than out-of-the-box functionality.
• AI and advanced features are still in early stages of release.
• Limited availability of experienced implementation partners and documentation compared to legacy CPQ.
• Assumes Salesforce as the system of record for the entire sales-to-cash lifecycle, which may not fit all organizations.

Option C: Revert to Sales Cloud with Customization

Some organizations are reconsidering a more tailored approach by building revenue transaction capabilities directly on Sales Cloud using customizations and Salesforce Flow.

Advantages

• Capital expenditure (CapEx) model with fixed, depreciable costs versus ongoing operational expenses (OpEx).
• Greater control and flexibility to build exactly what the organization needs without waiting for Salesforce’s roadmap.
• Leverages powerful Salesforce configuration tools without requiring extensive developer resources.
• Potential for internal ownership reduces reliance on external consultants and long-term support costs.
• Avoids dependency on legacy CPQ or complex RCA implementations.

Considerations

• Upfront design risk: incorrect scoping or estimation can lead to costly rework.
• Maintenance and knowledge transfer risks if key personnel leave.
• Longer development timelines may not keep pace with evolving business requirements.
• May not provide the same level of AI-driven automation or advanced features as RCA.
• Billing complexities, especially for GL-impacting transactions, may still require external systems.

Option D: Migrate to Third-Party CPQ and/or Billing Solutions

Third-party vendors offer specialized CPQ and billing platforms that can integrate with Salesforce CRM while providing best-of-breed functionality.

Advantages

• Typically more specialized and industry-focused, catering to vertical-specific requirements.
• Lower risk of forced deprecation cycles compared to platform providers.
• Flexible licensing and centralized services can simplify cost management.
• Often better suited for organizations wanting to keep GL-impacting billing and revenue recognition in ERP or financial systems.
• Can complement Salesforce CRM without forcing full sales-to-cash lifecycle management on one platform.

Considerations

• Potential misalignment with Salesforce platform evolution and roadmap.
• Smaller vendors may face stability and continuity risks.
• Additional integration complexity and costs between Salesforce and third-party systems.
• May require maintaining multiple vendor relationships and contracts.

Hybrid Approaches: The Best of Both Worlds

Many organizations are adopting hybrid models to balance control, innovation, and risk:

• CPQ in Salesforce while Billing in ERP: Maintain Salesforce for quoting and sales processes while leveraging ERP or third-party platforms for billing and revenue recognition.
• RCA in Salesforce while Billing in ERP: Use RCA for advanced quoting and contract management, integrating with external systems for financial transactions.
• Customized Sales Cloud while Billing in ERP: Build tailored quoting and sales processes on Sales Cloud, with billing and revenue managed externally.

Make the Right Choice for Your Organization

Choosing the optimal path depends on your organization’s current state, strategic priorities, and appetite for change.

Considerations

• How critical are your existing CPQ and Billing use cases?
• What’s your tolerance for system overhaul and reimplementation?
• Do you require advanced AI and automation capabilities now or in the future?
• How integrated is your Salesforce environment with other systems?
• What’s your preference between CapEx and OpEx investment models?
• Does your organization need industry-specific functionality best served by third parties?

We’re Here to Help

To learn more about Salesforce’s sunsetting plans and how to determine the best transition option for your business, contact your firm professional.

Additional Resources

• Enterprise Systems Services
• Salesforce Implementation Services
• Technology Consulting Services