Express Data: Getting ahead in software distribution

Managing director, Ross Cochrane, talks about successfully distributing software licensing to the channel

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“There has been a bit of consolidation going on in software and with the market conditions we are seeing, that will continue,” he claimed. “There has already been plenty of big deals, like Symantec/Veritas/Altiris, or Adobe/Macromedia. If anything, the number of publishers we represent has shrunk lightly, but the coverage they have is broader.

“Even Microsoft has gone from operating systems and desktop applications to the server side, messaging, collaborating, voice applications and security – the breadth is enormous.”

One of the most dominant influencers on software purchasing today and into the future is the on-demand, or software-as-a-service, model. Although many channel players have expressed concerns that such as delivery method will cut them out, Cochrane saw it as a significant opportunity.

“We saw the same kind of significant change when we went from boxed software to licensing – there was a big fear then that the publishers would let customers buy the licenses just by logging into a website. But it hasn’t happened like that at all – in my mind there’s been more business swung towards a channel-oriented approach,” he said.

“The reality is that businesses are complex and you have heterogeneous environments where almost every company is using technology from a range of providers. There’s a lot of information that needs to be shared across these applications and a lot of integration required.

“Because of that and because of the generic nature of what the publisher will and can provide, I think there’s a lot of room for resellers/integrators to be involved in helping customers understand what it is they need.”

Likewise, distributors will continue to play an administrative and aggregation role and provide systems that give resellers a level of visibility to see across multiple customers, Cochrane said. For the last three years, ED has sold annual subscriptions and done a lot of work around the commercial structures needed for the on-demand and subscriptions-based approach.

“It is going to need an adjustment of a reseller’s business model and a mind-set change,” Cochrane said. “You’re not going to get a $100,000 deal on your books this month; you’re going to get $3000 this month and for the next 36 months.

“It does open up an interesting opportunity for channels who might not have wanted to transact on the product or licence in the past. We’re already seeing this new category of organisations that would term themselves advisors – rather than being involved in the transaction, they will get a commission on services rendered.”