New Software Licensing Business Model Offers Increased Value and Flexibility to IT Solution Providers Serving Small- to Mid-Sized Businesses
SANTA ANA, Calif., March 26 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM), the largest global wholesale provider of technology products and supply chain management services, today announced its participation in Microsoft's new software licensing payment program, Open License Value. The new program is designed to make it easier for information technology (IT) solution providers to deliver software solutions to small- to mid-sized businesses (SMB).
"The SMB market presents a strong opportunity for software licensing sales," said Steve McHale, vice president of research in the Software Partnering and Alliances Group at IDC. "The Open License Value business model enables the channel to extend licensing to new customer sets, while adapting their own business model to take advantage of these new sales opportunities."
Through the Open License Value program, solution providers serve customers directly and receive commission for influencing the sale of a Microsoft software license. As an Authorized License Provider (ALP) for the program, Ingram Micro will manage the financing transactions and multiyear billing agreements with end customers who purchase licenses on behalf of solution providers. Through this arrangement, solution providers can focus more on providing services to address the technology needs of SMB customers, rather than mire in the complexities of software license administration.
"Ingram Micro serves as the backbone of the Open License Value program by managing customer billing and financing transactions," said Jodi Honore, vice president of vendor management, Ingram Micro North America. "Our role is to make Microsoft software licensing programs more valuable to channel partners by helping solution providers be more profitable with unique revenue opportunities and reduced administrative overhead."
SMB customers who purchase licenses through the program can benefit from new options to spread out payments for Microsoft software. The Open License Value payment plan enables end customers to lower costs and manage cash flow by amortizing license payments across multiple years. Ingram Micro is offering the Open License Value program to its established channel of solution providers.
"We have been listening to the feedback from our channel partners and working to ensure we offer the programs tailored to meet customer needs. Open License Value is designed to help customers better finance the purchase of licenses and Software Assurance," said Allison Watson, vice president of worldwide partner sales and marketing at Microsoft Corp. "We are excited about the benefits this program offers to Software Advisors in preserving their existing customer relationships, providing new revenue streams for work with customers, and allowing them to concentrate on their core competencies of selling and implementing solutions, which is where they add the greatest value."
To roll out Open License Value, Ingram Micro successfully trained more than 300 solution providers through webcasts, onsite training held at Ingram Micro's Solution Center and individual presentations. IT solution providers interested in becoming an authorized Microsoft Software Advisor can visit www.ingrammicro.com/mslicensing or www.ms-gearup.com , or contact their Ingram Micro sales representative.
"This program gives us the added dimension needed to assist our customers in purchasing recommended Microsoft software. It also allows us to focus on our key strengths -- delivering high-value services and solutions -- with minimal paperwork and no financial investment," said Lee Feldman, technology consultant for Lion's Head Office Services, an Ingram Micro customer. "Our sales team has been trained and authorized by Ingram Micro and Microsoft, and we successfully completed our first sales transaction in the first week of the initiative. This business model is exactly what we need to add significant value to our customers and streamline our business process."
About Ingram Micro Inc.
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