IT and Business Insights for SMB Solution Providers

New Financial Service Offers Software Companies a Simpler, More Profitable Path to Market

Avnet Direct Connect, a financial service from global technology solutions provider Avnet (Nasdaq: AVT), gives software and original equipment manufacturer (OEM) customers the ability to deploy their applications on validated hardware solutions faster, easier and more profitably. Hardware can often stretch software companies’ finances and resources, especially those that need to focus primarily on software intellectual property (IP). Avnet Direct Connect is ideal for such companies developing solutions in the areas of network security, media, and entertainment, medical and enterprise storage.

Many companies rely on an integrated hardware and software solution to ensure their applications meet end users’ expectations. Yet managing the end-to-end hardware, from solution design to global service, requires expertise, time and resources that can take away from core software development. However, without managing the hardware, it is difficult to offer the best user experience.

“Software companies need to exceed customer expectations while maximizing shareholder value. A partner like Avnet can help them scale and successfully balance both,” said Scott MacDonald, Avnet Integrated President. “Not only do we keep our customers focused on what they do best – developing dynamic software applications – Avnet Direct Connect delivers powerful financial efficiencies that enable developers to continually re-invest in IP innovation that drives differentiation and growth.”

As a financial service, Avnet Direct Connect provides a low-to-no-touch model for hardware transactions with end users. It provides all the benefits of a plug-and-play solution for integrated hardware and software, with the financial advantages of a software-only model. Using this service, companies can increase their profit margins by decoupling the hardware from the software transaction, yielding higher-margin intellectual property.

Flexible Engagement Model Options

Avnet Direct Connect offers two ways – or engagement models – to streamline operations by eliminating the management of hardware transactions. With either model, Avnet extends credit to the software company’s customers and transacts the hardware portion of the solution directly.

In addition, Avnet Integrated can develop a custom branded digital storefront for end customers to configure and purchase the complete solution from Avnet. These low-touch models enable software companies to remain focused and retain the investment of their application, while delivering it on a fine-tuned hardware platform to end users or resellers – complete with product manuals, software licenses and customized branded packaging of their choice.

Avnet Direct Connect is now available.

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