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Tech Data Extends Tech-as-a-Service Program to Data Center Products: Page 2 of 2

A new procurement option introduced today allows end users to pay for server, storage, and networking capacity in consumption-based increments that scale up and down flexibly as requirements change. By Rich Freeman

“It was slow to start because it was a newer concept for people, but as we’ve gained momentum, it’s been really exciting,” she says. “We were hoping that by the end of the year we would have achieved a certain number of deals, and we’ve exceeded that now.”

Access to subscription pricing is helping resellers increase deal sizes too, Schaeff continues. “We’re seeing partners able to turn deals that normally would have been in the $25,000 range come in at well over a hundred thousand dollars,” she says.

The endpoint edition of Tech-as-a-Service has been most popular so far with managed service providers. “They’re already in that type of a business model, where they’re offering services combined with assets,” Schaeff observes, noting that MSPs like having the ability to charge customers one predictable monthly sum for both hardware and services.

Partner enablement, Tech Data has learned in the last ten months, is an important contributor to the success of as-a-service purchasing programs.

“It does take a bit more training with our partners and their sales teams, because it’s a different way to sell technology,” Schaeff says. “You’re not walking in and offering someone a purchase price. You’re now talking to them about services and about a full solution and managing that solution for them.”

Tech Data and Cisco introduced two networking, security, and collaboration bundles for small office environments yesterday. Those solutions are eligible for TaaS pricing.

Other leading distributors, including Ingram Micro Inc., SYNNEX Corp., and D&H Distributing Co., offer as-a-service pricing as well.

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