LAS VEGAS – Synnex is trying to tackle an on-going dilemma solution providers have with renewing software and creating custom cloud marketplaces for customers by introducing two programs under its newly created “Solv” platform.
The distributor launched CloudSolv and RenewSolv at its VARnex conference, but only in the U.S. Plans have been put in place to introduce CloudSolv and RenewSolv in Canada in the first quarter of 2012.
Solution providers have for years struggled with software renewals and warranty penetration rates; many times leaving money on the table with existing customers, according to Synnex “cloud master” Rob Moyer. “Vendors push too many programs and tools for renewals; channel partners want one pane of glass. Our view is to go and systematically figure it out for them and provide one place for renewals,” Moyer said.
The RenewSolv platform can currently renew and update software from HP, Microsoft, Lenovo and Symantec. Moyer added that the Canadian version of RenewSolv will launch with only two of these four vendors, with plans to add the other two shortly thereafter.
Moyer said that Synnex has more than 20 other vendor partnerships in the pipeline for RenewSolv; not all of them on Synnex’s current line card.
RenewSolv attempts to provide solution providers with a clear 360 degree view of a customer’s software purchases and identify 90 days in advance that they need to be renewed or updated. Then it can provide a live quote to close on these new deal opportunities. Synnex believes RenewSolv can increase revenue between 10 to 50 per cent by targeting existing customer installs.
Moyer said Synnex broke down the vendor renewal process, including all minute details, and can help solution providers quantify renewals. “Every vendor has a different process or disparate systems. We bring them altogether and then RenewSolv can push the data down to the sales manager level instead of administration,” he said.
The free service can also provide data from vendor products purchased from other distributors.
As for CloudSolv, it’s Synnex’ answer to Ingram Micro’s Cloud Marketplace . However, Moyer said it has a different approach.
Built on the Azure platform, the CloudSolv app marketplace is for the end users. “Partners can create it for the end user. For example, they can create categories and SKUs for professional services, such as Doctor’s Office in a Box with hosted email, security, storage and vertical apps, for $15 a month,” Moyer said.
CloudSolv can provision and bill disparate cloud services . Synnex is offering a set of APIs for vendors to write to the platform in either a public or private cloud. CloudSolv is also a white label offering so solution providers can brand their own apps store to the customers.
The margin opportunity for solution providers on CloudSolv will be mainly in transaction revenue. Moyer said that cloud services margin is much higher than that on hardware.
He added CloudSolv provides a recurring revenue stream. There will also be administrative cost savings to the channel partner. “If you sell five products you’ll have to create a bill and there could be (products) from five vendor relationships. We’ve consolidated all that,” he said.
Moyer believes CloudSolv can provide an avenue to sell professional services. A solution provider can provide policies for the app store and those types of consulting services provide great margin opportunity.
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