Reseller News

ED launches Annuity support programme

DISTRIBUTOR Express Data is launching an Annuity support programme in New Zealand, after hailing the six-month-old scheme a success in Australia.

The internet-based service is intended to help resellers earn more from renewable support deals, advising them of customers whose contracts are about to expire.

Express Data says the website will show resellers all potentially renewable deals three months in the past and three months in advance. The distributor expects the service, which will be available to the 1500 or so resellers who have ever used Express Data in New Zealand, to generate $6 million to $10 million of revenue each year.

ED sales manager Paul Plester says a non-web version has operated for nine months, but in the next few weeks this service will be automated, bringing it into line with the service operated in Australia.

The service covers items as diverse as maintenance contracts, software renewals and licensing.

“It is linked to our accounts system. Anybody who buys product that has an annuity component is automatically going to be flagged into the annuity system. It doesn’t require separate data,” Plester says.

Market analyst IDC says businesses are switching from perpetual licences towards subscription-type, pay-as-you-go interest-free programmes.

Express Data recently reported success in New Zealand for a similar Open Value online transaction system called IT Agent, to sell Microsoft products. However, while Open Value had a licensing component, Annuity focuses solely on annuity revenue, Plester says.