Technology-as-a-Service (TaaS) offers many advantages to you as reseller of Dell hardware. Managed by Tech Data, underwritten by finance partner CF Corporate Finance Ltd, a part of the Investec group of companies, and with other key partners handling the End of Lease arrangements, IT provisioning has just got simpler, smarter and more cost effective.
We are all familiar with software Cloud subscriptions. What Tech Data and Dell have done is to extend the subscription model to cover PCs, laptops and supporting hardware (monitor, keyboard, mouse, printer etc.). Bundled along with your services, this model is proving very attractive to companies as it gives them predictable costs and greater flexibility.
The great thing is that it even reduces the overall costs of the hardware for your customers while you get to increase your margin (and profits!) – everyone benefits, your customers and you.
When your customer orders from you, you are guaranteed to get all your money upfront from the day that the IT equipment is delivered to them even though for them, the cost of the equipment is spread over the contract period, typically three years. It’s particularly advantageous for those customers who don’t have the resource to make the capital outlay for outright purchase or when their IT budget is diverted to other projects because TaaS enables them to move their IT spend from CapEx to OpEx.
As for you, the reseller, you are now in a position to have better margins by wrapping what you make on the hardware into your overall services bill. Another benefit of TaaS is a faster hardware refresh rate (leading to a greater frequency of contact with your customers resulting in the opportunity to sell more, more often). As the contract nears to its end, customers will start to look at what new devices to get and the PC refresh rate is shortened, typically by as much as six months.
For a customer who procures their hardware (and software) through TaaS still has the same level of control as if they had bought the equipment outright, as they can choose to replace or sweat an asset for longer or even buy it at the end of the contract period. Generally they’ll want to ensure that the workforce has the most up-to-date equipment to support the newest operating systems and applications and look to refresh their hardware. New computer equipment also means a lower likelihood of breakdowns or support requirements, resulting in greater end user productivity and customer satisfaction.
The advantages of TaaS are clear, for customers it’s actually a cheaper, more flexible option which gives them the ability to optimise their IT budgets. Costs are spread, they get latest models and all with the advantage of only having to work with one vendor – you, with less administration as you generate only one invoice.
For you, your cashflow will be improved from getting the full amount upfront as well as benefitting from good margins, this means you are able to target bigger customers than before and drive growth of your business. Tech Data’s quoting tool allows you to easily tailor quotes for each Dell customers with no restrictions on the number of products or services generated on one invoice. Also with the residual costs of the hardware taken into account from the outset the deal over the three year period becomes less expensive than if the customer were to buy the equipment outright giving you an advantage of your competitors’ rates. What’s not to like?