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Inside the channel: how to fight deal slippage

Dec 5, 2018 6:46:12 AM Rene Stuiver Business Culture

Due to rapid changes in technology, channel partners can seize the opportunity to grow. However, this does not come without financial burdens. Traditionally, the IT industry has provided credit, but this has now changed, as the conventional financial mechanisms used in the industry are inadequate for those in the channel.

This challenge is not unheard of. There are stories from many customers whose digital transformation journeys are limited by getting budgets signed off, overshadowing the exciting benefits that technology can bring to their businesses. In situations like these, deals will slip from one month to the next. As a result, there are usually huge impacts on sales and potential partner business growth.

In order to combat this problem, a more flexible approach is required. Over the past 12 months, the way in which enterprises use IT has changed significantly due to “as-a-Service” models becoming more frequently used in the industry. Therefore, the way these deals are funded needs to be changed as well. Models that allow the lease or rental of IT solutions at a fixed price let customers benefit from the latest technology at low costs, instead of paying back the credit on an IT asset whose value is constantly depreciating.

The impact of these finance models is significant in making budgeting simpler and more predictable for customers, whilst freeing up liquidity. Businesses of all sizes are always looking to maximise their competitiveness and provide buffer zones against any market uncertainty; crucial as we reach the sharp end of Brexit negotiations.

Seeking credit without specialist advice is not the way to go. Conventional methods of finance are suffering due to the changing landscape of the IT industry. Thus, consultation from financial experts can provide suitable models for individual cases. Business partners who engage in this extra effort will help their customers find the best deals and help to increase their business growth. Tech Data, a trusted partner of Financial Services to the IT channel has experienced this first-hand time and again.

Recently, we’ve seen the launch of several finance solutions that offers considerable flexibility. These are highly beneficial to the channel, as they enable organisations to continue to innovate with technology to transform factories, schools, transport networks and cities.

If anything, one message that can be taken from this is that if there are channel partners who are struggling with this problem, don’t struggle.

Tech Data has been a trusted partner in the channel for many years and we support several financing models with product vendor support. For more information contact us on financesolutions@techdata.com.

Rene Stuiver

Written by Rene Stuiver


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