The renewals business, particularly in the area of software licensing, will be one of the most keenly contested arenas of IT distribution during the next financial year. Express Data managing director, Ross Cochrane, said it was attractive because it helped resellers and distributors build a visible pipeline of sales opportunities for the year ahead.
"If you look at Foxtel, that business would have some churn but can bargain on getting in excess of 85 per cent of existing customers to pay again when their contract expires," he said. "That hasn't previously been the case in the IT channel but our resellers are recognising the opportunity and moving down that path. It's a big head start in covering your fixed costs."
Ingram Micro, LAN Systems and Alstom IT have all launched renewal services this year. But although competition is hotting up, Cochrane said ED was ready for the challenge.
"We are not resting on our laurels," he said. "Some of the new things we have planned will be subtle and move the goalposts slightly. Others will be significant."