Sybiz looks to a new channel model for survival

Sybiz looks to a new channel model for survival

Adelaide-based accounting software developer Sybiz plans to drastically overhaul its channel strategy in a bid to survive both the market downturn and pressure from its South African parent, Softline.

Softline has flown in a new managing director for Sybiz, Peter Whalley, following a devastating end to 2001 that saw the developer make almost half of its staff redundant.

Whalley recently re-engineered the channel strategy of one of Softline's South African accounting software businesses and plans to do the same thing in Australia. "The traditional channel model, where the channel partner buys from the software developer and sells the software to the end user, is all but dead," he said.

In the third quarter of this year, Sybiz will move to a new subscription model, whereby a Sybiz division, Sybiz Business Care, will form a direct relationship with its channel partner's customer and charge the customer recurring maintenance and licensing fees. The channel partner will receive a margin from signing up the customer as well as a percentage of the recurring fees.

For the full report on Sybiz's new channel model read ARN this week, out Wednesday.

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