A new Melbourne-based company will try and convince distributors, assemblers and other resellers to acquire cheap application software packages as value-adds to their hardware sales.
The Chorus Group is the latest incarnation of a business called PDI, which had specialised in sourcing IT courseware for IT training companies. PDI's customers have since dwindled and information has become more freely available on the Web, forcing the company to re-assess its business model.
In February, the company coupled its new name Chorus with an agreement with a large European company that sources boxed software applications en masse to be resold on an international basis.
The Chorus Group intends to source large volumes of software applications that it can then sell into the IT channel as value-adds to hardware solutions. Interested resellers can set a "value-add budget" for any hardware product they sell, be it a PC or scanner or digital camera, and the group can source a bundle of software applications that suit the product.
For example, a reseller can send Chorus the specs of a scanner it wants to promote heavily and set a $10 or $20 budget, and Chorus would in turn source $10 or $20 worth of imaging software for the reseller to bundle with the product. The software applications are worth considerably more than $10 or $20 as standalone products, but when in bulk they can be purchased considerably cheaper.
"We can source products from around the world to meet a specific budget or to meet the specs of a specific hardware product," said Chorus director Mark Worsey. "Bundles are usually based on a minimum of 3,000 but this can be tailored to the customer. If they only require 100 bundles this can be done, albeit at a slightly higher price."
Worsey said the group is already in discussions with wholesalers such as Digiland and BCN Technology. He said the company plans to start at the top of the distribution chain and work down as far as retailers to find interested resellers.
The company insists that despite the ridiculously low prices, the software on offer is still the "latest top-shelf releases" based on the most recent models of hardware coming onto the market.