Archive for January, 2019

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How CPQ Fuels PC as a Service (PCaaS) Growth

January 15, 2019

The enormous growth of PCaaS that is predicted over the next five years offers both opportunities and complexities for vendors and their Channel. Configure Price Quote (CPQ) applications designed specifically for the IT Channel can provide a competitive advantage to multi-channel sales vendors to meet their customer requirements throughout this cycle of growth.

Market Predictions: the market for selling Personal Computers (PCs) as a Service was worth over a $10bn in 2017. This is widely forecast to be worth an amazing $140bn by 2023. It’s very likely that this will be dominated by large deals for large companies who crave operational expenditure (OPEX) over capital expenditure (CAPEX) but also see value in Manufacturer Services that can lower operational costs, especially on low level tactical IT activities. However, smaller organizations also desire these expenditure preferences, so it is widely expected that growth in smaller deals will form part of that $140bn. CPQ applications for multi-channel sales will be key in facilitating this growth.

Monthly Pricing: imagine going into a store where everything is priced monthly? You don’t need to imagine – just go to a mobile phone store! By contrast, when buying a PC, with a few exceptions, everything is currently priced as an outright purchase. Financing PCs isn’t new, but applying a monthly price to a product isn’t in itself PCaaS. The Service wrapper is a key component of the user experience. However, not everyone thinks the monthly payment is always a user requirement.

Understanding Quoting Complexities: we understand PCaaS and we recognize the market opportunity and the cascade from large organizations to small. The problem is that quoting PCaaS is more complex than a traditional CAPEX sale AND what’s worse is that the user may want two quotes – one for CAPEX, one for PCaaS:

  • CAPEX: cost of PC & Services plus margin = sales price. Some additional effort if “Deal” pricing or bundles are in play.
  • OPEX: cost of PC & Services plus Monitoring/Support Services plus margin plus Finance, plus margin.

There’s a further complication for Sellers: if a sale is on a CAPEX basis, the Buyer renews when the PC is retired, lost, stolen or broken. When a sale is made on the PCaaS basis, the PC is retired when the Finance and/or Service expires. These options offer opportunities but also complexity.

Simplifying with CPQ: can help reduce complexity. channelcentral services allow users to simply select the products, the suite of services required to support PCaaS and has always provided indicative finance costs on three to five year terms. Other CPQ companies specialize in asset management.

Without CPQ solutions, life could become much more complex – just as everyone is driving simplicity.

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Do Not Dilute – Innovating CPQ with Web Services

January 9, 2019

channelcentral sells subscriptions for Configure Price Quote (CPQ) applications that plug-in to Web Stores operating in the IT Channel. So, what happens when we talk to a prospect who doesn’t allow application plug-ins on their Web Store? We innovate.

When so many Web Stores use plug-ins, what’s the objection other Companies have with application plug-ins? From the feedback we’ve received over the last decade, mainly from Retailers/Resellers, there are three main reasons:

  1. Companies view their Web Stores the same way as companies would view a traditional High Street Store: with pride. They don’t want the user experience influenced by a third-party application that may look and behave differently.
  2. Many Retailers and Resellers pride themselves on a level of vendor independence. It’s a key differentiator, especially when a vendor sells direct. That impartiality also increases their portfolio (and in turn their addressable market) and credibility.
  3. Operating a Web Store is complex, so hosting numerous plug-ins increases that complexity. Making a change to, for example, a site’s security could cause plug-ins to fail.

In other words, these Companies don’t want to risk diluting their brand, their impartiality, or their eCommerce robustness.

So, how do you improve the user experience for Configure Price Quote in a Web Store that is incapable of delivering Configure Price Quote?

Use data instead.

channelcentral has invested in Web Services that deliver configuration data, so that any Company can deliver Configure Price Quote as a totally integrated experience. Here are some great examples:

HPE ProLiant Servers: https://racksimply.com/

Dell PowerEdge Servers: https://www.centralpoint.nl/

These Companies simply subscribe to a Web Service, and this service drives the user experience that they created.

Not everyone feels this way of course. Plug-ins are affordable, easy to deploy and very functional. channelcentral offers both.