Tech Data Raises Bar On Software Licensing

But Tech Data isn't the only distributor to offer online licensing products from those vendors. Synnex Information Technologies offers all three vendors via its License Online tool, and Ingram Micro and Merisel offer licensing products online from two of the three vendors. Online software licensing is a boon for distributors, and each one wants to lead the pack with the most comprehensive offering. Software and applications will generate an average CAGR of 10 percent to 12 percent and mature to become a $131 billion market by 2006, according to industry analyst IDC.

But Tech Data did thrust the gauntlet forward by also adding warranty and maintenance services from Hewlett-Packard and Fujitsu. That's something other distributors don't offer via their online licensing tools. Instead, solution providers must purchase those products from the distributors' main Web sites or via sales representatives. Better yet, Tech Data plans to offer warranty and maintenance services on LION for its top 10 service providers by the end of its fiscal year, in January.

"[LION] is really a tool for virtual products," says Nancy Goldman, director of software licensing at Tech Data. "It's not just a software licensing tool." Tech Data executives say their overall strategy is to make LION the primary portal,and single stop,for its virtual products.

Tech Data has also made it easier for solution providers to make more accurate and efficient purchases for their customers using LION, which now recommends the appropriate media for an order so customers don't have to remember the exact part number. In addition, Tech Data has eliminated the need to have a separate shopping cart for each vendor's products. Instead, LION now offers one shopping cart for the entire purchase.

LION also offers more advanced product searches and expanded reporting capabilities. Solution providers can view all of their maintenance agreements at once, which makes it easier to manage refresh opportunities and upgrades.

"Our customers depend on us to ensure they have the latest software products available on the market while also monitoring and refreshing their seat-license requirements," says John Rignani, purchasing manager of D&E Communications, based in Mechanicsburg, Pa.

Tech Data also added functionality to LION that enables VARs to track all of their licensing orders. VARs now have space to add shipping, handling and taxes to end-user quotes. "LION is part of a larger strategy,e-business,which aims to give resellers faster execution and greater efficiency," Goldman says.

Similar Focus

Of course, executives at Ingram Micro and Synnex would agree that's their goal as well. At Synnex, where licensing is 90 percent of its software business, making purchases smoother and more efficient is a main focus for the year. Some of Synnex's most popular licensing programs and products include CA, IBM, Microsoft and Symantec. "With License Online, we have a system, a process and a tool that's proven to be successful," says Mimi Anderson, vice president of product marketing at Synnex.

Ingram Micro is beefing up its licensing offering and functionality as well, including the recent addition of Microsoft CRM to Click2License. That brings to 13 the number of software vendors offered on Click2License. Microsoft is its largest software vendor, and some of its hottest licenses are for CA, Veritas and Symantec. Ingram Micro says it differentiates itself for solution providers with its global relationships, breadth of products, variety of programs and flexible finance programs.

"Ingram Micro is really known for its world-class software licensing department," says Jodi Honore, vice president of vendor management at Ingram Micro. "We help take the complexities out of the way for the VAR."