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5 Big Bets That D&H Distributing Is Making In 2019

‘When I think about five big bets for D&H and think about moving into the second half of 2019, what really comes to mind first and foremost is this as-a-service model,’ D&H Distributing Co-President Michael Schwab tells CRN. ‘We’ve basically coined this new term, which is ‘X-as-a-service’ meaning everything as a service, as our go-to-market strategy.’

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MSP Model

Schwab said once a reseller sees the opportunities in as-a-service, the next step it ot help them transition into an MSP

“How do you transition, if you’re a traditional reseller, into this recurring revenue model, to take advantage of as-a-service? Not easy. Your accounting system is not set up that way. You’re paying your sales people differently, because the model might be 24 or 36 month payment cycle, versus, the end user paying you all at once, up front. How do you compensate your sales people appropriately?

How do you make sure that you build in the right profit model? Are there additional credit risks that you’re undertaking? Are there sales tax issues? There are all sorts of things to consider in this recurring revenue model that wouldn’t be obvious to our resellers nor easy for them to gravitate to without some help. So we’ve taken on that responsibility.

We’ve built out a team, under Jason Bystrak, to lead this model for us. He’s hired a staff of eight, which again, leads into the next big bet which is our cloud services model.”

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