Avangate Tools Help Software Vendors Manage Online Distribution

Avangate's SkyCommerce Suite comes at a time when electronic distribution and Software-as-a-Service (SaaS) delivery of applications are upending traditional distribution channels for software products.

"The top 40 application vendors have leveraged their distribution power to control over half of the software market revenue. Our customers see a huge opportunity to break from last century’s hegemony in software with the democratization of how software gets distributed," said Carl Theobald, Avangate CEO, in a statement.

Two-thirds of all software was physically distributed in 2010 -- largely on CD-ROMs -- with only 21 percent distributed electronically and 13 percent delivered as SaaS products, according to Avangate. That's rapidly changing and electronic downloads are expected to account for 43 percent of software distribution by 2014, with SaaS applications making up another 29 percent and physical distribution accounting for only 28 percent.

Software developers, distributors and solution providers have been re-thinking their business models as they navigate their way through the changing software landscape. Earlier this year distributor TechData expanded its StreamOne software licensing system to provide ISVs and cloud service providers with a platform to market and distribute SaaS applications.

Avangate provides a range of channel management and distribution services for ISVs through its Avangate Commerce Platform. The new SkyCommerce Suite, which runs atop the Avangate Commerce Platform, offers three add-on modules that software companies can use to manage their own channel and distribution operations.

The Sky eCommerce Module provides tools for selling software online, developing marketing strategies for local markets, and managing customer upgrades, renewals and subscriptions.

The Sky Channel Manager Module offers channel management and automation capabilities that help software vendors manage orders and revenue from partners and resellers, giving the vendors better channel visibility and control, according to Avangate.

And the Sky Affiliate Module has management and promotional tools that help software companies connect to the Avangate Affiliate Network of more than 26,000 software vendors.