In today’s business world, IT is expected to do more with less. The network must quickly accommodate ever-changing business needs. It is becoming increasingly arduous for your customers to address rapid, often hard-to-predict changes in network demand driven by third platform technologies such as cloud, mobile, and social, while staying within budget.
Clearly the traditional model of purchasing network infrastructure is not conducive to meeting customers’ quest for flexibility and scalability. Today network subscription-based acquisition models allow customers the option to pay for network infrastructure-as-a-service, aligning costs with demand and budget, while also protecting the network against equipment and technology obsolescence. Instead of investing in technology you simply pay as you go, eliminating the risk of investing in the wrong technology and enabling you to flex to ever-changing needs, which has extremely positive implications for the channel and IT network acquisition.
As-a-service purchasing models are changing how IT is procured. So, why is Brocade’s subscription model so well suited for the channel?
In short, flexibility for your customers, and partners get paid same as cash. Brocade offers network-as-a-service to the channel through Brocade Network Subscription. Brocade Network Subscription revolutionizes network acquisition by providing the flexibility to upgrade, scale up or down according to actual network utilization with 60-day notification. Network infrastructure is paid for on a monthly basis, making it possible to align network capacity with actual usage, balancing costs with needs. Additionally, the open-ended structure of Brocade Network Subscription provides you and your customers a new level of flexibility including the ability to refresh network technology when they need to, apart from term commitments or depreciation cycles.
Further validating the importance of more scalable IT models for the channel, a survey from Canalys predicts that IT-as-a-service will provide increasing revenue opportunities for partners over the next couple years.
Furthermore, Canalys identified that 58% of surveyed partners believe their managed services business already generates more revenue than traditional hardware and software sales.
In addition to helping customers better manage their cash flow with no upfront capital spending and cost efficient pay-as-you-go financing models, network-as-a-service gives channel partners significant opportunities for revenue growth and new customer acquisition, as customers face a lower barrier to entry. Compared to traditional cash deals, financing models are on average over four times larger, offering a repeat business rate of more than 80 percent.
Partners are finding that these customer benefits translate into a tremendous business-building opportunity for them. The partner enjoys the same margin as if they’d sold directly and will often be paid within 30 days. Plus, Brocade also makes a number of commitments that deliver added value for partners who complete Brocade Network Subscription deals, including:
Brocade Network Subscription deals work just like a cash deal to partners
Can include any approved wireless solution such as Aruba, AeroHive, or Ruckus
Spread installation costs over the 1st year
“The Brocade Subscription model provides us with the financial flexibility we need to manage our investments and scale to meet our channel partners’ ever-changing requirements.” according to Luke Norris, CEO and Founder, Peak
Through Brocade Network Subscription you can offer your customer the best of both worlds: cutting-edge, highly scalable network technology, without the risk of an upfront investment. Brocade Network Subscription allows your customers to define the network on their own terms.
Brocade provides access to a wide range of solutions from on-premise infrastructure to cloud-based services, with options to invest in infrastructure up front or as-a-service. Learn more about Brocade Network Subscription and find out how as-a-service acquisition can benefit you and your customers: www.NoNetworkCapEx.com