The transition to the as a Service business model can be challenging for many point of sale (POS) solutions providers. It requires you to define the hardware, software and services you’ll include in your POS as a Service offerings. You also need to answer tough questions regarding how your business will cover initial costs and compensate your sales team when your customers pay a monthly subscription rather than making an upfront CAPEX.
Distributors serving the POS space have done some of the legwork to meet those challenges for their solutions provider partners. Here are some examples of POS as a Service offerings from distributors:
BlueStar Hybrid SaaS Solutions as a Service
BlueStar has partnered with vendors and financial partners to package total solutions for your customers. The distributors Hybrid SaaS Solutions as a Service enable you to provide comprehensive solutions, including service, training, and installation, to your customers for one monthly payment. VARs and MSPs, however, receive all revenue up front, eliminating risk and compensation plan issues and maintaining cash flow.
BlueStar points out that its POS as a Service offering helps solutions providers win more business because it gives them a full-featured, reliable solution they can offer for a low monthly payment to compete with low-end cloud-based systems.
BlueStar’s program has a refresh built in every three years, rather than a typical refresh cycle of five years or more. BlueStar also adds value with resources ready to assist you as you provide these solutions and with ongoing tech support.
SYNNEX Device-as-a-Subscription and DXS Program
SYNNEX enables you to procure hardware, software, and services for your clients on an as-a-service or subscription basis through the SYNNEX DaaS (Device-as-a-Subscription) Program. The program’s easy to execute agreements range from two- to five-year terms.
The DXS Program allows for both subscription and consumption-based procurement models in datacenter environments.
Alan Buttery, Senior Vice President, Financial Operations for SYNNEX Corporation, says, “Both our DaaS and DXS offerings are administered by SYNNEX Financial Services. With DaaS, the end-user executes a simple, two-page document. In DXS, we customize the offering around the specific end-user needs.” Solutions providers receive their revenue up front, but still maintain control with the ability to deliver and bill its own services.
Buttery says advantages of the programs include the ability to offer a true subscription, OPEX offering by leveraging the strength of a Fortune 200 leader. The program eliminates credit and residual risk for the solutions provider, allowing you to protect your liquidity and balance sheet while offering competitive solutions and growing your business.
Explore All of Your Options
Launching your first as a Service offerings or expanding your business to offer new solutions require the right strategy and careful planning to ensure business growth. Investigate all of your funding options, keep your sales team informed of changes to your business model — and their compensation, if applicable. You can also leverage the experience of organizations such as the Retail Solutions Providers Association (RSPA) for advice from industry experts and other POS solutions providers who are successfully growing their businesses with the as a Service model.