The value is software resellers/distributors

[Basher]

Hi All,

I've been doing a bit of work in this area recently and was wondering, why do the big software vendors distribute their software through 3rd party resellers/distributors instead of direct from themselves (or localised business units)?

Any thoughts?

I'm guessing it's a stick to your core competencies argument?

 

[paradigm]

Taking Microsoft as the example here, most of their revenue comes from volume licensing subscriptions, client access licenses, and associated server technology licensing rather than sale of retail end-user software.

With this being the case, it is prudent to liaise with your corporate clients using product and license specialists so that you can not only aid the selection of the correct products and services (as well as licensing restrictions and supported migration/upgrade paths), but also to fill in the vast amounts of paperwork in order to set up your subscription/package.

It is far easier to work this into a distributor chain that then comes to source for training, rather than try and deploy your own distributor network around the globe.

I would also assume that it helps with not creating a price-fixed retail environment.