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New partnership a ticket to compliance for Australian business

Announcement posted by NewLease 16 Jun 2006

Melbourne, Australia: Two Melbourne companies have formed a partnership set to solve a major issue for Australian businesses with financed IT hardware and software, who do not realise that their finance agreements breach their software licenses and are illegal under Australian law.
Microsoft Software-as-a-Service (SaaS) distributor NewLease and technology leasing company Alleasing have signed a world-first agreement to offer pay-as-you-go Microsoft software with financed computer hardware. The deal will allow customers to legally bundle software and financed hardware into one agreement, avoiding large up-front capital costs and interest payments on software while still complying with licensing requirements.
From June 2006, Alleasing will add NewLeases Microsoft service provider licensing (SPLA) to its online ordering system, allowing its retail partners to incorporate hardware costs, maintenance and software services into the same agreement.
The partnership comes as software compliance grows as a global business issue and vendors launch new compliance measures.
Many business customers dont realise that by adding Microsoft Windows and Office software into a traditional hardware finance or rental agreement, they are in breach of their licenses, said Alleasing chief operating officer, Murray Hamilton. In addition, customers end up paying interest on financed software and remain responsible for managing updates and purchasing new software versions.
Customers will be able to finance their hardware and implement pay-as-you-go software licensing under the same agreement, said NewLease chief operating officer, Dawn Edmonds.
Edmonds said pay-as-you-go licensing, or Software-as-a-Service (SaaS), makes business sense for any organisation trying to avoid capital expense and responsibility for tech support.
Software-as-a-service is an operating expense. Customers pay only for the software they use, increasing or decreasing their spend month by month, as their business needs dictate. They avoid paying interest on software and also have constant access to the most up-to-date software versions, said Edmonds.
Under our licensing model, theres no difference for users. The software is still there on the desktop V it doesnt have to be hosted online, said Edmonds.
For further comment from NewLease or Alleasing, contact:
Grant Titmus | (03) 9670 8350 |
About NewLease
NewLease is a distributor of pay-as-you-go software licensing for service providers across Australia and South-East Asia. NewLease is also a wholesale provider of a range of hosted solutions that enable our partners to offer software-as-a-service to their customers.
NewLease is the distributor of the Microsoft Service Provider Licensing Agreement (SPLA) in Australia and South-East Asia, offering pay-as-you-go licensing solutions to managed service providers.
NewLease partners are able to offer hosting, outsourcing and other software services to their customers without the upfront capital costs and associated risks. It also provides them with an attractive, recurring revenue model.
SaaS offers four major benefits for small to medium businesses:
No upfront costs: customers pay as they go for what they use
Increased flexibility: customers can adjust software requirements as their businesses needs change
Access to the latest software versions, always
Customers only pay for the licenses they use in any particular month; no term commitments, and no risk of paying for unused licenses
About Alleasing
The merger of Australias leading leasing companies created Alleasing Finance Australia. Alleasing has unrivalled financial strength and broad-based industry expertise. It offers competitive leasing packages and sales-aid finance to selected vendors.
Partnering with Australias biggest lease finance provider and backed by the strength of the Allco Finance Group, means you benefit from more than 30 years of experience and in excess of $60 billion in equipment finance origination.
Understanding the best way to finance equipment can be complicated. Alleasing combines extensive asset knowledge with specialist financial expertise to assist you when considering technology finance options.