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S-a-a-S spells growth for NewLease partners

Announcement posted by NewLease 06 Apr 2006

Partners of Australian software-as-a-service (SaaS) provider, NewLease, say SaaS is contributing to strong growth and closer relationships to their customers. With increased uptake in broadband by small and medium enterprises (SMEs) in Australia, NewLeases partners are taking advantage of NewLeases Microsoft Services Provider License Agreement (SPLA) and offering customers a flexible, pay-as-you-go alternative to the capital expense of software purchases and upgrades.
Three diverse NewLease partners, L7 Solutions, BlueArc Group and Apex Host, are finding that SaaS has had a positive impact on their business processes and customer relationships.
L7 Solutions, based in Perth, is an IT advisory and solutions company with an emphasis on complex integration services and managed services. L7 became a NewLease Partner earlier this year and is now both a Microsoft SPLA and Trend Micro Managed Service Provider. They are also considering reselling NewLeases own Hosted Microsoft Exchange service and other hosted applications as a white-label service, according to Managing Director, Matthew Sullivan.
Weve been very happy with our association with NewLease to date, said Sullivan. NewLeases offering represented an excellent fit with what we already took to the market. Culturally, we are also well-placed with each other, and were both keen to track down the opportunities as they stand today.
L7 recently signed a deal that represents a significant step in its customers uptake of SaaS.
Were pleased to say that after a stringent business case analysis, our new customer has signed a 350-user contract for a Microsoft and Trend Micro suite under our SPLA offering. The customer is looking at aggressive expansion and needed a solution that offered them flexibility and avoided burdensome capital expenditure, Sullivan added.
Were also seeing a lot of interest from within other areas of our current client base. This reflects the compatibility of software-as-a-service with our broader managed service capabilities.
BlueArc Group
Sydney-based BlueArc is a specialist provider of integrated technology and communications solutions. They entered a reseller partnership with NewLease in late 2005 and, having seen first-hand the benefits of Software as a Service (SaaS), are expanding its offering to a broader range of clients.
Once we learned of the scheme we were very keen to partner with NewLease, said BlueArcs Phil Mitchell. What followed was a period of working together to determine the best logistics and procedures, and ensure the service was right for our clients.
BlueArc manages the server and desktop software environments, ensuring that the right licensing is in place for changing usage patterns. SaaS is suitable for the small and medium business market which BlueArc already serves using a range of Microsoft products including Exchange, SQL and Office to meet the requirements of BlueArcs customers.
For small and medium businesses Microsoft Office is a critical business tool, so this allows us strategically to get much closer to our clients, added Mitchell. NewLease allows service providers to offer Microsoft Office straight onto customers desktops (provided they meet certain terms and conditions).
Due to the impact SaaS has on the bottom line it is important that we educate business owners about the benefits of SaaS and how we will work with them to ensure it remains tailored to their business needs.
BlueArc says offering SaaS has not changed what they offer, it is just a different way of delivering it. To use an analogy, we are no longer selling the cars - we now offer a car service with everything included; petrol, insurance, spare parts and even upgrades, said Mitchell.
Apex Host
Melbourne-based direct and wholesale hosting services provider Apex Host is one of NewLeases most established partners. Apex Host originally used standard and OEM licenses for its servers, but as they could only house one client per server using this traditional method of licensing, they found both the capital expense and the constant need to stay up-to-date and compliant cumbersome.
Apex Hosts Dave Hutchison said software-as-a-service is a better alternative for Apex Host and its customers. In approximately two years, Apex Hosts revenue from customers using the SPLA model have grown by more than 300 per cent.
Weve been in the Windows hosting market since 1999 and partnering with NewLease for the Microsoft SPLA made a huge difference to our business, said Hutchison. SaaS has freed up our cash flow, and allows us to target smaller hosts because there is no major set-up cost as a barrier.
The ability to white-label is great. We can offer pay-as-you-go software licensing to our customers as an Apex Host service, and it presents us as a strong, professional partner, said Hutchison.
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 sole 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.
Our partners include a wide-range of 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
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