6 min to readAsset ManagementSoftware Sourcing Services

Why partnering with a reseller can optimize your software procurement

Erling HesselbergVice President - Enterprise Software

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For businesses today, procuring software can be a daunting task. Indeed, Gartner®^* tells us that: “Portfolios of software and cloud services have continued to expand. Many organizations have doubled the number of vendors utilized in the past 10 years, straining limited internal resources that are unable to effectively analyze contract terms or manage renewals.”

Further, organizations are not only looking for cost-effective solutions but also ways to streamline compliance and optimize their software investments. This is where today’s resellers play a crucial role. This blog post explores why partnering with a reseller like SoftwareOne can be a game-changer and highlights some successful strategies.

Resellers offer a unique approach to software procurement by functioning as intermediaries that provide significant discounts and added services. Here’s a few reasons why partnering with a reseller can be beneficial:

Cost savings: By leveraging the purchasing power of a reseller, companies can typically obtain software at a lower cost than going directly to the vendor. This is akin to a wholesaler buying in bulk from a manufacturer, which enables them, in turn, to share some of the costs savings to their clients.
Procurement as a service: Resellers often provide procurement services as just one part of their offerings. This model can be particularly beneficial for government entities and large organizations. For instance, a reseller can handle the complex regulatory requirements for vendors, ensuring compliance without the hassle of repetitive questionnaires and compliance checks.
Support and optimization: Beyond procurement, some resellers (such as SoftwareOne) offer support and optimization This holistic approach ensures that clients not only save money on software purchases but also get the most out of their investments through ongoing end-user support and license optimization.
Driving faster value from your investment: A reseller that is hands-on in your procurement and deployment will enable you to reduce the time of purchase to the point of deriving value from investment.
Reduce the risk of Shadow IT: A reseller can ensure that organizations procedures and policies for software procurement are honored.
Ensure you right size your software investments. With strategic advice a reseller can help you to have optimal license metrics for your users as well as the right number of licenses.

Successful strategies in software procurement

Several strategies demonstrate the effectiveness of partnering with a reseller for software procurement.

Tailored procurement services: Resellers can establish procurement agreements with major software vendors, offering tailored services that drive value and efficiency. This approach helps large organizations streamline their software procurement processes and achieve significant cost savings.
Simplifying compliance for government entities: Resellers can help government organizations manage their vendor compliance requirements. By potentially handling compliance for multiple vendors, resellers can simplify the process, ensuring that all regulatory standards are met without redundant efforts.

The reseller advantage in a changing market

According to Gartner®^[1]: “Software resellers operate at the intersection of a broad range of software vendors and their clients. Accordingly, they are perfectly placed to leverage their visibility of options for the benefit of clients. According to Gartner survey respondents, 77% of organizations use software resellers for visibility and evaluation of licensing options.”

The software procurement landscape is evolving, with a significant shift towards more direct relationships between software vendors and resellers. Resellers are at the forefront of this change, leveraging their extensive network and expertise to provide unparalleled value to their clients.

This leads them to have:

Direct engagement with customers: Unlike traditional distributors, resellers engage directly with customers, offering personalized services and solutions – such as license optimization. This approach has proven effective with vendors who prefer working with knowledgeable resellers over traditional distribution models.
Innovative pricing models: Resellers often employ innovative pricing models, such as gain-share agreements, where the reseller shares in the savings achieved through optimized software use. This creates a win-win situation for both the reseller and the client, ensuring both parties benefit from the efficiency gains.

Why SoftwareOne stands out

SoftwareOne is a prime example of a successful reseller. SoftwareOne’s approach to software procurement not only provides cost savings but also adds value through comprehensive support and optimization services. SoftwareOne’s software and cloud vendor portfolio is vast – customers are able not only to buy, get support for, and optimize licenses for top-tier software vendors but also, for the lower-tier and tail-spend vendors (small, niche software vendors with limited market presence). Gartner^[2] comments that: “Consolidating spend, leveraging a primary software reseller that provides tail spend management services wherever possible, can be advantageous.”

In addition, as a reseller can stay ahead of market trends, licensing changes (when vendors adapt their metrics, terms, usage rights etc.), and be continuously innovating, SoftwareOne, (with its hundreds of licencing specialists), ensures that its clients receive the best possible outcomes from their software investments. Through a vendor consolidation, SoftwareOne can advise you so that you are not duplicating capabilities across different software offerings. Furthermore, SoftwareOne is at the forefront of advising clients to shift their software procurement through hyperscaler marketplaces – enabling them to take advantage of their spend commitment and use a proportion on software procurement. Operationally this can be seen to be more efficient as well as advantageous when it comes to cost.

One of the standout features of SoftwareOne’s offerings is Cloud-iQ, a digital procurement and management platform that significantly enhances the software procurement process:

Optimize cloud investments: Cloud-iQ provides instant access to cloud services, comprehensive spending reports, and the flexibility to adjust services and costs as needed.
Self-service procurement: The platform allows users to order and manage cloud software and resources from multiple vendors such as Microsoft, Amazon, Google, Adobe, and Veeam. Users can easily adjust and manage subscription plans, view service catalogs and prices, place support requests, and order additional support.
Cost control and transparency: Costs are calculated daily for license-based services and based on actual usage for consumption-based services. Users can set consumption notifications and receive spending reports directly. Multiple user accounts can be managed within the platform.
Efficiency and administration: Cloud-iQ simplifies order and management processes, reduces time spent on cloud management and administration, and provides access to comprehensive BI reports for usage and billing management. As we operate across many different jurisdictions, we offer consolidated global reporting as well as transparency of license entitlements and pricing across an entire international organization.

SoftwareOne’s strategies, including the innovative Cloud-iQ platform, demonstrate how effective resellers can transform software procurement into a streamlined, cost-effective, and efficient process. Partnering with a reseller like SoftwareOne can provide significant advantages, ensuring organizations navigate the complexities of software procurement successfully and achieve their business goals.

^[*] Gartner: Guide to Negotiating a Primary Software Reseller Contract. By Stephen White, Dawn Singer, Christine Tenneson. 7 February 2024. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

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