Fundamental for vendors
Our vendor partnerships always have been and always will be critical to our own success. Vendors are, after all, our biggest customers – and now, more than ever, they need a partner like Westcon-Comstor to take their solutions to market and deliver success through the channel.
All our vendors are themselves transforming from traditional resale models to a recurring revenue model. Although every vendor is at a different stage in this transformation journey, it is top of mind for all of them. When reporting their quarterly financial results, for example, CEOs of our technology vendors are consistently being asked to provide shareholders and analysts with details about the percentage of revenue derived from recurring contracts, the customer churn rates and how the business is tracking with strategies to shift most – if not all – of their revenue to subscriptions.
These subscription models turn technology into a service, and they’re generally predicated on customer’s achieving their targeted business objectives by deploying the technology. There’s a real business advantage to this too; the revenue is more predictable, there is more revenue to be made from each satisfied customer over time and it costs less to retain a customer than it does to acquire a new one.
Just as importantly, the customer success model drives more innovation. Through recurring subscription contracts, our vendors (together with our partners and with Westcon-Comstor,) can stay closer to our end-customers' evolving business needs. That customer intimacy drives faster, more responsive innovation cycles, better outcomes, and more loyalty.