Interquad has launched a new division to help resellers become application service providers (ASPs). The company has created IQsys as a consultancy and support service for firms that want to take up a hosting role.
Lee Perkins, sales director at Interquad, said: "We give resellers the ability to embrace all aspects of a solution rather than relinquishing control to a third party. There has definitely been a shortfall in this type of provision to resellers and IQsys was developed as a result of feedback from our customers."
Perkins also explained how the complexity of implementing these services will be tackled. "This service will be very easy to implement because we have been running this type of service for a number of years," he said.
He believes the service gives resellers a good opportunity to switch their traditional business model to a more specialist service. However, resellers adopting the ASP model should be aware of a significant change in the way they carry out business, said Gary Woodward, chief executive of Pasporte, a UK ASP.
"The transition is not easily achieved. It is a completely different business to resell," he said. "For example, Pasporte has invested more than £5.5m just to break even. If resellers are purely involved in box shifting, it is very difficult for them to become ASPs."Resellers should be prepared for income streams to change, he said. Being a rental service, an ASP must expect large, one-off incomes to be replaced by regular small payments. This is difficult for resellers that are often accustomed to large 'here and now' payments, Woodward said.
"It is not an easy transition for resellers and they must move in gradually. Larger resellers could find their way, but it is better if they partner with a specialist ASP."
Meanwhile, Pasporte has added the Sage range of financial, distribution and manufacturing systems to its portfolio. The company is the first to offer Sage Enterprise Solutions software applications and is targeting small to medium sized enterprises in various industries.
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