MS makes billing easier for VARs

Transaction Service Provider programme promises simplified billing and collection for SME resellers

Microsoft has joined forces with distributors Ideal and Ingram Micro to simplify its billing and collection process for SME resellers.

The vendor launched its Transaction Service Provider (TSP) programme today, claiming that it will allow resellers to retain ownership of the customer but leave transaction details to the distributors.

Alex Hilton, SME distribution manager at Microsoft, said that the TSP scheme will apply to all of Microsoft's licensing schemes including Open, Open Subscription and MYO.

"Microsoft has a number of different licensing models, but many resellers we work with have found it hard making transactions on an annual basis. Now we have switched to a recurring model, we have been trying to figure out how to get smaller resellers involved," he said.

Hilton said that the TSP model will allow resellers to concentrate on selling software and making margin, rather than losing time sorting out transactions.

Alex Tatham, global software distribution director at Ideal, said: "The good thing is resellers can choose whether they want to use TSP or another model for every single transaction."

Greg Lockton, senior director for business management and marketing at Ingram Micro, said: "For the first time we have a vendor validating this kind of model and using it to enhance the channel to market."

A pilot scheme has been well received by VARs. Mike Abbott, general manager at Solutions-4, said: "This model gives me more time for concentrating on my core business. The distributor looks after the transaction, but the client is still mine and I get to make margin from the sale."

All Microsoft distributors have been approached to join the scheme. However, Cathi Low, general manager for software at Computer 2000, said that the firm will not sign up until later in the year.

"We want to get it exactly right for our customers before we join," she said.