Newlease sees high growth potential in hosted desktop
A distributor with licensing focus aims for 100 new resellers in the next 12 months
By Simon Eskow, Auckland | Monday, September 17 2012
Australia-based distributor Newlease wants to expand its reseller base in New Zealand by 100 in the coming months.
The company, which has built a business solely around distributing licences for a small cadre of major vendors in the cloud, including Microsoft, Citrix, VMware and Veeam, sees opportunity in New Zealand for resellers to bring hosted desktop services to smaller organisations, and for service providers to optimise the licensing of technology in the complicated world of hybrid clouds.
"What we’re actually seeing in New Zealand is desktop as a service growing dramatically," says Doug Tutus, Newlease CEO and founder. "Desktop as a service in most instances has been enterprise level and now it can be five user and the pricing for this is dramatically dropping as well."
Newlease ventured into licence distribution after cutting its teeth as an Application Service Provider of Microsoft Sharepoint and Exchange. The experience of parsing the complexity of scaling up licences in a hosted environment led to deals with Microsoft and other vendors that were starting to build into what is today generically referred to as cloud services.
The distributor currently works with 150 resellers in New Zealand. According to Tutus, the company is "heavily invested" in growing business for its handful of vendors here, with two business development managers on the ground, Keryn Algie and Amy Knox.
Algie, New Zealand country manager, came to Newlease with more than eight years’ experience in licensing contracts for a range of software providers. Knox, Newlease's business development manager, also joined the distributor with more than a dozen years of sales and marketing experience, with particular expertise in product use rights and end user licence agreements.
"Even today, licence optimisation is a value add to our customers," says Tutus, which he adds is a consequence of the company's experience as an ASP. "As we built this business model, our point of difference was we were white labeling when nobody was at that particular time."
Tutus says the distributor hopes to attract new resellers with its expertise. The company runs optimisation workshops for its service provider partners, in addition to the more open transformation workshops.
"The transformation workshops are for partners that have a traditional business model and they want to move to the cloud," Tutus says. "We give them some guidance with respect to what you can do to move to the cloud" moving to an annuity model that is still gaining momentum today.
"The optimisation workshops assist them so they are compliant around licensing, not overpaying, and so that they have a scalable model going forward and make sure they’re compliant as they scale," says Tutus.
"In vendor land today, compliance is becoming key to any offering," Tutus says.
"For most of the vendors, it is still an honour system, but vendors always have the right to audit, and compliance is always in the back of your mind. Most resellers want to comply."
Tutus says the workshops are integral to their growth strategy. Newlease has budgeted two per quarter for the rest of the year, most likely restricted to Auckland and Wellington. Tutus says Newlease is targeting traditional IT service providers for those workshops.
"We’ll give them some things to think about that they might not have thought of before, like using the public cloud to help build scale before investing in their hardware," Tutus says. "Depending on how far they want to take it, we'll have consultants to develop business plans, sales models, all those sorts of things."
Tutus says his company can also help resellers build alliances according to particular expertise to win business together.
As for the growth potential of desktop as a service, Tutus says he is optimistic about the possibility of selling into smaller organisations, that are tired of hardware cycles and refreshes.
"The driver is that the SME wants a no-touch, no-issue solution that’s cost effective. That’s what desktop as a service can offer," says Tutus.