Technology Reseller v38

FINANCE & LEASING technologyreseller.co.uk 39 Whether vendors are already working with a financing partner or simply considering its value as part of their sales offering, it’s important to know what’s available and how to get the most from a funding partner. TR : What do you see as the big challenges facing the leasing industry – and SFS in particular – in 2021? DM: Challenges for the finance market, and leasing in particular, will be around availability of credit for customers. Most customers will have suffered in 2020 and will need to re-build the business financially to position for future growth and stability, so at SFS we are looking to see what other means and information we can use, such as big data, in addition to more traditional P&L information to help vendors support customers through the volatility. TR : What were SFS’s highlights last year and what are your priorities for 2021? DM: The COVID crisis has been a challenge across industries but I’m incredibly proud of how we dealt with its impact at SFS. Like so many businesses, employees had to get used to the new regime of homeworking and the new practices that this brought. The positivity of the company was truly special and we transitioned the business remarkably well to deal with working from home, whilst still providing a great service to all our vendor partners. Even as the industry endured restricted operations, contact, and in some cases closures, at SFS we remained visible and available to our vendors throughout. Our priorities for 2021 remain the same: taking care of our people; providing our vendors and customers with funding solutions to help them sell and acquire the technology they need to grow; and continuing to be their trusted financial partner, delivering the best customer experience through exceptional people, innovation and digitalisation. 1 Computer weekly , Covid-19 accelerates digital transformation by over five years, 16 July 2020 https://www.computerweekly.com/news/252486191/ Covid-19-accelerates-UK-digital-transformation-efforts- by-over-five-years 2 Siemens Financial Ser vices, Food and Beverage: Rising to the new challenge, Summer 2020 : https: // new.siemens.com/global/en/products/financing/ whitepapers/whitepaper-rising-to-the-new-challeng e- food-and-beverage.html 3 Siemens Financial Ser vices, The Ideal Partner (2020) https://assets.new.siemens.com/siemens/ assets/api/uuid:c17cf279-9dbc-4673-87d3- 60d8da9c63e8/sfs-uk-digitalisation-transformation- tech.pdf Subscription businesses grow six times faster than S&P 500 Subscription businesses have grown nearly six times faster than the S&P 500 over the last 9 years, with changing consumer preferences driving a 437% rise in revenues for such businesses since 2012. The latest bi-annual Subscription Economy Index (SEI) from subscription management platform provider Zuora shows that in 2020 revenues of subscription companies in the SEI grew 11.6%, while sales for the S&P 500 declined by -1.6%. In Q4 alone, subscription businesses experienced revenue growth of 21%, seven times faster than S&P 500 companies’ growth rate of 3%. In an online survey of consumers in 12 countries for a separate Zuora report, The End of Ownership , 78% of adults said they subscribe to at least one service, up from 71% in 2018, with convenience (42%), cost savings (35%) and variety (35%) cited as the main reasons for doing so. Almost three quarters (72%) would prefer to be able to pay for what they use, rather than a flat fee. Nearly two-thirds (64%) of subscribers say they feel more connected to companies with which they have a subscription than they do to ones from which they make one-off purchases. Amy Konary, Founder and Chair of The Subscribed Institute at Zuora, said: “Now is the time for companies to embrace the subscription business model. Our bi-annual Subscription Economy Index suggests that brands can increase value to their customers through the on-going delivery of services when and where they’re needed.” She added: “We recommend that businesses design their offerings for ultimate consumer flexibility and freedom so that customers can tap into them anytime, anywhere, to whatever extent they choose.” The Zuora cloud-based subscription management platform automates and orchestrates the entire subscription order- to-revenue process. www.zuora.com TR : Are businesses making the most of the financing opportunities available to them? And if not, what is holding them back? DM: There is still more to be done in this market to increase the opportunities for our vendor partners to use financing as a real value-add in their own markets and as a benefit to their own strategic drivers – it reduces the capex sale, offers the opportunity to sell up, no credit terms etc.. Most of their customers will be looking to preserve cash, working capital and existing credit lines – so there has never been a better opportunity for vendors to use integrated financing to promote their own solutions and keep their customers investing in them. An ideal financing partner will draw on a wealth of funding knowledge to offer a range of flexible solutions, each designed to support the vendor’s sales process and enable customers to acquire the best technology solutions for their needs. TR : Could resellers and MSPs be doing more to encourage their customers to explore different financing options? And if so, how is SFS helping them develop these opportunities? DM: Part of our role is to make the vendors (both resellers and MSPs) understand how financing can work to their advantage. We’re incredibly proactive on this front and recently published a report, entitled The Ideal Partner , 3 to help vendors gain an awareness of precisely what a finance partner can offer, as well as the right questions to ask to get the most from a financier. The paper lays out the key qualities to look for in a financing partner that will help you build your business. www.siemens.co.uk/techfinance Technology The Ideal Partner Key qualities from your financing partner that will build your business A research report from Siemens Financial Services – March 2020 The Subscription Economy Index TM March 2021 SUBSCRIPTIONS: DESIGNED AROUND CUSTOMERS, MODELED FOR RESILIENCE Ⓡ The End of Ownership Report RESULTS FROM AN INTERNATIONAL SURVEY OF TWELVE COUNTRIES ON CHANGING CONSUMER PREFERENCES IN THE SUBSCRIPTION ECONOMY