NEC Corporation of America (NEC) has launched UNIVERGE BLUE CLOUD CASH to offer NEC UNIVERGE BLUE cloud communications channel partners the option of getting paid upfront.
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While traditional cloud service sales models pay channel partners a monthly recurring revenue, CLOUD CASH pays a lump sum upfront, calculated from the equivalent recurring revenue from the full term of the agreement, as well as any qualifying incentives.
This “industry-first” program connects premises to cloud revenue gap and simplifies the task of transitioning partner customer bases to cloud communications.
Al Kelley, Vice President, Channel Sales, Americas at NEC, said:
“With CLOUD CASH, channel partners can deliver cloud-based communication and collaboration solutions for their customers without worrying about the financial impacts on their businesses.
“By offering this alternative revenue structure backed by NEC Financial Services, channel partners once leery of offering cloud solutions can now help their clients modernize their communications infrastructure with the comprehensive suite of tightly integrated unified communications and contact centre solutions that is UNIVERGE BLUE.”
As the migration to the cloud continues to accelerate, and more businesses move to adopt hybrid work models, channel partners selling on-premises business phone systems may be being held back by a business model that is centred around upfront hardware sales.
NEC’s CLOUD CASH enables channel partners to sell UNIVERGE BLUE CLOUD SERVICES and get paid upfront, as they would for hardware.
Monthly recurring revenue payments remain an option as well. Channel partners will be able to choose on a deal-by-deal basis whether they would prefer to be paid upfront via monthly recurring revenue. This will provide partners with greater flexibility and control over their finances.
NEC created a calculator as part of the program, which helps channel partners to work out how much they can expect to earn on average from a deal upfront.
Dave Michels, Principal Analyst and Founder of TalkingPointz, said: “Introducing an alternative to the traditional way channel partners are compensated will allow many more of them to benefit from the growth of UCaaS and CCaaS.
“UNIVERGE BLUE CLOUD CASH not only demonstrates the financial strength of NEC but is also the mark of an organization that truly puts channel partners first.
Motivated sellers mean we should see a harder push to move traditional on-prem hardware users to cloud communications, which is a win for both channel partners and the industry.”
NEC is a communications solutions provider with portfolios spanning communications, technology, security, analytics, and biometrics. NEC Corporation of America is a subsidiary of NEC Corporation, which has $27 billion in revenues and a presence in 140 countries.
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