Andy Milsom, Head of Partner Training & Development at BNP Paribas Leasing Solutions

Andy is an experienced sales and finance professional with over 25 years’ experience in sales aid leasing. Andy is widely recognised as an expert in business finance and has in recent years focused his attention on developing partner sales teams develop an understanding of how businesses secure project financing. His training programme – Finance Unlocked – is a highly rated customisable course and is offered at no cost to partners.

If you’re interested in helping your sales team overcome finance-related hurdles during the selling cycle, please get in touch with Andy on 07966 114 243 or email here.

Daisy is one of the UK’s leading providers of business communications and IT services, and the renewed partnership comes at a significant point in the history of the group. Over the course of the last five years, Daisy Group has grown dramatically, acquiring a number of businesses including Phoenix IT Group, Damovo UK Limited and Alternative Networks, making it one of the few businesses in its industry that can genuinely offer an end-to-end portfolio of IT, telephony and Cloud services.

By outsourcing its financial services to BNP Paribas Leasing Solutions, Daisy Group is able to help businesses of all sizes benefit from leading-edge IT and telephony solutions without having to deplete cash reserves or dilute bank credit lines. Additionally, with BNP Paribas’ market-leading proposition in the financing of software and services, customers are able to deploy an enterprise-wide system with the convenience of regular payments, much like a subscription contract.

Colin Bell, Director of Procurement at Daisy Group commented:

“At Daisy Group, we’re focused on helping businesses embrace and truly benefit from technological innovation. BNP Paribas Leasing Solutions is a long-term partner that has proven capability to support our strategic goals. By offering our customers greater access to finance, we enable them to invest in the technology that will help them reach their true potential. I am delighted to see our partnership continue to thrive.”

Martin Ardern, ICT Sales Director, BNP Paribas Leasing Solutions commented:

“We believe that all businesses should have access to the tools and resources that will enable them to remain competitive and offer first class service. We’ve worked with Daisy Group for a number of years now, and it’s fantastic to see how their IT and telecoms solutions can truly transform their clients’ businesses.”

Daisy Group will be among the first to benefit from BNP Paribas’ improved online portfolio management tool – Lease Offers – which offers visibility to client data across all stages of the sales pipeline. The service includes a quote tool for quick credit decisions. The company also recently introduced an e-signature solution based on Adobe Sign technology to digitise the lease setup process, and further enhance the customer experience.

How VARs can use leasing

A value-added reseller (VAR) in the telecoms market is meant to understand a customer’s budgetary and operational requirements – and cater to them by devising solutions that align with their deployment plan.

When VARs can supply solutions on a cost per month basis, they are empowered to offer customers much more. Soft costs can be rolled into the contract, so if end-users are wary about implementation or ongoing maintenance, you can assuage their concerns more easily. If a business is rapidly growing, you can offer the flexibility and scalability they need to accommodate an ever-increasing number of users.  

The ‘as a service’ subscription-based model is common in the world of enterprise software: if a business needs access to the Adobe suite, or to Sage’s accounting tools, it will likely do so by paying a flat monthly fee. If resellers can confer similar benefits across product portfolios, they can more easily please their customers and develop long-term business relationships.

Businesses are backing away from large upfront payments and moving towards access, rather than ownership. VARs employing a leasing model can directly benefit from this in these three key ways.

Cost and affordability

Leasing makes the latest telecommunications technology available to any business by avoiding large, upfront payments that have historically been a deterrent to new investment.

When the fundamentals of the telecommunications system have been implemented additional solutions can be bolted on with relative ease. If CRM functions are needed, they can be supplied; if mobile connectivity and call centre integration are needed, they are available. VARs always benefit when they offer more affordable solutions, as it makes customers more likely to sign up.  

Upgrades and improvements

Technology is iterative, and a solution that works for a business one year may be out of date the next. Leasing can help your customers maintain a competitive edge and stay scrupulously current.

Upgrading their solution effectively becomes a matter of refreshing their plan when it suits them. This prevents the business from being stuck with obsolete or inadequate telecommunications equipment that doesn’t suit the company’s needs – and prevents competitors from stealing a lead on the business.

VARs who employ leasing will be able to offer long-term solutions to long-term customers.

Increasing technology investment

The telecommunications market is advancing rapidly: telephony runs through desktop and mobile computers, and CRM systems make sure the maximum value is extracted from each customer interaction. But expertise, training, and consultancy are needed to make the most of this technology.

A recent report from IDC highlighted this, finding that 51% of companies expect a solution provider to offer a technology roadmap. End-users don’t want telecoms VARs to supply one-off products: they want them to meaningfully improve their business, and they want a degree of flexibility about it – IDC’s report also suggests that 51% are looking for convenient consumption models such as pay-per-use, and that 31% are actively considering new leasing and financing options.

Providing leasing options broadens the scope of what a reseller can do. It makes them more appealing to customers and incentivises those customers to buy. Telecommunications VARs would be well-advised to explore it.

The shift to access over ownership

The role of a telecoms value added reseller (VAR) is to understand the customers’ full deployment plan and devise the best solution based on budget and need. With leasing, VARs can offer that solution on a cost per month basis which includes all aspects from software and hardware to soft costs such as installation, consultancy, configuration, security, training and maintenance. The customer can get the solution they need and build on it as their business needs grow and change.

Most businesses are now used to the ‘as a service’ model of accessing technology – paying for access rather than ownership – so selling small or complex solutions on this basis is a good way forward for resellers looking to develop long-term business relationships and increase their customer base.

Rather than having to make a large upfront payment for technologies which could soon become obsolete, businesses are now more accustomed to accessing what they need, when they need it.

Affordable access to technology

Essentially, leasing enables access to top of the range telecoms technology at an affordable fixed rate. Once a basic telecoms system has been installed, other areas can be added according to the customer’s needs and budget. This could include call centre integration, customer relationship management (CRM) functions and mobile connectivity.

Businesses can spread the cost of their new solution and acquire the assets they need without jeopardising their cashflow. Each deal can be designed and enhanced to suit each business’ specific needs, with flexible payment terms. Any change in requirements can be easily accommodated; for example, should a business experience a sudden growth spurt, the business can scale accordingly and add the necessary extra assets to the lease.

Out with the old, in with the new

Technology is constantly changing and staying relevant and up-to-date is critical to maintain a competitive edge within any industry.

A lease makes it easy for a company to upgrade their telecoms solution and stay abreast of market developments, rather than being stuck with obsolete technology. A regular refresh plan allows the customer to swap out the old technology for the new, without costing them a fortune.

Leasing drives technology investment… and sales

When it comes to software and product development, the telecoms sector is advancing rapidly. Much of today’s telephony runs through desktop and mobile computers, as well as CRM systems, which demands a degree of expertise to ensure a positive ROI. As a result, more businesses now look to resellers to offer a solution that encompasses technology, consultancy, deployment and training.

A recent study from IDC found that 51 percent of companies expect their solution provider to offer a technology roadmap. This emphasises the changing nature of the telecoms VAR, from simply supplying a one-off product to one that partners with the customer for the long-term.

Businesses are increasingly looking for convenience and flexibility in how IT is deployed and consumed within their businesses. The same IDC study shows that 31 percent of businesses are looking for the availability of leasing and financing options from their technology provider, whilst 51 percent also look for flexible consumption models e.g. pay-per-use.

Leasing telecoms equipment provides a competitive advantage that allows a business to spread their costs and acquire the assets, and support, they need to succeed. In a world that leases everything from phones to cars, leasing telecoms equipment is a natural next step.

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2016 was an eventful year for the telecommunications industry. UK residential and small business fixed broadband traffic grew by 40% in 2016, and mobile data traffic rose by 64%. As we enter the second quarter of 2017, here are four telecom trends that are shaping up to be big:

1. Consolidation of IT and telco

Vendors should keep an eye on the relationship between IT and telecommunications, which – given the rapid growth of cloud services and system integration – may soon be one and the same. International software giants have already begun to expand into telecommunications: Microsoft has done so with Skype for Business, and HP Enterprise has also made several forays into telecoms.

In 2017 onwards, the telecoms sector should expect this trend to continue – and for telecoms vendors to do the same, expanding and acquiring IT companies that can add value to their portfolios. An integrated ICT market will force vendors to continue to look beyond their comfort zone of selling for telecoms operators.

2. Wider fibre and 5G rollouts

One of the more predictable telecoms trends will be the introduction of higher-speed internet. The Chancellor of the Exchequer has committed to invest more than £1bn into fibre and 5G networks over the next four years, with the ambitious aim of rolling out 5G networks across the country by 2020.

Indeed, 5G will be the focal point for much of the telecoms industry’s interest – and this will manifest in further research and development, both within the industry and outside of it. Energy, transportation, and many other markets are also acutely aware of the promise that 5G networks hold for their businesses, and – in their relentless quest to deliver process and service improvements – will actively invest in developing this technology further.

3. The Internet of Things becomes profitable

While the benefits of faster internet are obvious, any investment in 5G will also speed up the advent of the IoT – and we should expect to see additional developments in this area over the course of 2017.

According to Gartner, we are likely to see some 21 billion devices connected to the IoT by 2020. This could potentially translate into significant gains for telecoms vendors – if they expand beyond their core products and focus on cloud technology, security, and the myriad other IT technologies that will only grow in importance over the next year.

4. Increased emphasis on security

Finally, it’s wise to expect further interest and investment in security – which has always been an important consideration. In the wake of several high-profile data breaches – with the 2015 Talk Talk hack perhaps being the ultimate example – it’s become more important than ever for telco customers to shore up their systems.

Last year, BT hired more than a thousand additional cyber security staff members, and Vodafone set up its own security department, which now sells technology developed in collaboration with BAE systems. Telecoms vendors should seize the opportunity: with communications and IT becoming ever more integrated they’ll be ideally positioned to offer superior security services.

These are only a few of the telecoms trends that are high on the agenda this year, but they’re suggestive of the industry’s future – one where it becomes faster, smarter, and ever closer to IT. The best vendors will capitalise on these trends – before the competition does.