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"It's no longer truly held by the technical buyer - about 80 percent of the time it's a joint decision between the technical buyer and the business buyer. "Buying decisions have changed," Paquette-Nelson said. Paquette-Nelson said the new financing models are an acknowledgement of changing dynamics in the IT purchasing landscape. They're so aggressive and so bold, people are going to pay attention to that." We think we can double the numbers, and I think that is fairly conservative. Moretti said Carousel does about $10 million annually with Extreme Networks and expects to double that. It's a complete 100 percent risk for Extreme." "The distributor works with Extreme to turn that into a subscription model, but we treat it like a regular transaction. "When we sell a solution, it gets treated just like cash," Moretti said. It flexes with the ebb and flow of the environment.
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There are no upgrade or downgrade minimums. Because this is on a subscription, if you need to upgrade on the fly you can move piece-parts in and out of that solution. "When dorms are not occupied, the college doesn't want to pay for those switches' utilization. "People want to only pay for what they're using," Moretti said. You're still paying, and it's still a termed commitment with a penalty for getting out early."Ĭonversely, Extreme Capital's latest offering allows for the kind of flexibility customers have been demanding for years, Moretti said. They're setting a dial that you can't go below. "Everybody says they have a flexible purchasing program, but they're all contract-based. "Not even another finance company or bank has this," said Mark Moretti, vice president of infrastructure and security at Carousel Industries, an Exeter, R.I., solution provider that works with Extreme Networks.
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A full 92 percent of customers using the program are net-new, she said, and 83 percent come back for secondary deployments within six months. The transactions are on a rolling 60-day term, meaning customers can make changes to their networking infrastructure from access points to the core of the data center with nothing more than 60 days' notice.Ĭustomers like the program, said Lisa Paquette-Nelson, senior director of Extreme Capital Solutions.
The system is an Opex-based model by which solution providers are paid cash as they would be in a traditional deal and Extreme Networks works with its distributors to treat the transaction like a subscription. With Extreme Capital Solutions, the San Jose, Calif., networking firm is taking a new approach to the way customers finance their purchases, as well as how partners get paid. By changing the way solution providers approach financing options with customers, Extreme Networks believes it can reframe the entire partner-user dynamic.
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