Trend Micro and Tech Data Launch New Usage-based Licensing Program for Solution/Service Providers

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Usage-based licensing empowers solution/service providers to cost-effectively support the security needs of businesses of all sizes with scalable, dependable managed services
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May 8, 2007 (Press Release) -- CUPERTINO, CA—May 7, 2007—Trend Micro Incorporated (TSE: 4704, NASDAQ: TMIC), a leader in network antivirus and content security software and services, today announced the exclusive availability of a usage-based licensing program in North America through leading IT products distributor Tech Data. The distributor’s customers (including MSPs, ISPs, ASPs, VARs, system integrators, independent software vendors and others) now have access to an extensive list of Trend Micro security solutions with a pay-as-you-use payment and subscription model.


Working closely with Tech Data to leverage the distributor’s extensive knowledge of the challenges and opportunities facing solution providers today, Trend Micro designed this new usage-based licensing program to more closely align with the evolving business model of today’s software service providers. With dedicated security and software resources, Tech Data will provide its customers leveraging this offering with a wide range of sales and technical support.



Through the new program, authorized resellers receive a master Trend Micro software license with no up-front investment required. Users are charged monthly, resellers receive recurring revenue and no license renewal is required. As an additional benefit to channel partners, users must maintain a relationship with the VAR that originally deployed the software or risk losing their security solution as they establish a relationship with another provider.



"Trend Micro has developed an exciting new Software-As-A-Service (SaaS) model for SMB VARs that simplifies often complex software licensing procedures and enhances reseller profits through monthly recurring revenue," said Stacy Nethercoat, Tech Data’s vice president, Software Product Marketing. "This new offering also will enable VARs to strengthen relationships and customer service levels with end users, who will only be charged for the software used in a given month."



"Predictable recurring revenue and a higher margin business model is a winning combination for the ‘next generation’ of channel partners who are transforming themselves from a traditional reseller business to a more profitable managed service business," said Chee Tan, senior director of Service Provider Business and architect of the Trend Micro Service Provider Usage-based Licensing Program. "Through this program, our channel partners are now given a tool to establish loyal customers, create ‘stickiness’ with their services, and build long-term business relationship with their end-user accounts."



Several key benefits of the program include:



Pay-as-you-use licensing and pricing - Partners pay only for the number of Trend Micro licenses used during the previous month and flexible, usage-base pricing better accommodates their billing cycles.



Improved cash flow and reduced financial risk - Partners reduce financial risk with no up-front investment in unneeded technology licenses. Licenses are based solely on the usage of Trend Micro technologies or services.



Retain and grow your customer base- Partners can now offer a greater range of attractive services to prospective customers while also demonstrating more value to their existing clientele.



Stable pricing structure- Pricing remains constant for the duration of the subscription period.



"We have been focusing on becoming more agile in 2007, listening to our partners, and responding appropriately. Tech Data helped identify this opportunity and we are pleased to be able to deliver an innovative solution that should help both our businesses grow," said Thomas Miller, vice president of sales and marketing, Trend Micro.



"We jumped at the opportunity to partner with Trend Micro on their new Usage-based Licensing Program. Their new program is a perfect fit for our company and the businesses we work with since we only pay for the number of licenses our clients use on a monthly bases," said Nathan Viveiros CEO, ThinkTech Computers, Inc. "This program is easy to understand, manage and sell and will give us a competitive advantage in the industry."



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