To start working in the ESD channel, we decided to use the ready-made service. When choosing a platform, we wanted to find a universal flexible solution that would help not just start working in the ESD channel, but also make this work convenient for us as well as provide competitive advantages for our partners. All this was found in the MOST platform by MONT. We carried out full integration with Microsoft in 6 weeks, for easy sales management we connected our accounting system through the platform.

We expect that the MOST platform will allow us to expand the product portfolio, increase the number of partners, meet the growing needs of the market, reduce warehouse costs, and process customer requests more quickly.

A traditional software sales model implies distribution on a physical medium – disks and boxes. It is difficult to control and support the entire sales chain. On top of that all copies must be stored in the proper conditions and transported from a vendor to customer through the whole chain. The disk is fragile, the production itself takes money and time. No matter how well this process was set up, it takes time, and is fraught with risks. Here in Mont company, we always use the latest technological solutions in the field of our business. When the idea of electronic software delivery arose, without any hesitation we began creating our own platform, which would fully use the potential of ESD. We succeeded. And now are ready to provide all distributors willing to work in the ESD channel with full opportunities of our platform. Our MOST platform is a service (PaaS), which allows any distributor to start sales in the ESD channel quickly and without additional costs.

First, I would like to introduce ESD and briefly talk about its importance to Microsoft, our partners and customers. Electronic Software Delivery (ESD) is the mechanism secure delivery of a product key directly to consumers and small and medium size businesses via retailers and resellers. Customer can instantly download and activate software after purchase using the product key. ESD is the perfect example of the technology which brings benefits to all market actors. Microsoft and our partners profit through improved transparency and efficiency of the supply chain. Customers gain from the convenience of purchase and management of software assets. The similar transition happens in audio and video industry where streaming and downloads are taking over the CDs, DVDs and other physical media.

While the concept of the electronic distribution is obvious and almost trivial, the implementation of it is far from being simple. I would like to compare it to mobile communication, few of us think of the infrastructure and efforts to enable conversations, twitting or picture sharing through the smartphone.

To make ESD possible Microsoft and distributor go through rigorous process of building and testing the information system enabling it. An experienced project manager from Microsoft methodically guides developers on a distributor’s side through the process of technical implementation to ensure the conformity with technical and performance specifications. The onboarding process ensures safe and efficient software delivery and takes several weeks to complete.
Technical implementation is followed by the market adoption phase which could equally demanding. Explaining, influencing and overcoming the resistance of the majority of resellers and customers, changing the habits takes time. This the area where contribution of distributors is invaluable.

Microsoft started working with MONT on the ESD over 5 years ago. Mont proved to be a dependable partner and the leading proponent of ESD in Russia and CIS markets. I am deeply grateful for their efforts to make ESD popular in these countries. As a results of our joint activities ESD became the main delivery mechanism of genuine software across Russia and the rest of CIS countries. In fact the share of legal software sold using the option is higher than in many other markets in Europe and MONT became one of the leading distributors worldwide by the number of keys sold, resellers served and countries covered.
Now I would like to switch to the future of ESD. As I described above the technical and marketing implementation of this delivery mechanism is quite demanding. To enable more partners Microsoft piloted so called “white label distribution”. Mont was selected as one of the partners for the pilot given the technical competence and the sales, marketing and business development expertise. In the pilot we tested the idea of using digital platform developed by MONT to enable other distributors to sell digital keys. The approach saves the development effort, reduces onboarding time and allows distributors to focus on what they do best – serving their partners.

The first results of the pilot are encouraging and we are looking forward to continuing the pilot in more countries. There are many partners in CEE who are eagerly waiting to be onboarded and Microsoft is going to make dreams come true.