FAQs

What does HybridSaaS mean?

To most technology companies SaaS means “Software as a Service”.  However, BlueStar has gone one step further and upgraded SaaS to mean “Solution as a Service”.  This allows our Solutions to contain software, as well as hardware and services.  Thus, our HybridSaaS becomes a flexible finance program that can be customized by our partners to fit their individual business models and go-to-market strategies.

What business models does BlueStar’s HybridSaaS Program accommodate?

  1. CAPEX (Capital Expenditure) - The entire cost for the solution is paid up front as in a traditional sales model.
  2. OPEX (Operational Expenditure) - The cost for the solution is paid in monthly or annual installments.
  3. Subscription Based Model - The cost of the solution is based on the consumption of units of “X”, where is “X” could be units of time, like a month or year. In a blockchain solution, “X” could be gigs of data locked down and secured, or number of transactions secured. In last mile delivery solutions, the units may be miles delivered or POs delivered.
  4. Rip & Replace Model - The cost of the solution is paid on a monthly basis, and after the terms of the agreement, the entire solution is completely replaced with new hardware, software, and services and another contract is signed and the process is repeated. Rip & Replace is generally combined with a Subscription Finance Model.

Do I need an In-a-Box™ bundle to take advantage of the HybridSaaS Finance Option?

No, but it does help since you can bundle the hardware, software, your services, and any third-party services together in one bundle which can be offered to your prospects in a traditional one payment CAPEX or OPEX subscription model paid over the terms of the agreement.  Secondly, it is easier to market technology solutions as In-a-Box™ Solutions as opposed to a separate array of hardware, software, and services.

What types of products can be included in an In-a-Box™?

Hardware offered on BlueStar’s line card, your own branded hardware, your branded software, 3rd party software, your services, 3rd party services, hardware warranty contracts, help desk contracts, and/or training products. 

What are steps to build an In-a-Box™ bundle? 

  1. Click on BlueStar In-a-Box Builder and complete the form, by answering as many questions as possible, and click submit at the end of the form.
  2. You will receive a call from one of our In-a-Box™ representatives who will work with you to complete any unanswered questions and complete your In-a-Box™ solution.
  3. Once your bundle is fully completed and priced it will be loaded into your own HybridSaaS Finance Portal for your sales team to quote solutions for your prospects.

What is a BlueStar HybridSaaS Finance Portal?

It’s a sales tools for your sales team to use if you sell direct, and sales tool for your resellers’ sales teams if you have an indirect sales strategy and sell via the channel.  It allows your sales-reps and resellers to market both a CAPEX, OPEX, Subscription Based, or Rip & Replace Solutions to prospects.  It requires you to enter your unique User-ID and password to use.   The portal has all of the components of your solution or In-a-Box™ including hardware, software, services, warranties, and etc., so your salesperson can efficiently provide electronic quick quotes, formal proposals, submit ACH Authorization Forms, and End-user Credit Applications.  Your sales reps can easily convert a quote into an accepted proposal in just minutes.  The BlueStar team will assist in setting up the portal and training your sales team on portal usage.

Can I customize the HybridSaaS Finance program to fit my business model? 

Yes, and you can determine to be paid at the time of the install or through monthly payments over 36, 48, or 50 months.  Here are a few examples of how our HybridSaaS program can be altered to fit your business.  Let’s say you want to offer multiple financing or payment plans to your prospects to increase your odds of closing the business, but you want to be paid up-front like a traditional CAPEX plan.  You could offer your prospect the following flexible payment plans:

  1. CAPEX (Capital Expenditure) - The entire cost for the solution is paid up front as in a traditional sales model.
  2. OPEX (Operational Expenditure) - The cost for the solution is paid in monthly or annual installments.
  3. Subscription Based Model - The cost of the solution is based on the consumption of units of “X”, where is “X” could be units of time, like a month or year. In a blockchain solution, “X” could be gigs of data locked down and secured, or number of transactions secured. In last mile delivery solutions, the units may be miles delivered or POs delivered.
  4. Rip & Replace Model - The cost of the solution is paid on a monthly basis, and after the terms of the agreement, the entire solution is completely replaced with new hardware, software, and services and another contract is signed and the process is repeated. Rip & Replace is generally combined with a Subscription Finance Model.

Are my only two payment types: 100% at the time of the install or equal monthly payments over the time period of the contract?  

No.  You could receive 100% of the payment after the completion of the install.  Or participate in recurring revenue and receive equal monthly payments spread over the contract’s lifespan, or any combination of the two aforementioned (Example, 30% at the completion of the install, and 70% in recurring revenue in monthly payments over the term of the contract).  You choose the payment plan that best supports your sales team’s compensation plan and your business model.

In what regions of the Americas can I use the HybridSaaS Finance Program?  

You can use the program in the United States and Canada.  There may be times when you can use the HybridSaaS program outside North America, when you have a North American based customer installing a solution outside North America.  Please contact our HybridSaaS Team to discuss these types of international customers.

What range of opportunities can I use with the HybridSaaS Finance Program?  

  1. Deals between $2,500 and $15,000,000. 
  2. Deals between $2,500 and $50,000 can be quoted instantly via the HybridSaaS Finance Portal. 
  3. Deals greater than $50,000 please call our HybridSaaS Team to discuss. 

How long does it take to get financing through HybridSaaS Portal?

Quick Quotes are available on demand.  Typical turn-around time for an applicant 24-48 hours.

Can any business qualify for HybridSaaS?

Any business applying for credit via HybridSaaS is subject to credit approval through the lender.

Why are subscription-based technology solutions becoming so popular?  

By 2024, 40% of today’s Channel Executives will retire, and by 2025, 70% of the Channel will be comprised of Millennials.  This progression of younger business owners will occur with the end-users as well.  Millennials grew up consuming technology with subscription-based models in the cell phone, music, and video gaming markets.  They gravitate to solutions where they can consume units of technology, and only pay for what they consume. Thus, they will prefer to consume technology in a subscription model as opposed to a CAPEX solution.  

What are some examples of Subscription-based technology models?  

The most popular instance is where technology is consumed by units of time.  If you use the software for a month, you pay for a month’s usage.  Some of the Blockchain solutions resemble the data plans of the cell phone companies.  These plans are based on the usage or consumption of GIGs of data downloaded or uploaded.  Some Last Mile Delivery Solutions for Supply Chain are based on the number of miles a product was delivered, while others are based on the DIM weight of the package and others on the number of point of sale bundles delivered.  Our HybridSaaS Finance Program was designed to be future proof for an ever-changing technology market.

We are ready to finance future subscription-based deals as software companies continue to develop new units for technology consumption.

Why should I consider offering my customers a Rip & Replace Solution?  

There are several great reasons.

  1. Do you plan on using your current cell phone for the next three to five years?  Most likely, not.  So, why would you expect your customers to use the same form factor of technology in the same time period?
  2. Competitors are approaching your customers with competing or new technology solutions all the time with or without your knowledge. Think of how “sticky” you could make your solution if your customers knew every three to five years they would receive a new upgrade to their solution with the most current form factor, purpose-built hardware, the most up-to-date, feature-rich software, or maybe a new network to optimize 5G service over 4G service.  Does your competition offer such value-added services?  Probably not, and remember it costs much less to retain a customer versus secure a new customer.  Increase customer loyalty, and secure future refresh opportunities on a predetermined time line.
  3. Your prospects have a multitude of different business models, so why not offer multiple financing solutions.  Providing your perspective customers with multiple financing models to choose from can increase your sales-team’s closure rate over your competition.  Require your sale reps to quote everything from a CAPEX, to a full SaaS, to a Subscription Base, to a Rip & Replace solutions.

Is there a fee for the subscription model application?

Yes, there is a one-time $45 application fee for each application that is processed through our program.

If I am interested in offering HybridSAAS to my end users, what is the turnaround time?

Once the bundled items are prepared with the BlueStar team and your company, it will take 2-3 days to have the portal ready for you to review.

Are the financial rates used in the Quick Quoting tool the same as the formal quote?

No, they are based on higher interest rates to protect the quotes you are providing. The full quoting tool will have a more accurate monthly payment. 

Do I need to be a member of TEConnect to take advantage of the HybridSaaS finance option?

No, but if you are a technology or software partner you should consider the benefits of registering for the program. BlueStar’s TEConnect is the Channels #1 Accelerator Program for technology software companies. Over the past two decades, BlueStar has continually grown their value-add offerings architected specifically for technology software companies. The goal of our TECconnect Program is assist tech companies, scale, embrace the Channel, and find incremental new revenue.