Software Distribution: The Channels Are Changing

McCarthy, Ed
August 2002
Journal of Financial Planning;Aug2002, Vol. 15 Issue 8, p50
Academic Journal
This article discusses changes in the distribution channels for financial advisors' software. First, a number of vendors have been adopting a Web-based or application service provider (ASP) distribution model. There also has been a blurring of the line between service and software providers with leading custodians starting to act as software distributors. From a business perspective, software vendors' decision to focus on financial service institutions (FSI) and broker/dealers (B/D) makes perfect sense. Advisors who have been in the business for more than a few yeas have survived challenges from new technologies in the past and they are skeptical that technology alone will hurt their business. Other advisors believe that even if the larger FSIs and B/Ds gain a head start with a particular technology, software entrepreneurs will still be willing to develop a competitive product for the RIA market. Individual advisory firms might lack the market clout needed to attract software developers, but custodian firms serving these firms can offer the volume the vendors need. The distribution channels for advisors' software continue to evolve. Developers' desire for marketing scales of economy, the Web, and custodians' desires to move beyond providing transactions and portfolio record keeping are all influencing how advisors obtain the software they need to run their practices. Although there will always be a role for the enterprising developers who decide to sell directly advisors, direct sales might soon become the exception instead of the rule.


Related Articles

  • SGI Looks To Channel. Kovar, Joseph F. // CRN;7/11/2005, Issue 1154, p65 

    The article informs that following up on a promise it recently made to solution providers, SGI Inc. is now offering a new line of entry-level products geared to distribution channel. The vendor, known more for its direct sales of high-end computing and visualization systems, has realized it...

  • TEST CENTER: HELP US TO HELP YOU. Ohlhorst, Frank J. // CRN;9/12/2005, Issue 1162, p16 

    The article reports that most solution providers have encountered an unsolvable problem, where regardless of the efforts employed, a vendor's technology just does not work as expected. The usual outcome of that situation turns into a campaign of finger-pointing, missed deadlines and plenty of...

  • ASP you like it. Chrumka, Anthony // Money Marketing;2/7/2002, p58 

    Discusses the pros and cons of an application service provider (ASP) for independent financial advisers (IFAs). Concept of an ASP business; Factors IFAs should consider when implementing ASP.

  • No clean sweep for ASPs. Middleton, Guy // Euronet;Oct2001, Issue 16, p22 

    Focuses on the status of application service providers in Europe. Transformation of applications into services; Development of direct customer relationships with service providers; Proposition of standard application to a range of customers.

  • SAP looks to invigorate U.S. sales. Bednarz, Ann // Network World;6/3/2002, Vol. 19 Issue 22, p10 

    Focuses on an application strategy introduced by SAP in Orlando, Florida. Emphasis on collaborative application; Use of mySAP Technology in the infrastructure platform; Role of the product in enhancing customer relationship management software.

  • ASPs struggle to sell a confusing concept. Howarth, Brad // BRW;02/23/2001, Vol. 23 Issue 7, p42 

    Discusses the slow growth progress of application service providers (ASP), software managers that combine clients' software and host it at a remote location. Clients' underestimating of the cost and complexity of the process; Failure of the ASP to misunderstood the requirements of clients; High...

  • Channel unfazed by economy. Krakora, Diane // eWeek;1/21/2008, Vol. 25 Issue 3, Special section p16 

    The article reflects on the forecast of Amazon Consulting regarding the economic status of the application service providers in 2008. According to the author, the management is hearing three trends from solution providers and vendors in which they expect it will shape the success and...

  • Better consumer experience in store thanks to mobile app. Shuffler, Jason // PRWeek (U.S. Edition);Feb2011, Vol. 14 Issue 2, p19 

    The article features the mobile application service from Box.net.

  • Strategies for Combating Gray Market Activity. Myers, Matthew B.; Griffith, David A. // Business Horizons;Nov/Dec99, Vol. 42 Issue 6, p2 

    Enumerates strategies for combating gray market activity. Meaning of the term gray market or parallel importing; How gray markets occur; Effects of gray markets on export operations; Problems associated with gray market imports; Industries with the greatest gray market threat.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics