[Video Transcript]
Under the TAMCO Technology-as-a-Service payment program a feature called the Solution Replacement Guarantee, or SRG, provides customers with a remarkable degree of flexibility and control to address changing technology needs. From the very first day of their as a service subscription, all the way to the end of term, this feature will allow customers to change their technology solution without financial penalty. This means customers can replace the original solution and subscription with a new one at any time without being responsible for monthly payments that may still exist on the original term and without the usual financial challenges of a new solution. This is a powerful advantage over every other way to pay for technology solutions.
To explain the SRG further, let’s describe the guidelines associated with this guarantee and then look at a solution scenario to illustrate its value in use.
Solution Replacement Guarantee (SRG) Guidelines
When customers exercise the Solution Replacement Guarantee feature, the following guidelines apply:
- The current solution no longer scales to meet their needs and/or the customer requires different functionality that the current solution cannot accommodate.
- TAMCO needs to verify the SRG request.
- The new subscription term length is equal to or greater than the original term.
- The new subscription payment is equal to or greater than the original payment.
- The customer must be approved for the new agreement.
- The customer works with the original TAMCO Partner for the new solution.
Using The Solution Replacement Guarantee (SRG)
Seeing how the SRG is actually used adds further perspective, so consider the following scenario.
Rather than pay $50,000 to own a technology solution, a customer acquires that same solution with a TAMCO Technology as-a-Service subscription agreement. The subscription term is 60 months and the monthly payment is $1,038. However, 30 months into the 60-month term the customer has expanded and some of their processes have changed a bit, all of which has created a need for some technological capabilities that the original solution cannot provide. A new solution that does provide those features would cost $75,000.
The customer decides to exercise the Solution Replacement Guarantee so they can easily transition to the new technology without the typical financial headaches associated with acquiring new solutions. Note, there are still 30 months of payments remaining on the original subscription term. And those payments total $31,140. However, because the customer can exercise the SRG, those payments will be forgiven. The old subscription will be replaced with a new subscription. When the new solution is up and running the customer’s monthly as-a-service payment will simply change from $1,038 for the old solution to $1,557 for the new solution. Again, the customer has no responsibility for the $31,140 of remaining payments. Their new monthly payment is only associated with the $75,000 cost of the new solution and that payment is based on standard subscription pricing at that time.
As you can see, the Solution Replacement Guarantee really makes it easy for customers to have the right technology in place when they need it knowing that their manageable monthly subscription payment will simply adjust accordingly.
