2 page Case Study - Posted 7/23/2008

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Digiterre

U.K. Software Vendor Cuts Costs, Secures New Business with Licensing Programme

Independent software vendor (ISV) Digiterre develops technology for the investment management sector by customising core Microsoft® applications. Recognising that customers wanted managed solutions inclusive of licensing, upgrades, and software updates, Digiterre joined the Microsoft ISV Royalty Licensing Programme. Now, it offers customers full support for both Microsoft and proprietary components through a simple sales process and a single point of contact.

Business Needs

Digiterre is a UK-based financial technology company. Founded in 1999, it provides software products, solutions and customised development services to the hedge fund and investment management community. Digiterre’s business model is based on meeting both common industry needs and those of individual customers by combining core vendor systems with proprietary components.

A good example of this is the company’s customer relationship management (CRM) system, dCRM. Based on Microsoft Dynamics® CRM 3.0, the solution is tailored to give customers improved visibility and control of current and prospective investor relationships. Another is dConfirm, which automates parts of the over-the-counter (OTC) derivatives confirmation process using a combination of Microsoft Office SharePoint® Server 2007 and Microsoft .NET connection software. This is used to service hedge funds and other companies in the investment services market.

Listening to customer feedback, Chief Executive Officer Ian Murrin recognised a common preference, relating not to the technology itself but to the way it was sold. Customers wanted a full service offering, where Digiterre took responsibility for:

• Product development and customisation
• All processes surrounding deployment
• Long-term support for both core and proprietary elements, including software assurances, upgrades, fixes, and issue resolution

“We wanted to offer customers highly functional products combining Microsoft technology and our own customisations—along with a package of services that would remove complexity and provide one contact for all maintenance and development issues,” says Murrin.

With the help of the Royalty Licensing Programme, we can now present our products as a complete package that corresponds exactly with the needs of our clients. Ian Murrin Chief Executive Officer Digiterre

Historically, customers purchased the Microsoft products and necessary licences, and Digiterre added customisations. However, to contractually provide ongoing support, Digiterre needed control over further purchases of Microsoft licences. “Our aim was to say to customers: ‘It’s our problem, not yours. For a single fee, we can look after all these processes for you,’” says Murrin.

Solution

As a direct response to these challenges, Digiterre decided to join the Microsoft ISV Royalty Licensing Programme. This is designed for ISVs that use Microsoft technology to create proprietary products for commercial distribution. The Microsoft component is licensed as part of the unified solution. Murrin says: “Now, we supply a complete service: software assurance, licence upgrades, product enhancements, and long-term support.”

One of the first customers to benefit from the new service was a large investment management firm seeking a fully managed service. The company had undergone a change of ownership in early 2007, resulting in an opportunity to review its IT infrastructure. The firm runs multiple funds—including assets within absolute return strategies, long-only funds and single-strategy hedge funds. Each fund has different marketing and investor relations processes, and this creates increased management complexity when compared to many hedge fund-only or long-only businesses. Managing these various business streams effectively was a challenge, particularly because the existing marketing and business development systems were manually driven. It became clear that a new CRM system was essential to the long-term evolution of the company.

The investment manager considered a number of competitive suppliers, one of which was Digiterre. Murrin says: “We won this client because we offered a one-stop shop for both dCRM and dConfirm, our OTC derivatives confirmations product, which differentiated us from our competitors.”

Digiterre will partner with the company for the next five years, providing a fully managed service that covers all components of both solutions. “Our approach is based on thought leadership and ongoing customer education, designed to maximise the value our customers derive from our products,” says Murrin. “The Royalty Licensing Programme is precisely what we needed to build on this strategy. It helps us offer a highly efficient, personalised, all-encompassing level of service, rather than just a product.”

Benefits

Digiterre provided the customer with a total solution that forms the basis of a long-term partnership. The customer can focus on developing its business rather than software development and support. A single point of contact simplifies administrative and maintenance processes and ensures that the solution grows with its business. In turn, this will maximise the customer’s return on investment. Additionally, Digiterre’s developers can deliver solutions to customers faster, because they do not have to wait for core Microsoft products to be shipped. Murrin says: “With the help of the Royalty Licensing Programme, we can now present our products as a complete package that meets the customer needs we have identified.”

• With a new, comprehensive product offering, Digiterre has improved its competitive edge.
• Since joining the Royalty Licensing Programme, Digiterre has seen a rise in profits.
• The company has secured a long-term relationship with multiple new customers and an additional revenue stream.
• The company has reduced installation, configuration, update, and support costs, which it can extend to customers as a price advantage.
• Developers can deliver solutions within 24 hours from trial to launch, without waiting for the product to be shipped. Previously this took weeks or months.
• International customers are served by worldwide licensing.
• Hedge funds can buy an embedded solution by way of a simplified sales process.
• Customers have one port of call for licences, upgrades, and software updates.
• By promoting its solutions alongside Microsoft products, Digiterre consolidates its reputation as a provider of high-quality customised solutions for the investment management community.
• The company has access to royalty-free distribution of demonstration copies for use in sales presentations and 120-day evaluation copies distributed to customers.

For more information about other Microsoft customer successes, please visit: www.microsoft.com/resources/casestudies

This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

Document published July 2008