Wax Digital simplifies buying procurement software

Wax Digital, the UK eProcurement solutions provider,  announced a new approach to selling their products last week. They’re looking to make buying their software easier with a radical simplification of the licensing model for their on demand web3 platform.

Wax has done away with its previous nine integrated software modules, consolidating them from a licensing perspective into just three straightforward options:

  • web3 S2P – a fully integrated platform for managing the entire source to pay cycle (i.e. both their P2P and sourcing modules)
  • web3 P2P – automating and controlling purchasing from requisition to matched invoice
  • web3 eSourcing – for driving best value through electronic tenders and auctions

Customers buying onto any option get all the features and functionality available in that option as standard, priced according to a simple seat-based license fee. Total cost of ownership is lower, the firm claim,  and the process of acquiring and developing tools and processes is simplified.

And the firm says that “each web3 solution is supplied with Wax Digital’s integration toolkit, a set of purpose built components to easily integrate web3 with ERP and other back office systems”.

I asked Daniel Ball, their business development director, why they’d gone down this route.

“The message from the market is very clearly that customers hate being nickel and dimed for software functionality, especially when it is not really apparent from the outset what’s included and what’s extra. We’re trying to move away from that and be more open”.

Does this fit with a wider Wax Digital strategy – coming from the marketing side of business, I’ve always felt the founders of Wax had a somewhat different approach to life compared to many software firms?

“A lot of vendors in this space still rely on a complex mix of modular, transactional, supplier and other variable cost lines to drive additional revenues from unsuspecting customers and their trading partners! (Editor’s note; no names mentioned).  That’s not a game we want to play – when you invest, your licence fees buy you everything we put on display, no modular uplifts, no transactional fees, no supplier charges. Our software pricing should be as intuitive as the software itself”.

That’s an interesting line from Wax Digital. We’re all for transparency and simplicity in pricing models for software – I’m not clear it how big a differentiator this really is, but I can see that if they were in a final head to head competitive situation, it could just be the factor that makes the difference.

They’ve had some good client wins in the last year or so – we reported on the Nissan deal here – and along with Coupa, they’re really pushing the “usability” aspect of eProcurement. That’s something all procurement managers who have ever tried to persuade a user that “this 17-step computerised requisitioning process really is a great idea” will really appreciate.

They’ve also launched a new digital procurement resource centre  - Source Material.  We need to take a look at that and get back to you... but at first sight, it looks useful and interesting. More later.

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