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Calling Tech Data’s StreamOne an apps store for the channel is too easy. The Web-based service is a place where solution providers can source software licenses for themselves and their customers. But it’s really much more than that. It’s the foundation for what will make solution providers truly “system providers.”

StreamOne has many of the characteristics of what’s been popularized by consumer app stores. Software vendors and ISVs can use the service to promote and distribute their wares to the channel. Solution providers can rate the applications, giving their peers a sense of quality and experience. And it simplifies logistics in providing digital distribution of software to any location, eliminating the need for CDs and other media.

From a conceptual level, StreamOne isn’t unique or revolutionary. Internet prognosticators have talked about digital software distribution since the beginning of the Internet. Service providers such as Digital River have been distributing software digital for several years to consumers and businesses.

What makes StreamOne different are how it was built and its eventual capabilities.

TechData has been working on StreamOne for the better part of two years. Rather than partnering with a service provider or other third-party contractor, the world’s second largest technology distributor decided to build StreamOne from the ground up at cost of millions of dollars. The reason: diversification.

According to Joe Quaglia, the company’s senior vice president of U.S. marketing, Tech Data currently earns 17 percent of its revenue from software sales. The board of directors has mandated Tech Data increase software sales to 25 percent of revenue. StreamOne is the catalyst for that growth.

That’s the “why” behind StreamOne. The actual development turns into the “how” and creates the potential for “what if.”

During the development process, Tech Data started looking at how StreamOne worked and started asking “what if” questions. StreamOne was intended to simplify the software licensing process. The real prize would be if the service would make it easier for traditional solution providers to source software and build holistic systems.

The service is a catalogue of software that allows solution providers to select and acquire quickly. It providers copious amounts of information on each application, making the product selection crystal clear. This not just simplifies the licensing process, but makes it easier for solution providers to build attached sales opportunities and holistic hardware/software systems. What’s better, though, is solution providers can use the service to broker software sales transparently; this means end users won’t know the software is coming from Tech Data or StreamOne.

The real magic is behind the scenes, though. Solution providers can use StreamOne’s dashboard and tools to monitor account activity, broker software sales with their existing line of credit with Tech Data, and even create quotes under their own moniker. The management tools make software sales simpler without compromising the brand integrity or customer relationship of the solution provider.

StreamOne isn’t limited to on-premise software. It can also support software-as-a-service and infrastructure-as-a-service offerings, too. This gives solution providers choice and options for fulfilling their customers’ specific needs. All purchases are done through a shopping cart that’s no different than what’s found on Amazon.com’s or any retail shopping site; the only difference is the actual orders are parsed by solution provider account.

While rating systems and keyword searches help solution providers locate software packages, some of StreamOne’s tools and capabilities are limited. StreamOne doesn’t have a systems configurator or semantic search option, meaning solution providers can’t search for products based on their capabilities and capacities similar to how many computer retailers like Best Buy allow people to shop for computers. And it doesn’t have the ability to extend the shopping experience through solution providers to end users by means of an ecommerce interface.

Quaglia says both of these capabilities are in development for future releases.

StreamOne is potentially beneficial to thousands of independent software vendors that lack sales and channel go-to-market resources. StreamOne could provide them with a low-cost means for reaching solution providers and end users that otherwise would have never heard of them. StreamOne does have some advertising, which may annoy some users. But marketing is a necessary evil in practically every online offering.

StreamOne was built in collaboration with many of Tech Data’s solution providers and ISVs. Already, the service has more than 30 active vendors and 20 more in the queue. Quaglia expects the vendor population to grow between 300 and 500 over the next year.

Tech Data has done well with the design and development of StreamOne. While still a work in progress, it’s an impressive offering that does help demystify software licensing and procurement, and gives solution providers access to software in ways previously unavailable.