According to collab9's Schatzle, resellers will ultimately benefit from these partnerships by gaining significant profitability and enhancing their business values by building out recurring revenue streams. By selling recurring cloud services at substantial margins and getting three- to five-year revenue streams, Cisco and collab9 sales have seen up to a 10x increase in the evaluation of a business, said Schatzle.
"The biggest thing a reseller would care about ... is it adds enormous value with business, creating recurring revenue streams, and they don't have to make the investments we made," said Schatzle. "They don't have to leverage the offering; we devised pricing where they will make more money because we are aggregating this investment."
Robert Mueller, executive solutions architect at MNJ Technologies Direct, a Comstor VAR based in Buffalo Grove, Ill., said the new partnership is beneficial in leveraging white-labeled Cisco solutions to customers.
"[We are] excited about Cisco's Hosted Collaboration Solutions through Collab9 as they are the chosen service provider of Comstor, our preferred Cisco distributor," said Mueller. "We're excited about leveraging our collective Cisco expertise to bring HCS solutions to our national customer base."
Furthermore, the company is looking to recruit resellers through Tech Data and Comstor partner relationships, said Schatzle.
"Our distributors will be recruiting the partners, and they need to meet Cisco's requirements, in that they are advanced unified communications certified," said Schatzle. "They'll be signing up non-binding agreements with the distributors that they are buying the solutions from."
In the future, Schatzle said he hopes to sign up between 50 and 100 partners through each of the distributors.
That's an "aggressive" forecast, Schatzle said, but Collab9 will help the distributors drive business, with marketing and demand generation. "We want to build out a successful business where we have enormous amounts of seats under management going forward."
PUBLISHED SEPT. 18, 2013