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As Axcient grows and broadens, what has happened to your partner base? How are they as a group changing too?
We have small managed service provider shops that get up and running, and we have some of the largest MSPs in the industry that have chosen Axcient as their platform of choice. We are also seeing more traction in VAR market.
I am not a believer of everything is going to MSPs. There's a lot of hype around MSPs and the VAR will go out of business. That's proven to be untrue. VARs want to augment with services and provide better business value to customers. When you provide meaningful, tangible value to customers, you will be successful. You have to be more of a value provider to business, not just hardware and software and billable services. Be that point of knowledge for a business.
You might be selling this hardware for a virtualization project, but you can also say let me introduce you to [Axcient] where you will never have downtime. We're seeing traction in the VAR market. They're pulling us into midmarket customers. That profile is expanding.
How are your distributor relationships with Synnex and Ingram Micro going? Any plans on adding more distributors any time soon?
We're very happy with those relationships. We're starting to see traction. That said, we're always looking to expand partnerships. We have nothing specifically in mind but we're constantly looking to accelerate the growth of business. We want to change the industry, change the way people think about protecting systems. We continue to evaluate different paths to do that, and different distribution relationships will play a part in that. But, that's not to say we're not very happy with Ingram and Synnex.
There's no shortage of companies that want to figure out a way to partner with us. The key to success is focus and execution and choosing which opportunities make sense.
As your number of partners has grown, how have you had to change internally, in terms of creating more tiers for your partner program or more benefits for those willing to make a more significant investment?
We launched in Q2 a tiered partner program with Elite, Premier and Regular partners. With that comes a number of benefits. Elite partners get the best support, SLAs, more MDF, training, dedicated account and marketing managers. Premier [partners] get similar [benefits] but not at the same scale. What we've created is working extremely well. We've seen phenomenal results, with two quarters in place.