10 Cloud Computing Channel Programs You Need To Know Now

Whether you're fully enmeshed in cloud computing or just dipping a toe in the cloud waters, in many cases it's going to be up to vendors to get you up to speed. Selling into the cloud is dramatically different than hardware sales and selling software licenses. Solution providers have to be ready to embrace monthly annuity payments and change their business models to accommodate them. They also have to sharpen their services focus to help customers adjust to new computing, storage and application environments.



Here we look at 10 vendors who get it. Ten vendors who have launched cloud-focused channel programs that enable their partners to go out and engage customers while ensuring those solution providers will have success doing so.



These are the ones to beat.

Rackspace isn't new to the cloud, but it is new to the cloud channel. Just recently Rackspace launched its cloud-focused partner program. The program, which was unveiled in February lets Rackspace resellers buy cloud services from the Rackspace Cloud based on volume discounts which start at four percent for $2,500 per month and up to 12 percent for $20,000 or more. In those instances, the partners own the customer relationship and can add their own services into the cloud to turn a profit on top of the discounts. Rackspace also offers an affiliate program through which referrals get 5 percent of what is billed to the end customer each month, while Rackspace owns the relationship.



The Rackspace cloud program also ties in a host of other partner offerings such as a Web portal for tracking and reporting, marketing and co-marketing materials, bulling services, support services and educational programs like Webinars.



At its off-set, the Rackspace cloud partner program will be separate from Rackspace's other partner programs.

NetSuite is rolling out the red carpet for solution providers it brings into the cloud computing fold. The vendor has launched a limited offer that gives resellers of its on-demand ERP, CRM and e-commerce applications 100 percent of the first-year subscription revenue generated by new customer contracts. While the unprecedented offer is invite only, it is sure to help some VARs get up to speed on the cloud and make NetSuite the vendor they hitch their wagon to.



NetSuite launched its channel program in 2002, but the new NetSuite SP 100 program unveiled this month promises some partners 100 percent of the margin on the first year of new contracts and 10 percent on annual renewals. The goal is to front-load revenue for new partners adjusting to the new cloud business model that lacks large up-front cash from hardware sales or software license sales.



NetSuite will offer new partners the opportunity to join the 100/10 percent plan or a 50/30 percent plan that offers 50 percent margin in the first year and 30 percent in subsequent years.



NetSuite said new partners will also receive other benefits of NetSuite's partner program, including sales and technical training, pre- and post-sales support, and marketing assistance.

Zenith Infotech gets it. The backup and disaster recovery vendor offers three flavors of channel programs, targeting three distinct segments of the market: managed services partners, backup and disaster recovery partners, and managed backup and disaster recovery partners. Each program offers partners between 30 and 45 days of platform or solution evaluation after the contract is signed. Meanwhile, partners have access to a pay-as-you-go model.



Other partner platforms and tools include access to a hosted platform for new client site configuration and third party tools and software like LogMeIn and more. For tech support, partners are assigned technical account managers and receive technical training like live Webinars, on-demand training videos, and technical training guides. Zenith Infotech partners receive support services through either the U.S. based product management team, NOC team or through BDR product support based on the type of partnership. Access to the partner support portal with educational videos, business center and marketing center is also available.

Infrastructure-as-a-Service player OpSource Cloud kicked off 2010 drawing a line in the sand against rivals Rackspace and Amazon with the launch of OpSource Cloud Builder partner programs.



Offering high referral compensation and reseller margins, OpSource Cloud has a global network of solution providers that range from VARs, systems integrators, distributors and cloud enablement technology providers. OpSource also has three distinct flavors of commitment that enable partners to dive in head first, or wade into the cloud computing pool at their own pace.



OpSource's referral partners earn 10 percent of the net fees for the first year the customer uses OpSource Cloud. Distributors, resellers and integration partners can earn between 15 percent and 25 percent commission or discount, based on volume, for driving customers to the OpSource Cloud, while still owning the customer relationship. And white label partners can quickly get into the cloud game without development costs and offer cloud solutions under their own branding with the potential to rake in 30 percent or more margin. With the white label program OpSource still delivers the cloud and it runs on OpSource's Cloud infrastructure, but the VAR makes the connection and provides first level support.

SaaS accounting vendor Intacct is hitting the two-year mark with its official channel program. In just a short time, the program accounted for roughly half of the Intacct's new business and generates roughly 75 to 80 percent of its sales. Intacct hit the channel hard with the March 2008 launch of its partner program, which offers partners ownership of the customer relationship, which contrasts other SaaS application vendors that retain control of financial and contractual relationships with subscribers.



Intacct offers on-demand financial management and accounting software for the SMB sweet spot (businesses with 25 to 1,000 employees) and competes with the likes of Microsoft, NetSuite and Sage. Last year, Intacct has brought in $29 million in venture funding since 2007 and now boasts more than 100 channel partners.



And while ownership of the customer relationship is key, Intacct also boasts high margins for both initial contracts and renewals, which start at 30 percent and can typically range up to 40 percent.

Letting solution providers build their own branded storage cloud, and letting MSPs resell storage services through smaller reseller partners who can't manage storage-as-a-service on their own, has given Vembu StorGrid the reputation as a channel friendly player.



Vembu has assembled a stable of more than 1,500 MSPs, VARs, ISPs, service providers and other partners that offer their customers online backup that the partners manage and own. While Vembu has made its name offering top-shelf support, the vendor's programs offer access to marketing collateral, professional services access and sneak peeks at early new versions.

eFolder doesn't sell direct. The vendor offers its SMB-focused private-labeled cloud backup, local backup and e-mail archiving 100 percent through the channel. And eFolder's partner commitment is evident, as the company was founded by long-time channel veterans.



eFolder takes an interesting approach offering partners private-label branding, instant provisioning, centralized monitoring and proactive alerting. Partners also have access to the partner center, a one-stop shop for documentation, technical notes, whitepapers and marketing collateral, all of which is brandable.



Partners of eFolder are given a strong monthly recurring revenue stream and margins of between 30 percent and 80 percent. On top of that, free technical support, free trial accounts and free NFR accounts are offered. Partners can also sell hybrid cloud storage offerings, which include a local disc-based backup appliance for fast restores while that appliance also connects to the cloud for remote backup.

U.K.-based ThinkGrid, which recently launched a U.S. channel program, wants to supplant Microsoft BPOS SaaS application suite and makes no bones about it. ThinkGrid said Microsoft BPOS partners receive too thin margins.



ThinkGrid offers IT services in the cloud and wants partners to have access to its wide range of on-demand IT services, aggressive monthly commissions for the life of their customers' contracts and support. ThinkGrid offers heavy margins of up to 40 percent from the services customers use over the life of the customer. ThinkGrid also lets partners add additional services for customers, whether its hosted virtual desktop, software-as-a-service, VoIP, virtual infrastructure and more. ThinkGrid partners own the client relationship while also having access to lead and go-to-market support.

Reflexion puts partners in the driver's seat. While 100 percent channel-focused, Reflexion offers hosted e-mail security services in the cloud sold exclusively through the channel. As such, Reflexion Total Control puts partner front and center.





Reflexion's partner program offers a fully brandable solution that lets partners tack their logo into in the message center, the welcome message, the spam digest and all other customer-facing messages to reinforce branding. The cloud e-mail security vendor also lets solution providers use the Reflexion Message Center to provision new customers and users and manage clients without Reflexion intervention. The Reflexion solution is also highly configurable, giving partners the control to tailor it to client needs. Reflexion has integrated with leading MSP platforms for more centralized infrastructure management, and outbound e-mail can alert solution providers to problems in clients' infrastructure in order for VARs to take proactive measures.



Reflexion is quick to note that it does not sell direct, it is 100 percent through distributors, solution providers and ISPs. And for partners, the company works to build an affordable, lucrative program that eliminates set-up charges and fees other than basic monthly subscription charges. Reflexion also offers a support system that puts partners in contact with real people and the company vows to "treat our smallest partners as if they were our largest partners."

Cloud platform vendor LongJump wants to help VARs and solution providers adapt to the current IT shift with a diversified SaaS offering. And to do so, LongJump features a partner program that lets VARs create profitable solutions for large and small projects and offer them out to clients on a subscription basis. Leveraging its platform-as-a-service gives VARs the ability to facilitate rapid application development while giving them a new recurring revenue stream bulked up by generous margins and self-set pricing models.



LongJump lets the VAR own the entire customer relationship and currently, VARs can join the LongJump program for just $15 per user per month. That price tag includes LongJump's pre-built and custom apps and lets reseller partners set the end user pricing.



Additional benefits include the ability for VARs to offer their own branded solutions; no program fees; recurring revenue based on the price the VAR sets; no hardware or software to license; and platform and product training. VARs can create and customize solutions, are guided through doing so and are certified on the LongJump platform. VARs also have access to technical sales support and additional sales and marketing materials, which can help close the deal.