Rackspace Preps Channel For Cloud Revolution With Single Partner Program

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Rackspace Hosting has gone full steam ahead with a single, unified partner program, tying together its four disparate programs around cloud computing, managed hosting, e-mail hosting and Rackspace Cloud Drive into one program for its more than 4,500 partners.

Rackspace first hinted at a unified partner program in October at its partner conference. The new global program officially launched on Tuesday. Rackspace has said that the channel is integral to the company's overall success and critical to its vision of top-notch service.

"Without a doubt, our goal is to be the hosting industry's leading channel program," Robert Fuller, vice president of worldwide channel sales, said in an interview, adding that the program is designed to help partners make the leap from selling hosted services to selling cloud computing services.

"The enhanced Rackspace Partner Program is all about empowering our channel partners for the cloud revolution…," Fuller said. "As the market shifts from traditional on-premise server management to cloud-hosted services, we are empowering our channel partners to capitalize on this significant business opportunity and increase their trusted advisor status with their customers."

A single channel program, Fuller said, will make it easier for Rackspace partners to refer and resell additional services and boost revenue opportunities. Through the program, San Antonio-based Rackspace will offer upgraded benefits and a new compensation structure, it will also feature a single contract to allow partners to receive compensation for qualifying resales and referrals across Rackspace's full portfolio, which includes cloud hosting with Cloud Servers and Cloud Files; dedicated hosting; e-mail hosting via Rackspace E-mail, Hosted Microsoft Exchange and Hosted Microsoft SharePoint; and Rackspace Cloud Drive, the fruits of its 2008 acquisition of Jungle Disk.

Fuller said Rackspace built the program around a five-pronged vision: to offer a broad range of hosted services and support for those services; to offer infrastructure that is easily accessible; to provide partners a comprehensive tool set including training, certifications and other offerings; to give the channel program benefits; and to have a strong Net Promoter Score (NPS), a satisfaction rating.

"This is a new muscle we're exercising, growing and developing rapidly," Fuller said, noting that combining four programs into one was "like bringing together.

Sean McCaffery, director of channel sales and worldwide operations at Rackspace, said a main goal for the blending of Rackspace's partner programs was to make the company more partner-friendly. To do so, the Rackspace Partner Program will feature a single contract and a unified commission structure. The new Rackspace Partner Program will also feature four partner tiers, Platinum, Gold, Silver and Member, each of which include all Rackspace products and rewards partners with points for business secured, referred or resold.

McCaffery said the point system will work like this: each dollar of managed hosting sold equals one point; each dollar of cloud computing sold equals two points and each dollar of e-mail and apps sold equals five points. McCaffery said the point system was designed based on average spend in each category.

Partner levels are based on points, with Platinum requiring 75,000 points; Gold requiring 30,000; Silver requiring 2,500; and Member partners requiring 500. McCaffery said the point and tier structure makes it easier to move up tiers and existing partners will enter the new Rackspace Partner Program at their current levels with their current pricing.


NEXT: New Rackspace Partner Program Makes VARs More 'Effective And Efficient'

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