Channel Focus, SMB Push Drive Carbonite To Solid First Quarter

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Carbonite in the second quarter expects to start shipping a hybrid backup appliance with 1 TB of local storage and 500 GB of cloud storage, Friend said. It will make bare metal images of a company's servers that can be replicated to the cloud and is slated to be available for $99 per month, he said.

Just as important is Carbonite's expanding channel business. Friend said the company's base of solution providers increased 35 percent in 2013 compared with 2012, and that Carbonite has relationships with distributors Tech Data, D&H Distributing and Synnex.

"We were pleased with the Q1 results of the channel and look forward to the day when most, if not all, of our sales can be handled by our channel partners," he said.

Anthony Folger, Carbonite CFO and treasurer, said on the earnings call that the company's small-business bookings grew 30 percent in the first quarter of 2014 vs. the same period last year, and accounted for 28 percent of total bookings for the quarter compared with 24 percent last year. Renewal rates for small-business customers are higher than for consumers, he added.

"Our transition from the direct-to-consumer to an indirect-channel-led SMB model is beginning to accelerate, and I expect that the investments we made will position us well in the second half of 2014 and beyond," Folger said.

Folger expanded on the company's increased partner base, saying that it ended the first quarter with approximately 4,700 reseller partners, up from 3,300 to 3,400 partners in the same period last year.

"So we're still continuing to see good traction," he said. "And I guess I would say that the reseller channel is evolving in that we're starting to move maybe from the sort of 'break-fix jobs,' as we refer to them, as the places where you bring your PC for service, and we're starting to see more and more traction in the sort of regional value-added reseller type of community. So I think we're moving up the stack a little bit in terms of the reseller channel, and we feel pretty good about that."


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