Direct selling infrastructure-as-a-service provider ElasticHosts is the latest vendor to set up a channel to rebrand and flog its white label cloud utility.
Clearly it has realised that without investing in a larger internal sales force, the reach of the business is limited.
According to ElasticHosts CEO Richard Davies the high volume mass market cloud giants don't allow resellers to rebadge services, which "puts the channel in a difficult position".
"Customers want to move to the cloud but resellers want to keep those relationships [close] rather than sending them out [to a large cloud provider] and never seeing them again," he claimed.
This of course is something that ElasticHosts would never do – channel friendliness is written into the contract, said Davies, who said the firm sells to early adopter SMEs.
ElasticHosts is dangling a 30 per cent margin on recurring revenues for MSPs, resellers or system integrators that jump on board. It costs the partner firm £500 to sign up and then £100 each month.
World + dog are getting into the cloud game, with distributors pushing aggregation services and all of the major vendors putting together their own versions for the channel.
It is arguably easier for resellers to stick to the firms they know and to convince customers to adopt an off-premise tech delivery model when a well known US brand is behind the services. ®