Well, for starters they get a large commission on all monthly recurring revenue. The channel industry is evolving – it’s no longer focused on pushing boxes, but selling solutions. Companies want to work with partners that have a complete arsenal of solutions. Given the accelerating adoption of cloud computing (hosted virtual servers, hosted virtual desktops and backup in the cloud) channel partners are focused on adding these cloud services to their arsenal of solutions. From analysis that we have done with a national VAR partner, an average account executive makes 7x commissions selling a cloud solution vs. a similar on premise solution.
dinCloud has also successfully met its SLAs (service level agreements), which means that our channel partners can be comfortable that their end customers will not experience downtime. This is a major concern and roadblock for cloud adoption, so when channel partners find cloud providers with customer friendly SLAs that are actually being met, the result is a very successful all around partnership.
Furthermore, we often hear from channel partners that they don’t see any cloud provider out there that has an end-to-end infrastructure solution. dinCloud delivers business provisioning to customers, which means hosted virtual servers, hosted virtual desktops and backup in the cloud. End customers don’t want to work with multiple providers to get these different services – a “one stop shop” is very important in having a single point of accountability. Channel partners have been closing multiple deals with us because their end customers can pick and choose from a host of different cloud services.
Last but certainly not least, our channel partners use dinCloud’s proprietary cloud management software to orchestrate the cloud environment for their end customers. A cloud management software can cost a lot of money (perpetual licenses of $20K or per seat licenses of $1K), but dinCloud’s channel partners get this software for completely free. The primary reason for this is as dinCloud builds out the channel, we believe that showing value to channel partners will ultimately draw the line between the winners and the losers. While using our software, which is white-label enabled, our channel partners can demonstrate significant value to their end customers (provision, remote console, upgrade/downgrade, etc.). This better positions our channel partners to retain the end customers in a very competitive channel market. They are no longer just a vendor, but a trusted cloud partner for their end customers.
Channel partners continue to close multiple deals with us because: 1) they are getting compensated on a monthly basis; 2) have confidence in our ability to meet SLAs; 3) can pick and choose services from our end-to-end platform; 4) can manage all those services and show value to end customers through our white-label enabled cloud orchestration software.