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Profit From the Cloud

Posted on 2.23.2010

Rackspace has taken the biggest step yet toward its commitment to being the easiest, most flexible cloud computing provider on the market, unveiling a new partner program for resellers and affiliates.

Announced by The Rackspace Cloud division of Rackspace Hosting, the Cloud Partner Program is the result of feedback from the company’s large network of existing solution partners. It focuses on streamlining procedures for partners and their customers, such as set-up, sign-up and payment, and it features a Web portal for tracking and reporting, Webinars and marketing collateral, and standards-based APIs upon which are easy to build.

The new program, considered an extension of Rackspace’s rapidly growing cloud ecosystem, is designed to reward partners for reselling and providing customer referrals. The Rackspace Cloud Reseller Program is for partners who want to buy their hosting services directly from Rackspace and re-sell them to their own customer base. By dividing their hosting services into smaller bundles, partners can theoretically generate a profit from their customer fees.

As a reseller, partners may offer their own billing and technical support or choose to use The Rackspace Cloud for both functions. The new program offers discounts of up to 12 percent for resellers moving large volumes of cloud hosting across Rackspace Cloud’s services, including the recently announced cloud servers for Windows Beta. The popular beta program allows users to take advantage of Cloud Server’s new and existing features, including control panel and API access for create, delete, reboot and rename functions.

“Working with The Rackspace Cloud in conjunction with their new partner program, Kaavo has been able to extend our reach through co-marketing opportunities and, at the same time, generate a new and significant stream of revenue,” said Jamal Mazhar, Kaavo CEO and a Rackspace Cloud Reseller partner. “All my interactions with Rackspace, whether through the API or their friendly Rackers, have been far beyond pleasant.”

The Rackspace Cloud Affiliate Program offers partners from 5 to 7 percent (depending on the total number of referrals) of a referred hosting customer’s monthly payments for a period of up to three years. Rackspace provides banners, buttons and text links that track visitors for 90 days after clicking a link. This program is based on a pay-per-sale model, and commissions start during the partner’s first month of active billing.

“The Rackspace Cloud has made it extremely easy for us to participate in this program as an affiliate partner and ultimately expand our business,” said Yang Yang, founder of Kavoir.com and a Rackspace Cloud Affiliate partner. “We’ve increased our revenue opportunities exponentially, without the need to invest a lot of time or money in managing the program. Instead, we can spend more time servicing our customers.”

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