Spotlight - Channel Insider
Empowering the next generation Channel
 

Bull’s Eye Awards
Nominations Open for Channel Insider 2009 Bull’s Eye Awards
Nominations are now open for the Channel Insider 2009 Bull’s Eye Awards, which recognize excellence in customer service, technology prowess, business acumen, channel leadership, communications and community building, and innovation among vendors, solution providers, distributors and channel services companies.



Sponsored Links
  • Control VM Sprawl, What You Don’t Know Can Hurt You
  • FREE Sophos Encryption Tool: Encrypt, compress and share files easily
  • LSI 6Gb/s Portfolio Expands to Include SATA+SAS HBAs
  • Reduce the cost of managing your mobile workers.
  • Find out 7 Ways to Drive Data Center Efficiency
  • SonicWALL breaks through network and email gridlock
  • Save up to 40% on calling costs with Avaya Aura™



  •  

    Salesforce.com Eyes VARs as Cloud Computing Partners

    in Spotlight


    Article Rating:starstarstarstarstar / 2
    Article Views: 2396

    Rate This Article:
    Add This Article To:
    A newly launched reseller partner program allows consulting VAR partners to resell Saleforce.com’s Force.com enterprise cloud computing platform and includes provisions for recurring revenue.

    Salesforce.com on Wednesday threw a stake in the ground to demonstrate that its cloud computing platform offers a viable profitability engine for its partners.

    The software-as-a-service pioneer launched a new reseller partner program that allows consulting VAR partners to resell Salesforce.com’s Force.com enterprise cloud computing platform. The company is looking for partners to resell the platform as a service, but also develop their own customized solutions running on the platform, according to Mark Trang, senior director of partner marketing. Participation in the program is free and includes enablement, training and other resources.

    How the channel makes money from cloud computing has been a major sticking point for solution providers thinking about reorienting their organizations, Trang said. 

    >> Check out: Framing a Common Definition for Cloud Computing

    “With cloud computing, pricing has been there for end customers, developers and ISVs, but when it comes to the channel, there’s been a big gap,” Trang said. “Partners have told us they are interested but have not seen a clear path to profitability to make the transition.”

    Resource Library:

    The business and pricing model that Salesforce.com has concocted includes recurring revenue for partners—a big plus—and the ability to include add-on and support services to the sale. Partners pay Salesforce.com for the services they resell, at prices set by Salesforce, but then are free to bill the end customers directly at the prices of their choosing. Entry-level Force.com pricing for VARs begins at $7.50 per user per month.

    Steven Warshawsky, director at Perficient, a $225 million integrator in Austin, Texas, said his organization recently completed an assessment of several cloud-based platform providers, including Microsoft, Google and Amazon, but in the end signed on as a new Salesforce.com Force.com reseller.

    The reasons were threefold, Warshawsky said: One, the Force.com platform was most mature, having been used by end customers and developers for several years. By contrast, Microsoft’s cloud computing platform, Azure, is not expected to be generally available until this fall. Second, Force.com is multitenant, while some of the other platforms were single tenant-based, which Warshawsky says does not lend itself to a completely off-premises services-based model.

    Lastly, he points to the attraction of the recurring revenue model. VARs in the Salesforce.com cloud program initially sell platform licenses to their customers for upfront revenue, but then are permitted to reap recurring revenue over the life of the customer contract.

    “Salesforce.com is certainly making it so we can offer clients more bundled services and create a longer-term relationship by packaging support along with the platform services,” he said. “These are all things that went into the decision.”






    Discuss Salesforce.com Eyes VARs as Cloud Computing Partners
     
    >>> Be the FIRST to comment on this article!
     

     
     
    >>> More Spotlight Articles          >>> More By Carolyn April
     


     


    [ci] feeds
    XML
    Add Channel News, Product Reviews, Trends and Analysis to your RSS newsreader or My Yahoo!


    HTML PLAIN TEXT

    Keep on top of news for VARs and Resellers with CI's Weekly Newsletter and Alerts.

     


    CHANNEL RESOURCE CENTER
     
     
    Enterprise Mobility Zone
    The Enterprise Mobility Zone (EMZ) blog is a tool designed to help senior IT executives discuss, create and deploy next-generation mobile strategies in their organizations.
    Go beyond yesterday's tactical approach to mobility!
     
    Build A More Efficient Data Center
    Demands are growing but budgets are not. Solve your pressing IT issues using the resources you already have. Determine which technologies can help you drive efficiencies and how they are applied. Gain a quick ROI on new initiatives
    Find out how
    Let Enterprise TechBrief do the work for you. Aggregated content, tech news, product reviews, vendor updates, how-to’s—all you need to boost your efficiencies and cut costs, all from one place.
    enterprisetechbrief.com