Hostway Launches New IaaS Reseller Program at Parallels Summit 2014

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Cloud hosting provider Hostway Corporation announced on Tuesday a new hosted IaaS program for resellers to sell private-labeled cloud compute.

The new reseller platform integrates Hostway’s FlexCloud Servers public cloud hosting service with Hostway-hosted Parallels Automation software for managing IaaS.

“In partnering with Parallels we were able to build a nice little package around our FlexCloud server product that offers a truly private-label solution and turnkey process for resellers,” Russell Griffin, channel program director, Hostway says.

The program is open to small and mid-sized VARs, MSPs and consultancies, whether they are in Parallels ecosystem or not.

“Traditionally Hostway has had great success customizing and building integrations to large and non-traditional hosting providers,” Griffin says. “White-labeling or private-labeling is nothing new to us, and it’s nothing we shy away from.”

According to Hostway VP of hosted services Todd Benjamin, resellers and referrals account for around 30 percent of its revenue.

“Initially we invested in large relationships with large telecos,” he says. “They’re great partners, they’ve obviously got lots of customers and lots of opportunity but there is a limited number of them. They are only in a position to take on new products at infrequent times. It’s good business for us but it’s not necessarily repeatable or controllable.”

The package includes a white-labeled reseller storefront for provisioning, and customizable pricing and packages which can bundle their solutions. It also offers resellers a tiered discount structure that increases resellers’ discount as sales grow.

“[The platform] makes it easy for somebody who wants to make cloud part of their portfolio and sees their typically former hardware business being cannibalized by cloud offerings,” Griffin says. “It helps them step up to the plate and make some of that revenue back.”

The platform expands on a partnership between Hostway and Parallels announced last year at Parallels Summit.

This announcement comes less than a week after Hostway named Robert Boles CEO and talked about plans to grow its IaaS offering.

While the program only includes FlexCloud IaaS for now, there are plans to add Open-Xchange App Suite for email and collaboration, domain name registration and general web hosting.

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