Axcient’s SaaS:FLO – The Only Channel Program To Give VARs 2 Years of Margin On Day One!

Software-as-a-Service (SaaS) and the cloud have been good for many businesses. The elastic nature of both SaaS and cloud have enabled customers to reduce capex, simplify deployment, and seamlessly scale while providing built-in anywhere productivity. Vendors like Salesforce.com, NetSuite, Marketo, Workday, and others have spawned an entire ecosystem of developer and deployment partners to deliver new services and complementary product offerings. But Value-Added Resellers have been largely left out in the cold. Why?

VARs traditionally sell software and hardware to their customers and get paid for it at the time the contract gets signed, earning hefty margins. With the SaaS subscription model, customers pay less – a lot less – up front. It’s a “pay as you go” model, and SaaS vendors make money over time, which means that channel partners get compensated at the same rate customers pay the SaaS vendor: monthly.

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Is it any wonder VARs haven’t sold SaaS products successfully?

Not unlike other cloud vendors, Axcient also tried to sell its Business Recovery Cloud solution through the traditional Value-Added Reseller (VAR) channel. Not unlike every other SaaS company, the results were less than stellar. While our Managed Service Provider (MSP) partners quickly understood the value of recurring revenue and add-on services, VARs were not set up for, or properly incentivized, to sell Axcient. As we talked to our partners, gathered feedback, and understood how their sales models truly worked, we realized the SaaS industry was approaching VARs completely wrong and we decided to do something about it.

That’s why today we officially launched a new channel partner program – SaaS:FLO – short for “Software as a Service: Front Loaded Option.” This revolutionary cloud compensation model for VARs represents a departure from how Software-as-a-Service (SaaS) vendors typically compensate channel partners, as well as how SaaS solutions are sold and deployed. We recently raised $25M in fresh capital and it allows us to change the VAR game. We’re giving resellers upfront margins that match and, in many cases, exceed the margin provided by traditional software and hardware sales while providing customers a better solution at a better price.

Here’s how SaaS:FLO works:

  • VARs receive 100% of the first five months of revenue as margin up front (2 years of margin)
  • Customers get enterprise resiliency at a fraction of the cost, delivered as a cloud service
  • Backup, Business Continuity, and Disaster Recovery are consolidated under Axcient’s Powerfully Simple Business Recovery Cloud
  • VARs continue receiving commissions every year they renew a customer

We’ve received incredible feedback from Value-Added Resellers thus far and we’re excited to be disrupting the industry and finding a way to bring VARs to the forefront of the massive shift to SaaS and cloud. VARs are not only able to make their margin on day one, but they also don’t have to make any changes to their business model to sell Axcient, which makes it easier for them to grow their business while providing their customers with the best Business Recovery Cloud in the market.

Matt Bonn, Partner at Title 2 Business Services, is not exaggerating when he says, “Easiest money I’ve ever made in my life! It’s a great program.”

According to Forbes, our new compensation model is grabbing sales from Symantec and NetApp. Read the full article on Forbes.com.

Justin Moore