ElasticHosts stretches out to channel

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Cloud server provider ElasticHosts is expanding its white-label reseller programme to include disruptive new Elastic Containers, in what the company claims are the first cloud servers to be billed based purely on consumption, rather than capacity.

Elastic Containers are suitable for all Linux users, backed by ElasticHosts’ Solid State Drive (SSD) storage for added performance, and can be hosted from any of ElasticHosts’ global datacentres. ElasticHosts says Elastic Containers offer 50 percent savings, compared with standard virtual machines (VMs) from other large IaaS providers and provides automatic scaling to handle usage peaks and troughs, removing the need for manual management or provisioning.

ElasticHosts’ white-label programme allows channel partners to offer ElasticHosts’ cloud services under their own branding with 30 percent share of recurring revenues.

It claims the reseller has full control over the cloud environment, enabling them to offer a range of management and customer support services including specialist areas such as disaster recovery. A fully configured version of the primary server, the ‘hot spare’, can run continuously, is ready when needed but runs at a minimal cost. This allows channel partners to offer disaster recovery solutions at a significantly reduced price point, says the company.

According to CEO, Richard Davies, the programme enables resellers to make better margins while still remaining competitive, adding the latest iteration of its channel programme puts partners on a level playing field against the big cloud providers by either simply reselling its solution or white-labelling its cloud server technology. In addition, Davies says that ElasticHosts is the only provider that supports usage-based billing, where idle or lightly loaded servers cost less, as opposed to traditional capacity based billing where an idle server still costs full price.

“Being forced to compete with big providers, such as Amazon, who are constantly reducing the cost of infrastructure services is making life very difficult for the channel,” Davies tells Channel Pro. “Service providers need to be able to offer cloud servers at an equal or lower price or they will lose customers; yet to do so often means having to cannibalise revenues. Added to this, as infrastructure becomes increasingly commoditised, it is harder for the channel to deliver additional value. In order to combat these problems, they need to provide something totally unique, while still providing lower costs for the customer and higher margins for the reseller; this is what we are proposing with the latest iteration of our channel programme.

“We are currently looking for partners across the UK to join our global channel programme. As we are billing in 15 minute intervals based on usage, as opposed to the common industry practice of hourly billing based on available capacity, we think these are compelling stats for partners to use to start conversations with customers. Essentially, Elastic Containers are completely unique; by white-labelling this solution, the channel can open up a number of new opportunities and really set themselves apart from the competition,” adds Davies.


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