Article

Hosting provider Logicworks seeks partners

Barbara Darrow, Senior News Editor

Logicworks, a high-availability hosting provider, wants partners to sell its infrastructure and will pay them for their trouble.

In fact, it will pay them margin on referral business for the life of the business, not the life of the contract, a differentiator from rival hosting providers, said Ken Ziegler, president of Logicworks, which is based in New York.

The company competes with Rackspace, Savvis and Terramark in this realm. It focuses on maintaining, supporting and updating the operating system (Windows or Red Hat Linux) and databases (Oracle, MySQL or SQL Server) and providing associated security and monitoring services for customers.

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Participants in the new partner program can also earn incrementally more revenue as they refer more business.

Initial contracts are negotiated up front and are not public, but when a partner starts referring $25,000 in monthly recurring revenue, that partner gets another point of margin. Another point accrues after the partner passes $50,000 per month in revenue.

Hosting provider as partner annuity source

"This is continuous annuity opportunity for the [originating] partner. As the client adds more services over time the partner gets commission on them," Ziegler said.

Ziegler said Logicworks also differentiates itself with lead exclusivity. "Our direct sales guys will not compete with partners around a lead," he noted.

Rival hosting providers, in his view, tend to butt heads with partners by offering their own ancillary services. "We don't do colocation, we don't do software development. We are pure-play hosting," Ziegler said.

Logicworks will roll out its new partner program to attendees of the Channel Partners Conference & Expo in Las Vegas next week.


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