News | February 18, 2015

Axcient Redefines How Software-As-A-Service & Cloud Are Sold With New Channel Compensation Model

First of Its Kind, SaaS:FLO Provides Resellers With Unprecedented Incentives

Mountain View, CA (Marketwired) - Axcient, the leader in cloud-based Recovery-as-a-Service (RaaS), today unveiled an industry-first program that makes it easier and more advantageous for channel partners to implement its powerfully simple Business Recovery Cloud platform.

Axcient's new program has broad industry significance in that it represents a dramatic departure from how Software as a Service (SaaS) vendors typically compensate channel partners, as well as how SaaS solutions are sold and deployed.

News Facts

  • The new program is unique in that Axcient will offer to compensate channel partners up front for the sale, delivery and support of its Business Recovery Cloud solution. This makes it easier and more lucrative for VARs to grow their business in the SaaS model versus the traditional licensing and procurement methods for on-premise software and hardware.
  • The innovative up-front compensation is reflected in the program's name -- "SaaS:FLO," which stands for "Software as a Service: Front Loaded Option."
  • SaaS:FLO will be financed as part of $25 million in funding that Axcient also announced today. The investment is led by Industry Ventures, with participation from existing investors Allegis Capital, Peninsula Ventures, Scale Venture Partners and Thomvest Ventures. In addition, the company raised a significant growth debt facility, which will be formally announced soon.
  • The program aims to reverse the conventional wisdom that VARs don't play a valuable role in the SaaS ecosystem because VARs' specialized skills and project management aren't needed as much as with on-premise software. In addition, SaaS:FLO's upfront compensation model addresses a key issue for VARs that have not found selling SaaS solutions attractive because profit margins have been low. Axcient believes VARs play a crucial role in ensuring the quality of SaaS deployments, and SaaS:FLO aligns the SaaS compensation model with VARs existing business model so that VARs are incentivized to deploy cloud services and do so effectively.

Supporting Quotes
"Together with our channel partners, Axcient is disrupting an enormous and growing market by providing a single Business Recovery Cloud that eliminates data loss and application downtime for businesses," said Justin Moore, CEO at Axcient. "SaaS:FLO helps VARs benefit from this strong growth opportunity and helps ensure the successful deployment of the Axcient Business Recovery Cloud for customers. Under this new program, VARs make their margin day one as opposed to over time, enabling them to successfully deploy SaaS, make significant margin upfront, and compensate their sales reps without having to change their business model. We think this is an innovative approach that will have a ripple effect across the larger SaaS sector. I expect we'll see more companies look to private equity underwriters to finance a similar program in the coming years."

"Here's a SaaS company that figured out how to make the channel happy," said Michael Souza, senior vice president at FusionStorm. "Axcient has a great product and has made selling it extremely easy and profitable. We are very bullish on our partnership with Axcient and believe this new compensation model is well aligned with channel values."

"Axcient is bringing us a truly innovative technology combined with a compensation model that does something few other vendors have been able to accomplish, which is to encourage VARs to want to evangelize the solution," said Al Chien, executive vice president of sales at Dasher Technologies. "We are excited about introducing the Axcient Business Recovery cloud to our clients and in growing our partnership with Axcient through the SaaS:FLO program."

Tweet this: @Axcient shakes up SaaS with New VAR Comp Model SaaS:FLO #disasterrecovey #DR #RaaS #DRaaS

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About Axcient
Axcient is the world's first Business Recovery Cloud, a solution that eliminates data loss, keeps applications up and running, and ensures that IT operations never go down. Companies use Axcient to replace legacy backup, server replication, disaster recovery and archiving products, with a single integrated platform that mirrors an entire business in the cloud. With Axcient's Powerfully Simple Recovery Cloud you can restore data, failover applications, and virtualize servers or an entire office with a click. Thousands of businesses trust Axcient to keep their applications running and employees always productive. The company is headquartered in Mountain View, Calif.

Source: Axcient