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Hostway romances the channel

Hostway romances the channel

Web hosting company, Hostway Corporation, has launched a new multi-tiered channel partner program and is looking to bolster its reseller base as it continues to strengthen its foothold in the Australian market.

The US company established its Australian operations in April, initially as a sales and marketing organisation, referring customers to services offered by its US data centres. Since then, the company has acquired the Web hosting, co-location and managed services businesses of Australian company, Dedicated Hosting, and the network and data centre equipment and dedicated and co-location customer base of local hosting provider, GlobalHost.

The acquisitions have given Hostway’s local operations enough capacity to migrate those Australian customers being hosted in its US data centres back to Australia, according to general manager for Hostway Corporation in Australia, Michael Farrell.

While the company would continue to build its local market position through acquisition, Farrell said Hostway would increasingly look to reseller partners to maintain strong organic growth.

“We expect resellers will provide 20-40 per cent of Hostway’s organic growth over the next 12 months,” he said.

Over that time, Hostway intended to expand its existing reseller base from 12 to between 100 and 150 active resellers, he said.

In line with its more focused channel strategy, Hostway has launched a new channel partner program. The program is split into three levels - Affiliate, Agent and Private Label – and is designed to accommodate different reseller business models.

Affiliate Partners earn a commission for referring customers to Hostway services, which include domain name registration, shared hosting, e-commerce hosting, dedicated server and fully-managed complex hosting services, provided the customer uses Hostway services for a minimum of 45 days.

The Agent Partner program is designed to assist resellers, including Web designers, system integrators and IT consultants, that offer co-branded Web hosting services through Hostway. For every hosting plan sold through the reseller’s marketing efforts, the reseller receives a percentage of the revenue incurred.

The Private Label Partner program is designed for large Web development companies that have existing support infrastructure, including a 24/7 support network, and wish to expand their hosted services without having to invest too heavily in establishing a new business division.

For more on this story, see this week's ARN.


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