FrontRange launches cloud to channel

FrontRange has officially launched its cloud-based IT services management platform to the channel following a four month direct touch trial.
“It is a new business and we wanted to get it right before bringing the channel into it,” explains Kevin Smith, VP of products, describing the process of paying real world customers to get in place its on-boarding, integration and support elements before handing it out to the channel.
The firm unveiled its cloud offering to its 27 partners earlier this month and Smith believes it provides the channel with“total services revenue that is equal or greater for SaaS,” as customers tend to take it in “smaller chunks”. However, the firm will still be offering cloud as a direct sale for larger customers. Importantly, the firm’s existing on-site deal registration will extend to the cloud and Smith assures that partners “will be compensated” if customers prefer to go direct touch.
Typically a FrontRange reseller will make around 30 points of recurring margin excluding services. Another feature is the ability to “flip” from SaaS back to on-premise with a licence rebate of 30 percent for a three year deal.
“We had some turmoil in our channel when we had to bring them all onto one set of paperwork,” comments EMEA vice president Ian McEwan. He admits that from 2009 to the end of last year it went from 36 to 27 partners. McEwan hints that it decided to “part ways with partners” who were not committed, but with the launch of cloud, the firm is actively looking to add “four or five new partners.”
McEwan also feels that there might be some consolidation in the market as asset and service management specialists start to team up.