8×8 Helps VARs Breathe New Life Into Compensation Models

8×8 Inc. on Tuesday kicked off a new channel program that will help partners of all kinds but especially hardware and IT VARs capitalize on the demand for cloud services.

The California-based IP services provider said its new Business Partner Program targets agents, resellers and traditional hardware VARs, giving them new opportunities in the network services sector. This is most critical for VARs, who need to add recurring revenue to their business models as equipment margins shrink.

Don Trimble, 8x8s channel chief, said the program offers attractive and lucrative” compensation but didnt provide percentage specifics for selling cloud services to small and medium enterprises.

“Traditional data VARs and system integrators have yet to embrace the SaaS model which, until now, has offered limited revenue potential,” he said in a statement. We have constructed a program that combines the incentives, products, resources and support necessary for these partners to experience immediate and long-term success in the SaaS market.”

Among the products partners may sell: cloud VoIP, cloud video, cloud contact center and cloud hosting. The commissions setup consists of three aspects an up-front bonus on initial orders; monthly residual payments; and commission on customer premises equipment made as part of the cloud sale. For IT VARs accustomed to one-time deals, this represents a whole new way of making money.

Traditional telecom agents are used to this structure already. Theyll work with master agents and resellers such as WTG, Walsh-Vision, Vodaplex and Referral Partners to offer 8x8s cloud services to customers.

Support for all partners includes a Web portal for deal registration, quoting and order placement. 8×8 oversees order fulfillment, service provisioning, customer billing and support.

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