Codero’s Unique Telco Partnerships Reap Benefits

It’s been quite a year for Codero Hosting, which says that it now has extended its hosting infrastructure and services to rural and regional markets across the country.

Codero Hosting's Emil SayeghThis comes 12 months after the cloud-hosting company was acquired by a large consortium of incumbent and rural local exchange carriers (ILECs and RLECs) – 32, to be precise, all of which are selling Codero products – in a move that Codero CEO Emil Sayegh acknowledges is pretty rare.

“At first we had never heard of it, but frankly, it was the most strategic deal that we could ever have gotten,” he said.

Codero announced Thursday that all 32 companies have officially become Codero’s “preferred channel partners,” and each has begun selling Codero services.

“Some more than others certainly, but all of them are actively selling and marketing our products … ” Sayegh said.{ad}

Sayegh said each investor is working with Codero’s offerings in a different market, creating something of a divide-and-conquer mentality.

“These guys dominate,” he said. “They provide everything from cable service to Internet service to PBX to IT services to all of the small and medium businesses that are out in rural and regional markets.”

For example, Dakota Carrier Network (DCN), which owns part of Codero, used the new partnership to help migrate Bismarck, North Dakota-based Vault 1440.

“As a longtime DCN customer we welcomed the opportunity to use a DCN partner for hosting,” said Vault 1440 President Darrin Lee. “The transition to Codero was quick and easy and the superior service allows us to seamlessly scale and cut costs. We look forward to a long relationship with DCN and Codero.”

What made Codero go along with the mass acquisition in the first place? One reason would be the money, Sayegh said, but what he calls groundbreaking is the how the deal helped it delve further into the channel.

“They all of a sudden [join] the channel for us. They sell for us. That is pretty unique to have your investor selling for you. I’ve been in leadership roles for 20 plus years – I’ve never heard of it,” he said.

The following year will shed more light on the experiment, but for now Sayegh is touting his company’s acquisition as a success story.

“This channel relationship has been incredible,” he said. “It’s a great model to emulate. It doesn’t have to be in hosting; it can be in other areas.”

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