Value Added Reselling

In Pillar Data Systems, Hostway have partnered with probably the most innovative and competitive providers of on-demand, pay-per-gigabyte enterprise storage services in the marketplace today.

Using the patented Pillar utility storage platform, Hostway is establishing a new storage model - one where businesses pay only for what they use, and do not need to invest in surplus capacity which ultimately goes unused.

We are looking for new and established channel partners to help us drive this new paradigm.

The Challenge

There are significant challenges facing VARs in the traditional SAN/NAS storage arena today:

1. Over the last few years, the storage market has become increasingly difficult for VARs to operate in, with the increasing commoditisation of the hardware market.
   
   
2. Many resellers make very slim margins on storage currently, often as little as 2%.
   
   
3. It is also becoming harder and harder for VARs to justify to their clients the large capital expenditure required for purchasing storage that ultimately ends up superfluous to requirements.
   

Research undertaken this year by Hostway & Pillar point to a frustrating picture of the traditional storage procurement process. According to the research, an average UK company has 38% of its total storage unused, with 94% of IT managers admitting that they don’t like having to buy storage that they don’t need*.

The Opportunity

If we accept that most companies end up buying storage that they don’t need, this presents an excellent opportunity for Value Added Resellers like you:

1. Ease your customers' problems and better meet their needs by finding new ways of selling storage, such as managed storage services with all the expertise and support Hostway/Pillar can provide for you.
   
   
2. Move to a recurring revenue model and dramatically increase your commission levels by selling storage as a service, allowing customers to pay 'per-gigabyte’ and use only what they require, rather than bulk-buying storage when they do not need it.
   
   
3. There are no heavy, upfront Infrastrucure costs for Hostway resellers as we have everything in place already, inclduing dual site replication and DR capability between London, UK and Hannover, Germany.

What next...