Alternative Cloud Provider Vultr Opens Partner Program, Touts Margins
The company is targeting MSPs, resellers and other partners in search of options to the hyperscalers.
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Channel Futures: Why is now the time to make the Vultr partner program generally available?
Vultr’s Shane Zide: In April 2021 we soft-launched our program; we’ve now signed over 500 partners. The partner personas consist of cloud MSPs, resellers, distributors and VARs. Throughout this process, we learned from partners that the Big Tech cloud programs had limited margin earning opportunities, high barriers of entry (like costly upfront tech certifications), and took a long time for partners to see a return on investment. Vultr’s program addressed all of these areas out of the box. We feel now is the time to scale the program through a general availability launch to all partners.
CF: How is the program structured?
SZ: Vultr’s channel program is geared to both MSPs and VARs. Our MSP partners tend to host their clients’ applications and systems within their own Vultr accounts, realizing both strong gross margin on the cloud resell and offering highly profitable managed services on top of Vultr. Vultr VARs tend to package Vultr cloud infrastructure with their services, but their end clients manage their own Vultr accounts. In all cases, partners will be rewarded with monthly commissions for their professional network influence.
CF: The Vultr press release is really hammering home the news about high margins. How can Vultr afford to extend high margins to partners, and can you give a range indicating what those margins are?
SZ: From our research with pilot partners, we found most cloud industry channel programs are offering a 0-15% discount schedule dependent on the amount of the partner’s monthly spend. Vultr’s program has a 10-35% discount schedule from day one. Vultr’s lack of roadblocks from the start of the partnership allows the partner to realize gross margin wins as quickly as possible. Vultr can support these margins because we are a profitable, efficient business. It’s the same reason we can spin up new cloud data centers efficiently across the globe (we have opened five in the last five months).
CF: The PR also cites the hyperscalers’ “restrictive programs.” What does Vultr mean by that and what is the company doing differently?
SZ: While there are many commendable aspects of the Big Tech clouds’ vast programs, one area we feel is a hallmark of Vultr’s program is being treated as “Premier” from the start — not after spending tens of thousands of dollars on cloud certifications and trainings for sales and technical staff. Because the demand for cloud is so high in the market, and the Big Tech clouds command significant market share, they have layers of processes, certifications, tiers and requirements. The Vultr partner program is just like our cloud infrastructure products: simple, straightforward and predictable.
CF: What can partners expect from Vultr in 2022?
SZ: Continued high margins for the partner’s MSP or resell business; more new global cloud data center locations; and more plans and services to broaden the Vultr product footprint.
CF: What support does Vultr provide to partners? And does that support vary by partner type or participation level?
SZ: Whether it is a one-partner account or a referred end-user, they both receive the same Vultr support. For partners who request it, we do have credit and cloud migration programs, and dedicated Slack support to answer partner-related questions. We also work with our distributors on sales and technical enablement for reseller partners.
CF: Which regions does Vultr plan to expand to this year? I see the 22 data centers around the globe but it looks like there might still be some EMEA and APAC gaps, so I’d like more insight into expansion plans for partners who might need more coverage.
SZ: So far this year, Vultr has expanded into Madrid and Poland, with more locations to be disclosed in the upcoming months. Vultr completely understands the need and demand for access to high performance, low-latency cloud compute and storage all around the world, and the company is committed to satisfying users globally. You can expect to see expansion in Europe, India, South America and Asia in 2022.
CF: Which regions does Vultr plan to expand to this year? I see the 22 data centers around the globe but it looks like there might still be some EMEA and APAC gaps, so I’d like more insight into expansion plans for partners who might need more coverage.
SZ: So far this year, Vultr has expanded into Madrid and Poland, with more locations to be disclosed in the upcoming months. Vultr completely understands the need and demand for access to high performance, low-latency cloud compute and storage all around the world, and the company is committed to satisfying users globally. You can expect to see expansion in Europe, India, South America and Asia in 2022.
Cloud channel partners looking for avenues around the Big Three – Amazon Web Services, Microsoft Azure and Google Cloud – have a new option. On Tuesday, alternative cloud provider Vultr made its partner program generally available. The Florida-based company seeks to add more managed services providers, resellers and so-called technology innovators to its roster.
More than 500 partners already work with Vultr, the vendor says. These folks “are frustrated by the limited margins, high prices and restrictive programs of the big tech cloud providers,” Vultr notes.
In direct response to those frustrations, Vultr says its partners earn “industry best” margins on computing and storage. Pricing also can come in around 50% lower than the hyperscalers’ rates, Vultr says. Moreover, partners get “channel-friendly” packaging such as annual SKUs. At the same time, MSPs, VARs, developers and other participants can build services on top of Vultr’s platform.
Vultr’s Shane Zide
“As the Big Tech clouds have gotten bigger and more powerful, partners have been left with shrinking margins on cloud compute and cloud storage, increasingly complex program rules, and less personalized attention,” said Shane Zide, vice president of global sales and channel at Vultr. “Vultr’s new partner program is a fresh alternative.”
Indeed, more alternative cloud providers continue to crop up and target the channel. Linode has been around the longest, since 2003; there’s also DigitalOcean. Vultr, founded in 2014, joins those competitors in an industry where no one believes they can actually replace the hyperscalers, but instead act as options or complements. As such, Vultr delivers cloud computing, storage and bare metal through partnerships with providers including Digital Realty, GTT, Level 3 and Equinix; it even has its own marketplace.
We wanted to learn more about alternative cloud provider Vultr, its partner program and plans for the coming year. So Channel Futures sat down with Zide, a familiar face in the channel. He worked for almost five years at CDW as a founding member of the cloud team. He also spent brief stints at Revenue.io and at Digital Ocean. Prior to those roles, Zide served as channel sales director at Verizon. He has led the Vultr channel since April 2021. This year, expect to see him spend a lot of time with partners. His intent?
“[T]o make sure we build and grow our partner programs in a way that preserves our foundation of high partner margins and low barriers to entry,” he said. “We want Vultr partners to have a fast ROI so that they are excited to grow with us.”
Check out Channel Futures’ Q&A with Zide as he explains more about the Vultr partner program, from structure and margins to support and expansion. We have lightly edited the discussion for clarity in the slideshow above.
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