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.