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 Channel Futures

Cloud


MSPs Plug Into Axcient Storage Cloud

  • Written by samdizzy
  • April 5, 2011

You’ve heard it before: Managed services providers are embracing cloud storage and online backup. But if you listen closely to Axcient CEO Justin Moore, you’ll hear a slightly different story. It involves a home-grown online storage management system, coupled with on-premise storage appliances — which require no start-up fees from MSPs. Moore explained the strategy in a TalkinCloud FastChat Video.

I caught up with Moore during the recent HP Americas Partner Conference in Las Vegas. Moore and Meaghan Kelly (VP, channel strategy & SMB, Hewlett-Packard) described how roughly 200 MSPs were working with Axcient and HP on cloud storage, generating a combined $500,000 in annual recurring revenues. That’s impressive, considering the Axcient-HP relationship didn’t become official until around February 2011.

But what exactly makes Axcient unique in a super-crowded market for online backup, disaster recovery and cloud storage services? Moore points to two qualities: A pure channel model that involves no up-front costs for the MSP; plus Axcient’s own R&D efforts. Moore alleges that many cloud storage solutions are actually piece parts — stitched together from multiple companies and lacking a scalable foundation. In contrast, Moore say, Axcient’s software was developed in-house.

In some cases, Moore has a point. The cloud is filled with pretender solutions. But Axcient also faces credible competition from numerous cloud storage providers, especially in the SMB channel. Also, it’s impossible to pinpoint how well the company truly is performing since privately held companies don’t need to reveal profit figures. Axcient’s recurring revenues with MSPs grew 800 percent in December 2010 vs. December 2009 — but I suspect the 2009 figures were pretty low since Axcient is a relatively new company.

Still, it’s hard to argue with growth. And HP’s vote of confidence in Axcient suggests Moore will have staying power in the channel.

Follow Talkin’ Cloud via RSS, Facebook and Twitter. Sign up for Talkin’ Cloud’s Weekly Newsletter, Webcasts and Resource Center. Read our editorial disclosures here.

Tags: Cloud Service Providers Digital Service Providers MSPs VARs/SIs Cloud Videos

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