Rackspace Relaunches Hosted Application Partner Program

Apparently, there’s more money to be made in hosted applications — which is why Rackspace Hosting‘s hosted solutions division is relaunching their reseller program with higher margins and more products. Here’s the deal.

Rackspace says they’ve been experiencing a boom in channel sales for their software as a service (SaaS) solutions in the last year, and it’s led them to hold the first-ever Rackspace Email & Apps Reseller Conference in Atlanta, Georgia.

About 50 of their 1,000-plus hosted solution reseller partners are expected to show up and learn about the new channel program, says Kirk Averett, senior project ,anager at Rackspace.

The conference is just the first step in reengaging with VARs, Averett says. Rackspace also plans on holding weekly webinars with partner-suggested topics, including introductions to and training in newly-available white-label opportunities like Rackspace-hosted Microsoft Sharepoint.

Also new in Rackspace’s new channel program are dropped prices on their hosted Microsoft Exchange mailboxes and an enhanced reseller control panel to administrate them, Averett says.

Of course, Rackspace isn’t the only hosting provider making partner moves. In recent weeks, we’ve seen The Planet articulate a Value Hosting strategy. Also, hundreds of hosting companies recently attended the Parallels Summit 2010 in Miami to learn how to more effectively profit from SaaS.

I don’t think anyone needs another lecture on the virtues of flexible, scalable SaaS solutions. It’s getting to the point where reports of wild growth in the SaaS market is getting to be the norm. But we’re also seeing lingering scalability and reliability concerns — even with cloud services that are supposed to stretch to meet customers’ needs.

While no growth cycle lasts forever, I believe we’re seeing the future of IT asserting itself; not – as some would suggest — a giant bubble forming.