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Egnyte launches channel incentive program, reaps benefits

In March, file server technology company Egnyte launched a formal channel program in order to provide training and discounts to resellers, and it has been growing ever since.

"We didn't have a real program, but resellers kept coming to us," said Filip Kesler, vice president of business development and channel sales at Egnyte. "In January alone, we signed up about 120 new partners, and the number has been growing month by month."

The company, which moved to a hybrid cloud file server last year in order to keep up with the changing demands of the market, uses hardware made by networking equipment manufacturer Netgear to store local copies of users' files, including file versions and all access control rights. This enables users to still have access to their files in the event of their Internet connection being lost, which eliminates the channel conflict associated with cloud-only service offerings. By using this method, channel partners are able to offer additional services around cloud storage, collaboration and backup, allowing customers to take advantage of the cost and accessibility benefits associated with the cloud without giving up the perks of on-premise solutions, such as security, manageability and performance.

"Egnyte's hybrid solution enables our partners to build highly differentiated offerings which incorporate Egnyte's cloud-based and on-premise components and customers' existing infrastructure," said Kesler. "This gives users the best of both worlds and opens up multiple paths for our resellers to build and grow business, while benefiting from a recurring revenue stream."

Egnyte's channel partners do not have to pay a fee to sign up to the program, and the initial 15 percent discount that they receive will increase with volume. The company is yet to put any formal certification programs in place, but the program does offer a variety of training videos and webinars to resellers.

Additionally, there are no reseller provisioning costs, and resellers will receive recurring revenue from Egnyte for as long as they and the customer stay with the company. Multiple options for product customization are made available in order for the storage offering to be branded, and the Egnyte logo can be almost entirely hidden by customers if the reseller prefers this.

According to Kesler, the majority of Egnyte's approximately 500 resellers have signed up two or more customers to the program.