Mark Cox from eChannelLine USA spent some time reviewing SOS’s newest release, SOS ServerSave, today with Ken Shaw, CEO of SOS Online Backup. eChannelLine USA closely tracks the channel sales and VAR segment of the IT solutions business. We’re very excited about SOS ServerSave, particularly for the great opportunity for high margin sales it gives our VARs and MSPs. In some cases, it allows our resellers to become much larger businesses, by expanding their product and service offerings.
As Ken pointed out, the industry is at a point in which demand for online backup is about to increase greatly. Analyst firm IDC confirms:
“60% of those who buy our home user products are businesses,” Shaw said. “We find the five seat market is the threshold. Below that, companies tend to act as consumers and buy consumer products. But consumers and SOHOs have also led the adoption of backup. Small businesses, in the 50-100 seat space, are on longer replacement cycles, and they have something now, so it’s typically more of a replacement sale. We are just now seeing massive increase in adoption spend in 50-100 seat businesses.” He pointed out that IDC recently found that while only 16% of small businesses use online backup today, 69% plan to get it.
That’s where SOS’s new offering comes in, catering to this burgeoning demand with a total protection package that offers this market business grade rather than consumer grade solutions. It offers backup and recovery for Exchange, Windows Server, SharePoint, and SQL database, Bare Metal backup and recovery, archiving to protect against accidental deletion, and mobile backup capacity. Several of these — the Bare Metal Exchange, SQL and SharePoint offerings — were not sold separately by SOS before.
Since demand is about to increase, this allows SOS and its partners to become more competitive.
Aside from offering more features than the major brands in the small business space, the price is low, and reseller margins are high.
“The real story here is the price point,” Shaw said. “Enterprise vendors offer all this, but it has never been bundled at a price point that’s intelligent for small businesses before now. We offer it to partners for as little as $70 a month — and as low as $30 with volume commitments, so they make very attractive margins.” The recommended resale price is $129 per month, although Shaw said some partners in less price sensitive verticals sell it for considerably more than that.