Thursday, August 02, 2007

Telco's Move into Hosting, SAAS

Paetec is the latest telco to enetr the hosting and back-up space:
"PAETEC Holding Corp. has announced the availability of its data backup and recovery, dedicated server and Web hosting platforms. The PAETEC data backup and recovery product provides businesses with a secure, automated off-site server backup, which copies data to two data centers over a customer’s Internet connection. Recovering data can be made from the Web-based control console, allowing on-demand restoration. The company’s dedicated servers are housed in a PAETEC owned and operated data center with generator and battery-backed power, network access and power grids, and 24/7 monitoring and staffing. ...The above solutions also can include PAETEC’s MPLS VPN, SIP trunk and network firewall services. They are all available through the company’s agents*." [phone+]
Other telcos entering the SAAS pie include:
  • XO with a partnership with Jamcracker (one of the earlier entries into the ASP space)
  • AT&T bought one of the original ASP's, USinternetworking
  • Ma Bell has been in the hosting business for a long while, including back-up and secure email.
  • MCI supports web-based HR Software from NOW [source]

I'm sure there are others. But this means that you have to move:

  1. design a plan for hosting, back-up, and apps.
  2. link up with strategic partners for leverage
  3. train staff to sell, implement and track the new offerings
  4. market it - and start adding revenue

Strategic Partners. Why do everything yourself? Let experts handle your weaknesses. There is no way to be an expert at everything. Focus on your strengths and partner to fill in the gaps. There are many opportunities to partner: Data Protection Services*, AppExchange*,, Delaware.Net*,, sparkGroup,, HostMySite, YouSendIt, SitePal, and exhibitors at shows like SaaSCon and ISPCON.

Don't forget the Web 2.0 crowd like, Amazon S3, Cleversafe, and various Voice 3.0 companies. And finally there are the bigger players: Hostopia, Google, and Microsoft.

* the asterisk means that RAD-INFO has a relationship with that company and can help you contact and/or partner with them. Call the office at 813 963-5884. RAD-INFO, Inc. suggests that you utilize an attorney for these partnership agreements as well as other legal work. We suggest David Snead, who blogs at The WHIR.

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