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Press Release -- March 22nd, 2013
Source: Peak

The Indirect Cloud Market Analysis [Structure Research]

Structure Research Hot Topic Report Excerpt March 22, 2103

100% wholesale specialists are far and few between. Our survey results show that only a single provider – PeakColo – focuses exclusively on the channel while not competing in the cloud hosting market on a retail basis. To be sure, there are a few providers trending to having more of a channel focus. Tier 3, Rackforce and Ajubeo are a few examples. However, all of them are still involved with selling directly to customers in some fashion. In most cases, if not all, retail is still the primary business and generates more than 50%
of cloud revenues. 

How much wholesale is going on? Based on the feedback we received, the indirect/wholesale cloud channel is typically less than half of the total cloud revenue stream. A PeakColo would be an exception to this given that it focuses 100% on wholesale cloud. But the rest of the field seems to be generating somewhere between 10-30% of total
cloud revenues from indirect sources. Some of these numbers have referrals baked in but that is a smaller percentage. Most indirect revenue comes from straight reselling.

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