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Verio stimulates its own economy

Stimulus package has become the new buzz word of 2009, and it would stand to reason that the idea of economic rescue would eventually make it’s way to the hosting industry. In a move that is partially altruistic, and overwhelmingly self-serving, SMBs web host Verio announced its own stimulus package for its partners. The announcement was made during Verio’s annual viaVerio Partner Summit, set to wrap up on Tuesday.

Verio is one of those companies that everyone respects. Not only does it value communication, as evident in its Partner Summit, Verio is one of the biggest web host providers in the world. Verio provides white label reseller accounts, application hosting, and SaaS for small and medium businesses. It is the first company to create the term hosting partner. There are currently 2400 viaVerio partners. In late 2008, Verio welcomed Scott Calvert as Senior Director of Channel Sales. Under his leadership, Verio has unveiled a goodie-filled package to its viaVerio partners. Benefits include the use of a dedicated sales and technical assistance team, customer migration discounts, the opportunity to garner new, “pre-qualified” customers, and the introduction of a direct mail campaign.

Of all the benefits that Verio provides its partners, the one that stands out most is Verio’s offer to provide new customers. This is a major selling point, but one that requires some pause. If considered carefully, one recognizes that Verio is hand-picking who receives new customers and who doesn’t. Based on things like geography, business models, and focus, Verio decides which of its partners gets stimulated. What happened to the good old days when web hosts relied on hunting down their own leads, instead of waiting for a company like Verio to toss them a bone? Although it’s a nice incentive, who really receives the simulation in this equation? All hands point to Verio, who ultimately benefits by retaining its customer base with lofty promises. It seems like more of a handout than a stimulus, and a meager one at that.

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