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GOOGLE PITCHES MID-MARKET VARS

Google is on a channel-building campaign and the head of its channel efforts outlined the company’s goals at this week’s Information Technology Alliance meeting in Buckhead, Ga. The company needs to enlist VARs because of the demand for Google Apps, said Paul Slakey, who runs the reseller program. "I don't think we can hire reps fast enough," he explained.
VARs get 20 percent margin for the lifetime of the account and he noted that becomes income more profitable after the first year, which is where the cost of sales is recognized. Slakey also listed money-generating services that resellers could perform, such as rewriting Lotus Notes applications, verticalization and offering help desk and customized services. The suite is available for $50 per user per year with one-year archiving available for another $13 per user and 10-year archiving for $50 per user per year. All billing is through the resellers who have the opportunity to provide first-level support. Google also has an open development platform, the App Engine. Slakey described the suite's sweet spot as 1,000 seats, producing about $50,000 total.
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