RealTime IT News

Xand Debuts Internet Service Vendor Program

New York-based infrastructure play Xand has debuted a cash incentives program to keep current and future partners glued to its offerings.

Xand (pronounced X-and) intends to pitch a cash reward incentives program and its back-end infrastructure offerings at Internet business expo, iEB Expo, which is underway today at the Jacob Javits Convention Center in New York.

In a statement, Joseph Fuccillo, senior vice-president of sales and marketing, said the company would set-up "mutually beneficial services to serve its current partners." Partners in the company include Prescient Systems, IBM, Oracle and Sun Microsystems.

The company, which boosts a 30,000 square foot data center, twenty miles north of Manhattan, is a facilities-based provider of e-business services and infrastructure to Internet companies and software venders that range from small to mid-sized corporations.

Basically, Xand operates in the ISP space as an unseen source for back-end services. ISVs can roll-up Xand's services and sell them as their own to clients, for example.

Seth Oestreicher, senior vice-president of operations, said "By partnering with Xand, ISVs will have the ability to Web enable their software and to deliver it as an ASP model to end-users. Using our infrastructure, the software can be offered as an all-inclusive package of services, complete with managed hosting."

The company also has disaster recovery initiatives in place for systems that shut-down without warning. Fees for hooking up to Xand's data center range from $1,000 to $50,000 depending on the size of a company.

A person familiar with the company's business strategy said future partners could expect about an eight percent referral reward for bringing new business partners through the front door. Typically, the reward would be based on a contract spread over three years and not the usual one year contract arranged by other firms in the space.

Besides facing a sluggish ISP market and U.S. economy, the company's directives come at a time when it faces competition from players like Beltsville, MD-based Digex which provides managed hosting, including providing hardware, software and operations for customers.

Xand's clients include the Reader's Digest Association and several city governments, including Rye, NY.