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

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.

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