There is a lot of expense in setting up and provisioning a solid Exchange hosting operation. For example, redundancy is required throughout to achieve the levels of uptime needed for such a service. This includes failover servers, backup power sources, and high-speed Internet connectivity from multiple providers.
The emergence of private label hosted Exchange services provides an opportunity to enter the market with little up-front cost. Such companies allow you to brand their offering as if it were your own. The service is priced in such a way that reseller margins of 50% can be achieved.
groupSPARK appears to have a strong offering and is one of the early movers in this field. Due to the flexibility of branding allowed, the service is to all intents and purposes invisible to the end user. The offering is designed to be attractive to channels that already have a network of SMB customers. A move to provide branded automated billing will further strengthen the offering.
… John Stanners
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