SOS Online Backup raises $3 Million for Cloud Storage Channels

SOS Online Backup, the leading provider and pioneer of cloud computing technology in the area of data protection, based in El Segundo, California, has recently announced the end of the first round of funding of $3 million. This funding round has been led by Splashpond Investors.

The money raised in the round A of funding is going to be used in order to create a new cloud-based service and products. At the moment, the company has more than 500.000 subscribers for its services.

Ken Shaw, the founder and CEO of the company, said that SOS Online Backup currently partners with 600 to 700 MSPs along with a few hundreds other reseller partners, from one-man fixit shops to Yahoo in order to bring its cloud storage technology to customers.

The company has been founded in Australia, but it has opened an office in the US in 2006. At the moment, the company is signing up about 50 partners a month. It is known that 90 percent of the company’s business comes from North America.

The company provides a “white label” cloud storage solution which the channel partners can afterwards offer to customers by using the brand of the reseller.

In this cloud storage the company includes a full set of tools and systems for its channel partners. These set of tools includes built-in marketing and sales support and technical training. The company also provides the software which the resellers may need in order to turn a server into an on-premises backup device which can be used for local data protection.

Moreover, the company will provide gross margins to partners in between 50 or 60 percent, announced Shaw. He also declared the following: “Our program has been successful because we provide such a high margin. Backup has been a pain for resellers. Now they can make 50-percent margins on it.”

With the amount raised in this founding round, the company raised a total amount of $10 million up to the date.