Zoho expects channel boost from new local data centres

Zoho has established two data centres in Australia, as part of a US$15m (AU$22.85m) expansion of its local footprint.

Chief strategy officer Vijay Sundaram yesterday told CRN the company has done so because it was turning away deals over data sovereignty worries, even having gone deep into contemplation of work with government agencies before backing out when the company realised it just couldn’t satisfy key national security requirements. Sundaram said he believes Zoho’s channel was also missing out on deals, but couldn’t confirm that was the case.

Splashing down in Equinix facilities in Sydney and Melbourne fixes data sovereignty. The company is also pursuing Australian government security certifications to make sure it can serve government customers.

Zoho’s revenue split is about 70/30 direct/channel, and Sundaram said he can’t see the new local data centres changing that. But by removing some objections from some customers, he expects the channel will win more deals and then convert them into services engagements. That work, he said, often turns into five dollars of consultancy for every dollar spent with Zoho. And that’s on top of the commission the vendor pays its resellers.

The new Australian presence is part of a US$100m global infrastructure build that Sundaram said Zoho is making in order to give customer everywhere comfort that their data won’t be domiciled in jurisdictions they find worrisome.

A future part of the plan will likely see the company customise its own hyperscale servers, Sundaram said, to ensure its platform meets Zoho’s and customers’ needs.