Cloud Provider Commentary

Nov 21 2011   4:32PM GMT

Cloud partner drama: Just like landlord/tenant disputes, only more fun

Jessica Scarpati Jessica Scarpati Profile: Jessica Scarpati

(And by “more fun,” of course, we mean more expensive, frustrating, damaging and high-risk)

We recently gave you some insight into five business challenges cloud resellers must anticipate when partnering with a cloud provider. Some news out of the UK cloud market is making me wonder if we’re due for a counterpoint piece for cloud providers, outlining five warning signs your reseller is hustlin’ you.

The Register reports:

UK-based Livedrive, which provides a cloud storage backend, ended its contract with US reseller Backify because, it claimed, the firm was “a fly-by-night operation” that didn’t pay for its services. The American backup biz, which offered [end users] a free backup service using Livedrive’s systems, has denied any wrongdoing and blames Livedrive for technical problems.

“Backify had a problem because they weren’t paying the fees that were due to us,” Livedrive MD Andrew Michael told The Register. “The problem started because they were paying us by credit card and their credit card was getting declined when they were adding new customers.”

No word on how much money Livedrive was allegedly fleeced out of, and Backify’s website has since gone bye-bye. It isn’t offering much by way of an explanation (or defense) except to say, “LiveDrive has terminated Backify’s reseller account, and Backify.com is no longer in service.” It also offers would-be customers a referral to Backblaze, a “better and more reliable backup solution,” which (under the circumstances) looks like a Judas kiss for those guys.

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