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Why LAN Infotech resells cloud-based email archiving

Instead of white-labeling or building a cloud-based email service, LAN Infotech decided to resell the service. Learn what factored into its decision.

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Security and regulatory compliance continue to be top concerns that prevent organizations from adopting cloud computing services. It was for this very reason that Ft. Lauderdale, Fla.-based LAN Infotech chose to resell a cloud-based email archiving service rather than build out its own service or white-label one.

The company, which consists of 15 employees, provides managed services to law firms, health care practices and nonprofit organizations. According to President and CEO Michael Goldstein, the managed services provider (MSP) has offered email archiving for about eight years. "We started off with a premises-based product, which worked well. But as mobile started growing, we couldn't provide the flexibility of accessing an archived email out in the field," he said.

Goldstein said LAN Infotech looked at a few cloud archiving products before choosing Mimecast. "We had two concerns with archiving: How simple is it, and how secure is it? Our main rationale with Mimecast was the ease of use. It snaps into Outlook, so you don't have to fire up a browser and enter your user name and password to find an email," he said.

The company specifically chose not to white-label an archiving product for security reasons. "On the security front, I didn't want LAN Infotech known as a hoster or have the exposure of hosting," Goldstein said. This way, Mimecast is responsible for securing the storage infrastructure and customers’ data.

In addition to reducing LAN Infotech's risk, the third-party service offers customers more peace of mind. "It's the difference between a third-party validated secure solution versus going with a local integrator and hoping he's secure," Goldstein explained. "And we don't want [customers] to feel like they're locked into us. We are reselling a secure product that is a name brand." This is particularly important, as Goldstein has to educate customers on the cloud.

Reselling a service like Mimecast also enables the MSP to serve clients in the Caribbean and South America, where legislation states that data can't be housed or passed through the United States, Goldstein explained. "For those customers, we use Mimecast UK, where the service is fully hosted and runs in the UK. It's flexible for us," he said.

While cloud archiving doesn't make up a significant portion of LAN Infotech's business, it does offer the company a couple of benefits. "We make more money on services than we do anything else, but email archiving is a feature that we want to offer, because the more monthly recurring income we generate, the better off we are."

Cloud-based email archiving also enables the MSP to better deliver its managed services. "[Archiving is] an important service. Since we go out there and manage the majority of networks, this keeps the network more secure and manageable," he said.

Next Steps

Read about the impact of managed cloud services on MSP business operations

Tip: How important are cloud security certifications?

Learn why Rackspace opted to white-label Sonian's cloud archiving services instead of reselling

This was last published in March 2015
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