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New Year's Links

All of us at ChannelWeb send our wishes for a happy, healthy and prosperous 2008. Some quick links for the day off:

Dr. Dobbs reports Perl 5.10 Now Available. I remember, way back, giving Perl as an example of a programming language I'd never know. But I have learned it, a little, thanks in large part to Learning Perl, and the wonderful (really) Mastering Regular Expressions. It's my secret weapon for slicing and dicing spreadsheets and long text files to extract usable content for the web. The newest version promises even richer regular expression support, along with other performance and functionality enhancements. And despite a reputation for being opaque, Perl nonetheless has a "do what I mean" feel that makes it, well, actually fun. I'll be trying out 5.10 in 2008.

A cubicle? We used to dream of working in a cubicle! No, that's not some grumpy old-timer. That's you, in the future, if this trend takes off. On bMighty, Naomi Grossman says it's an acknowlegement of a whole new workstyle companies will have to come to terms with:

"If, as a small to midsize company, you want to be able to attract and retain top IT workers, you need to acknowledge... that most of your good employees won't stand for a Dilbert existence anymore -- especially when they have other options."

I like it, but Andrew Hickey reports Google Reader Making More Enemies Than Friends. But then, I haven't been sharing any links (unless you count right here).

Ed Moltzen looks at Microsoft's "boldest move yet into virtualization" -- Windows Server 2008:

"It also appears to be Microsoft's most aggressive move to date into an area that was once the province of companies like IBM, Sun Microsystems and Hewlett-Packard: clustering."

Jennifer Lawinski looks at Apple's Year on our Apple Channel blog:

"Apple's thriving iPod and iPhone businesses may not have any impact on the channel, except perhaps to cause a bit of "why can't we sell those too!" ire, solution providers can take heart that business may be on the upswing for Apple resellers who cater to business accounts."

The prognosis for portable electronic health records remains cloudy.

Thanks, Netscape, we'll never forget you.

For tonight: my favorite champagnes. I hear they make them elsewhere, too, but stick to Long Island, to be sure.

Happy New Year!

Posted by Joe Caponi at 12:47 PM, December 31, 2007
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The Hunt For Good Gen Y Workers

With one in five solution providers (according to our State of the Market research) looking for "millenial" or "Gen Y" workers, it helps to know what they're looking for in boss. Over on bMighty, Fred Paul sees an opportunity for smaller firms looking to beef up their talent pool:

"Handled correctly, what 87% of hiring managers and HR professionals dismissed as "a sense of entitlement" could open the door to snatching top young talent away from large enterprises -- perhaps for little more than the cost of a fancy smartphone."

And that 20% figure balloons to over 50% for large sized solution providers. So the big fish are on the lookout--what do you do to compete?

Posted by Joe Caponi at 10:56 AM, December 28, 2007
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More Top Tens

Looks forward and backward:

10 Trends To Watch In 2008

10 People To Watch In 2008

The 10 Big Stories Of 2007

Top 10 Best-Performing VARBusiness 500 Stocks Of 2007

Top 10 Worst-Performing VARBusiness 500 Stocks Of 2007


Posted by Joe Caponi at 02:59 PM, December 27, 2007
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Best Channel Books of 2007

My slide show of the Top Channel Books of 2007 is online now. I was looking for a mix of business, technology and more inspirational fare, but if you've read one I missed, let everyone know in our forums.

Posted by Joe Caponi at 10:31 AM, December 26, 2007
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Holidays '07 Linkfest

I'm out early to get a jump on Christmas, but I've left behind a bunch of links for your Holiday reading:

Robert DeMarzo looks at Dell's new channel program and asks, "Where's The Beef?:"

"If you look under the hood, Dell's got all the typical goodies: two tiers, certifications, credit terms and deal registration. It's a great start but nowhere near as innovative as it could have been."

While Robert Faletra says, "Dell's Program Has Three Problems, All Fixable:"

"But to really push the company into this indirect business, [Dell channel chief Greg] Davis has to convince Michael Dell that direct-sales reps should be compensated more for pushing business through the channel than they will be if they take the business direct. Do that and we will see an accelerated indirect business and an acceptance on the part of the channel that Michael Dell is very, very serious about this move."

Earlier this week, I spoke with the new U.S. channel chief of FCS, an Irish email compliance vendor, about FCS's expansion plans. Their appliance stores all an organization's email, potentially forever. If you've got to do it, you might as well do it right.

The Test Center wrapped up it's World Series of Linux and crowned a champion. Readers have been weighing in, too.

Finally, we've been putting together a series of looks at the year past and the year to come. They include:

10 Technologies To Watch In 2008

10 Predictions For Microsoft In 2008

10 Predictions For 2008 From VARBusiness 500 Execs

10 Companies To Watch In 2008

5 Wireless Trends To Watch In 2008

10 Steps To Business Growth In 2008

The 10 Best Products Of 2007

Merry Christmas and Happy New Year!

Posted by Joe Caponi at 04:24 PM, December 19, 2007
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FAQ: Just How Big Is The Channel?

We're regularly asked how many companies make up the technology channel, as well as how much revenue flows through it. Our new State of the Market report provides the best data ever on those questions.

The North American technology channel, as we see it, consists of approximately 240,000 solution provider organizations, with total revenue of over $370 billion dollars. While the lion's share of that went though the VARBusiness 500 ($344 billion), all solution provider sizes expect sales growth in the coming year.

As we note in the slide show, if the channel were a country, it would have about the 20th largest GDP in the world, approximately that of Sweden or Switzerland.

Posted by Joe Caponi at 12:21 PM, December 18, 2007
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How To Sell RFID

It's not a technology sale, according to the Channel Test Center's Fahmida Rashid. You need to understand the customer's business to even determine if RFID is a proper component of the solution they'll require. In our latest TechBuilder recipe, she outlines Four Steps To Doing RFID Right.

"Initial conversations and the design phase of the project can account for as much as 60 percent of a project. Because the hardware is not yet commoditized, margins are still high, but a successful practice balances professional services, hardware expertise and software solutions."

Posted by Joe Caponi at 11:33 AM, December 17, 2007
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Outsourcing, American Style, Due For A Rebound

Last month we looked at one report that foreign outsourcing has peaked. Now, Craig Zarley looks at seven reasons American outsourcing may be due for a rebound, including:

"Companies want ROI, not simply low price. There is no substitute for a local solution provider that understands your business and can design services that match your needs. That's one reason Waltham, Mass.-based NWN wrestled away a managed services deal at Welch's in nearby Concord from an Indian outsourcer. The toughest language to learn is the language of business. Face to face contact on a regular basis is the best way to pick up the lingo."

It's worth noting that the falling dollar makes it more likely other countries will find the U.S. an appealing outsourcing destination. Funny how things come around...

Posted by Joe Caponi at 03:43 PM, December 14, 2007
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No Juicing--The World Series Of Linux

Ed Moltzen introduces the Test Center's World Series of Linux:

"Linux developers have delivered technology to the market that is sound, that is simple and that can do the basic work people need to get done... A viable alternative to Windows or Apple on the desktop has now arrived."

Posted by Joe Caponi at 02:54 PM, December 14, 2007
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State of the Market 2008

Our sweeping State of the Market report is online now. We spoke with hundreds of small, mid-sized and large VAR company executives about their business and technology plans for the coming year.

In our lead feature, Jeanette Boyne says VARs are right to be optimistic about 2008, as channel sales continue to outgrow direct technology sales, and because solution providers are well equipped to serve the fastest growing customer segment, the small and mid-sized business market:

"Solution providers that saw a net gain of customers in 2007 were the rule rather than the exception: 53 percent increased their customer base while only 11 percent suffered a net loss of customers. The size of the overall channel customer base grew 10.4 percent in 2007."

Other features look at how solution providers expect to grow; at how savvy VARs focus on profitability; and at how Software-as-a-Service is changing the game for software VARs.

View the top-line data in our slide show and then dive into our complete results database. You'll also find a friendly User Guide to locate the most important survey findings for your needs.

UPDATE: Robert DeMarzo sounds a warning note:

"VARs have always been a great barometer of the U.S. IT economy and a leading indicator of a coming boom or bust. While we don't have comparative numbers on those three questions, the fact that four of every 10 VARs are concerned about a recession is alarming. It also shows that VARs are reading between the lines when it comes to vendor financial performance, grasping the fact that a weak U.S. dollar is contributing more to IT growth than many people realize."

Posted by Joe Caponi at 04:22 PM, December 12, 2007
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Sign Up For The 2008 Partner Program Guide

Vendors -- it's time to register for the 2008 Partner Program Guide, our annual directory of hardware and software channel programs, in print and online next spring. Like the 2007 Program Guide, the 2008 edition will be used year-round by solution providers researching new vendors, so it's the place be. But time is short, so apply now!

Posted by Joe Caponi at 04:20 PM, December 10, 2007
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Rewinding The Channel Year

Robert DeMarzo looks at The Year's Biggest Channel Stories, including changes at HP, IBM, Microsoft, and, especially, Dell:

"Someone pinch me because I may still be dreaming. One of the biggest stories of the year was Michael Dell's disclosure that the company generates $9 billion in worldwide revenue from VARs, has a loose collection of 15,000 partners and is serious about launching a channel program."

Posted by Joe Caponi at 12:18 PM, December 10, 2007
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Readers Weigh In On CompUSA

In the wake of the news that Comp USA would be closing its stores and selling off its assets a number of readers have already offered their insights in the forum:

"There are many options to replace this retailer, from the Best Buys of the world through the many hard working, highly knowledgeable local VARs." -- Ni Hao

"CompUSA went under because they ignored their customers, and put their own convenience ahead of that of their customers." -- j33418

"I shopped at many BestBuys, Circuit City and others and couldn't get any help.Everytime I shopped at CompUSA the team members were very attentitive and knowledgeable." -- jermaine joseph

"This is more a cleansing than anything that should help to improve the market's perception of all of us who serve in the I.T. business." -- Principal


Posted by Joe Caponi at 10:32 AM, December 10, 2007
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To-Do List for Dell

In the wake of this week's channel program launch from Dell, Steven Burke identifies 5 Steps Dell Needs To Take To Be A Channel Leader, including:

"A formal pledge of channel commitment and loyalty by CEO Michael Dell that includes a pledge not to compete with partners, to have best-in-class reseller margins and to affirm that Dell's view of partners is as trusted technology advisers for SMB accounts."

Meanwhile, Ed Moltzen surveys some solution provider reaction. You'll find plenty more in our forums.

Posted by Joe Caponi at 10:37 AM, December 7, 2007
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Top Products Of The Year

The Channel Test Center has chosen it's Top 10 Products of the Year. It may be most interesting who didn't win--not Windows Vista, not Mac 'Leopard', not even Ubuntu 'Gutsy Gibbon' in OSes; and not the iPhone in SmartPhones. But see all the products that did win, in our Top Products Slide Show, and read the full details in our Top Ten feature, and let us know what you think!

Posted by Joe Caponi at 10:50 AM, December 6, 2007
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Will Vendors Fumble Their SaaS Channel Plans?

Steven Burke previews our 2008 State of the Market research report, and finds that it's the vendors that need to learn some old lessons in the new Software-as-a-Service age:

"Ultimately, what the State of the Market SaaS research shows is that vendors are more interested in competing against VARs in this burgeoning market than leveraging the channel to win market share.

Shame on the vendors for failing to learn the proven economic adage that the channel is more efficient selling technology solutions to small and medium businesses than a direct-sales business is."

Posted by Joe Caponi at 10:17 AM, December 5, 2007
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Waiting On Dell To Change

As we await Dell's channel announcements tomorrow, Robert Faletra is reserving judgement until he hears all the details, but he's "not expecting too much":

"You have to give Michael Dell credit in that he fully understands his problem and the fact that the channel is a huge piece of the fix. But Dell has missed so many opportunities to build channel acumen since its announcement it would enter the indirect world, that it is proving the point I made at that time.

That point was that the company doesn't think the way it needs to in order to execute in the channel."

Meanwhile, Larry Hooper says any news may be good news:

"I think another player in the channel PC space is a good thing for VARs, even if all Dell does is make HP or Lenovo more responsive to partners. Competition for VAR business is good for VARs."

Posted by Joe Caponi at 09:55 AM, December 4, 2007
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By Joe Caponi
Managing Editor, Operations, ChannelWeb

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Recent Entries

New Year's Links
The Hunt For Good Gen Y Workers
More Top Tens
Best Channel Books of 2007
Holidays '07 Linkfest
FAQ: Just How Big Is The Channel?
How To Sell RFID
Outsourcing, American Style, Due For A Rebound
No Juicing--The World Series Of Linux
State of the Market 2008


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