VARBusiness 500 Executives Find Common Ground

During the course of our two-hour discussion, it became clear that this was not a group that dwells on the state of vendor relations. Rather, these executives focus on the strategic issues that can have a long-term impact on their businesses. This is a group that characterizes itself as customer-centric, employee-focused and maniacal about adjusting business models.

So let's get down to specifics about our conversation. Starting with IBM's long-running on-demand strategy, the executives remain puzzled about the opportunities it represents. Some said they are staying away from it, while others are poking around the edges, stating, "It says outsourcing to me." Despite IBM's efforts, my takeaway is that these executives remain nonplussed as to how on-demand will help them grow their businesses. Maybe Andrew Borgstrom, CEO of T-Systems North America, had the best handle on it when he said, "On-demand is here for good, but it is very early. When you think of silos [of IT functionality], on-demand works. We are delivering on-demand with good terms." The executives also expressed the same feelings for other vendors' versions of on-demand, such as HP's Adaptive Computing strategy.

While many of the VARBusiness 500 firms assembled are engaged with IBM on a number of fronts, they also integrate and support Oracle, PeopleSoft and SAP applications--even though those vendors lack mainstream channel strategies. When Steve Pace, executive vice president of SureBridge (now Navisite), spoke about his firm's work with PeopleSoft, someone in the room quipped, "I didn't think they had worked with partners." Pace just shook his head and smiled.

Also part of the discussion, whether they shepherd multibillion-dollar behemoths or midsize organizations, all of the executives said they were hungry for information on how to better manage their businesses. (That sentiment is echoed by smaller solution providers as well.) "You have got to manage the hell out of your business," said John Sheaffer, president of Sysix, in discussing how he makes changes to his organization in response to customer needs or market opportunities.

In addition to our Executive Roundtable, we also honored several VARBusiness 500 organizations and executives for outstanding performance and achievements. All of the winners are listed on our Web site, but let me address a few. This year, we singled out an organization that had transformed itself during the past 12 months with the aptly named Transformer of the Year award. Keane Systems won this inaugural award for its efforts to develop an offshore business model and the establishment of development centers around the world. The company is a testament to change management.

Executive of the Year went to the very recognizable Rick Kearney, CEO of Mainline Information Systems, whose company grew 25 percent last year. At $411.4 million in annual revenue, it is one of IBM's largest business partners in the country. Kearney has distinguished himself in the Southeast not only as a capable CEO, but as a successful and committed philanthropist. Keane's recent success is tied to his company's decision to go narrower and deeper with IBM technology.

Finally, this year's Lifetime Achievement recipient was Ed Coleman, president and CEO of CompuCom (which was recently purchased by Platinum Equity Partners). Coleman's career has spanned some 20 years in the IT services business. He joined a foundering CompuCom Systems in 1999 to help transform the operation from a traditional reseller to one led by services. He did so during a time when most reseller models were struggling. To the envy of many, Coleman strategically led his organization down the services path with profits each year despite difficult economic conditions.

Let me know what you think about our choices for award recipients at [email protected].