What's On Your Radar?

As solution providers leave a year scarred by mortgage issues and high energy prices, asked a number of companies from our annual Fast Growth list for their 2008 forecast. Some say advanced technologies will open new doors. Others agree, but add that CIOs will be waiting with sharpened pencils and a need to justify spending. Almost all expect to feel the squeeze from a lack of qualified talent. We'll let their words speak for themselves.

Axispoint Inc., No. 18
We are anticipating another year of exceptional growth across multiple technologies and segments. In particular, we see significant opportunities in advanced technologies, such as wireless networking and IP telephony, as well as strong growth in systems and application development. Additionally, the middle market, a core segment for us, has become an increasingly important buyer of technology.

Our greatest continual challenge is recruiting. Most companies look for talent [that meets] a specific job function. At Axispoint, we expect much more from our people. Not only do they have to be good at what they do, but they also have to possess qualities around customer care and problem solving. If we hire right, our company's success is a self-fulfilling prophecy. Talent begets talent, and a positive culture creates job satisfaction. This leads to high employee and, ultimately, customer retention—a strong formula for growth.
—Daniel DiSano, President & CEO

Bluewolf Inc., No. 59
Even turkeys can fly in a high wind. In times of strong economies, even bad companies can look good. Only those companies that provide tangible ROI value will thrive in 2008.

For the past three years, a booming economy and unlimited corporate spend have allowed IT services companies to drive revenue and margin without providing innovative and results-oriented services. No more in 2008. With financial services cutting back, and an economy on the brink of recession, look for CIOs to sharpen their pencils and spend extra time justifying expenses with high-priced consultancies. Look for companies to cut back on projects that don't have measurable ROI, and look for SaaS-based projects to weather this storm due to their shorter time to market and low cost of ownership. In 2008, even offshore services will feel the squeeze, given their affiliation with long, complex, risk-heavy projects. The service vendors with innovative, value-oriented, results-driven approaches will do just fine. The rest will suffer.
--Eric Berridge, Co-Founder And Principal

Dyonyx LP, No. 25
The No. 1 challenge for us is finding talent. People that can do the work, write about it and discuss it with a business audience are increasingly rare but worth their weight in gold.

Our largest opportunity is the groundswell in the middle market enterprise space toward outsourcing their bodies, boxes and wires. We are noticing a growing trend, particularly in the energy and health services industries, to outsource or co-source some or all of their IT support. Over half the companies we talk to about managed hosting for their core or redundant data center requirements end up electing us for help-desk support as well.
--Tim Barto, Executive Vice President Of Sales And Marketing

Park Place International, No. 54
We see both margin and economic pressures to weigh heavily in the decision-making process for many businesses. With the competitive landscape growing exponentially in the reseller market, niche integration programs are becoming extremely competitive, leaving the question of 'who can survive?' Do these companies sacrifice margin points to compete? Sometimes it becomes unavoidable. Moreover, the demand from potential customers for value-added services can assist companies with keeping a competitive edge.

Customers need more convenient services and solutions, and these value-added services may help win a customer, while defraying the loss of margin points. Also, economic demands in the SMB market will result in big impacts on budgets, leaving companies pondering if new hardware, applications and service purchases are feasible. Depending on the economy, it can determine who can and cannot spend. Companies may need to find offerings that cater to product and service solutions for budgetary constraints vs. new hardware and its applications.
--Ed Kenty, CEO

Regan Technologies Corp., No. 26
Almost any business owner will agree that finding qualified staff is one of the most difficult challenges. That challenge is only surpassed by retaining those individuals we're lucky enough to find.

Highly qualified account executives and engineers do not come easily, or cheaply. If we are not actively seeking to fill a position, we're keeping our ear to the ground should we hear of a candidate. With such a small reseller community, very frequently we will be trading employees with a manufacturer or competitor. It is simply the nature of the beast.

But with that never-ending challenge, there comes opportunity as well. With new faces come new ideas and new prospects. While losing an employee is usually not a good thing, gaining one always is. New opportunities present themselves to us and new business means more revenue. And more revenue is always important to a growing company such as ours.
--Donna Regan, Director Of Marketing