Survey: Is the Channel Ready To Go Global?


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4:23 PM EST Wed. Mar. 15, 2006
From the March 21, 2006 issue of VARBusiness
Results from VARBusiness' IQ Survey, fielded last month, among roughly 200 U.S. solution providers:

What is the extent of your business/sales operations?

  • Local—45%
  • Regional/domestic—45%
  • Nationwide/domestic—34%
  • Global—18%
  • International/North America—17%
  • Other—3%

    If your business is international, what is your primary international market?

  • Europe (including Russia)—38%
  • Asia-Pacific—10%
  • South America—8%
  • Africa—4%
  • India —4%
  • China—4%
  • Middle East—1%
  • Other—31%

    What is your revenue breakdown?

  • Domestic/Mean—89%
  • International/Mean—11%

    When conducting international business, you...

  • Work independently to establish a presence in foreign markets—24%
  • Partner with solution providers in foreign markets—22%
  • Work with vendors to penetrate foreign markets—17%
  • Other—5%
  • Not applicable, do not focus, nor plan to focus, internationally—58%

    What is your biggest obstacle to expanding internationally?

  • Lack of understanding of international markets—13%
  • Cost of international expansion—12%
  • Communications and travel—9%
  • International business regulations, tariffs and customs—8%
  • No demand for products and services in foreign markets—4%
  • Price of products and services—4%
  • Other—4%
  • Not applicable, do not focus, nor plan to focus, internationally—46%

    What types of international ventures are you involved or interested in?

  • Partnering with foreign solution providers on selling into/developing markets—25%
  • Working with vendors to enter/develop international markets—24%
  • Partnering with foreign solution providers/ISVs on development projects—19%
  • Partnering with foreign solution providers for lower labor costs—11%
  • Other—3%
  • Not applicable, do not focus, nor plan to focus, internationally—57%

    Which market segment do you derive the majority of your revenues/sales?

  • Small business (1-99 employees)—44%
  • Midmarket (100-999 employees)—3%
  • Large enterprise (1,000-9,999 employees)—15%
  • Very large enterprise (10,000+ employees)—8%
  • Home/consumers—8%
  • Other—2%

    What is your gross 2005 revenue?

  • Mean—$26,809,328
  • Median—$1,300,000

    Please check your company's primary specialty

  • Implement total or custom solutions that include hardware, software and services—54%
  • Consulting services (e.g., business strategy, technology, or marketing/branding strategy)—50%
  • Specialize in networking infrastructure and/or telecom design/installation—29%
  • Specialize in Internet integration or services including e-business solutions and Web site development—23%
  • Provide managed services, such as security monitoring and response, storage and backup, disaster recovery, network monitoring and management —23%
  • White box/systems builder—22%
  • Develop custom software/ISV—20%
  • Provide application hosting (ASP) including office suite, database, graphics, and vertical applications over the Internet —14%
  • Provide Internet connectivity and hosting—13%
  • Web integrator—9%
  • Other—10%
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