Which Way Now?
3:37 PM EST Thu. Dec. 06, 2001
From the December 06, 2001 issue of VARBusiness
Flash forward to 2001: Age-old principles of Darwinism are sorting out the victims of technology hubris. And those still in the hunt are embracing services grounded in principles that sound distinctively old-school. They're seeking cost-effectiveness and efficiency, while creating a sense of normalcy amid chaotic economic times. The survivors are ensuring business-as-usual overcomes, even when events such as the September terrorist attacks threaten to forever change the world's landscape.
And, yes, ROI matters.
"The days of rising stock prices on a cool idea and a fancy dot-com name are gone," says Michael Brandofino, CIO and CTO of Hillside, N.J.-based ASP Wire One Technologies, who forecasts distributed-application services, disaster recovery and remote-access services as high-demand service solutions. "Businesses are being judged and valued on traditional basics: earnings, profits and run-rate. Investment dollars should be spent on projects that enhance profitability," he says. "Solution providers should enable a business to leverage its staff and resources in the most productive way possible."
Just what kinds of services should you be offering? According to VARBusiness' 2002 State of the Market (SOM) survey, hardware maintenance and upgrades (cited by 42 percent of respondents), LAN/WAN design (30 percent) and custom-application development (27 percent) are the top three services solution providers say they most often provide. As opposed to the '90s, the pressure to secure ROI today is very real for customers looking to turn fortunes around in 2002.
Still, it's not all doom and gloom; plenty of optimism exists, and there's always room for proven performers, experts and industry insiders say.
"Assuming you're one of the survivors and weren't voted off the island means you know what you're doing and can bring your specialized experience to the table of problem-solving," says Richard L. Ptak, an analyst and senior vice president of Hurwitz Group, a Framingham, Mass.-based researcher. "The strength of a solid VAR is bringing expertise in solving problems that appear unique from a client's perspective, but actually surface among many companies. They know what mistakes can be made and how to avoid them. They know the pitfalls, time-wasters and time-savers for product implementation and customization."
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