Finding Opportunity, Skirting A Recession

It's that time of year when everyone starts worrying about how the new year is going to treat us all from a business perspective.

Almost every conversation we have over the next month will be filled with quizzing the other party about what they see in terms of sales going into next year. The subprime credit problem, oil prices that want to break the $100 barrier, gold at an all-time high and a dozen other factors have many bracing for a possible recession.

ROBERT FALETRA Can be reached at (781) 839-1202 or via e-mail at rfaletra@cmp.com.

The reality is there is a better chance that we will skirt a recession in 2008 than slide into one. Nonetheless, caution seems to be the order of the day.

I have a habit of asking everyone I talk to year-round—be they vendor, solution provider or end user—what the future looks like. It's completely unscientific, but it's also fairly accurate. The good news is the majority of those I talk to say that business engagements look positive moving into 2008. Everyone is cautious but positive.

The bigger problem seems to be that there is far too much of IT budgets going to maintaining infrastructure than to deploying new solutions that either drive new revenue or increase efficiencies to build better margin. Infrastructure refresh is fine for vendors, but it's a low-margin play for solution providers. It generally means bidding the business out for the lowest cost analysis.

But this is exactly the time of year when getting to the right individual can mean finding real opportunities for growth. Those responsible for driving revenue inside the customer set are looking at next year's targets and wondering how they can get there. Hint: This generally isn't the IT department. This is where a solid understanding of the customer's business and the understanding you have of technology can help conceptualize a revenue-driving solution.

It's one of the reasons specialization is increasingly important for solution providers. The best way to be considered a strategic adviser to a customer is to approach the sale in that exact manner. You can't do that without a real understanding of the customer's market. Do you agree that business looks good for 2008?
Make something happen. E-mail CMP Channel President Robert Faletra at rfaletra@cmp.com.