What's The Key To Your Sales Outlook?

So who do you think will do more to drive demand this year in IT—the politicians with a stimulus package or Microsoft with Vista momentum and the upcoming release of Windows Server 2008?

Perhaps both may combine to be exactly what's needed to keep IT investment chugging along.

ROBERT FALETRA Can be reached via e-mail at rfaletra@cmp.com.

Historically, it was great products and upgrades that drove the infrastructure deployment that ultimately laid the groundwork for the Internet explosion. Once IT expenditures began to approach 50 percent of capital expenditures in North America, growth rates began to slow. After all, we can't expect IT to become 100 percent of capital expenditures.

The fact is, however, that truly innovative IT products still have the potential to drive rapid adoption. Server virtualization is a great example. VMware's hot IPO and sales are proof enough.

ChannelWeb.com last week polled solution providers on the upcoming Windows Server 2008 release and found some real excitement based entirely on the needs solution providers expect they can meet with the product refresh. It's been five years since Microsoft has released a full upgrade to the product.

Microsoft also had an impressive earnings announcement last week, but when you peel back the numbers, the Vista adoption rate actually looks to be slowing, not gaining, and Microsoft itself said most of the Vista sales have been to consumers. That's probably good news for PC makers that participate in the consumer space, but what does it mean for solution providers focused on business? It tells me that Vista just isn't going to drive much. Its adoption by business is certainly going to happen, but it's not a driver and is never going to be.

Windows Server is different, and it may give you a real sales opportunity. Virtualization is an easy sell given its cost-effectiveness and the savings it renders on the hardware side. As ChannelWeb.com points out, VARs are excited about the virtualization capabilities, Network Access Protection, Internet Information Services 7.0, Server Core, Bitlocker and Terminal Services. More important is the services revenue that should come with the sale and the ability to take the product into the current customer set with a real ROI sales pitch.

But it may be tough to make the sale if the economy hits the skids and business decides that all unnecessary expenditures need to be halted. That's why we need the comedians on Capitol Hill to actually do their job for a change, stop posturing with bipartisan foolery and admit that permanent tax cuts at all levels do more to drive economic growth than redistribution of wealth. In the end, growth can really only be achieved with a healthy economy and great products that present real sales opportunities.

What do you think is the real key to growth?
Make something happen. E-mail CMP Channel President Robert faletra at rfaletra@cmp.com.