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Compliance Solutions Of A Different Sort

By Heather Clancy, CRN
February 19, 2007    12:00 AM ET

Last week, I had the opportunity to participate in a CRN Netseminar with ESS, which makes software in the so-called compliance space.

HEATHER CLANCY
Can be reached via e-mail at hclancy@cmp.com.
Unlike most offerings I've heard about that address the compliance arena, however, this application focuses on compliance of the non-financial sort—providing modules that help companies keep track of equipment certifications and all sorts of policies monitored and enforced by government agencies such as the Occupational Health and Safety Administration and the Environmental Protection Agency.

Until now, keeping track of this stuff has been like trying to catch snowflakes in a blizzard. Most companies rely on reams of paper documentation to track training, inspections and the existence of personal protection equipment, and it can take days to dig it up if the government makes an inquiry. But the public's heightened focus on corporate sustainability and environmental responsibility, which promises increased regulatory activity certainly by the end of this year, as well as the many recent real-world tests that disaster recovery plans have faced through recent natural disasters such as Hurricane Katrina, have served to put companies on notice.

Fact is, if you're a solution provider who already is involved with creating solutions for data archiving or disaster planning, this is an area that might be worth your evaluation. It's a proposition that has implications for both on-site as well as off-site managed services.

As an emerging market, the fundamentals are sound. The case for automation is urgent, the specter of fines are a motivator for corporate investment and policies apply across a range of customers from small businesses to enterprises. There are plenty of services opportunities, from corporate assessments to vertical application development to integration with ERP and accounting systems. And there are few established players with the channel, suggesting that margins stand to be healthy, and vendor support for channel pioneers is likely to be strong.

Indeed, one element of the ESS program that really struck me was its mentoring philosophy.

Basically, the company will assign a sales engineer to VARs willing to take a chance on its software who will work in tandem with the solution provider in the field until it can decide whether the practice is worth deeper investment. This option reminds me of a service that specialty distributor Alternative Technology likewise has used to good effect to help smaller VARs decide whether to commit to a particular vendor. A trial-before-you-sell policy, if you will.

I realize this sort of strategy is controversial, especially if you're a solution provider that has already made a substantial investment in a particular vendor, but it's great for smaller solution providers who don't always have the up-front capital to take a gamble. And it's a great way for an emerging vendor to build channel credibility fast.

WHAT EMERGING VENDORS ARE IMPRESSING YOU?
CRN EDITOR HEATHER CLANCY WELCOMES FEEDBACK AT HCLANCY@CMP.COM.


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