Is Hardware A Dying Business?

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The channel has largely been trending toward services-based business models in recent years, but where does that leave hardware? At a recent discussion in Boston, solution providers debated the relevance of selling hardware in today's market.

"The real revenue for the reseller or solution provider is to make money in services," said Computech’s Jay Shah. "We were really a hardware-oriented company years ago, and we had to change that model."

PCG's Dave Hodgon disagreed."My hardware margins are minimum 35 percent; we are making a boatload on hardware," he said. "There's a lot of money in hardware."

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Computer-EZ's Adam Berg said services are not the big new business trend that people are making it out to be."There was always some support, networking, service that needed to be done," he said. "So the 40 percent hardware, 60 percent services model, I don't see that changing."

PUBLISHED SEPT. 8, 2014