Solution Providers Pick What's Hot For 2009

ChannelWeb's exclusive research from our hot-off-the press State of the Market survey, as well as from our Annual Report Card, offers a view of what solution providers think will be hot markets next year -- and which vendors will reap the rewards. From network security, to mobile technology, to storage trends, here's what's cooking.

Nearly 70 percent of VARs say that during the next 12 months, their sales focus on network security will increase. Meanwhile, half of the respondents note that focus on access management technologies will remain the same. Very few VARs plan to decrease their emphasis on security solutions.

In the coming year, solution providers expect business with WebSense and Trend Micro to increase the most. On the other side of the spectrum, Symantec is taking the biggest hit, with just slightly more than 17 percent decreasing business with that vendor. However, a large number of VARs still say they plan to stay the course with the amount of business they'll do with Symantec.

Solution providers report that while recovery software solutions will be a primary sales focus in the storage segment, data de-duplication will not. SAN technologies, too, will see sales efforts largely remain the same, with 33 percent of VARs predicting an increase in that arena. However, network attached storage will see a significant increase in VARs aiming to sell that technology, which means potential sales growth for that category's leading vendors (see next slide).

Far and away, solution providers see sales with EMC growing. In fact, overall, only 6 percent of respondents overall said their business with network storage vendors would decrease. Of EMC's partners, only a tiny fraction -- 1.2 percent -- said their business would decrease. Dell, Netgear and Sun StorageTek VARs also reported growth, but their solution providers were less likely than the average NAS VAR to increase sales through those vendors.

A large chunk of solution providers said wireless/mobile technologies would increase in sales focus, while substantially fewer thought the same for business class connectivity. Networking infrastructure, a cornerstone of many VAR businesses, also continues to see potential growth.

VARs said they expect their business to increase with Cisco more than the vendor's competition. Cisco's Linksys also fared well, with 84.3 percent of respondents reporting they'd increase business with that vendor. HP and Netgear sagged below the average expectation of increasing growth with a wireless infrastructure vendor.

Within the Networking Infrastructure - Enterprise (LAN and Voice) sector, an overwhelming majority of SPs say business will increase. Cisco is the vendor VARs will most likely increase sales through, but other players in the category should see significant growth. Even HP, whose resellers are least enthusiastic about growing with the vendor, see 72.8 percent growth selling HP product.

VARs' focus on laptops will increase by a wide margin, with a limited number (2 percent) decreasing emphasis on that product. Desktops will see a sizable increase, while focus on servers will stay the course.

An overwhelming number of solution providers said they'd likely increase business driven through Panasonic's channel program. The vendor's growth in partner business was well above average. Dell's channel in large part also said they expected to grow that vendor's sales, but almost 23 percent said they'd expect business to remain level. Interestingly, none of Toshiba's VARs said they'd decrease business with the Japanese manufacturer.

In terms of peripherals, VARs said their sales focus would pretty much remain the same across the board. Close to half of the respondents forecast an increase in sales focus in the UPS segment. However, a combined printer category would see a 91 percent increase in sales focus.

Close to 90 percent of solution providers said they'd be increasing business with Xerox, compared with less than half who said their business would increase through HP. Ricoh SPs, too, said they'd be increasing business heartily with that vendor. On average, roughly 71 percent of vendors said printer business would increase.

Within the Software Infrastructure and Middleware technology category, VARs said their sales focus would increase most on operating systems. However, the number of solution providers reporting their sale focus would increase or remain the same in databases overtook any other segment of the category. None of those VARs were planning to decrease their sales focus.

Solution providers said business with all database vendors is likely to increase substantially. IBM leads the pack with nearly 85 percent of respondents planning to increase sales of that vendor's product.