Operating In Tough Times: VARs Gear Up For Growth

In this difficult economic climate, the best defense may well be a strong offense among VARs focused on growth. Rather than cutting back operations, solution providers are pushing ahead with their efforts to grab new business.



Manuel Villa, President, VIA Technologies



"I was expecting a strong fourth quarter. We were expecting some government projects to take off but they haven't gotten off the ground," said Manuel Villa, president of VIA Technologies, a San Antonio, Texas-based solution provider.



Villa's solution to the economic pressures? "I just hired two more sales guys. We are data mining right now and going through every single contact we have done business with over the years and are just reaching out to them. We're on the offense. This is the time when you take advantage of the situation."

"Everyone is scared, but at least they are maintaining what they've done in the past," said Don Richie, CEO, Sequel Data Systems, an Austin, Texas solution provider. "We are seeing the services part of our business pick up. The bottom line is that companies that have to cut back on their infrastructure are coming to us and asking if we can provide a person two days per week to manage their data center and pay us $200 per hour versus paying someone's salary. Who knows what's going to happen next year, but I've been pleasantly surprised."

"We are seeing some issues in the midmarket; it's uncertainty and people are just waiting," said Arlin Sorensen, CEO of Heartland Technology Solutions, a Harlan, Iowa solution provider. "In SMB, we aren't seeing that at all. We had a good month in October; we haven't seen it in our numbers at all. I think it could be stronger and would be stronger if people would just shut up and leave it alone. We are putting focus on getting in front of the customer and staying close and trying to make sure when they have business needs we are there to help. In our customer base, it's just a matter of getting some confidence back again. To me, this is a total confidence issue rather than a reality issue."

"People are still spending money," said Rick Chernick, CEO of Camera Corner/Connecting Point, a solution provider in Green Bay, Wis. "I'm focusing on areas like health care where you know people are still going to spend money. Education is still spending money and small and medium business is still spending money. We are out calling on the customer and asking them what are their pain points; 'How can we help you?' You have to be flexible and do what you have to do to get the deal. The country is in worst spot I've ever seen, but we have to be positive and get excited and see what's out there. We still have a lot of strong customers that are buying a lot of stuff. Resellers that pound the pavement will be successful."

"We are looking at what should our marketplaces be based on where we think the economy is going to go," said Bruce Geier, president and CEO of Technology Integration Group, San Diego. "Medical, alcoholic beverages, alternative energy, and the right type of retail outlets are industries we believe will grow substantially. And biotech should do well, but venture money may be tighter. In the meantime, we are driving projects that we believe are smart, like green technology. People still have to reduce their energy and overall costs."