VARs: 7 Business Priorities For 2010

Respondents were asked to rank their top business priorities for 2010. Further cost-cutting initiatives finished a distant third behind introducing new technology to current customer base and expanding existing business to new vertical markets and new customers. Here's a more in-depth look at the top seven priorities for VARs next year.

1. Introduce A New Technology To Current Customer Base

New technology is a way for solution providers to adapt their businesses while always providing VARs with something else to talk to customers about. Additional State of the Market research shows that security, cloud/SaaS solutions and storage are the top three areas that VARs plan to add capabilities in the next 12 months (for those currently not involved in those technologies).

2. Expand Existing Business To New Vertical Market/Customer Base

Manufacturers are pushing solution providers to become more specialized in vertical markets to better service customers, according to Glen Jodoin, vice president of operations at GreenPages Technology Solutions, a Kittery, Maine-based solution provider.

End users are also looking more for solution providers that can solve business problems specific to their industry, he added. As a result, VARs are branching out in 2010.

"Certainly, we all think the worst is behind us. There are positive signs. Not that we see things busting open, but it will be slow, steady growth," said Jodoin. "We are invested in the data center from the cloud to the desktop. It requires that you look at technology differently. It's a paradigm shift from the way companies have done business in the past."

3. Continue Further Cost-Cutting Initiatives

Cost-cutting initiatives were a key focus for almost every company in 2009, when the phrase "do more with less" became ingrained into many people's heads. In 2010, that will continue to be the case, but it's third-place showing in the State of the Market top business priorities indicates that it's no longer the single biggest focus. In fact, many solutions said they expect to drive more sales next year by continuing to help end users reduce their IT costs but not their productivity.

4. Expand Existing Business To A New Geography/Market

As end users delayed or postponed IT projects for 2009, it forced solution providers to look around to generate more business through new customers. In some cases, that meant expanding geographic reach. The increase in remote monitoring and management has afforded VARs more opportunity to spread their wings as customers can theoretically be anywhere in the world.

5. Hire Additional Technical Staff

If solution providers chose the introduction of new technology as their top business priority for 2010, it stands to reason that they might need new staff to understand that technology. On the other hand, hiring technical staff finished a distant fifth here, meaning that VARs might continue to do have to do more with existing resources.

6. Hire Additional Sales Staff

Like adding technical staff, hiring additional sales staff doesn't seem to be a big priority for solution providers in 2010. While new technicians might be needed to service new technology, existing sales people can be relied on to sell the additional solutions.

7. Grow Through Acquisition Or Merger

A recessed economy can often lead to a flurry of mergers between companies, but clearly solution providers have other things on their minds for 2010. There's also the possibility that many VAR owners think their companies are worth more than they can get for them right now, causing any potential purchases to be delayed until more perceived value can be realized.