According to a recent survey done by TechTarget, 2010 IT budgets are expected to be 2% less than they were in 2009. This is the first time in approximately 10 years that TechTarget has reported a decrease in IT spending.
Even last year, at the beginning of the economic collapse, IT budgets were expected to rise, albeit only slightly. With IT budgets continuing to tighten, what does this mean for technology partners? On the surface it appears that technology vendors and their partners are in for a tough year. However, TechTarget also reports that only 13% of those surveyed plan on reducing overall spending. This indicates a move towards spending on strategic initiatives as well as necessary items (new laptops etc.).
What to look for in a partner
To set your organization up for success in 2010, VARs should look to partner with companies that offer technologies that are considered must haves. Even with tight IT budgets, organizations in all verticals will need network security. The myriad of phishing attacks, botnets and, spam and other Internet threats means the risks of going without network security outweigh the potential costs. As long as cybercriminals continue to make money from these attacks new and more sophisticated attacks will be developed. Because of this, organizations of all sizes, in all industries will continue to purchase network security products to protect their networks.
Which security product/which vendor?
VARs searching for a potential partners will find that there are many network security vendors to choose from. Which one is the right one? They key is to find a security company whose products offer a balance between functionality, ease-of-use and reliability. End-users will look for products that provide more than network protection. They will want a product that helps improve productivity and even helps save money. The best way to determine which vendor will offer you the best sales case you should read customer testimonials and talk to other VARs. The best indicator of whether or not a company's product will create a good opportunity for your organization is how happy current customers are.
Do they talk about time and cost savings? Happy customers that can point to specific metrics on why they are pleased with a product will help you demonstrate the product's value to potential customers. Having this information before deciding which vendor to partner with will help you make a solid decision that will help your organization be successful in 2010 and beyond. It is becoming clear the economy is starting to turn around. Despite this, IT budgets will remain tight.
When trying to determine which vendors to partner with look beyond factors such as margins. High margins are important but so are a demand for the product, a product that helps save time, and a vendor who has a personal relationship with each of its VARs. When looking for a vendor to partner with, don't just look at the normal metrics. Think about what types of products will be in demand and then for the most reliable vendor in that space.
The original article/video can be found at Partnering with the right tech companies for success in 2010