Resellers should exploit rises in security budget

Security spending is on the increase and VARs must be alert to requirements if they are to feel the benefit

Resellers must understand customers’ operational requirements and security challenges if they are to snatch a share of the increase in homeland security spending.

Research carried out by analyst firm Frost & Sullivan has claimed recent terrorist attacks in London and the 2012 Olympics will force an increase in spending. This could have a positive effect on the channel as demand for improved security technology increases.

The report said: “There are significant challenges associated with providing security solutions for open threat domains, such as transport systems and congested urban areas.

“Firms need to address users’ specific requirements, many of whom are struggling to develop satisfactory technological security strategies.

“These challenges are making it difficult for the security industry to adequately address the relevant authorities’ complex challenges.”

The UK currently has an annual security budget of £2bn.

Dave Ellis, director of e-business at security distributor Computerlinks, welcomed any investment increase, but raised concerns for small vendors.

He said: “This is good news for the channel. The security market is still buoyant and from a reseller’s perspective there are still plenty of opportunities.

“Smaller vendors should be concerned though, as it is much harder for them to enter the market. The larger vendors have more solutions that fit different sections of the market and have more clout,” he said.

But such concerns have been dismissed by others in the channel.

“Small vendors are more flexible and therefore can adapt to changing trends in the market far quicker,” explained Scott Fletcher, managing director of VAR Smart Identity.

If the proposed investment increase does occur, it remains to be seen whether the government will issue open tenders to the channel.

Georgios Oikonomakis, senior industry analyst at Frost & Sullivan, said: “A lot of the security technology that this research has covered is procured by private authorities who may or may not issue open tenders to the industry.”