Convergence is the key to lucrative VAR future
Experts agree that some firms must move away from traditional areas of business or risk going bust
Target the convergence market or risk being left behind, this was the overriding message to emerge from a dedicated industry conference last week.
Convergence will remain the buzzword of choice in 2006, according to IT industry figureheads at the annual Regent’s Conference in central London.
David Tansley, partner at consultancy firm Deloitte, said: “There is little doubt that convergence is on the agenda again. Converged products like voice over IP and IP television will be the next big thing.”
Deloitte claimed that by 2010 convergence products and services will generate at least a trillion dollars of revenue.
“Convergence will have a transformational impact on business and change the game forever. It will create winners, bystanders and losers. The winners will change and innovate; the losers will fail to adapt in a changing market,” he said.
Tansley said increased digitisation, connectivity and technological advancements are driving convergence, but only if IT firms push the benefits to end-users.
“Convergence growth looks positive because some businesses will catch revenue from these trends, but some businesses will find traditional areas of business declining,” Tansley warned.
John Gantz, chief research officer and senior vice-president at analyst firm IDC, said: “The industry is redesigning itself with convergence, but some firms will not make the change over. The great networks of our time, internet and phone, are coming together,” he said.
“With convergence we need more switches, storage, bandwidth and security, which is good for the industry. Major trends will see a focus on IP and further acquisitions.”
Peter Rowell, chairman at Regent Associates, said: “The IT industry is slowing, but there are pockets of growth. Four great industries: IT, telecoms, media and electronics are converging because of IP.”