Channel must prepare for dynamic IT

VARs warned about new way of selling technology

Resellers that fail to look at the bigger picture could fall by the wayside because a new way of selling technology is set to dominate in 2005.

According to analyst IDC, the newly emerging 'dynamic IT' model could change the way in which vendors approach the market, placing the emphasis more on adding value through combined solutions than on individual products and technologies.

In its report, Dynamic IT: Impact on Partnerships, the analyst claimed vendor/channel partner ecosystems will centre on 12 dynamic IT value propositions.

These include business monitoring and analytics, information and data services, collaboration and communication services, service level management, security, infrastructure virtualisation and platform management and monitoring.

Cushing Anderson, research director at IDC's software business strategies group, said: "Closer alignment of vendor alliances and partnerships will be required to create a tightly functioning ecosystem. A clear result of this activity is that vendor and partner positions will become more fluid, changing as the situation demands."

Anderson claimed resellers that offer a "real value proposition" from a combination of vendors will be the most successful as discerning customers look for more value for money, while box-shifters will be "relegated" to a different sales model, used only occasionally to buy machines or parts in bulk.

"The channel needs to be smarter about the capabilities of inter-vendor relationships, and how products tie together to sell as part of a bigger solution. Flexibility and interoperability will be key," Anderson said.

David Simpson, sales and marketing director at VAR Softcat, said business models are always changing. "We always try to second-guess what customers want, but there will always be those that prefer the traditional channel approach to doing business. Vendors are definitely going to be more selective," he said.

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