UK channel in good shape for recovery
High-performance computing and storage boost prospects for UK resellers
Fears that Silicon Valley will fail fully to harness the recovery in IT spending were highlighted by economists in the US last week.
However, the UK channel is in better shape to take advantage of the recovery, following refocusing by many firms.
A report by UCLA Anderson Business School claimed that the technology industry's hub has lost about 20 per cent of its workforce since the IT slowdown began in 2001, which reduces growth potential.
Gordon Davies, commercial director at UK reseller Compusys, said: "I think we are in pretty good shape because an awful lot of marginal players that were hanging on by their fingertips have either gone or have restructured. The channel has taken the pain and is ready for the gain."
Davis added that the UK has survived because of emerging markets. "These growing markets include high-performance computing and storage," he said.
"There is also increased activity in the public sector, which has reduced the impact of the enterprise slowdown.
"If it had not been for public sector spending there would have been more restructuring and it would have been more difficult."
But he added that he does not expect a sudden bounce back similar to that in the 1990s.
Steve Pearce, chief operating officer at distributor InTechnology, also expects a gradual rebound.
"The challenge comes to those that have been unable to invest during the slow period, because they will not be ready for the new challenges in a changed industry," he said.
At a recent Gartner Symposium, Michael Fleisher, chief executive of the analyst, said IT decision-makers must embrace and control inevitable changes, for better and worse.
"A sustained technology recovery is now solidly underway. Chief executives are now not judging IT executives by their ability to cut costs, but they are demanding support for their top priorities: innovation and growth," he said.