Go global to beat the crunch

Channel players should turn their gaze abroad to survive an economic downturn, says David Ellis

David Ellis: We see IT security as a market sweet spot driven largely by compliance

In a downturn, winning more business internationally could be a key survival tactic. It sounds like the last thing a
business should do, but believe it or not, it is a low-risk route to market, particularly if costs can be kept under control.

The British Chamber of Commerce (BCC) has stated that the UK is facing a serious risk of recession. A recession is said to have occurred if there are two or more consecutive quarters of negative growth. The BCC is predicting either zero or negative growth over the next few months.

A downturn is a real threat for the channel. When profits shrink, resellers may be inclined to put their international expansion plans on hold.

Firms need to revise their business plans and ensure their planning is accurate and flexible enough to weather an economic storm, but extending international reach drives business in less volatile markets.

The IT world is getting smaller and projects are increasingly global. Whether a small or large business, developing a global
footprint via branch offices or third-party partnerships is vital for many companies aiming for growth.

Identifying potential
Services such as multiple country support contracts may assist. Consolidation remains key to driving costs down and improving efficiency, particularly for firms with widely dispersed operations.

However, channel players must also assess their export potential, both in terms of the readiness of the business and their service offering. Researching the target market and the likely demand for specific solutions are key. Assess the readiness of the business and service offering.

Carry out research to identify the target market and likely demand for solutions, how to fit into the market, possible competition and any modifications required to make the solution saleable.

Channel firms should also figure out how they fit into the specific overseas market. They should look at the likely competition and whether any modifications to their solution portfolio are required.

Securing a solution
How a sales presence is organised is vital. For each overseas market, a clear understanding of who the customer will be, what makes them buy and how best to get in front of them is needed.

Sales and promotional activities need to be carefully considered for each market. A one-size-fits-all approach will not work across the globe, in different countries with different cultures, not to mention different regulatory and legislative frameworks.

For each overseas market, businesses should take time to get an understanding of who their customers might be.
Resellers should look for a partner who already understands the local market. This should help them enter new markets
quickly and cost effectively. Even in a period of economic slowdown, businesses will still need to remain competitive.

We see IT security as remaining a market sweet spot driven largely by compliance but also by a widespread belief in the business community that data management is important.

Protecting digital assets and information security is fast becoming ingrained in business processes. Many companies are trying to understand how vulnerable their systems are and where new vulnerabilities may occur.

There is a growing awareness around endpoint security, fuelled by stories of missing laptops and data going astray. This together with increasing regulatory pressure will keep information security as a key investment area.

Align security with hot technology growth areas that offer the ability to cut operational costs such as virtualisation, voice over IP and WAN optimisation. Deals that can reduce cost for customers will remain attractive.
Develop value-added services that provide customers with cost-effective support and offer consultancy services to help configure the systems supplied. With third-party help it is even easier for resellers to add services to their portfolios.

Look at market strategies. Some industries, such as insurance and pharmaceuticals, may still grow even in a period of economic uncertainty.

VARs with a broader understanding of the developments in IT infrastructure and how security can support it will
capture customers.