Channel News and Analysis - Channel Insider
Empowering the next generation Channel
 

Bull’s Eye Awards
Nominations Open for Channel Insider 2009 Bull’s Eye Awards
Nominations are now open for the Channel Insider 2009 Bull’s Eye Awards, which recognize excellence in customer service, technology prowess, business acumen, channel leadership, communications and community building, and innovation among vendors, solution providers, distributors and channel services companies.



Sponsored Links
  • Control VM Sprawl, What You Don’t Know Can Hurt You
  • FREE Sophos Encryption Tool: Encrypt, compress and share files easily
  • LSI 6Gb/s Portfolio Expands to Include SATA+SAS HBAs
  • Reduce the cost of managing your mobile workers.
  • Find out 7 Ways to Drive Data Center Efficiency
  • SonicWALL breaks through network and email gridlock
  • Save up to 40% on calling costs with Avaya Aura™



  •  

    Who's Afraid of CDW?

    in Channel News and Analysis


    Article Rating:starstarstarstarstar / 0
    Article Views: 708

    Rate This Article:
    Add This Article To:
    Opinion: VARs with the right strategy have less to fear from CDW's incursion into their territory than those who have not changed with the times.

    Online retail giant CDW's acquisition of a Midwestern VAR this week to beef up its services and solutions business is sure to have some VARs nervous about increased competition.

    It's an understandable fear, but whether it is warranted depends on how these VARs have been running their businesses and what they have set as strategies for the future.

    To be sure, competition will continue to increase because, if nothing else, CDW will make more acquisitions, as its executives hinted in a conference call this week to discuss the purchase of Berbee Information Networks for $175 million.

    And, by the way, so will other VARs that are on the prowl for acquisition targets that can expand their geographic reach and technical and service capabilities.

    Resource Library:
    Among them is Logicalis, the $500 million VAR, based in Bloomfield Hills, Mich., that has embarked on a shopping spree to boost revenue and widen its customer reach.

    So, yes, tougher times lie ahead for small VARs that have to compete with bigger companies with more resources and greater ability to secure and offer attractive prices based on volume.

    But these VARs have options, not the least of which is selling the business to one of the acquirers. According to CDW CEO John Edwardson, many are trying to do just that.

    Click here to view exclusive channel research from Amazon Consulting.

    "There are literally hundreds of companies around the country founded 15, 20, 25 years ago whose owners are looking for an exit strategy," Edwardson said.

    "That presents an opportunity for us to grow this particular segment of the business."

    Selling, however, is not the only option for VARs facing increased competition from channel Goliaths.

    The small local VAR remains the single best source of IT products and know-how for a multitude of small businesses that need a trusted advisor to help them apply technology to their business goals.

    And they will remain so as long as those local VARs are approaching customers with the right strategy, which means taking an interest in the customer's business beyond selling them the next laptop or printer.

    It means making sure you have a contract with the customer to provide needed services. It means assessing customer needs and monitoring performance to make the appropriate recommendations before a need turns into an emergency. It means offering options such as online storage, printing equipment leases and remote monitoring of the customer's equipment and applications. It means discussing things like replacing aging applications with software-as-a-service plans that are easier on the wallet.

    And most importantly, it means making sure customers have reliable, secure technology that does exactly what they bought it for.

    So long as VARs are keeping on their toes in helping customers with their business goals, the expansion of CDW into their space should prove a lesser threat than if they stick to old ways of doing business.

    The IT channel, as anyone who has been around long enough will attest, is a dynamic place that requires constant vigilance and the flexibility to adjust to the changing currents.

    As companies such as CDW and Best Buy make incursions into the territory of VARs, they must be more vigilant and adaptable than ever.

    Pedro Pereira is editor of eWEEK Strategic Partner, contributing editor to The Channel Insider and a veteran channel reporter. He can be reached at ppereira@ziffdavis.com.



    Discuss Who's Afraid of CDW?
     
    >>> Be the FIRST to comment on this article!
     

     
     
    >>> More Channel News and Analysis Articles          >>> More By Pedro Pereira
     


     


    [ci] feeds
    XML
    Add Channel News, Product Reviews, Trends and Analysis to your RSS newsreader or My Yahoo!


    HTML PLAIN TEXT

    Keep on top of news for VARs and Resellers with CI's Weekly Newsletter and Alerts.

     


    CHANNEL RESOURCE CENTER
     
     
    Enterprise Mobility Zone
    The Enterprise Mobility Zone (EMZ) blog is a tool designed to help senior IT executives discuss, create and deploy next-generation mobile strategies in their organizations.
    Go beyond yesterday's tactical approach to mobility!
     
    Build A More Efficient Data Center
    Demands are growing but budgets are not. Solve your pressing IT issues using the resources you already have. Determine which technologies can help you drive efficiencies and how they are applied. Gain a quick ROI on new initiatives
    Find out how
    Let Enterprise TechBrief do the work for you. Aggregated content, tech news, product reviews, vendor updates, how-to’s—all you need to boost your efficiencies and cut costs, all from one place.
    enterprisetechbrief.com