While IT solution providers may be seeing their business
customers push out payments or delay deals, they are taking the now-confirmed
recession in stride.
"It's not like we are in the auto industry facing bankruptcy," says
Ken Lamneck, Tech Data's president of the Americas,
speaking about business and the current economy. "Our partners serve SMBs,
and we are modeling low- to mid-single-digit growth for 2009—say 4 percent to 8
percent. As you go to the enterprise, there will be less than that."
And IT solution providers attending IT distributor Tech Data's recent
TechSelect event in Washington, D.C.,
admit that signs of a down economy are evident, but are taking a wait-and-see
approach to business. They say it's like a "storm watch."
"People are paying a little slower than in the past," says Angela
O'Donnell, managing director of New York-based W. O'Donnell Consulting, which
specializes in the publishing industry.
"And they are a lot more cautious with spending," says Jonathan
Register, vice president of operations at Raleigh, N.C.-based Alphanumeric
Systems, a solution provider that specializes in government customers.
IT solution providers that have shifted their business to a
managed services or SAAS (software-as-a-service) model say business has
remained steady. "We've put ourselves in a better place," says Sam
Ruggeri, president of Advanced Vision Technology Group in Hauppauge,
N.Y. "We haven't seen renewals
tail off."
"We are looking at pitching managed services to smaller businesses,"
says O'Donnell. "They are cutting back on IT staff and talking to us about
how to fill the gap."
"We are seeing the government extending refresh cycles from three to five
years on the state level," says Stephen Ale, chief operating officer at
Fairfax, Va.-based Richards Computer, which also specializes in the government
markets.
But projects are another matter, according to Ruggeri. And other solution
providers agree.
"More projects are being put on hold," says Debra Candido, vice
president of administration at Manhattan Information Systems. "I feel like
we are in a storm watch. Is the storm going to hit us? Or is it not going
to hit us?"
But as projects are deferred and the same old equipment must continue to be
productive, Ale says that Richards Computer has noticed a pick up in its
break/fix business.
And as the "storm watch" continues, these solution providers are
implementing strategies to weather whatever comes ashore.
"We are doing tons of partnering," says Ruggeri.
"We sent people to a customer training workshop," says Ale.
"Customers are going to be in a terrible mood. We don't want to get pulled
down with them."
"The last recession we didn't invest in training or new products, and that
was a mistake," says Candido.
But even with threatening clouds overhead, solution providers still see some
bright spots.
"There are two clients I have that still have budget money they need to
spend this year," Ruggeri says. "I am cautiously optimistic."
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SMB Partner 
