2009 Market Pulse Report

Channel Insider surveyed 200 solution providers in December 2008 about their business activity in the last year and their expectations for the coming 12 months. The following series of reports provide an insider's view of the economic health of the North America IT reseller channel.

ANALYSIS Recession in the Channel: Tough Times, Measured Action Solution providers are not immune to the recession. However, the Channel Insider Market Pulse survey shows solution providers are prepared to weather the economic storm forecast for 2009, and, with a little luck and smart planning, position themselves for growth.  INDEPTH REPORTS Small Business Taking the Biggest Economic Hit Fortune 500 companies are the most visible victims of the recession, but solution providers say their seeing the biggest decline in IT spending among small and midsized businesses. Financial Services, Retail Take Biggest Dives in IT Spending The declining economy is forcing businesses in all sectors to cut spending, but solution providers are seeing the biggest cuts right where you'd expect: among the verticals hardest hit by the recession. Credit is Tight, but Not Impossible to Find The Obama administration is racing to infuse the financial system with capital to free up credit markets. However, Channel Insider research shows solution providers have access to credit, but the banks and customers aren’t necessarily friendly. Solution Providers Say Vendors, Distributors Less Supportive The Channel Insider 2009 Market Pulse survey found that more solution providers are finding vendors and distributors less supportive than they used to be and expect that trend to continue in 2009. Productivity Drives Technology Demand, Profitability As companies clamp down on IT spending, solution providers say the most profitable and high-demand products and services have two things in common: cost savings and productivity.

BY THE NUMBERS Vertical Spending Cut$ The recession is hitting some industries harder than others. These verticals are cutting IT spending faster than others. Recession Changing Channel Relationships The recession is taking a toll on vendor and distributor revenues. The Channel Insider 2009 Market Pulse survey finds that solution providers expect stark changes in their relationships with vendors and distributors over the next 12 months. Most Profitable Technologies of 2009 The economy is slowing and tech product pricing is under pressure. When it comes to making money, these technologies are where solution providers think they'll get the most bang for their buck over the next 12 months. Top 10 Most Exciting Technologies of 2009 IT spending is under pressure and businesses are looking to contain costs wherever they can, but these technologies really have them excited. According to the Channel Insider 2009 Market Pulse survey, these top 10 technologies are what solution providers are asking for most. Credit Worthy: Channel Financing Trends Cash is the lifeblood of business, but credit and financing is what fuels most business. Despite the economic meltdown, solution providers say credit isn’t a problem, but there are reasons for worry. Here's Channel Insider's exclusive analysis of credit trends in the solution provider community. Top 10 Vendors Most Likely to Compromise their Channels We asked solution providers which vendors were most likely to compromise their partners and channels to preserve their revenues and margins during the recession. The following are the top 10, as ranked by Channel Insider readers. Tech Vendors That May Not Survive 2009 In the Channel Insider 2009 Market Pulse Survey, we asked solution providers which vendors they thought would go out of business or be acquired in 2009. Based on their perceptions and predictions, the following are the vendors that made the endangered species list.