Tough Times, Measured Action

By Lawrence Walsh  |  Print this article Print

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.

The dawn of the Obama era and the infusion of hundreds of billions of dollars in stimulus funds are not enough to clear the economic storm clouds gathered over North America. Here’s the gruesome tale of the tape: Since the beginning of the New Year, the U.S. economy alone has shed nearly 600,000 jobs. Gross domestic product fell by 3.8 percent. And the forecast for the remainder of 2009 calls for sluggish, at best, growth.

The technology sector and the solution provider community are not immune to the recessionary pressures of the general economy, according to the Channel Insider 2009 Market Pulse, a survey of 200 North America solution providers. The research reveals that solution providers are cautiously optimistic about their business prospects in 2009, but expect a dampening of sales, revenues and profitability. In other words, they’re preparing for the worst while hoping for the best.

Solution providers are not taking the sluggish economy in stride. While there is a natural inclination to retreat to a safe place and ride out the downturn, the Market Pulse report shows many solution providers are readying or executing aggressive business development, sales and market plans to weather the recession and position themselves for growth in 2010 and beyond.

Lawrence Walsh Lawrence Walsh is editor of Baseline magazine, overseeing print and online editorial content and the strategic direction of the publication. He is also a regular columnist for Ziff Davis Enterprise's Channel Insider. Mr. Walsh is well versed in IT technology and issues, and he is an expert in IT security technologies and policies, managed services, business intelligence software and IT reseller channels. An award-winning journalist, Mr. Walsh has served as editor of CMP Technology's VARBusiness and GovernmentVAR magazines, and TechTarget's Information Security magazine. He has written hundreds of articles, analyses and commentaries on the development of reseller businesses, the IT marketplace and managed services, as well as information security policy, strategy and technology. Prior to his magazine career, Mr. Walsh was a newspaper editor and reporter, having held editorial positions at the Boston Globe, MetroWest Daily News, Brockton Enterprise and Community Newspaper Company.

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