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Great Depression 2.0? Nah, Says IT Distributor

While the economic outlook may have some people talking about a second Great Depression, one company that weathered the actual Great Depression in the 1930s and is still going strong says that it’s ready for whatever 2009 brings – and so far things don’t look so terrible. In spite of gloomy news about Black Friday […]

Written By

Jessica Davis

Dec 11, 2008

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While the economic outlook may have some people talking about a
second Great Depression, one company that weathered the actual Great
Depression in the 1930s and is still going strong says that it’s ready
for whatever 2009 brings – and so far things don’t look so terrible.

In spite of gloomy news about Black Friday and consumer and business
spending, IT distributor D&H Distribution reports that business has
been up over 10 percent in the last 10 days over the same period a year
ago, according to Mary Campbell, a D&H vice president.

"The last two weeks we are outperforming what we thought we would be," Campbell says.

And that’s just the most recent bit of good news from the Harrisburg,
Pa.-based distributor that specializes in SMB solution providers and
their customers.

D&H also notes that in the most recent fiscal quarter from August
through October, D&H saw an 11 percent increase in business year
over year and also saw the following year-over-year sales increases in
the following categories:

Mobility: 53 percent increase in sales
SMB servers: 68 percent increase in sales
Storage: 27 percent increase in sales

Campbell notes that notebooks, which are included in the mobility
category, continue to be very popular and that notebook sales for
notebook vendors are still forecast to be strong next year.

"People are still buying despite the economy," Campbell says. According
to Campbell, D&H’s solution providers and end customers, as SMBs,
don’t feel as great an economic fluctuation as corporate enterprises.
"Smaller offices are used to having to do more," she says. "Like
everybody, we are cautious. But we are able to buckle down during these
times. We are cautiously optimistic."

D&H executives believe that the following IT solution categories will prove to be the most recession-resistant:

Mobility, including netbooks, smartphones and notebooks.
Server management solutions, such as Intel’s vPro and Microsoft’s System Center Essentials.
Small-business leasing – D&H says more companies are expressing
an interest in leasing as a financing option. The company points out
that "where not every small office can afford $5,000 to implement a
Windows environment across various workstations, an $80-a-month lease
agreement is more palatable."
Document imaging and scanner products can help companies convert
paper receipts and other documents into electronic versions to help
with compliance on federal regulations.
Data storage and security.

Great Depression 2.0? Nah, Says IT Distributor

Jessica Davis

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