IT Channel Industry Leaders Project Revenue Growth

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A sizeable majority of IT channel businesses, including resellers, value-added resellers, service providers and systems integrators, have an optimistic outlook toward sales revenues in the next year, a new study conducted by CompTIA and the Yankee Group shows. Of more than 500 respondents, close to 90 percent predicted an increase in revenue of 10 percent or more in the next 12 months, and well over half of contributors believed their revenue growth would exceed 20 percent.

The study, which surveyed senior executives at mostly small businesses (about three-fourths employ fewer than 100 people) that operate in limited markets (approximately half operate in a single metropolitan area), was conducted during the second business quarter this year. Distributed infrastructure–including network security, voice-over-IP storage solutions, desktop products and systems integration–is considered the “sweet spot” of these firms’ offerings.

 

More than 60 percent of respondents predicted an increase in sales of hardware and software products next year. Having said that, the study also found that the IT channel industry is moving away from supplying goods and placing more emphasis on providing services. More than six in 10 companies predict the most growth will come from systems integration and application implementation, network security and storage solutions in the coming year.

 

These sanguine calculations regarding sales and revenue increases have not yet come to pass, of course. In order to make these projections come to fruition, IT channel vendors will have to identify and implement new technologies and maintain effective communications with customers, partners and employees, respondents said. Other challenges include proliferation of competitors, a customer base that frequently fails to grasp cutting-edge technology, cutbacks in vendor support, lack of client loyalty and retention of qualified employees.

 

Nonetheless, for the most part IT channel vendors think they are prepared to more than meet these obstacles. The confidence they exude demonstrates that when it comes to growth, small firms believe they can hang with the big dogs of IT.

 

For more information on the CompTIA/Yankee Group study, see http://www.comptia.org/pressroom/get_pr.aspx?prid=491.

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