Is the VAR dead?
A Channel Marker blog yesterday got attention with the headline, "R.I.P. V.A.R.?" But don't write that obituary just yet. Of course, the VAR isn't dead, despite the attention-getting lead directed at VARs, proclaiming, "You're dead." Of course, I'm a sucker for a sensationalistic headline, and I've generated one or two myself. Blogger Colin Steele got my attention with it, but then explained his position.
The traditional VAR is not dead, not even sick--but undergoing a major shift in how they do business. No type of business is immune to these sorts of fundamental overhauls, and if your company is the type of company that tries to do the same thing year after year, you will eventually find yourself facing obsolescence as younger, more nimble, and less set-in-their-ways companies come along and think up new ways to eat your lunch.
Old-style VARs look for larger deals with big up-front licensing fees, but companies are looking for ways to keep those sorts of purchases down, and VARs who stick to that model are in for a shock. The new model for success is to have more customers, smaller deals, and more managed services and SaaS offerings that don't require big capital expenditures. There's still plenty of life in the VAR business--but only for those who can adapt to the times.
BONUS LINKS
Build your tech library with our book giveaways.
Windows PowerShell 2.0 Unleashed
By Tyson Kopczynski, Pete Handley, Marco Shaw; Published by Sams
Windows PowerShell Unleashed will not only give you deep mastery over PowerShell but also a greater understanding of the features being introduced in PowerShell 2.0–and show you how to use it to solve your challenges in your production environment. Enter now!
Ubuntu Server Administration
By Michael Jang; Published by McGraw-Hill Osborne Media
Realize a dynamic, stable, and secure Ubuntu Server environment with expert guidance, tips, and techniques from a Linux professional. Ubuntu Server Administration covers every facet of system management -- from users and file systems to performance tuning and troubleshooting. Enter now!
old ways vs. new ways
Dan, One big issue that is about to be driven-home, in a very big way...Selling to new client accounts vs. maintaining existing client accounts on ongoing support agreements
For those VARs that depended heavily on selling new projects all the time, with little or no recurring revenue, the outlook isn't good.
For those VARs that built up a nice base of clients on ongoing monthly recurring service agreement arrangements, the next 3-6 months will be a LOT easier.
In these times though, there are some very nice clean-up jobs... that can turn into clients on ongoing monthly recurring service agreement arrangements.
As VARs suddenly drop-off the map, what happens to their "orphaned" clients?
Be the superhero riding in to save the day, and you'll get some very loyal new clients.
Also don't forget... the demise and consolidation in the financial services industry will lead to many out-of-work IT staffers starting their own businesses... many in IT related fields.