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Balancing Act: Save Customers Money And Boost VAR Profits in 2011

Balancing Act: Save Customers Money And Boost VAR Profits in 2011

Sponsored Blog: The fundamental trends underpinning I.T. investment going into 2011 are virtualization and cloud computing as well as prolonging the life of and cutting costs on End of Life (EOL) and End of Service (EOS) equipment. Enduring cost pressures mean I.T. budgets will continue to be greatly reduced and executives will have to be more conscious of spending to accomplish projects with fewer resources. So what's a solutions provider to do? Here are some practical steps for VARs.

Based on the factors above, we'll see a shift in I.T. spending away from new hardware purchases and toward non-capital expenditures such as maintenance alternatives, network infrastructure, software applications, and data center software. Delaying the purchase of new hardware is highly discouraged by Original Equipment Manufacturers (OEM) because they simply want to sell new equipment. As a penalty, these companies will charge outrageous prices to keep up service on EOL equipment.

This is where service alternatives and better utilization of hardware assets through virtualization will gain momentum as we move forward into 2011. It makes sense for companies to direct their spending to support areas such as service and maintenance, application software, cloud computing and virtualization than to use valuable resources to purchase new hardware. This shift in focus will create the need for organizations to maintain stability within their current hardware infrastructure, in a cost effective way.

To accomplish this, a reseller will need to align themselves strategically with an Independent Service and Maintenance Organization (ISMO) to gain access to these service alternatives quickly and easily. This type of partnership allows the capability to streamline service solutions and consolidate maintenance contract administration, saving end users up to 50% on service while Value Added Resellers (VAR) continuously increase their revenue.

The ServiceKey ISMO certification program is designed to ensure that partners are professional and successful.   Through this program channel partners gain tools, training, and the support they need to fully leverage ServiceKey’s extensive service options.  Having access to a turn-key service solution alleviates I.T. management’s need for reactionary projects and gives them the freedom to develop proactive plans aimed at streamlining support and keeping budgets in check.

Gina Hooley is channel marketing and communications manager at ServiceKey. Monthly guest blogs such as this one are part of The VAR Guy's annual sponsorship program.

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