Knockout margins

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Customers are becoming notoriously prudent over their IT purchases, but if manufacturers are to be listened to there are still pieces of ‘killer' hardware that will force end-users in this market to open their wallets. We asked leading vendors in the region to scour their portfolios and identify a ‘recession-proof' product that will help resellers beat the downturn.

There has been a great deal of doom and gloom of late. Voices that previously relished the recounting of sturdy quarters and double-digit growth have been silenced, muted by concerns that end-user customers are postponing IT projects and generally cutting back on their technology purchases.

Resellers are having to fight tooth and nail to secure the shrinking number of clients out there, and deliver more for that customer's buck when they do. If there are to be any concrete foundations for recovery, and for that matter, if the reseller channel is to sustain business through the predictably worrying summer months to the perhaps more vibrant last third of the year, they are going to have to think very carefully about product selection.

Hopes can only be pinned on products that guarantee the generation of demand and extra revenue-gathering opportunities. At the same time, the channel needs to focus on products that contribute solid margins that actually help deliver a healthy bottom line.

To be blunt about it, it is vitally important that resellers make manufacturers spell out exactly why they and their products are worth selling. And that is exactly what we have done here by gathering some of the region's leading systems and infrastructure vendors and asking them to conclusively outline the recession-proof products that will tempt even the most cautious customers to get spending again.

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