Channel Sales for IT Products and Services to Hit $244 Billion; Increased Sales Due to Internet Based Services.New Channel Market Report Estimates 20 Percent of Value-Added Resellers Will Enjoy Increased Sales in Year 2000 Due to Internet-Based ServicesPRNewswire A new market research report that tracks indirect sales of information technology products and services is projecting the reseller channel for PCs will hit $244 billion in sales next year, with a dramatic increase in Internet-supported business. This represents an astounding 49% of all IT products and services sold in North America according to Gartner/Dataquest. The popular perception of the expanding pie of direct sales is debunked by the Reality/CIS finding that 49% of total sales are sold in the Channel. The Reality/CIS and Gartner/Dataquest research underscores the crucial role resellers assume as service providers. Gartner/Dataquest indicates 50% of Channel sales are accounted for by services, overall accounting for 29% of all IT sales. "It's clear to us that the Internet is now having a big impact on the way the channel conducts business," said Charles Humphrey, vice president for Reality/Channel Information Services (CIS). "The World Wide Web is obviously providing VARs with successful new sales opportunities. Thanks to the proliferation of new Web technologies, we expect it will continue to be a major vehicle for growth with resellers." The State of the VAR Market, conducted by Reality/CIS for VARBusiness magazine, interviewed 1006 value-added resellers and projects 20 percent of value-added resellers will enjoy increase sales in 2000 due to Internet-based services. Eighty-nine percent of VARs said they provide tech support over the Internet, nearly half said the Web expanded their geographic reach, and a third said they believe the Internet "levels the playing field" in terms of making them more competitive. "What's most revealing about this report is that VARs expect sales of e-business solutions and Web-enabling technologies to contribute as much to their sales as turnkey solutions will in the coming year," Humphrey said. "Each of those are second only to consulting services, which resellers reported would contribute 27 percent of sales in the coming year." Major Focus for Next Year Consulting services 27% E-business and Web enabling technologies 20% Turnkey solutions (including hardware, software, and services) 20% Networking products and services 19% Software App Dev services 9% Internet technologies ranked in the top five technologies contributing to channel sales, with a doubling of E-commerce and Internetworking sales over last year, Humphrey added. The top technologies contributing to channel sales ranked by order of importance include Ethernet (10/100/1000 Base-T) at 39 percent, network systems management at 31 percent, Internet/intranet integration at 25 percent, E-commerce at 19 percent and internetworking at 18 percent. Top Technologies Contributing To Sales
Yr2000 Yr1999 Yr1998
Ethernet (10/100/1000Base-T) 39% 30% 22%
Network/systems mgt 31% 25% 34%
Internet/intranet integration 25% 28% 33%
E-commerce 19% 8% 10%
Internetworking (WAN connectivity) 18% 9% 12%
Source: Reality/CIS State of the VAR Market (Year 2000)
Reality/CIS, an independent research and consulting business unit of CMP Media, Inc., is focused exclusively on the information technology industry. It provides strategic and tactical market intelligence and analysis on all aspects of the IT market. Its clients include the top global computer and communications companies, as well as ad agencies and media consultants. Additional information on Reality/CIS can be found at http://www.cis.channelweb.com/ or http://realityresearch.com/. CMP Media Inc. is the leading high-tech media company providing essential information and marketing services to the entire technology spectrum-the builders, sellers, and users of technology worldwide. With its portfolio of newspapers, magazines, custom publishing, Internet products, research, consulting and conferences, CMP is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. On-line editions of the company's print publications, along with products and services created exclusively for the Internet, can be found on CMPnet at http://www.cmpnet.com/ For additional information, contact Charles Humphrey at 516-733-6864 or chumphre@cmp.com SOURCE: CMP Media, Inc. Contact: John DiStefano, Project Manager of CMP Media, 516-733-6793 Website: http://www.cmpnet.com/ Company News On-Call: http://www.prnewswire.com/comp/181993 NY.html or |