The 2007 CRN Profitability Study Reveals Significant Improvements to Solution Provider Margins and Topline RevenueKey Sales Tool Gives Product Vendors the Opportunity to Take a Fresh Look at the Solution Provider Profitability Landscape to Better Target Their OfferingsPRNewswire MANHASSET, N.Y., April 9 /PRNewswire/ -- CMP Channel Group's CRN, the number one source for channel professionals seeking crucial industry information and analysis, has completed its comprehensive 2007 CRN Profitability Study. The results of the annual CRN Profitability Study show overall margins and topline revenue improved for solution providers in the last year. The results of the study span over a dozen technology categories ranging from network security to voice-over-IP (VoIP) and deliver significant insight into the profitability of key technology disciplines. CRN Profitability Study results enable product vendors to more accurately target their individual markets, and help solution providers identify key areas that can help grow their product and services businesses. "The results of the 2007 CRN Profitability Study demonstrate once more the vitality of the channel and the increasing importance of services to solution providers," said Heather Clancy, vice president and editor of CRN. "Profitability benefits solution providers and vendors alike, and this years' study paints an optimistic picture of the current technology market and its future." Half the technology categories in the Study had gross profit margin increases of 3.8 percent on average. VoIP, Business Software, and Digital Displays enjoyed the biggest margin gains, with VoIP and Business Software margins well over 25 percent, according to the study. Topline revenue improved by double digits in all categories but one (Custom Systems, 8.9 percent), with topline revenue growth for VoIP, Back Office Software, Network Security, and Storage Management rising to 49.6 percent, 35.1 percent, 32.9 percent, and 26.5 percent, respectively. Illustrating profitability's increasing dependence on combined product and services delivery, the 2007 CRN Profitability Study revealed that between 60 percent and 82 percent of all solution provider revenue for the year prior came from product sales wrapped in services offerings. This key finding validates the efforts of solution providers looking to add additional services and consulting, and highlights for vendors the importance of programs, training, and support for their channel partners. The positive results of the 2007 CRN Profitability Study show that solution providers are on the right track when it comes to serving their customers and growing market share. The results also give product vendors a unique opportunity to take a fresh look at the solution provider profitability landscape, and better target their offerings for a net win-win situation in regards to improving the overall profitability picture for the entire industry. The 2007 CRN Profitability Study was performed with a randomly selected portion of CRN's global solution provider database who took part in the study using the secure online survey tool Insight Express. For additional information on CRN and the 2007 CRN Profitability Study, go to: http://www.channelweb.com/. About CRN (http://www.channelweb.com/) CRN provides solution providers and technology integrators with the crucial information and analysis they need to drive their company's sales. As an advocate for and voice of the IT channel, solution providers turn to CRN first for immediate information. Celebrating its 25th year, CRN is the most trusted source for channel professionals. CRN can be found on the web at http://www.channelweb.com/ About CMP Channel Group (http://www.cmpchannelgroup.com/) With a quarter of a century of experience, the CMP Channel Group is the global leader of 'everything channel' -- market intelligence media, events and marketing services. Through its leading portfolio of integrated solutions, the Channel Group yields a superior return on investment for the entire channel community by offering the right content in the right mediums to channel decision markers. As an advocate for and voice of the IT channel, CMP's Channel Group has earned the confidence of distributors, manufacturers and vendors throughout the world. About CMP Technology (http://www.cmp.com/) CMP Technology is a marketing solutions company serving the technology industry. Through its market-leading portfolio of trusted information brands, CMP has earned the confidence of more technology professionals than any other media company. As a result, CMP is the premier provider of access, insight and actionable programs designed to connect sellers and buyers in ways that yield superior return on investment. CMP Technology is a subsidiary of United Business Media (http://www.unitedbusinessmedia.com/), a global provider of news distribution and specialist information services with a market capitalization of more than $3 billion. Contacts Kate Spellman Dan Neel CMP Channel Group CMP Channel Group's CRN kspellman@cmp.com dneel@cmp.com 516.562.7383 516.562.7236 SOURCE: CMP Technology CONTACT: Kate Spellman, CMP Channel Group, +1-516-562-7383, Web site: http://www.cmp.com/ Company News On-Call: http://www.prnewswire.com/comp/181993.html |