Suppliers Need to Stand by Their VAR, Especially During the Tough Economic Conditions Ahead, IDC Says

FRAMINGHAM, MA – MAY 24, 2001 – Suppliers who jump in and out of the channel are jeopardizing significant market potential. According to IDC’s IT Partnering Survey, value-added resellers (VARs) play a vital role in delivering products, services, and consulting to a broad range of customers. Vendors that let them starve during these lean economic times will be hard-pressed to get their attention when the economic tides turn.


"Channel partners are hunkering down for the potentially long road ahead as the economy slows, trying to stabilize their position and defend against consolidation," said Stephen Graham, IDC’s vice president of Global Software Partnering and Alliances. "As they do, the opportunity for suppliers seeking to penetrate this market could become more difficult. Now, more than ever, suppliers must look to build partnerships with VARs, rather than sever ties."

According to IDC, the slowing economy has already forced channel partners to migrate to services and blended models. "The dependence on supplier-provided products has minimized, which has allowed many partners to be far more agnostic about their product selections. As a result, it’s time for suppliers to reassess their partnering positions and consider additional investments and incentives for the VAR community," Graham said.

IDC believes IT vendors that invest in the VAR community, stop challenging the partners value add, and ride the wave of the channel’s continued growth are likely to be the victors, especially when the economy turns.

IDC’s report, IDC IT Partnering Survey, Spring 2001: Product Adoption Intentions of the North American VAR Community (IDC #B24330), is based on 312 interviews with organizations in North America that resell or recommend technology products. The findings of this survey are presented in five major sections, including a profile of the participants, revenue drivers, hardware preferences and adoption intentions, software preferences and adoption intentions, and product adoption/removal. This report is intended for vendors currently selling through or seeking to successfully penetrate the VAR community.

To purchase this report, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at

About IDC

IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 700 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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