Services now a prerequisite for survival

Services now a prerequisite for survival

Resellers that had the foresight to jump on the services provision bandwagon are growing in leaps and bounds compared to their non-services-focused counterparts, according to a recent study from market analyst Inform.

No longer is services provision regarded simply as an arm of the business resellers can turn to if hardware and software sales dwindle.

According to the latest Reseller Population Report from Inform's Fieldwork Services Business Unit, the number of resellers in Australia providing services has increased 18 per cent to 4,716 (67 per cent of all resellers).

Furthermore, the number of service providers has increased 14 per cent over the last year to 680, while systems integrators have increased 12 per cent to 718 and the number of value-added resellers has jumped 18 per cent to 875.

The report indicates definite trends in the growth of these services-focused companies, such as the majority of newcomers in the services-related business are companies with revenues under $1 million and focus on the SME and end-user markets.

According to Inform, the declining number of PC sales made through these resellers suggests they are more dependent on services revenue than ever before. These resellers are no longer providing services to differentiate themselves from their competitors, but rather services provision has become part of their core business.

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