Channel profits expected to grow

Research company Inform is predicting that the majority of Australian channel companies will experience an increase in profit over the next 12 months.

Eighty per cent of the 271 respondents of Channel Trends Australia 99 said that the next 12 months would see an increase in profits, 75 per cent of those expecting the growth to be over 10 per cent.

The survey, conducted every six months and including resellers, VARs, retailers and integrators, suggested that companies in the $25 million bracket will experience the biggest surge in growth.

Companies in the under $1 million category were more conservative, though they still expected to generate more profit in the next year.

Over all the revenue categories value provision organisations are most likely to experience higher growth according to the survey, especially systems integrators, software developers and VARs.

Those most likely to experience difficulties are companies more inclined to traditional activities such as resellers and retailers involved in volume sales.

Inform is also predicting that companies wanting to migrate from these areas into more service-orientated businesses will find it extremely competitive, though the potential growth in this sector is one of the highest.