IDL points to mid-market compliance opportunities
- 07 February, 2005 11:58
IDL has launched a new packaged program aimed at helping the channel cash in on the compliance trend.
The program uses the demands of compliance to explore possibilities for improvements in business efficiency within an organisation. These efficiencies are then used to offset the cost of meeting compliance regulation.
IDL's CEO and global director of strategy, Neil MacArthur, said 75 per cent of the compliance market was currently unaddressed, largely due to want of a focused approach from end users, vendors, local integrators and VARs on how to address business needs.
"The problem for the VAR community, in particular, is that they have tended to hold off as they don't want to get involved in litigation if someone has failed a compliance audit," he said. "So the business case we bring is not to get the end-user compliant, but to reduce the cost of compliance."
As many VARs and smaller integrators were uncertain about how to get into compliance, the program sought to map reseller skills to the different aspects of the market and customer business processes, MacArthur said.
"Compliance is such a broad beast," he said. "You can have it on the network where security comes into play, on infrastructure when it's related to retention of data, in storage management applications, at the application level and then at the upper end with the data itself in business intelligence." The potential for services offerings was also a strong motivator for the channel to get involved in compliance, MacAthur claimed.
Using IDL's program, resellers would be able to provide these services in a way which was more cost-effective, he said.
"Services are where most resellers make their money, but if every service deal is one of a kind then they are never going to get beyond 20 or 30 per cent utilisation as the rest of the time they will be on the bench figuring out how to use the software or server," he claimed. "Compliance however is highly repeatable as the foundation of what has to be done is laid out by the regulations so it tends to bring you toward the higher end of the revenue utilisation."
According to MacArthur, the compliance market will be worth between $US500 million and $US1 billion across the enterprise and mid-markets during the next financial year.
However, many global integrators had already captured the top 25 per cent of the market, he said.
Accordingly, IDL would address its program to the mid-market.