The economic downturn will reduce security spending across Europe. However, continuous improvements in technology will sustain the need for informed and proactive channel partners in the security arena.
The economic downturn will reduce security spending across Europe. However, continuous improvements in technology will sustain the need for informed and proactive channel partners in the security arena.
New analysis from Frost & Sullivan, Distribution Channel Analysis for European Security Systems, finds that companies able to offer comprehensive solutions backed by value-added services will make strong gains.
"A wide range of security markets are registering growth,” said Frost & Sullivan Industry Analyst Matia Grossi. “This is triggering the need for a wide and in-depth network of distributors, systems integrators and resellers.”
The trend towards IP-based security products has introduced the market to IT system distributors and integrators, such as Anixter, IBM, HP and others. These distributors and integrators are in a better position to understand technological changes and provide a high level of service to customers. Intensifying competition between security and IT channels has reduced the box mover attitude among traditional channel distributors. Traditional distributors are making a conscious effort to provide IP products and services and are trying to match the service level of participants from the IT channel.
The current economic downturn is expected to curb security investments in many vertical markets. This trend will result in reduced sales for the distribution channel partners as well.
"Over-dilution of the distribution channel also leads to reduced margins,” said Grossi. “Numerous products, applications, value-added services and market participants are crowding the market, making it difficult to maintain high margins.”
Distribution channel partners need to constantly redefine their product portfolios and value-added services. Introducing more IP-based products, offering complete solutions and ensuring excellent service hold the key to survival and success in this market.