MSPAlliance VAR Protection Program

Dell and Ingram Micro both stated this week that demand for information technology was on the decline (you can read the full article here). Let's take a moment and examine this statement.

Both companies are obviously expressing some concerns about the future to their shareholders. Much of this can be explained by the recent financial occurrences on Wall Street. However, it would be incorrect, in my opinion, to say that weakening business consumer demand for IT products (like those sold by Dell and Ingram Micro) is an accurate assessment of IT services (like those delivered by IT service providers, aka MSPs). In fact, most MSPs are reporting no appreciable decline in IT services being sold to their clients. True, larger projects involving hardware and consulting fees may be on hold for the next quarter or two, but this is not representative of the entire revenue stream for many MSPs.

Therefore, in order to help do its part in this economic crisis, the MSPAlliance is announcing a VAR protection program to help alleviate the pressures these companies have been facing for the past decade. The MSPAlliance will help all VARs eliminate their dependence on shrinking product margins by educating them on a new way of earning revenue. This ground breaking program includes helping VARs add IT services revenues (primarily delivered by the VAR), thereby improving margins and strengthening relationships with clients.

In short, the heart of the MSPAlliance VAR Protection Program rests in its ability to transform VARs into MSPs.