IT VARs are under pressure

IT value added resellers (VARs) face two key issues:

  • Constant erosion of hardware prices creating the need to continually introduce new generations of equipment and develop new, high margin services;
  • Demands from vendor partners to sell large quantities of infrastructure hardware in order to retain partner tier status with its attractive discounts and support levels.

Potential salvation through video surveillance

What VARs need is an emergent, fast-growth application, bandwidth and storage hungry, that taps into corporate budgets outside the investment-constrained IT department.  Fortunately, such a market exists, IP video surveillance (IP VS).

This creates a large opportunity for IT VARs since much of the technology now falls squarely into their core competence. An IP camera can now be seen as one more device attached to the network, and running it requires another network software application. IT VARs know how to do this.

Benefits for VARS

For those VARs that embrace the market and develop effective strategy the prize is clear. By embracing IP video surveillance, and in particular VSaaS, VARs can:

  • Expand demand  for data storage;
  • Create high margin recurring service revenue to counter hardware commoditisation;
  • Maintain their one-stop-shop proposition to clients;
  • Gain access to physical security budgets, and potentially marketing budgets, for wider commercial applications.

Barriers to success

However there are some issues which VARs will need to overcome:

  • A lack familiarity with the video surveillance market: law, culture, buyer behaviour, users, competition, installers, and vendors;
  • The need to engage with a new set of individuals, both physical security equipment buyers and commercial business unit heads, not just the network or IT managers who currently procure their products and services;
  • The requirement to understand and operationalise video security laws, optimal  layout design, physical camera installation siting, use and maintenance.

How well VARs develop strategies to overcome these issues will determine whether the opportunity is realised.

Download the full white paper, 'Opportunities for IT VARs in video surveillance' from our library. Click here to go to the libary.

The IP video surveillance focus area is headed by Andy Coaton.