THINK
OUTSIDE
THE WHITE BOX
Over the years, Harry Brelsford has witnessed a change in the system builder industry. Brelsford is CEO of SMB Nation
Inc., a Poulsbo, Wash.-based training and
events company for VARs and integrators
who serve small and midsize businesses.
The era when local system builders filled
a multipage newspaper supplement with
advertisements for their wares is gone, he
says. “Everyone in IT has to periodically
reinvent themselves, and it’s time for system builders to make themselves distinct
again in the marketplace.” The way to do
that, he argues, is to innovate.
For example, on a recent trip to India,
Brelsford heard about a system builder
whose daughter developed a boom box
with a slot for an MP3 player. The father
began manufacturing the device and selling it along with other home theater products in retail stores. “The home theater
market isn’t for everyone, but it’s growing
and there are opportunities to offer innovative products,” Brelsford says.
Other more traditional areas rife with
opportunities include digital signage—
wall-mounted in-store displays that present
computer-generated text and images—
and video surveillance systems. Brelsford
says that the convergence of data and
voice technologies, such as Voice over
Internet Protocol (VoIP) systems, also
presents an opportunity for system
builders to provide integration and consulting services. “I don’t know of a single
service provider who knows both data and
voice,” Brelsford says. “Whoever can fill
that gap could do pretty well.”
THE SERVICES SPRINGBOARD
System builders are actually well-positioned to
provide services to SMBs, given their existing customer relationships in that segment. “Most SMBs
are looking for trusted partners to take over all
their IT service and support needs,” says GCR’s
Smith, adding that the smallest organizations will
increase their spending on services this year by
7. 9 percent on average. System builders can use
hardware as a springboard to more profitable service offerings, by bundling remote backup, disaster recovery, archiving, maintenance, and software
upgrades with their PC sales. They can also push
networked mobile technology and provide installation and support services for a range of mobile
devices, including PDAs.
Growing interest in dual-core processors from
AMD and Intel and the launch of Microsoft’s Windows Vista operating system also spell service opportunities for system builders. For example, one
of the advantages of dual-core processors is their
ability to support server virtualization, which
promises to help companies reduce the physical
complexity of their infrastructures by trimming
the number of boxes they must administer. But
licensing, asset management, maintenance, and
troubleshooting are all more challenging on a vir-
tual machine. Last year, Intel introduced a new
platform called vPro that utilizes dual-core
processors and software to make remote desktop
management simpler. System builders that incorporate vPro technologies into their hardware offerings can provide add-on offsite management
services, including backup, security, and system
maintenance.
As for Vista, while there has been plenty of
buzz surrounding the new operating system, many
analysts expect SMBs to wait until the end of the
year before seriously considering an upgrade. Just
the same, Vista represents a golden services opportunity for system builders. “Many SMBs don’t
know what Vista can mean to their business in
terms of improving productivity,” says Seagate’s
Nesland. “System builders can serve as consultants who can advise customers on the transition
to Vista.” Moreover, once their clients have made
that transition, system builders can provide advice on everything from PC backup and storage
options, to security and business applications.
WHITE BOOKS AND BEYOND
Getting into the services business doesn’t mean
giving up on hardware, though. At Tech Networks
of Boston, a system builder and IT outsourcer,
“SMBs are
increasingly
demanding
brand-name PCs,
and that has
affected system builders’
‘ab‘ility to make margins.
BRIAN ARTHUR SMITH
GCR CUSTOM RESEARCH LLC
What new ventures are you building?
Send your suggestions to cpeditor@ehpub.com
