How's the channel been faring since we released results from our exclusive 2006 State of the Market survey? Our latest midyear research reveals that tough times aren't stopping VARs from diving in to new business ventures. (Search our midyear research, below.)
 VARs are becoming managed-services providers, or MSPs--in hopes that expanding their services portfolios and embracing more complex remote-management tasks will keep them in the game for a long time to come.
Today's savvy customer knows discount structures, reseller rebates and end-of-quarter specials inside and out. And it shows. According to VARBusiness' exclusive 2006 State of the Market data, 42 percent of VARs and solution providers say their sales cycles have increased during the past year.
Many VARs participating in the 2006 VARBusiness State of the Market survey indicate that they're maintaining higher overall expectations for their vendors and prospective partners. They want greater flexibility when it comes to putting out customers' fires, better competitive pricing and technology product improvements that address business needs.
For solution providers, customers' willingness to open up their wallets means they can expand their own operations--adding new programs and technologies. Of course, that also means adding new staff to tackle the new opportunities.
VARBusiness has done some digging. According to our annual State of the Market survey, 40 percent of VARs' 2005 gross revenue came from customers with fewer than 50 employees, by far the highest percentage for any customer segment. And while 28 percent of solution providers said their enterprise sales increased during the past 12 months, nearly 37 percent said their midmarket sales have increased in the past year.
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