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Forging Technology's PromiseKent Foster, chairman and chief executive officer, Ingram Micro Inc.There is an old saying in Russia that "a hammer shatters glass but forges steel." That certainly rings true for the information technology (IT) industry. Our industry has survived the dot-com rise and fall, the telecom boom and bust. Even though terrorist attacks and a shaky economy may make us skittish, as an industry, our resolve has never been stronger. Regardless of the business environment, the IT industry has proven to be the central driver of economic productivity in the world's economy. Technology innovation makes processing information faster and easier, maximizes efficiencies, and ultimately increases business profitability.Over the long-term, technology innovation will continue to drive economic improvement as the catalyst for greater business productivity and improved financial performance. By integrating technology solutions into daily business operations, companies will continue to experience lower operating costs and increased profitability. The greatest opportunity for the IT industry today can be found in the small-to-mid-sized business (SMB) market segment. As SMBs gain access to technology innovation, they will reap the productivity benefits of the same sophisticated business solutions deployed for years in larger companies. Unlike the enterprise space, the SMB market has not been fully penetrated with technology solutions, such as security and networked storage, wide-area networking, voice-over Internet protocol telephony and wireless applications. As these technology solutions are becoming more affordable, the barriers to entry for SMBs are diminishing. All players in the IT supply chain have a key role in the development and delivery of affordable technology solutions to the SMB market, but one channel offers the best value proposition to meet this market's unique needs -- the value-added reseller (VAR). As consultants and confidants to their customers, VARs understand the diverse business dynamics of SMBs and can tailor technology solutions to address their needs. However, VARs tend to be small businesses themselves, with limited staff and budgets, therefore gaining access to technology and business resources that enable the greatest return on their investments is critical to their success. That's where IT distributors come in. Branding their own form of productivity innovation, IT distributors are developing an expanded service model for VARs and technology manufacturers serving the SMB market. As the business of distribution evolves from a box-moving, product-based model to a service delivery, go-to-market strategy, VARs and technology manufacturers are turning to distributors to help them take costs out of the supply chain and provide a greater level of service to the SMB market. VARs look to distributors for training, financing and information on new technologies to deliver superior service to the SMB market. IT distributors not only provide valuable assistance to the VARs and technology manufacturers serving SMBs, they serve a critical purpose for the technology industry, connecting the people who make technology and the people who use it. Distributors, VARs and technology manufacturers offer many ways to capitalize on IT industry growth now and in the future. Together, we're forging greater productivity gains throughout the IT supply chain, proving once again that technology's promise is solid as steel. |
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