VARs report the biggest IP spending cuts are coming from small and medium businesses, according to the Channel Insider 2009 Market Pulse survey.
Respondents said SMBs make up nearly half of their sales. But nearly one in three VARs said these same customers were less likely to open their wallets.
Instead they are trying to get more out of what they have, putting off upgrades and even redeploying old gear. Repair rather than replace is the new mantra.
What’s worse is that they also are canceling contracts. Nearly one-fourth of respondents reported cancellations as a trend. Others say they are merely delaying them.
If they do choose to purchase, they are taking a hard look at ROI.