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Downturn set to spark security consolidation

Microscope contributor

The impact of the downturn on the security industry is likely to involve a great deal more consolidation next year.

The industry has traditionally attracted large numbers of start-ups and focused specialists but some in the industry expect that to change as the recession continues.

“With a lot of smaller players in security I question how long they are [able to carry on],” said Nigel Seddon, regional director for Northern Europe at Trend Micro.

He added that resellers were increasingly looking at the costs of working with vendors and would rationalise their portfolios next year.

“Resellers are looking at vendor portfolios and focusing on where the margin is strong and there is profitability. They are telling us that they are having those discussions with a number of vendor,” he added.

Seddon said that resellers wanted an open relationship with vendors and more flexibility on credit terms and advice about where they could strengthen their businesses in the recession.

Although in a different market that view reflects comments made by Dave Poskett, director Solutions Partner Organisation at Hewlett-Packard,who told MicroScope earlier this week that it also expected resellers to review vendor relationships next year.


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