The impact of the downturn on the security industry islikely to involve a great deal more consolidation next year.
The industry has traditionally attracted large numbers of start-upsand focused specialists but some in the industry expect that to change as therecession continues.
“With a lot of smaller players in security I question wholong 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 thecosts of working with vendors and would rationalise their portfolios next year.
“Resellers are looking at vendor portfolios and focusing onwhere the margin is strong and there is profitability. They are telling us thatthey are having those discussions with a number of vendor,” he added.
Seddon said that resellers wanted an open relationship withvendors and more flexibility on credit terms and advice about where they couldstrengthen their businesses in the recession.
Although in a different market that view reflects commentsmade by Dave Poskett, director Solutions Partner Organisation at Hewlett-Packard,who told MicroScope earlier this week that it also expected resellers to reviewvendor relationships next year.