Crimson Consulting Group and Ziff Davis Release Study on State of Channel Partner Business Practices

Business Wire, Sept 27, 2007

LOS ALTOS, Calif. -- Crimson Consulting Group, a marketing strategy and implementation consulting firm, has released the results of their recent Solution Provider Business Practice survey of 273 solution providers. The purpose of the study, conducted in partnership with Ziff Davis Enterprise, publisher of Channel Insider and eWEEK, was to gain insight into how IT solution providers run their businesses - who they are, what they want from their suppliers and how they plan to transform themselves. The initial study findings were presented at the September 19, 2007 Ziff Davis Channel Summit in Chicago.

Study Reveals Key IT Solution Provider Trends

Crimson identified and analyzed a number of key trends in the IT solution provider community including the growth in managed services and the importance of vendor support. The online survey was conducted from a random sample of 273 subscribers to Ziff Davis Enterprise properties - specifically, solution providers, i.e. people who had indicated involvement with the IT channel.

Some of the key survey findings included:

* The term "VAR" is fading - 75% of survey respondents preferred the term Solution Provider or SP

* Over two-thirds of Solution Providers indicated increasing business from new customers is a top priority

* Over half of Solution Providers are focusing on increasing the percentage of IT services revenue

* Two-thirds of all Solution Providers generate more than 50% of their revenues from their top 3 customers

* Two-thirds of SPs target the business decision-maker first, as opposed to IT

* Most SPs are more concerned with growing their business than with improving business fundamentals such as cost or margin control

According to study co-sponsors and Crimson Partners Allan Adler and Dylan Charles, "Key factors that are driving solution provider behavior include the growth in services versus resale revenue, the degree of specialization and new premium pricing strategies. The term "VAR" is now officially passe."

To obtain a full copy of the survey results, please go to http://www.crimson-consulting.com/crimson_zd_study.html.> About Crimson Consulting Group

Founded in 1991, Crimson Consulting Group (http://www.crimson-consulting.com) provides strategic marketing consulting services to some of the most successful companies in the world. Clients include Adobe, BEA, Cisco, HP, IBM, Intel, Microsoft, Oracle, SAP, Seagate, Sun, Symantec and Verizon. Crimson is an expert in the marketing of technology solutions.

Crimson's Interactive Services business unit, augmented by the 2007 acquisition of the professional services division of Specific Impulse Inc., (www.si9.com) has a ten-year history of success on major web initiatives. Crimson Consulting Group has offices in Silicon Valley, San Francisco and Research Triangle Park, North Carolina.