Tough Time Never Last: Vendors and Distributors Hopeful

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We brings you the vendors concern and initiatives with moral boosting suggestion so that you as a channel can get some insight to remain focused.

There has been a lot of talk about the impact of recession through out the globe and India is no more any exception. Every sector has been adversely affected by this downturn which can be calculated by the Sensex crash as market has lost almost 60% of capital. This all has been more done by the panic rather than the impact of recession. IT market, which is the backbone of the Indian economy, has been observing a marginal impact because few growth driving verticals are going for cost cutting or they are not ready to invest more in building new infrastructures. But now it's really time to stand together to fight with the ongoing crisis so that the partners and the channel could survive in this tough time.
The impact of economic crisis can not be ruled out now as the partners, resellers and retailers are finding it very difficult to maintain the growth. So to uplift the sentiments in channel community, we brings you the vendors concern and initiatives with moral boosting suggestion so

that you as a channel can get some insight to remain focused despite the ongoing economic crisis in the market when there are no buyers.
United against downturn
Initially no body wanted to talk about the impact of the economic recession on the IT market but now as the tough time is supposed to last for coming fiscals, companies have started to show their concern for their channel who seeks their support at this crucial time. "Economic crisis is impacting IT Hardware business too as the global recession is affecting Indian economy partly. Western world is withdrawing their investments and reducing imports from Asian Continent. This is resulting in tumbling of the stock and property market followed by reducing demand in Exports. This has further effected depreciation of Indian Rupee which increased the cost of IT Hardware," says, Suresh Pansari, MD, Rashi Peripherals.
While talking about the cause for such impact on IT market, Tushar Sighat, VP, Opera

tion, Cyberoam, says, "The current downtime can be seen in businesses in the form of delaying new projects and cutting costs. However, in order to stay competitive and innovative, businesses cannot afford to stop investing in technology especially in IT security. In fact they look for better approaches and challenging traditional ways of deploying security."
There are many reasons which have contributed to the trouble for the unprecedented economic growth in India. At one side dollar appreciation has made the import much costlier while on the other side pullout of the FIIs has contributed to the rest. Most of the well established company has put their expansion plan on hold as well as small growing companies are facing complete financial crunch. These two factors have brought down the consumption of IT goods to a stand still.
Dealing with the crunch
The crisis and its impact is supposed to exist longer but it's better not to believe in hue and cry and work tog

ether to uplift the sentiments of the partners who are facing more heat than any one else. Here the manufacturers and vendors are more concerned for the partners and came up with few tricky suggestion. Dealing wisely with finance in this tough time, R. Dhamodaran, Sr. Vice President, Cisco, says, " In order to have financial stability in this economy, partners need to practice disciplined financial management, be able to secure reliable credit, protect their profit margins and start building recurring revenue."
Where as managing the financial stability lies with working cautiously, this is what Pansari suggests to its partners. He says, "The cash flow is restricted not only in IT Industry but all across PAN India/ Globe, hence it is affecting each and every business entity and working cautiously can help us to remain unaffected. Working wiser with faster rotation is only the key to overcome this recession."
Cyberoam, who see it as an opportunity to utilize themselves in selecti

ve verticals, claims that despite such economic downturn company has gained  "Another bright spot is that the effects of the slow down is limited to verticals like realty, retail and exports and Cyberoam has been focused on sectors like education, government, and manufacturing which continue to be favourable to Cyberoam and partners continue to increase sales. Thus despite the downturn, our sales are on the upward swing and we will ensure that it continues so."
Vendors rescue operation
As the resellers and partners seek their support to regain the lost faith in the market for the helping hand at this tough situation, Dhamodaran says, "Cisco will support partners in their efforts by offering them the competitive advantage of leveraging Cisco Capital. Further, partners can acquire access to channel financing that will help manage cash flow, grow sales and increase profitability through programmes like Value Incentive Programe and Opportunity Identification Program. In a

ddition, customer financing help customers' access to funds and conserve cash."
Rashi has also taken the situation very seriously and comes up with the helping hand for their partners. Pansari adds, "In current scenario, from Vendors to System Integrators needs to work tightly without expecting any additional support from either side.  However, we are trying to support to our Channel Partners for increasing their business cycle by supplying lower stocks and not dumping."
Whereas Tushar says, "Cyberoam sees great potential in the SOHO-SMB segments as these businesses are increasingly deploying unified gateway security despite the economic scenario as it is in their interest to continue business acceleration all the while maintaining lean business processes." He further adds, "Thus Cyberoam continues with its long term Channel centric strategy of empowering partners through the right mix of margins, incentives, product, dedicated resources, support, training, certification an

d tools. Cyberoam partners are part of its Partner Program and receive the benefits of an efficient and highly profitable program, including lead locking, incentives based on market requirement."