ChannelTrends: Stimulus for Entrepreneurs

Is the latest $2 billion public/private commitment to small business a real opportunity for the channel? The answer may not come until this decade is complete (it’s a 5-year program), but the details are worth a closer look by solution providers, vendors and business customers.

Though the word “stimulus” has taken on a somewhat negative connotation with some, IT channel businesses are prospering from the healthcare technology incentives that the federal government enacted in 2009. Could this new business initiative lead to similar opportunities? 

In other news, there was another major move by a respected channel chief this week, continuing the shakeup of influential executives. This time it was GFI reeling in SAP’s senior channel leader, Pat Hume. There’s a lot to cover in this week’s ChannelTrends.

Startup America Expects to Drive Business Expansion

The White House announced a major and multi-faceted plan this week, intended to spur small business growth with some substantial incentives. But how will this news affect the IT channel? The Startup America Initiative is a collaborative effort between the federal government, entrepreneurs, corporations, universities, foundations, and other thought leaders; it’s a multi-organizational approach to increase business success. Job creation is another likely objective of Startup America, as the January U.S. unemployment rate remained high at 9 percent and political leaders come under more pressure to do something about it.

The funding and objectives will be forthcoming, but on the surface it appears that solution providers could tap into the funding, mentoring and educational events being proposed. In much the same way the healthcare technology market saw a boost with the 2009 stimulus program, the technology community needs to assess the portfolio of programs that are part of this initiative. Expect to see details and specific opportunities outlined over the next few weeks by public policy experts and the program sponsors.

Channel Executive Changes Continue

The channel chief rotation keeps on rolling, with former SAP senior vice president of indirect sales Patricia (Pat) Hume joining GFI Software earlier this week. With 29 years of industry experience, the new senior vice president of worldwide sales is responsible for expanding the software vendor’s partner network and driving additional sales from its current program participants. The veteran has had successful stints at SAP, Avaya and IBM, and will be working with GFI CEO Walter Scott to ramp up an already substantial base of approximately 3,000 partners.

During the past year, Scott has stocked the company’s portfolio with the acquisition of HoundDog Technology (remote monitoring) and Sunbelt Software (VIPRE anti-malware), so bringing in a heavy-hitter to enhance their channel focus makes perfect sense. It’s a strategy employed by a number of growing technology vendors and should add to the channel excitement this year.      

Certifications Significant Factor in Hiring

Employers continue to struggle fill their job openings with the right candidates, despite the current unemployment rate and number of potential candidates. According to a recent CompTIA study, approximately 8 out of 10 HR executives in the United States say finding the proper candidate with the necessary skill set still isn’t an easy process. The Employer Perceptions of IT Training and Certification report illustrates why companies are screening prospective employees by technology accreditations to ensure they hire the best candidates, rather than relying on resumes and interviews alone.

In addition, approximately 6 in 10 companies in the IT industry encourage employees to pursue IT certifications and nearly 90 percent provide financial support to employees for professional development. Why the study results may not seem earth shaking, rapid advances in the technology field require solution providers and vendors to find the most qualified employees, and certifications help validate skill prerequisites.