Revenues From Partner Delivered Services Remain Strong in the Second Quarter of 2009, IDC's Channel Panel Finds

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FRAMINGHAM, Mass., September 15, 2009– IDC's Channel Panel found that partner-deliveredservices revenues remained strong in the second quarter of 2009 (2Q09), withthe highest levels (47% of total partner revenue) coming from those sellingnetworking products. The Channel Panel results also show that revenue receivedfrom reselling third-party services is dramatically lower, with storage servicesleading the way and contributing just over 15% of partner revenue.

"Services are the cornerstone of most U.S.partner communities' business," said Janet Waxman, vice president,Infrastructure Channels and Alliances at IDC. "For years, the amount of revenuepartners derive from services has steadily increased and we expect this trendto continue."

Services continue to grow in importance to channelpartners largely because of their universal demand: all products within the ITmarket require services and the types of services are independent of theproduct vendor. In addition, services can be sold to customers at a variety oftimes and represent a potential annuity revenue stream for the astute channelpartner. Because the channel partner has the opportunity to deliver its ownservices, resell the suppliers' services, or subcontract to or from thesupplier, services have become a critical component in determining who will bethe leaders in the channel and the winners among the suppliers.

"Suppliers that are not prepared to allow thepartners to participate in delivery of their own services will face increasedcompetition from, and possibly some loss of share to, suppliers with similarproducts that allow partners to determine their own mix of service offerings,"notes Matt Healey, research manager, Software and Hardware Support Services.

Additional findings from the 2Q09 Channel Panelinclude the following:

IDC's Channel Panel is a quarterly Web-based surveyof channel partners that identifies trends in IT channel business. The ChannelPanel provides real time data that is available prior to point of sale (POS)data and is a useful device in assisting sales and marketing departments inevaluating programmatic and marketing strategy for product channels. Launchedin January 2006, the Channel Panel has averaged over 578 respondents per quarterlysurvey.

For a copy of IDC's Channel Panel: 2Q09 Update –

Channel Revenue fromServices by Product Category, 2Q09

(Doc #219568) – please contact IDC'sSales hotline at 508-988-7988 or emailsales@idc.com.

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