October 29, 2008, 9:09 PM — Economic upheaval is upon us, and regardless of rescue plans, bailouts and motivational speeches by politicians and political candidates, we are in for a long and deep recession. Companies are already implementing layoffs, while others are being bought out, going bankrupt, or going out of business completely. The question for VARs and others in the business of reselling IT goods and services is how to survive these harsh economic times, and they have proven to be a very resilient lot. Many of the VARs contacted for this series are doing quite nicely, due to some unique and innovative recession-proof strategies.
Despite VAR optimism, IT spending is down, due to the problems in the US housing and credit markets, not to mention the weak dollar. IT spending trails the rest of the economy, and isn't impacted immediately like for example, discretionary consumer spending. While you may put off buying that big-screen TV, you can't put off the day-to-day technology demands of your business.