| Over the past few years I have had the pleasure of talking with Peter at several shows that we both ended up at. Soft spoken and easy going, Peter has managed to move OnForce from New York City to his favorite city, Boston while making OnForce into a serious player in the IT industry. Robert: Peter, how would you describe OnForce?
Peter: OnForce is the largest exclusive service delivery network/marketplace for consumer electronics and IT services. We cover more than 42,000 zip codes and postal codes throughout the United States and Canada, with more than 14,000 active and another 80,000 other service professionals (technicians) in our community.
Robert: How do you define service professionals?
Peter: People who provide IT services. The bulk of them are local VARs that do services to augment existing work. We also have a lot of IT guys that just do services.
Robert: How did the recession change the service model?
Peter: OnForce created a new model for how companies deliver on-site computer services. The recession has redefined service delivery by forcing a lot of VARs to reduce the number of employees they can afford to hire. OnForce allows them to use a fixed work force and expand their staff, both geographically and by skill-sets, with a variable work force that delivers high quality IT work of all sorts of problems and solutions. In this process we have also helped those who lost their jobs during the recession by finding them some work to hold them over. We are really proud of the fact that we are helping both sides of the spectrum.
Robert: Do you think the recession is over?
Peter: No. It is getting better and I believe we are coming out of it. From the tech sector we saw a lot of businesses put restrictions on IT spends in 2009. Now we are seeing that the pent up demand from these restrictions are being relaxed. The mantra for 2010 is going to be "slow and steady".
Robert: What does this mean for the IT industry?
Peter: Many organizations have been fixing their current infrastructure in lieu of engaging in new technology installations. We are starting to see a return to IT projects that our service professionals can bid on. Slowly the technology spends are freeing up.
Robert: Where will the early spends be?
Peter: I believe the first priority will be on security. However, we are already seeing other areas picking up like POS for retailers, as they are starting to spend on infrastructure in Q3 to ramp up for the holiday season. Hardware is still slow but we are starting to come out of the recession.
Robert: What does this mean for your service providers (VARs)?
Peter: More demand means pricing will start to go up. With more service events, the pipeline will fill up again and VARs will be able to slowly bring their prices up. The pricing will be better & but it will take a long time to get back up to 2007/8 prices.
Robert: What is the future of service technicians going to be in the new world of SaaS, Virtualization, The Cloud, data centers, etc.?
Peter: In this new age of technology we have all become more mobile. Hardware is becoming a commodity while technology is becoming more complex. The way we consume content is going to change. The way we work will change. If something goes wrong, we will need someone there immediately to fix it. This will create more need for on-site assistance.
Robert: Do you think VARs are capable of providing of business services?
Peter: I think many can. However, I believe VARs will have to be better versed to be able to provide solutions for problems that are a blend of electronics and IT. Fixes will become more remote or will need a quick on-site service response. It is going to become very difficult for VARs to make any real margins on product. VARs will need to be able to support public and private clouds. They will need to make sure private clouds are talking with public clouds.
Robert: How do you ensure quality with 14,000 service professionals?
Peter: We have a vetting process to ensure they are who they say they are -- and that they hold the certifications they say they hold. Every service professional is interviewed with one of our staff before we register them. Additionally every service event is rated by the service buyer. The money is prefunded and once the service buyer is happy that the job is done right, the money is released to the service professionals. Service professionals are thus encouraged to do quality work so that they get paid in a timely manner and that they get a good satisfaction score. We have an unheard of 96% customer satisfaction rating. We are the only company in our space that guarantees satisfaction & or you don't have to pay.
Robert: So what does the successful VAR of the future look like?
Peter: They will need to be more versed in delivering on-site and remote service, which means they will need to be more flexible and have quicker response time. They must also drive new (mobile) devices to solve business solutions for SMBs. Understand how technology can drive business solutions. More rounded to make their business more successful. More business knowledgeable.
Robert: Everyone expects VARs to be well versed in their ability to provide solutions, what advice do you have for these VARs?
Peter: Seize the moment. Know your environment. Don't get caught up in the past. Businesses are ready to start talking now on how to increase their revenues. They want you to step up to the plate and be their Trusted Business Advisor. They have already cut all the costs they can possibly cut. Now, they want you to show them how technology can help them grow their revenue.
The role of the successful VAR will be focused on providing uptime and solutions. If they cannot, they will be in serious trouble in this industry. More and more the industry needs business solutions. Their ability to provide products, solutions and services will separate the best of the best VARs from the rest.
- via eChannelLine USA
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