Quantum finds UK customers reluctant to buy
Longer sales cycles and cheaper kit wanted
UK customers are finding it harder to justify IT purchases, according to Quantum reseller research. They are delaying buying decisions and looking for cheaper kit to buy or own. Quantum wants to convince customers they still need backup products and keep the long-term in mind. No price-cutting yet then.
Yes, customers are concerned about backing up taking too long, backup data occupying too much space and recovery being a chancy affair, but the number one problem is operating within their IT budget. (It's early days in the UK downturn yet and cutting of IT budgets hasn't happened so far.) 39 per cent of the surveyed resellers have seen customers' projects postponed or cancelled. Quantum thinks this doesn't bode well for sales of its products. Oh dear.
The company says that customers should keep the long-term view in mind: "Organisations must have a rigorous backup and recovery plan in place in order to justify technology investments.
"Thinking long-term is of utmost importance and enables a cost-effective and future-proofed strategy to be implemented. It is vital that future requirements for capacity and performance are taken into account." Vital for Quantum revenues certainly. But when your boat is taking on water then you start bailing and forget about repairing the worn spot in the sails. That's what a recession does - it concentrates the mind on saving cash and surviving the short-term with your shirt still on.
Steve Mackey, Northern Europe area sales director at Quantum, said: "Resellers and vendors need to take a consultative approach to addressing their customers' needs, adding value and guiding them through this difficult period." Quantum and its resellers are seeing the customers' pain but not sharing it. It's not a difficult enough period to justify drop prices yet but that might have to come. ®