Automated Storage ExpandsInto The Small Office

The Internet is a data pipeline that is pushing extraordinary amounts of information into businesses of all sizes. As a result, automated storage devices that were once considered high-end luxuries are becoming requirements for smaller shops.

Automated Storage Moves Downstream
We spoke with Bill White, VP of marketing for KOM Inc., and Gary Brach, president of Smart Storage. Both men agreed that automation is moving downstream. "The storage requirements of small companies are increasing on a daily basis," said White. "Small companies are discovering that they can't manage the storage manually anymore. It's just not practical. That's why they're turning toward automation."

Brach agreed. "In the past, many small companies were simply looking for backup solutions," he said. "Now that they've solved the backup issues, these same companies are working to ensure continuous data availability. That's where automation comes into play."

Both Brach and White agreed that this trend is good for VARs. People depend on VARs for their expertise. "Typically, smaller shops don't have the IT expertise to handle all the nuances of storage," said Brach. "Therefore, these smaller companies will often depend on VARs even more than larger businesses would. This gives the VAR an opportunity to play a more significant role."

Obstacles
While there are significant opportunities, there are also obstacles. KOM's White believes that small-shop customers typically are less sophisticated than their large-shop counterparts. "As a result, the VAR has to provide more education," he said. "We call it ‘hand holding.' It involves more work, but it also enables the VAR to play a larger role." The benefit for the VAR is that small-shop customers will generally rely more heavily on the VAR's recommendations. This creates a road map of future upgrade opportunities.

But education isn't the only obstacle. Gary Brach sees competition increasing in the general storage space. "Networking VARs are moving into storage because they can make better margins. As a result, we're going to see VARs that never competed with one another now in competition.

"Networking VARs typically don't have the expertise to handle storage automation," Brach continued. "So they need to educate themselves on automation because this is where it's all heading. In fact, Smart Storage is targeting networking VARs to get them up to speed on storage automation."

VARs "Taking The Plunge"
Bill White sees the same trend. "We're seeing a large group of new VARs that haven't been involved with storage - particularly automated storage - in the past. A lot of VARs are taking the plunge into storage for the first time. They see storage as part of a complete solution. And they recognize that they can't provide clients with their best service unless they provide that storage component. As a result," White continued, "we've developed a series of educational seminars. We're educating the reseller channel about the trends in the industry, mainly in the area of removable storage. We think it's important to educate people about the industry."

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