Looking To Keep Profits Flowing In 2009? Focus On SMB Security In The Down Economy

Written by: Rob Eby, VP of purchasing, D&H Distributing

The truth is that every business needs basic security, declining economy or not. This becomes especially crucial for a small business, given that a breach will not always be as easily absorbed as with an enterprise-level organization with more capital and more available credit. In fact, implementing investment protection safeguards in times of economic distress becomes even more economically sound than during times of complacency. Reasons for this include a limited, perhaps even declining, number of IT staff to maintain systems as well as an increase in mobile employees who access their networks from home or the field, part of their attempts to reach peak productivity.

The continuing need for network security is evident in today’s business environment: Although IT budgets are shrinking, security is one area where business owners say they are still willing to spend. And for good reason: A recent report from the Ponemon Institue revealed that the average cost of lost business caused by a data breach reached $4.1 million in 2007. According to the Data Governance Institute and the Privacy Rights Clearing House, the total number of records affected by security breaches between 2005 and 2007 was nearly 160 million. At an estimated $200 per record (Ponemon Institute), that’s a huge amount of loss in the business community.

So, the question becomes, can your customers afford not to invest in security? Their data is their business, and attacks and compromises are plentiful. From the thieving of credit card records to compromised VPNs to disasters that can destroy a database and knock a business flat — network security not only wards off the financial damage, but also the downtime associated with attacks. And, in the end, network security will help instill customer confidence that will bolster a small business’ reputation.

The good news is that there are plenty of powerful solutions out there that address these problems, whether aimed at redundancy, backup and recovery, or protection from malware and Trojans. It’s also important to realize that specific SMB solutions in the current market are not scaled-down versions of enterprise-level capabilities, but are, in fact, powerful solutions designed from the ground up to meet the specific needs of the SMB customer. So, although price points on these security products have been scaled-down for the SMB marketplace, the quality of protection against a full range of threats has not been. With the right solutions at your disposal, you’ll be able to outfit your end users to protect their investment now, while security in a foreboding economy is foremost on their minds, and you can accommodate their budgets as well.

Vendors are doing their part to make these solutions easier to market and implement in the channel with programs and discounts. This is one good reason to turn to your distribution partner. A good partner will be versed in a full range of vendor programs and benefits, and can help you find the ones that best fit your customer base. A broadbased distributor also has the kind of overriding expertise to help predict which categories will stay strong even when the economic outlook is bleak. If you don’t sell security, you may want to diversify into this area, adding some lines to supplement your bottom line. If you’re already security-based VAR, now is a good time to be strategic and aggressive, with your offerings. Take advantage by choosing the right partners, the right solutions and the right programs along the way.

Rob Eby is VP of purchasing at D&H Distributing, a North American distributor of computer products and consumer electronics, where he has been part of the D&H team since 2000. Rob has worked in distribution for close to 20 years in both an international and regional capacity. As VP of purchasing, he is integral to the development of D&H’s new vendor relationships.