SOURCE: ServiceKey TSS

September 24, 2007 10:00 ET

Services Sales Offer IT Equipment Resellers Secondary Revenue Stream

Maintenance, Online Backup, Professional and Marketing Services Sales Offer Resellers the Opportunity to Boost Profits While Helping Customers Achieve IT goals

NORCROSS, GA--(Marketwire - September 24, 2007) - In today's budget-conscious business environment, organizations are looking for ways to increase the longevity of mid-to-large range IT equipment instead of making costly investments in new hardware every few years. Although resellers must adjust to longer timeframes between hardware sales, services sales can sustain or even boost reseller revenue, according to ServiceKey TSS, an IT service management company.

"There are several reasons that resellers are seeing their profits pinched by lower hardware margins and fewer hardware sales," said Angela Vines, vice president for ServiceKey. "Manufacturers are building more durable and lasting solutions and are oftentimes selling directly to customers; software requirements are dictating less frequent equipment upgrades; and end users are taking advantage of manufacturer warranty services for ongoing maintenance reducing or eliminating on-going revenue for the reseller."

Vines continued, "However, corporations also deal with financial and operational costs when they forgo purchasing new hardware. For example, when networks fail, valuable IT personnel can end up functioning unproductively in a reactive mode, while overall business credibility and customer relationships are jeopardized during network downtime."

Third-party maintenance services are a solution for resellers and companies alike. By offering branded services from third-party firms, resellers can complement hardware sales with services to boost revenue and the bottom line. For end users, access to such firms offers a way to safely extend hardware longevity, and CIOs benefit from streamlined hardware diagnostic processes for IT personnel working in multi-vendor environments.

At ServiceKey, callers have instant access to cross-trained engineers and technicians with certifications from major server, storage, backup and network equipment manufacturers. This expertise in hardware and operating systems support can help businesses maintain their systems as long as it makes sense for them.

To offset latent hardware sales, resellers can provide customers services such as maintenance, online backup, professional, and marketing services.

There are multiple opportunities for resellers to capture services sales, even when a company has OEM warranties in place:

--  During the initial hardware sales process - The service contract is
    often an afterthought during the initial sale, but a ServiceKey service
    contract sold in conjunction with hardware could boost reseller profit
--  At the end of the initial service warranty period - Most users want to
    extend manufacturer warranties, so resellers should proactively contact
    users several months before the end of warranty periods, offering
    extensions or new third-party warranty solutions, such as ServiceKey
--  Anytime in between - By selling services, the reseller has reason to
    call on customers when hardware demand is low. Users often welcome a free
    network environment analysis from ServiceKey (available to new clients
    only) to avoid impending trouble and ensure network uptime

About Service Key TSS

ServiceKey TSS provides technology support and services to resellers, independent software vendors (ISVs), original equipment manufacturers (OEMs) and leasing companies who provide mid-range servers, networking and storage equipment to organizations in North America. With over 25 years experience in channel management and strategies, ServiceKey TSS designs service offerings to provide optimal service and support to companies and organizations with mission-critical and business-critical IT infrastructures, while increasing channel partner revenue and profitability. More information is located at

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