IT Services – VAR
With the increasing penetration of cloud-based technologies, VARs that fail to evolve face a difficult future. Businesses will still need to upgrade on-premises hardware, to be sure, though likely to a lesser degree going forward. As such, VARs who focus less on the selling element, and more on lending added value to the customer through unique offerings or services will result in long-term profitability for all parties involved. Given this shifting landscape, we anticipate stable M&A activity in the VAR ecosystem as smaller players look to gain share, achieve greater scale, or acquire additional service capabilities.