It’s easy not to see Google as a competitor. First, the company’s major operations – search and ads – don’t really interfere with what VARs are doing, namely selling and implementing IT solutions. Also, Google isn’t entering the VAR space, so again, it doesn’t look like a competitor. The problem is more difficult to detect: Google is slowly trying to replace certain parts of the IT market. Enterprise use of its Gmail service, for example, replaces the opportunity to sell mailserver solutions. The problem isn’t widespread yet, but now is the time to watch Google’s moves and determine the impact to your business.

VAR Client Implication: When a client is looking at a Google app instead of a traditional solution, demonstrate the functionality and control that will have to be sacrificed. Generally, “free” means that you have to give something up. Often, it’s being able to get someone on the phone when you need a hand. This is where an IT VAR can excel.

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