Asp dot net

Tangled up in Microsoft's dot-Net - Industry Trend or Event

Traditional VARs and system integrators have to move into new services to stay in business

There's no getting around the fact that Microsoft Corp.'s .Net era will force many traditional Microsoft VARs and system integrators to move into new services to stay in business.

The .Net strategy aims to harness high-speed Internet connections to deliver new services that would allow customers to share information between Web sites, PCs, mobile phones and handheld devices. In tandem with this is a drive by the software giant to deliver products through an application service provider model, so that users could access applications from anywhere on any device.

The world's largest software company gets less than 10 percent of its revenue from online sources, mostly from its MSN Web portal. But Microsoft says half of its revenue will come from the Internet within five years.

The implications of the .Net strategy for Microsoft VARs are pronounced. Microsoft isn't just saying it will offer more of its software through an ASP model. It's saying that its customers will be able to satisfy all their software needs over the Internet. Thus, many independently administered local area networks (LANs) will likely disappear. And where Microsoft VARs generated revenue from configuring, supporting and maintaining the network software that supports LANs, the thrust of Microsoft's new strategy is that VARs will provide services that support widespread, high-speed Web access -- not just for browsing and e-mail -- but for accessing client software. Network operating sys tem software, in its new role, will revolve around Internet connectivity, not LAN support.

This could push loyal Microsoft VARs into several new areas. These would include advanced services for corporate customers, such as wireless access support, and ASP license compliance and software asset management services -- making sure the client is accessing the best and most appropriate soft ware over the Web in the most efficient, cost-effective way.

Microsoft VARs will also have to look for new vendor partners to stay in business. Even when firms access their client software over the Web, Microsoft won't be able to provide everything, especially in vertical markets that have very specific software needs.

Indeed, many niche software vendors are struggling to retain important channel partners as the sales model shifts from products to Internet services, so it shouldn't be that tough for VARs to find new partners. But since these vendors often lack the re sources to solicit a wide range of channel players, it's up to Microsoft VARs to move on their own to avoid extinction.