Sophos warns of misplaced customer cost cutting

In one of the more obvious admonitions of the last few weeks Sophos has warned that cutting back on security will damage companies looking to make changes to ease their IT budgets.

In one of the more obvious admonitions of the last few weeks Sophos has warned that cutting back on security will damage companies looking to make changes to ease their IT budgets.

The vendor is advising resellers to be prepared for several possible consequences of the current downturn ranging from customers tightening their belts in the wrong areas to a price war breaking out among those vendors looking for business at any cost.

“The current economic crisis means that businesses will be a lot warier about how they spend their cash, certainly for the first part of 2009,” said Jonathan Hughes, vice president at Sophos UK.

“For the channel, this means that the risk of price wars erupting is more likely than ever before – as IT budgets are squeezed from every angle, partners will be forced to compete to stay in the game,” he added.

He added that the successful players would be able to adapt quickly to changing market conditions: “Ultimately, it will be a case of sink or swim for many resellers in 2009.”

In the last few weeks predictions about the future of the market from both Finjan and analysts Forrester have indicated that because of continued threats spending in the security market will remain firm.

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