Those resellers sticking with hardware and minimal services face serious problems going forward as margins tighten and competition becomes more fierce.
The call to make the move into managed services, with the recurring revenues it offers, was made strongly at a Kaseya event in London this morning.
With it clear that the managed services is growing strongly, Forrester predicts it will be worth $18.1bn in the UK by 2014, the advice is to make the move into that market now.
Paul Fileman, director at Transmentum, said that there were certain resellers that faced serious problems in the next few years.
"People still living on tin, and they still exist, and those with flaky propositions will not survive," he said.
He added that those with clear propositions, an open and transparent approach were those that would win business and gain the trust of customers.
Other speakers at the event, including the managed service providers, also warned that resellers could not exist selling PCs and servers and had to raise their game offering other services.
"If you can't differentiate in this industry as a reseller you have got a problem," said Mahmood Chaudhri, managing director and co founder at Datrix.
"You need lots of specialist skills and customers don't want to deal with traditional IT companies because they haven't made the investment," he added.