Working for the people

Class, pay attention
At the Federal Government level, Labor was elected on two platforms: health and education. Vendors such as Microsoft and Panasonic see these as key growth areas for the channel over the next few years. "After the first year in, which was a year of review, the Federal Government is going to need to move into action and change agenda - and it is. As that manifests itself there is going to be a lot of opportunities for our partner business in not just health and education but other government spaces as well," said Marlow.

The digital education revolution has been talked about since Kevin Rudd waved around the notion of a computer for every child in every school. In NSW it will mean about 1.3 million children receive a computer. But the laptop is only the beginning - improving numeracy and literacy using technology means more than just hardware.

"Teachers need to learn how to teach using these [IT] tools so professional development for teachers will come through with new learning management systems that makes the learning environment far richer," Marlow said. "I saw a demo on our surface technology the other week of a science lesson where you build the molecule using gestures across the touchscreen. It's going to mean a number of opportunities outside the infrastructure and hardware. People will be looking for transformative applications to really increase numeracy, literacy and learning outcomes, so that's huge."

Panasonic demonstrated its interactive whiteboard technology to teachers in NSW last year.
"We are looking to continue developing our projects in NSW and with other state governments as well.
As CRN reported last year, one of the key educationists said they think the interactive whiteboard is one of the most advanced developments in the education of children in the past 30 years. That's positive news for Panasonic working with the government," said Panasonic's Deere Jones.

Health is the other area of focus for governments, particularly with the bad press public hospitals have been receiving in the last few years. Compounding the problem is Australia's aging population, as 80 percent of healthcare needs are in the past two years of life. To make things worse our healthcare system has been described as fragmented and siloed.

"The Government knows very clearly that it is going to have to do some tremendously different things to fix what's going to happen when the tsunami of elderly people that are going to be hitting the healthcare system. If you look in the US press right now you will see a lot from [US President Barack] Obama around e-health and technology in the health space. That is one thing that didn't come up in the stimulus package so it is an opportunity for us to really give the government feedback," Marlow said.

"We need to be looking at our health stimulus [and asking] how we manage and use technology to get more preventative in healthcare. For example, with sharing information electronically (health records, we are going to have to build standards around those and models around that. That's a tremendous opportunity for partners to help transform the healthcare system."

Deere Jones agrees on the importance of healthcare. Panasonic's vertical markets include the emergency services such as the fire and ambulance services, which are targeted by dedicated resellers. One reseller supplies a cradle for emergency vehicles to hold the Toughbook.

"While we obviously have government contracts we also are very in tune with the requirements from the key people in those areas and we are also working with the Defence Department as well," he said. Panasonic has been talking to the health industry and government hospitals, and plans to do a lot of work in healthcare, said Deere Jones. The company is launching a new tablet called the CFH1 which has antiseptic properties that allow its use in sensitive areas within hospitals.

Be mindful
There will always be pitfalls in every work or contract situation. IDC's Martin said that vendors and resellers should be aware of the impact that Sir Peter Gershon's ICT spending and operations review could have on government buying.

"In the short term, the flow of contracts will slow, as agencies wait for ICT review outcomes and whole-of-government processes to emerge," Martin said. "In the longer term, IDC expects fewer but larger tenders on offer from the government. Vendors and resellers should expect further demands for very low prices and should be prepared for several options: reduce prices to gain contracts, look to form alliances with other companies to win bigger government opportunities, and perhaps also look for more profitable business in the private sector."
Another aspect to consider is the creation of tenders, which can be very complicated, particularly true in the area of computer security.

"Sometimes they ask many more questions than an independent expert in the field would regard as necessary to reach a correct decision," said Nicholson from Sophos. "While it is understandably vital that ‘i's are dotted and ‘t's crossed, doing business with the Government can be inefficient on these grounds.

Resellers who represent vendors that have a solid product training regime, who make and sell their own technology and have specifically committed to the A/NZ region for one of their global technical centres will have a big advantage in bidding for business where a technically complex tender process is involved, thanks to ease of access and technical assistance with all the necessary detail."

Milthorpe from NetApp said channel players should be wary of the time they must commit. A government tender is "a big-time investment", he said. "[Resellers] really need to put their best people into these opportunities and expect a pretty long sales cycle. That, in itself, is a pitfall for smaller organisations. It is a good place to grow your business at the moment because they still do have budget but their budget is being cut back. The message for the channel is that they still need to really focus on cost reduction in terms of people, process and technology."

As a reseller working with governments, Glazenburg has seen that the decision-making process takes time.
"Before making a purchase decision, government buyers have to make thorough assessments and evaluation," Glazenburg said. "There are also layers of decision makers to deal with. To help these buyers make an informed decision, resellers should present as much proof as they can on their business claims. Live product demonstrations, a clear understanding of the tender process, structured business employee and business plans, and demonstrations of proven know-how and support are all critical when dealing with government."

Glazenburg said that government departments are always looking for value for money, reliable and smart telecommunication solutions. "They also want to deal with capable, well-structured companies with a proven track record of delivering turnkey solutions. The critical issue when pitching for government business is to develop a compelling business case and back it up with as much evidence as possible. They also like to see clear measurement criteria and examples of how to evaluate one system over another."

Resellers need to remember that government is distinctly different to the private sector, said EMC's Henderson. "While they often have similar pain points they reference them in a completely different way. Resellers need to tailor their language appropriately for public servants so they can clearly see that the reseller has an understanding and appreciation of their specific needs.

Bureaucracy is a part of government but it doesn't need to be a frustration if partners acknowledge that this is part and parcel of working together upfront. You can see this clearly in the tender process for government business. Resellers need to take the time to understand the mechanism; the rationale is almost irrelevant," Henderson said.