Ex-Westcon and EMC boss to help resellers shift to services

IT industry veteran David Henderson has started Dunkenny Consulting to help struggling IT vendors, resellers and channel partners.

The channel is undergoing a dynamic change where its focus is shifting from selling hardware to providing services, said Henderson.

He added that this was why vendors, resellers and channel partners are turning to him.

"I deal in channel management," Henderson told CRN. "I consult with vendors on how to build the channel. I work with partners and resellers on how to build relationships."

His resume includes executive roles at Toshiba and Tech Pacific. He was the general manager of cloud-computing giant EMC Corp for nine years and the managing director of global distributor Westcon for almost two years.

He believes his vast experience in the industry is why companies take him on as a consultant.

"In the last 20 years, the financial model has been static; how to make money from the industry has been predictable. If you project the next three years, it's totally unpredictable. It will require significant change for how people go to market and change their relationships."

Henderson says the shift from hardware sales to services is particularly hard on partners.

"Partners have been asked not to look for margin out of hardware sales but more out of services.

"When you look at a true ICT business, telcos are becoming an increasingly popular player, either as a potential customer or a competitor. Partners are now losing business to Telstra and Optus."

[Related: Optus lands $530m bank deal]

Not only are partners adopting a new model, but they're facing financial pressures, Henderson says.

"I'm really worried about the partners' financial viability because not only is the model changing, but the financing industry is becoming far more demanding for who they give capital to."

"The real question is: who is going to survive?"