Opinion: 2008 - IT channel’s boom and bust year

During the first half of 2008, the Australian economy was riding high on a skyrocketing dollar. Consumers couldn’t get enough of the latest mobile phones and gadgets that vendors threw at them.

Big name IT vendors, like Apple, wanted to get in on the consumer gadget craze and threw caution to the channel wind.

It opened two direct-branded stores in NSW and one in Victoria – putting itself in direct competition with independent Apple resellers and mass merchant retailers.

The frenzy surrounding the stores was heightened by the official launch of the much anticipated iPhone in July 2008.

However Apple’s good fortune became a burden for some local independent Apple retailers, like Ben Morgan, owner of the Academy Store.

Morgan was always outspoken about his relationship with Apple and its continuing strategy towards a direct model.

While Apple sought a more direct relationship - the king of direct selling – Dell, sought a relationship with resellers.

The hardware vendor announced in May that Officeworks would be its first local retail partner in Australia.

Around seven months later, the vendor took on the Good Guys as its second local retail partner in Australia.

While global vendors pushed their way into the local channel, two iconic IT channel players called it a day.

One of Australia’s longest running white-box builders, Optima Technology Solutions, had the administrators called in by parent company Optima ICM Limited, in late July.

Only a couple of days before the announcement, rumours of its demise swirled through the channel, with many in the industry hoping the company would pull through an problems it faced.

Less than a month later, after a spate of debt and credit problems, embattled IT and telecommunications provider, Commander, went under.

In a statement issued in August, to the ASX, Amanda Lacaze, Commander's managing director and CEO, said the announcement was made "with great regret".

As the year winds down to a close, the IT channel heads into a year of uncertainty.

The Australian dollar continues to fluctuate and more companies see no light at the end of the tunnel, who survives the next year end, still remains to be seen.