The public sector is often ignored by many channel players, with its associated sales cycle complexities and ever-changing stipulations, but there are several topical reasons to reconsider this market.

There is an urgent need for investment by public sector bodies and this alone is enough to make many resellers take a second glance.

As an example, we know that the IT market in government is set to boom – a new report by the National Audit Office (NAO) shows that public sector IT procurement is set to increase from £2.7bn in 2005-2006, to £4.1bn by 2010-2011.

The NAO’s report also focuses on a crucial technology investment issue. It states that on average, public bodies replace their IT equipment every five years, but suggests that PCs, for instance, should be replaced every three years, as this would cut operating costs.

Investment in IT is urgently necessary, but the public sector
cannot afford the up-front costs. This is an ideal opportunity for resellers to approach the public sector with a way to gain access to the latest technology while conserving cash? If the channel approaches with the right technology solution combined with a tailored leasing package, sales to the public sector could become a great deal smoother.

Indications are that the public sector is already moving towards more advanced ways of making technology investments, and that they are likely to be very open to a finance-lead sales approach.

Increasingly, they are beginning to mirror the private sector, which has for years acquired depreciating assets by financing them.

Another key element to the public sector sell is the ability to finance the whole solution or project. Increasingly the norm in the private sector, this approach allows clear return on investment models.

I am not suggesting the public sector offers easy sales, but there is a growing desire to deal with vendors who offer a way to acquire IT assets in a cash flow-friendly manner.