Advanced Services: Part II
DLT has recognized this trend and the growing demand for these types of services in our earlier report on Top Trends in ERP for 2010. In that report we suggested that new license growth would slow in 2010 to single digits and that IT Services would outpace new ERP Sales by almost 50% and register double digit growth in 2010 and beyond. To take advantage of this trend, and to better meet the needs of our customers, DLT has evolved beyond the traditional VAR model to provide our customers with the necessary services to meet this growing market. This is a business model which we feel will shortly begin to replace the traditional VAD and VAR models as license and service businesses begin to merge in order to replace the decrease in new license growth and the subsequent drop in revenue.
To stay ahead of this trend DLT has partnered with SmartDog Services to deliver complementary services, fixed-priced limited engagements, and enhanced software support, to all of our existing and new customers who choose to take advantage of these services. This isn’t unprecedented and we believe that it will become more pronounced and commonplace in 2011.