Lock the windows so I can't jump out
By Robert Faletra
If the financial crisis, presidential campaign and free-falling stock market don't have you scared right down to your socks yet, then you're either far wealthier than most, don't have long to live or are perhaps the best short seller in America. 
So how will solution providers make money and keep cash flow in the black during this recession? For one, they will have to show an immediate return on investment. CEOs and CFOs are going to be slamming the door shut on costs that don't produce immediate return until we are out of this mess.
So where do you go? Energy management is one potential area where you can pitch a customer on immediate return. Developing the expertise to audit a customer's energy consumption and make recommendations that cut costs—and sometimes not even require investment beyond your service fees—is a winning formula. In some cases, customers can significantly cut cooling costs in the data room by doing simple things like locating the air-conditioning unit next to the server racks instead of across the room. In other cases, it's virtualization or other moves that require infrastructure spend.
To date, there really is no brand that comes to mind when you think business energy audit. In fact, if you do a web search on either "energy audit" or "business energy audit," the only big brand that comes up in the search is HP. So, essentially there is very little in the way of competition and the right targeted marketing to your current customer base should generate some interest.
I'm betting this is going to become a significant business over the next few years, driven by both the ridiculous cost of energy and a declining economic climate. As this trend emerges, the solution providers that get in early will see higher margins than those that come to market later in the cycle. I'm also convinced this is one of those trends that will become a permanent change and will require you to have the expertise at some point. In the early stages, it is going to be a profitable new practice. But four years from now, it will be something you must provide.
In the meantime, it just may be something that can help keep the lights on (no pun intended) over the next few quarters as your customer set pulls back on overall spending and demands better pricing and a clear return on investment before they open up the wallet.
As they say on Wall Street, the trend is your friend. So play it to your advantage, or someone else will.
Have you placed a bet on energy management? |