The days of making the financial sector your "bowling pin" market seem to be waning. With past estimates showing tThe Street as comprising anywhere from 5-15% of total US IT spending, fledgling security companies have long since used their large networks (and pockets) as a testing ground for their products. With the recent shocks to the major investment houses, and the flurry of shotgun weddings at the behest of the Fed and SEC, it looks like early stage security firms are going to have look elsewhere.
While many have also looked a little further south, towards the Potomac, a new administration on the horizon may dampen those opportunities as well. With these two long time powerhouse markets on the rope, it's anybody's guess where the next fertile field will be found. We expect to see many companies starting out much smaller and tempering their growth curves accordingly by targeting local accounts across a variety of sectors, but in their own backyards. This trend is of course exacerbated by high fuel prices making coast-to-coast flights for sales calls far more costly. Also, be on the lookout for more "virtual sales" calls using webinar technologies and a push to inside sales models in the near future.We have already already watched this model prove itself with the regional VARs, so we know it works. The big question is: will the small players figure it out before their pipelines dry out?
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