It also expects increased demand for software compatibility and testing services, so clients can be assured that applications will function properly in the new infrastructure environment. Although this will undoubtedly lead to enhanced revenue opportunity, IDC was unable to establish sufficient causality to estimate business benefit. Resale revenues remain constant The company does not anticipate a significant rise in its resale revenue as a result of Windows 2000 Server. Growth in the infrastructure business inevitably opens doors for the company to work with its clients to enhance and develop new business systems. IDC estimates the company would likely encounter similar costs in 2001 due to the requirement to expand staff capabilities to meet growing customer demand and replace skills lost to natural staff attrition.
Breakwater maintains equipment on-site to test company environments prior to implementation.
To accommodate the specific requirements of Windows 2000 Server, the company purchased additional servers and upgraded some of its laptops. IDC anticipates this cost will recur in 2001 as the company continues to upgrade its technology to meet customer demand. Incremental Staffing From a staffing perspective, Breakwater states that its primary focus is to build sales capability. The company believes this move is required to significantly drive revenues through 2001. However, the expansion of Windows 2000 Server business will inevitably require additional resources.