Hardware vendors are moving into higher-value managed and professional services in a fairly unanimous way in order to improve revenues and operating margins. Vendors whose primary business is still hardware-focused continue to focus these services on infrastructure and industry-standard solutions. On the other hand, the vendors that have either already morphed into IT services vendors or have significant ‘standalone’ services businesses continue to offer infrastructure services, but look for further growth in applications and other forms of outsourcing. All hardware vendors continue to concentrate on increasing ‘share of wallet’ with their large accounts, while introducing packaged, repeatable services offerings to entice the mid market and sell through the channel.