Think back to the 1980s when the PC-based POS terminal became mainstream technology. It was an easy way for both supermarket employees and customers to make their way through the checkout via laser barcode readers/scanners. Gone were the days of having to perform price checks and searching for the little price sticker on each item.

In a recent discussion on BSM's LinkedIn group, Don Gibson, VP of sales and marketing at Pippard, Inc., asked the question, "Can the efficiencies of virtualization be applied to POS?" The concept is simple. Change POS software from being locally installed and stored, to the cloud. Of course, hardware will still be required at the point of sale so your receipt printer, cash drawer, and bar code scanner sales shouldn't suffer. The difference may come with the PCs or all-in-ones you're selling. Of course, they'll still be needed, but if POS software virtualization takes off, the days of PC and all-in-one manufacturers one-upping one another on "bigger" and "faster" could be over — virtualized software requires significantly thinner hardware. As you can imagine, responses to the LinkedIn discussion have been very interesting and thought-provoking.

If you’re like most VARs, you’re always looking for additional intel on how you can sell more POS equipment. In some cases, it can mean taking on a new hardware or software line. In others, it can mean targeting a new vertical. However, the 2009 economy has shaken up the traditional markets to the point that many best practices and common thoughts need to be reexamined. I recently spoke with a group of all-in-one experts about which markets contain the most potential for POS sales and what VARs need to know to be successful in those markets.

Nearly 40 years ago, a group of scientists at the Oak Ridge National Laboratory in Oak Ridge, Tenn., sought to develop a device they could use to enter data gathered in the course of their work. Shortly thereafter, Dr. Samuel Hurst, a scientist who was on leave from the laboratory to teach at the University of Kentucky, heeded the cry and, in 1971, developed an innovation dubbed the "touch sensor." Four decades later, the "touch sensor" has morphed into the touch screen and its accoutrements. Touch screens rank among the hottest technologies in several vertical markets, hospitality among them. "Touch screen technology is, and will remain, an important catalyst for growth on the restaurant and hotel sides alike, as end users strive to reduce costs, increase efficiencies and maintain a competitive edge," says Rory Gardner, an analyst in the auto ID and transaction information practice at VDC Research.

Downturns are tough on retailers. Recent McKinsey research indicates that during the last two recessions (1990-91 and 2000-01), growth slowed for nearly every retail subsector in the United States. Ninety-three percent of the retailers surveyed that existed during both downturns experienced slowing revenue growth in one of them, and 59 percent endured it in both.

While VARs and dealers generally understand PCI programs and requirements, their customers most often do not. Focused on running their businesses in a challenging economy, these merchants often eschew PCI-related expenses for many reasons, including: lack of capital, no understanding of the impact of noncompliance, and the belief that a breach will never happen to them. This becomes a significant issue to a VAR when its customer is breached. In the case of a breach, the VAR is often sued by the merchant for improper installation or not telling them they needed a software upgrade for PA-DSS (Payment Application Data Security Standard).

Retailers are bracing themselves for a rocky stretch. Already, many have announced plans to slow or suspend new store openings; remodels also are likely to be put on hold. Some executives say they'll cut back on inventories, and nearly all are scrutinizing their operations in an effort to trim unnecessary costs.

Where would POS systems be without POS peripherals? If POS systems are the brains of the point of sale, peripherals are the brawn, because these devices collect and deliver vital customer transactional data. Given the importance of POS peripherals, there is good news for POS peripheral VARs. I spoke to industry experts in POS peripherals on what POS VARs should be doing to cope with the economy, why companies are adopting new POS peripherals in 2009, and why it’s faulty logic for VARs and customers alike to view peripherals as an afterthought.