Staff size also will also become increasingly critical and one of these gentlemen says his organization is on the edge of what is required. And it sounds like small fry will see margins dramatically decrease just as the cost of meeting requirements increases. When one VAR mentioned the Microsoft push for scale, it immediate brought to mind CBIZ CEO Steve Gerard’s announcing that his company was discontinuing its technology business that includes reselling Dynamics GP because management had concluded CBIZ lacks the scale to compete. All small VARs won't necessarily face a grow-or-die decision because the quality performers among them should be good recruiting fodder for the companies trying to come into the market, particularly those pushing SaaS applications.