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Today the majority of the server manufacturers are making accommodations for iSCSI on the host side. All standard operating systems developers have embraced iSCSI with built-in support in their respective initiators. So iSCSI is no longer a proof-of-concept technology. It is here and it will be here for a very long time.
This is just the beginning. When the 10 Gigabit-per-second speed Ethernet -- along with the more reliable enterprise-ready and high-capacity SAS disks -- are delivered in the form of an affordable IP storage, iSCSI will pose an even more challenging threat to the existing complex and extremely expensive storage solutions. The VAR that is ready for the next round will reap the success of such market shifts.
My only advice to the interested VAR would be to get educated in the various technologies required to truly understand the fundamentals of the IP storage and to keep evangelizing the business benefits of the iSCSI as a solid storage platform.
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