Report: Technology Distributors Primed for Growth

Published On: January 22, 2018Categories: Buzz, Uncategorized

Technology distributors are forging new inroads across all market segments, according to a new report commissioned by the Global Technology Distribution Council (GTDC), which recently concluded a survey of approximately 50 channel executives.

The GTDC is an industry consortium representing large tech distributors representing more than $150 billion in annual worldwide sales. Members include Arrow Electronics, D&H Distributing, Ingram Micro, Synnex, Tech Data, and Westcon-Comstor.

Among the findings, more than 70% of vendors expect double-digit revenue growth through distribution in 2018. Cloud, security, IoT and data center are identified as key areas for channel traction. Indirect business is outpacing direct sales for the majority of surveyed companies. And 64% of surveyed vendors cited vertical markets as primary channel business drivers.

“This is a critical juncture in the industry’s history, considering the pace and breadth of innovation,” said GTDC CEO Tim Curran. “Distributors are concurrently at the center of increasingly widespread adoption of indirect business.”

The 2018 report analyzes viewpoints across nine categories: Cloud; Data Center/Hyper-Convergence; IoT; Mobility; Pro A/V; Security; Services; Vendor Relationships; and Vertical Markets.

According to the report, digital technologies continue to transform the way business is conducted and IT is sold, with increased emphasis on multivendor solutions that solve specific industry challenges. Cloud has become “connecting tissue for IT,” with more integration between historically separate solutions. In addition, security needs have broadened beyond the network, as cloud becomes an intrinsic solution driver.

“Comprehensive multivendor solutions are now undeniably imperative,” added Curran. “Vendor partners ‘get this’ and are finding dynamic new ways to work with distributors in addressing increasingly complex channel and end-customer requirements. We expect 2018 to be a pivotal year.”

Channel Impact®
The report points to prominent technology areas and market spaces in which the distribution community, as well as their respective allied channel partners, has placed considerable emphasis and focus.


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