All roads not 'taken' in the technology distribution industry's European evolution
Global Technology Distribution Council (GTDC) chief Tim Curran looks at the road ahead for the industry
Robert Frost's The Road Not Taken is seldom interpreted as the poet actually intended.
Instead of being about the virtues of choosing a less-travelled course in life or business, Frost acknowledged he was actually poking fun at human nature to fret unnecessarily about choices made and not made.
The poem came to my mind while reviewing the preliminary findings of the Global Technology Distribution Counsel's (GTDC) Insights into 2017 report which is scheduled for release later this month.
As I absorbed the latest data points of our survey of channel execs worldwide about their distribution partnerships in 2017 and beyond, it was interesting to juxtapose those conclusions with the notes derived from 24 interviews conducted with leaders in distribution and the vendor community.
"The game hasn't really changed in a fundamental way," said the COO of a GTDC member distributor based in Europe. "It's about investing in and enabling the channel. That's the road we're on, we know it well, and we'll continue to make the kinds of adjustments it takes to stay on it - profitably and successfully."
Distributors don't spend a lot of time second-guessing decisions. They make them carefully, no doubt, with the discipline that such companies typically have in common. Some naturally fare better than others, as in any industry. What's also noteworthy is the breadth of players comprising the tech distribution industry.
Although GTDC members represent the most sizable overall share, at $130bn-plus in sales, these players' success transcends their distinction well beyond revenue thresholds. They also compete with many smaller distributors for the hearts and minds of resellers.
It's a healthy global and local marketplace with ample opportunity for all, including on the cloud front. Instead of undermining distribution's future, as some may speculate, distributors relish the expanding range of related business possibilities.
Numbers Speak More Than Volumes
[Vendor] channel execs reflected this sentiment in the survey we commissioned during the past 60 days about their 2017 outlook on distribution.
According to the results, 42 per cent view recruiting and onboarding new types of resellers as the primary focus of their distribution partnerships. And 62 per cent said they expected indirect to grow faster than direct. Just seven per cent said direct would outpace indirect.
The majority of channel exec respondents don't anticipate more than single-digit growth in 2017, as economic circumstances remain uncertain. Brexit obviously threw a bit more doubt than optimism into the mix.
Regardless, distribution continues to advance rather than withdraw. Vendor reliance and conviction are on the rise towards these value-added partnerships. What defines their success stories in the future may look and feel entirely different someday. For now, however, it's safe to say that many well-worn paths in this industry aren't going away any time soon - even as new avenues widen.
Regrets also won't likely characterise this new era in distribution as it accelerates. Some missteps are a given; failure highly unlikely.
Major tech companies at industry crossroads will also be well served by increasingly turning to distributors. The economics are undeniable - along with higher channel service levels and the ever-present need to be part of comprehensive multi-vendor solutions.
It's going to be an interesting ride for the channel bandwagon.
Tim Curran is chief executive of the Global Technology Distribution Council. To read his full LinkedIn post, please click here.