SPECIAL FEATURE
www.comms-dealer.com
DISTRIBUTION IN FOCUS
The evolution of value add
Emerging technologies and pressures to improve profitability are forcing distributors to refocus and evolve, ushering in a new business model based on value add at distribution level.
Wayne Gratton
and ensuring that they get a return for that value, and having an efficient operation with recognised value to the partner and vendor is key to growth. As networks and IT systems become more integrated the role of the value add distributor will increase, believes Wayne Gratton, Director of Technology and UC, Avnet Technology Solutions. He says solutions are a big focus for Avnet. This means looking at end user challenges and designing solutions to address those challenges.
T
“As well as designing the solutions we work with partners to develop sales plans with business development support,” said Gratton. “We are also investing resources into vertical and solutions training with partners. You will see more from Avnet in the solution arena with UC, desktop innovation and storage with vertical specific solutions. This is an exciting time for solutions distribution.”
he most important functions of a distributor are generating value
Gratton sees solutions as the key to higher value, pointing out that end users are less interested in the details and technical specs of technology, and more interested in solving business problems and becoming more competitive. With the expertise and products it has in its portfolio, Gratton says Avnet is well positioned to deliver solutions-focused value through its partner base. “The role of the distributor will increase where value is clear and well delivered,” he said. “IT is becoming more integrated, be it voice, video, applications, storage, networks, virtualisation, cloud – it all needs to be integrated and that requires a lot of skills.”
Distribution has a bigger role than ever in innovation. Vendors are bringing new and exciting products to market on a frequent basis and they need a strong partner base to take these products to market. “At Avnet we select the right technologies to take to the right partners that we believe add value to their business,” Gratton added.
“This is how we get new and innovative products to the right partners. It works. However, you have to be selective. Partners do not wish to get bombarded with new, unqualified products. They expect innovation and an understanding of their business with their strategic distributor. Developing solutions is helping Avnet and its partners to bring business focused technology to more end users.”
Improving profitability will always be a key motivator for a business. As segments of the market mature, there will always be increased price pressure and the current tough market conditions only add to this meaning that companies have to evolve – whether this is by focusing in new and complementary areas, reducing costs to drive efficiency or looking at routes such as acquisition. However, there will also be other factors that influence how distributors evolve. As an example, some companies will want to protect the interests of their employees and business by focusing on
The Comms National Awards yet? Visit
cnawards.com
Have you entered
Hospitality Sponsor
52 COMMS DEALER JUNE 2010
www.comms-dealer.com
a particular space that they feel will give them longer-term sustainability.
“With many technologies converging at such a fast rate, it makes sense that distributors will move into other complementary markets particularly if these leverage their core skills,” commented David Ellis, Director of the New Technology and Services Division at Computerlinks. “As an example, the move from networking to security or security to virtualisation is easy as the knowledge and skills required in these areas are similar. The reseller community will probably overlap heavily and should support the fact that their preferred distribution partner can help them either move into new markets or engage with them in more than one sector.”
The new areas of virtualisation, cloud computing and physical IP security are further applications in the evolution of the network and Internet and, according to Ellis, present Computerlinks and its customers with strong
growth opportunities. “To help capitalise on these we are adding more focus and resource to these areas to help drive and create market opportunities for our partners in the form of new products and channel friendly service offerings. These will enable partners to maximise returns and minimise the risk and ‘cost of entry’ to these exciting sectors,” he said.
There will always be a role for specialised and niche players that can build markets and channels for vendors in new technology areas. Conversely, there will be a continued role for distribution that can provide credit lines and warehouse facilities. “There is no doubt that many channel partners are looking to their distributors to help them capture business opportunities in complementary areas and other geographical markets,” stated Ellis. “To do this effectively, a true knowledge based and value added model will be most effective.”
He expects continued consolidation as some
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64