Strategy Changes in the AV distribution landscape


In the last month, we have seen significant changes in the shape of the distribution sector for AV products and solutions. Two well-known players in IT distribution have announced new initiatives in the distri- bution of products traditionally associated with the AV channel. Fur- ther, we have seen Stampede, a major US player, ramp up operations in Europe as part of its global ambitions.


There is a rule of business economics that says that dis- tribution favours the least cost supplier. Lower costs are driv- en by economies of scale, with the largest distributors able to negotiate the best deals with vendors and service providers. As a result, we have seen a con- sistent trend towards consoli- dation, with recent examples including: the merger being that of Exertis and Medium; the acquisition of Anders and Kern by RedstoneConnect; and the continued advance of the Midwich Group into mainland Europe with the acquisition of Gebroeders van Domburg. Consolidation has both lim- ited the options available to vendors seeking distribution for AV solutions, and created opportunities for those active in other sectors and with ambi- tions in the UK AV market. The much-discussed convergence of AV and IT is undoubtedly a reality at the technology lev-


tors? Westcon-Comstor offers its vendors 30 years of indus- try expertise in helping Value Added Resellers (VARs) deploy complex IT solutions and uni- fied communications systems. The distributor offers global scale across sectors including security, unified communica- tions, network infrastructure and data centre solutions. The Westcon-Comstor Uni- fied Communications and Col- laboration Solutions Practice will make it easier for VARs to integrate Microsoft Surface Hubs and Surface Hub acces- sories into their customers’ collaborative environments, as well as the opportunity to pro- vide additional services such as site assessments, solution design, proje2ct implementa- tion and service support. Wayne Mason, EMEA UCC Practice Lead and General Manager explains: “We are focused on providing organi- sations with the best possible


Lead, Microsoft UK. “We have been delighted with the reac- tion to the Surface Hub since it was first introduced to the UK market in 2016 and the addi- tion of Westcon-Comstor as a distributor, combined with its strong portfolio of wrap-around services such as Skype for Busi- ness, will ensure that even more organisations are able to trans- form the way their employees collaborate, share and commu- nicate.”


Mason believes that the com- mercial model in the IT envi- ronment is different, meriting a different approach. For exam- ple, the hardware margin on a product like Surface Hub is not the overriding opportunity for VARs - just as it isn’t for the vendor. For Microsoft, as with Google and Cisco, the principle advantage comes in extending the reach of the Windows plat- form and service provision. But does the signing if the Surface Hub deal


by West-


con-Comstor herald the de- velopment of a wide-ranging portfolio of AV products by the distributor? Mason emphasises that he won’t be chasing brands that don’t add any particular value to the company’s offer. He favours an organic approach, whereby solutions that, for ex- ample, enhance a collaborative solution’s


audio capabilities,


like Revolabs, or extends video performance, like Polycom, will be offered to channel partners alongside core collaborative products.


Channel support


Wayne Mason, Westcon-Comstor, EMEA UCC Practice Lead and General Manager: “With our ability to wrap additional services around the Surface Hub and a comprehensive portfolio of complementary solutions for Skype for Business we are creating a very strong offer for the VAR community.”


el, but apparently less so in terms of channel. The dichot- omy between the IT and AV channels is illustrated by Mic- rosoft’s announcement of West- con-Comstor’s appointment as distributor of Microsoft Surface Hub, alongside Maverick in the mainstream AV channel. Maverick’s parent Tech Data has recently made its own move with a kind of internal merger that has seen some of TD’s di- visions rebranded to underline their specialist solutions capa- bilities. By drawing on the re- sources of Tech Data as a whole, the newly christened Maverick AV Solutions is able to deliver powerful integrated solutions in collaboration, smart signage, workplace technologies and services, while maintaining its traditional strength in product supply.


IT advances But what of the new competi-


collaboration tools to ensure employees are able to work together more easily and effec- tively. The Microsoft Surface Hub absolutely ticks the box both from a technology per- spective and in the culture of collaboration it creates. With our ability to wrap additional services around the Surface Hub and a comprehensive port- folio of complementary solu- tions for Skype for Business we are creating a very strong offer for the VAR community.”


Vendor advantages


Microsoft shares the view that IT VARs are a distinct audi- ence: “The addition of the Surface Hub to Westcon-Com- stor’s portfolio will ensure that they are able to offer the VAR community the best pos- sible collaboration solutions for customers throughout the UK & Ireland,” says Ryan As- dourian, Windows and Surface


P16 AV News October 2017


Mason believes that it is the Westcon-Comstor service wrap for both vendors and channel partners


that distinguishes


the distributor: “When you re- sell Surface Hub from West- con-Comstor you aren’t just getting a product, you’re also getting a partner to help you with a complete wrap-around”.


Expanded portfolio


At the beginning of September, AV News heard from former Samsung Commercial Displays Director Phil Gaut that he had


Stampede President and COO, Kevin Kelly: “As Stampede expands its footprint globally, we are committed to bringing the same level of in field marketing, education and training that has made the Stampede Big Book of AV Tour and Conference Series the most successful event of its kind in North America.”


rector at Philips Profession- al Display Solutions believes: “The Northamber partnership provides Philips with a signifi- cant incremental trading base in the SMB and VAR commu- nity. Northamber’s commitment to proactivity in the AV market will help support our continued growth aspirations.”


Phil Gaut, AV market consultant: “Northamber can make a difference in AV.”


Alex Phillips explains further: “Northamber is focused on ex- panding its AV business signifi- cantly, providing resellers with a knowledgeable team, great products supported by flexible local logistics and credit facili- ties. Northamber will also offer configuration services out of our dedicated facility in Brooklands, Weybridge, giving resellers peace of mind that solutions are


and is doing it its own way. Stampede President and COO, Kevin Kelly, said: “As Stam- pede expands its footprint globally, we are committed to bringing the same level of in field marketing, education and training that has made the Stampede Big Book of AV Tour and Conference Series the most successful event of its kind in North America.” he indigenous and estab- lished AV distributors already looking at new ways to sell, service and add value to AV technology, the next few years will prove to be interesting as these tectonic plates collide.


Services include marketing, lo- gistics and training. “Meaning you can concentrate on win- ning new business and selling as much as possible, whilst we take care of everything else.” Of particular interest to both vendors and channel partners will be the lead generation ser- vices, which see a guaranteed number of qualified sales leads furnished by the distributor, in exchange for a monthly sub- scription. “Our VIP programme can boost your sales and mar- keting reach with focused sales and marketing initiatives,” ex- plains Mason. Other services include:


demo and seeding


programmes; finance; pre- sales solutions architecture; marketing assets and support; implementation and provision- ing; logistics; end-user adop- tion; training; and international implementation (a network of qualified engineers is available across 150 countries to adjust Surface Hub configurations and integrate with existing sys- tems.) With his experience gained at Imago, Mason clearly knows what’s necessary to build a comprehensive portfolio of products that appeal to sys- tems integrators and their cli- ents. In conversation with AV News, he ran off a list of po- tential clients for Surface Hub, and related products, including telcos, multinational construc- tion companies and financial institutions – all of which, you would think, would be natural adopters of the technology. He argues that the move by West- con-Comstor now makes the technology available through the customer’s preferred pur- chase route.


been engaged by Northamber, in a consulting role, to develop the IT distributor’s AV distribu- tion proposition. Northamber’s brand portfolio already includes: Genee, 3M, Ricoh, Infocus, Ma- trox, ViewSonic, Kramer and Ya- maha. Within days of Gaut’s ini- tial contact, Philips Professional Display Solutions announced a new partnership with Northam- ber, to promote the full range of Philips ‘Professional Displays’ and ‘Commercial TV’s’ to the UK reseller market.


Northamber is one of the UK’s largest independent distributors with a 36-year heritage. The agreement will see Northamber offering the complete Philips range to its reseller base of 5,000+ partners. Alex Phillips Strategy Director at Northam- ber, explained: “Northamber are really excited to support one of the industry’s fastest growing brands. The extensive Philips portfolio allows us to support AV solutions in offices, boardrooms, classrooms and provide digital signage”. Martin Ware, UK Sales Di-


ready to deploy from point of delivery” Phil Gaut believes that there is currently a shortfall in the distribution bandwidth avail- able in the UK, with many worthwhile vendors and solu- tions left wanting, “North- amber’s mission is to be a local, flexible and personable partner supporting the AV and SMB market with first class solutions for the boardroom, meeting room, classroom and open space. Northamber can make a difference in AV.”


Globalisation


While the new entrants to the AV market offer significant scale, the logical consequence of consolidation is globalisa- tion. While some prominent AV distributors active in UK AV already operate on an interna- tional basis, overseas growth is usually organic and often sub- ject to the availability of suit- able acquisition targets. Stampede has made no se- cret of its global ambitious,


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