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Distribution is expected to thrive in the next few years, as long as it continues to deliver value to resellers and vendors, building on the momentum generated at the end of the past decade.
In November 2019, the Global Technology Distribution Council delivered its Tech distribution 2025 study, which concluded that distributors are becoming more interconnected across numerous areas, making them fundamental in delivering success through the channel.
Against that background, two leading distributors have lifted the lid on their revenue performance, indicating that there is growth in the market for those that deliver the right combination of products and services.
Ingram Micro Cloud
Solutions provider Ingram Micro Cloud spent 2019 reshaping the business to ensure it could deliver services that resellers were finding were in demand from customers. Those efforts helped it deliver more than 50% year-on-year growth for 2019. Cloud, unified communications and collaboration (UCC) and security all drove the growth in sales.
The UK team increased headcount by a third last year and looked to increase partner acceleration in six areas: Microsoft Azure/Amazon Web Services (AWS), Microsoft Modern Workplace, cyber security, UCC, software-as-a-service (SaaS) cloud solutions, and Microsoft Dynamics 365.
Indications are that plans for this year will include delivering more services around infrastructure as a service (IaaS), Office 365, Teams, unified communications as a service (UCaaS) and expanding the relationship with AWS and Azure.
“2019 has been a turning point for our business, with key milestones that have helped us provide real value to our partners and customers,” said Scott Murphy, director of cloud, cyber and UCC for the UK and Ireland at Ingram Micro Cloud.
“Our development of UCC and cyber security tools provides us with examples of how we’re continuing to build on this value-add for partners. Understanding that there’s an opportunity to differentiate and expand on our offerings is what we’ve been promoting over the past year. In 2020, these initiatives will be the building blocks for success as we better support what the modern enterprise needs from technology.”
Channel player Cloud Distribution is celebrating its 10th anniversary and has revealed that 2019 was its strongest year, delivering 80% growth over the previous 24 months. The security and networking divisions have been driving a lot of that growth and the firm continues to sign fresh vendors to extend its portfolio.
Adam Davison, sales and marketing director at Cloud Distribution, said that the revenue growth, widening vendor portfolio and increased services support underlined the value it could provide resellers.
“Our continued revenue growth, a widening of our vendor portfolio and continued services innovation is evidence of the value we bring to our partners. This is reflected in our continued success. Our 10th year has seen us sign our biggest deal, close our biggest month and finish our biggest year ever,” he said.
“2019 was a milestone year for us, but we can’t afford to rest on our laurels. 2020 is now here and we’ve got work to do. The two major vendor signings we finalised in the fourth quarter – Extreme Networks and Pulse Secure – have enabled us to start the new decade strong right out of the gate. Watch this space – there’s a lot more to come,” he added.