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The Global Technology Distribution Council (GTDC) has released a comprehensive report on the year ahead, which suggests that nearly 62% of polled execs expect channel sales to outpace direct sales in 2017.
The report, which polled more than 70 key channel executives from around the world and interviewed over 20 distribution leaders and vendor partners, identified a range of expectations regarding distribution and the channel in 2017.
The results reveal a largely positive outlook for the channel. Out of all of the respondents, 13% indicated that 100% of their sales already go via the channel and only 7% expected direct to grow more rapidly than indirect. More than half (55%) anticipate double-digit growth through distribution.
The GTDC, an industry association focused on promoting the role of wholesale technology distribution, said that while the year ahead looked bright, more work needed to be done to keep up with trends like cloud and the accelerated demand those technologies bring to channel.
“Channel success is more journey than destination,” the report said. “Vendors still need more executive buy-in at headquarters; both sides sometimes clash over realistic goals and expectations for channel sales; and distributors are still ramping up in leading-edge technology categories like cloud and IoT. Fortunately, vendors, distributors and solution providers seem willing to roll up their sleeves and work together toward creating an IT channel that benefits everyone.”
The GTDC said that more than 600 new vendors had forged partnerships with its members in the last two years.
“The distribution industry has become instrumental in much more than just delivering technology products to the right places at the right time,” commented GTDC CEO Tim Curran. “Shipping product is no longer the mainstay. Today’s distribution leaders bring much more to the equation through their unique, highly diversified services portfolios. Insights Into 2017 sheds new light on this reality and why most vendors now view indirect business as a primary growth engine across the world.”