January 10, 2018

New report highlights 2018 channel trends, expectations

Technology distributors are forging new inroads across all market segments, with substantial growth projections anticipated by vendor partners surveyed and interviewed for a new 2018 Outlook report released today by the Global Technology Distribution Council (GTDC). GTDC members drive more than $150 billion in annual product and services business across the globe. The new report, independently produced for the GTDC, includes detailed perspectives from distribution leaders and vendor IT channel executives as well as aggregated survey responses from more than 50 top technology companies worldwide.

Survey results compiled from the 50+ technology channel executives reveal strong confidence in their distribution partnerships. Among the findings…

  • More than 70% of vendors expect double-digit revenue growth through distribution in 2018
  • Cloud, security, IoT and data center focus areas rated at the top for channel progress this year
  • Indirect business is rapidly accelerating, outpacing direct for the majority of surveyed companies
  • Vendors ranked recruiting new types of solution providers as their #1 objective with distributors
  • 64% of surveyed vendors cited vertical markets as primary channel business drivers

Howard Goldberg, senior vice president of global marketing and business development for Arrow, was featured frequently throughout the report, providing his insight into 2018 trends and expectations. Goldberg touched on several topics, ranging from hybrid cloud and hyper-convergence to mobility and securing endpoints.

“It’s a hybrid world. More and more of our business is moving to a hybrid arrangement. It’s not a shift to cloud per se; it’s not from off to on, rather it’s a shift to hybrid where solutions have both on- and off-premise components. There are three reasons that an organization would move to public cloud: elasticity, time to value, and available skills and capabilities. And, these three fundamental factors impact large enterprises the same way they impact smaller organizations. We’re also seeing an increasing number of organizations being challenged to do more with less, with constrained resources in cybersecurity, hybrid cloud and digital.”

Goldberg also commented on how the role of distributors is shifting as a result of these technology changes, particularly the desire to operate as efficiently as possible.

“Emerging vendors differentiate themselves from larger, entrenched companies because they want to focus on a single competency. For example, a software company wants to write great code. They want to offload services, financing, and any manufacturing onto an appliance. That’s a recurring theme we hear. That gives new opportunities to distributors. We offer that capability and allow vendors to focus on core competencies. Interestingly, many of our much larger vendors who built that capability over decades are now considering outsourcing to us also to find efficiencies. The old concept of distributor as ‘bank and barn’ continues to be true, but there are so many other capabilities that we’re imparting to our vendors to allow them to focus on core competencies and provide them an avenue to growth. That’s the real opportunity for distribution in the years to come.”

Download the full GTDC report here.

If you’re interested in discussing how Arrow can help you focus on your core competencies and find efficiencies, fill out our become a partner form.