Hail the age of Distribution 2.0

Ellis claimed Ingram is highly specific in terms of which vendors are rolled into the business units and any vendor additions have to be in line with the strategy of the unit.

“For example in our virtualisation practice we have a very strong OEM position with IBM and HP for VMware. We also have a strong licensing play with VMware, but we have broadened our capabilities in the virtual environment with vendors such as PlateSpin and Symantec, CA and Microsoft’s virtualisation offerings. Avocent is another recent addition to the virtualisation portfolio. Our strategy is to complement our broadline business with specialisation,” said Ellis. “There is a dilution in this niche piece in that
a lot of distributors are looking outside of their core capabilities.”

Ellis said Ingram’s approach has enabled it to offer more value to resellers of all sizes by providing a more complete multi-vendor offering to the channel.

“Our core business is in the SMB and mid-market, that is where the vendors want us to play. What has driven us into those markets is the complexity of technology these markets are now demanding. As we have seen security, virtualisation, blade technology and storage area networks pushed down into the SMB and mid-market, somebody with good capability has got to service that. It is all about a consultancy sell around technology which is relatively complex,” added Ellis.

“I call that the commoditisation of complexity.

We got on that wave fairly early, set up with the vendors early, got the right people into our business, to ensure we deliver the appropriate skills set for the partners.”

Tegatech on the other hand is based in Balgowlah Heights, Sydney, with a specific focus on tablet PCs and interactive kiosks. A far cry from global machine of Ingram, but the firm does not feel that diminishes its ability to serve certain sections of the reseller community.

“Vertical and niche markets are our stomping ground, that is where Tegatech lives and breathes,” said Hugo Ortega, principal at Tegatech Australia. “It appears that over the years being focused on vertical opportunities has helped us support resellers with specific needs and target solutions to optimise profits for our organisation and theirs.”

Ortega said Tegatech has paid attention to hardware trends and tried to act early to optimise profits for resellers. This is a business model Ortega feels appeals to its database of resellers and one it will continue to adopt.

“Niche is an opportunity to work with clever people targeting industry specific needs. By being involved closely with these resellers, Tegatech has finetuned hardware solutions, and specifically set out to fix its logistical infrastructure to support niche markets.
Tegatech is interested in broader opportunities but still feels niche markets are better suited to Tegatech’s core strengths in mobility,” added Ortega.

It is some refreshing messaging from Tegatech, providing its niche continues to pay dividends. It is also proof that some niche players are still happy to continue burrowing away within their traditional alcoves.

Are we entering the age of Distribution 2.0? It’s unlikely we need yet another umbrella term in the IT industry, but the fact remains that the slightly lazy and hugely broad pigeonholing of niche or broadline is over. Niche players are stretching their vendor stable, while broadline players are expanding their services.

However, it is worth noting this is all good for the reseller community. If distributors are upping their game in terms of both offerings and services, it will be resellers who ultimately benefit. So resellers can sit back and watch as the distributors scramble to improve their performance and hope Distribution 2.0 signals an age of improved reseller profitability, too.

20 age distribution hail of sales & marketing the