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Middle Market and Enterprise Technology Inbound Blog

Global Technology Distribution Council Sees Dinosaur Cloud SuccessThe Global Technology Distribution Council (GTDC) has a report out on how cloud computing is affecting the IT distribution sector. In collaboration with O’Callaghan Capital, LLC, it shows how cloud computing is the next in a continuing line of opportunities for distributors. It also comments on how mistaken some analyses have been in considering distributors to be industry dinosaurs, with Web-based sales, electronic software distribution, and now cloud as vectors for distribution industry growth.

Clear Roles for Distributors and Resellers

Distributors enable cloud solutions to get to the market in general; resellers have the proximity to customers in particular. This mirrors the traditional strength of channel sales in occupying the multivendor solutions space where (logically) no single IT vendor can triumph.

A Choice of Business Models for Resellers

Resellers can work with at least three business models, each being supported by distributors.

  • Builder. The reseller builds the cloud solution for its customer, using vendor technology building blocks from distributors.

  • Provider. The reseller implements packaged vendor technology solutions for the customer.

  • Reseller. The reseller provides cloud subscription services, possibly defining its own bundles of services for greater end-user convenience.

A Place for Everything and Vendors in Their Place

GTDC positions vendors firmly as research and development experts who should “stick to the knitting” and not be tempted to bypass distribution channels. Cloud computing does not change the value chain of vendor-distributor-reseller. Conversely, resellers are likely to do better reselling or adding value in other ways, rather than trying to offer their own cloud computing services.

The report “Tech Distribution’s Role in the Cloud,” from the Global Technology Distribution Council, is one of a number of sources of information about cloud computing. 


How effective do you find this kind of report for your business, compared to webinars or seminar presentations? Please share your thoughts in the Comments section below.  


And to follow-through on the ideas introduced in this short post, be sure to download your free copy of the quick reference guide to the Top 6 Computer Distributors that Help Small Business VARs, Network Integrators, MSPs, and PC Repair Businesses Cost-Effectively Deliver High-Margin, End-to-End Solutions

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Creative Commons Image Source: flickr IvanWalsh.com

Topics: Computer Distributors

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Hadley Jones

Written by Hadley Jones