24 Months Inside Tech Distribution

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April 2021 — By Frank Vitagliano, CEO, Global Technology Distribution Council

The past two years have been a whirlwind of contrasts. It’s a bit difficult to even look back that far considering the profoundly indelible 2020 etched in our minds.

When I joined the GTDC in April 2019, some preconceived notions came with me about the world of technology distribution. They were shaped by many years of experiences I had from both vendor and solution provider/channel standpoints. Lots of regular engagement with distributors. No shortage of respect and appreciation.

On the other hand, what I learned over the past two years gave me a much deeper sense of where the IT technology distribution industry has been, is today and likely headed in the years ahead.

It’s been especially illuminating given the relative calm, almost-as-normal-as-it-gets 2019 compared to the extraordinary-as-can-be year that followed. Despite the stark differences, a consistent reality stands out with greater clarity now that we’re able to more safely peek – and venture – out of the pandemic covers. Distribution works and works well regardless of market conditions.

A Transformative Experience

Let me share some context…beginning with what I set out to achieve upon accepting the GTDC CEO role on behalf of the world’s largest and most successful IT and ICT distributors. My greatest motivation was to help shed more light on what I saw as a still somewhat underappreciated industry. One that has thrived, not just survived, throughout remarkable eras of technological transformation as well as never-ebbing demand for continuously evolving business models. I quickly came to realize that there was an incredible level of appreciation and loyalty among the vast numbers of vendors and solution providers who have come to rely on GTDC distributors.

It’s true that not all distributors have transcended decades of change the way current GTDC members have, but, almost ironically, they’ve fared particularly well compared to other dimensions of the channel – those typically more profoundly affected by the relentless pace of R&D. Those circles tend to reward the latest breakthroughs … and break up those unable to perpetually invest to re-invent.

Distributors have steadily and methodically adapted. Our research undertakings over the past couple of years clearly reflect the undeniable advances in everything from how distributors prime partnerships, deliver economic efficiency and protect customers from cybercrime – to ways they are refining go-to-market strategies, and, yes, to how distributors led industry responses to a global pandemic on local, national and international levels. All these and other distribution-related subjects are covered in depth on the GTDC website.

Never a Dull Day in Distribution

Collaboration, partnership and pure tangible value define technology distribution today.

Although distributors may not always get the recognition they deserve, it’s not slowing their progress. Such diversified channel roles have become central to innovation and efficient market reach as well as service delivery. That’s truer than ever after seeing first-hand how GTDC members rallied in the epically challenging past year.

Distributors largely operate behind the scenes while delivering much more on the front lines, too – lock step with vendors and solution providers alike. Preserving and helping them build their brands in an increasingly complex, multivendor world.

M&A Value Indicators

As a recent report published by Vation Ventures points out, recent M&A activity and blockbuster mergers highlight the fact that smart-money investors recognize the long-term value creation opportunities distributors provide.

Getting the word out increasingly effectively remains our commitment and focus at the GTDC. To be clear, it’s not a promotional mission. Separating truth from fiction drives our thinking … whether through virtual or in-person events, research reports, training and education or candid thought leadership.

It’s about giving voice to an industry that doesn’t crow about its accomplishments as much as it rolls up proverbial sleeves to address both product and service expectations of ever-changing business channels.

It’s about enabling partnerships with data-backed insights into the state of IT distribution now and in the future.

Ultimately, it’s about influence through thought leadership that instills deeper understanding of distribution’s incredibly consistent and resilient ever-advancing value.

Interconnected and Interlocking

At the same time, it’s about checking our sources.

Yes, we are always interconnected with distribution leaders and shakers. They don’t put on airs, nor do we cater to smoke and mirrors. The Vendor Advisory Councils we’ve created and engaged over the past two years also keep us on our toes and regularly informed of opportunities for improvement.

Get beneath the surface, and you’ll see interlocking ecosystems, diverse continuously vetted portfolios and sharp focus on current and emerging requirements. From the outside looking in, the picture isn’t always as abundantly clear.

We are eager to help set the records straight and put the best of what distribution has to offer on full display, front and center…and behind the scenes, too!

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