As the number of technology innovations and companies that deliver those solutions grow, it becomes increasingly harder for tech professionals to manage it all. From small business owners in the most rural communities to the IT teams of some of the largest enterprise organizations on earth, few have the knowledge, expertise and resources to fully support and protect their operations on their own today.

IT channel companies are often working behind the scenes keeping millions of those organizations online each and every day. From the more traditional VARs and systems integrators to the ever-evolving MSPs and MSSPs, these solution providers support a large percentage of the global business community. According to Canalys research, channel partners delivered more than 70% of IT spending in 2023 and the success of vendors will increasingly depend on their ability to support this community.

Distributors play a critical role in these engagements. Across the globe, they continue to invest significant sums developing programs and services that support the escalating demands being placed on their channel partners. These channel orchestrators are empowering an ever-increasing ecosystem of technology providers with the tools needed to compete in today’s continually evolving and ever-more-challenging business environment.

IT distribution’s value remains strong and is poised to rise as the demand for new and increasingly more complex solutions grows. GTDC highlighted many of the reasons for that positive outlook in 2024 through its extensive research and insight from global experts, and we will continue that work in 2025 and beyond.

Empowering the Global IT Community

Distribution opens doors for all types of technology vendors. From the well-established OEMs and software developers to emerging cloud, cybersecurity and AI vendors, distributors extend the sales, marketing and logistics footprint of IT innovators. Enablement is their mission, and the vendor community benefits exponentially from their resources and support programs. Whether expanding channel operations across a single region or the globe, few OEMs and developers have the reach or the financial backing to attain that level of scalability without a strong distribution network.

Our 2024 research called attention to many of those value-adds and engagement opportunities. We shared valuable insight from the vendor and distribution community on digital platforms and online marketplaces, and how these web-driven ecosystems positively impact partner and end user procurement practices. “Beyond the Marketplace” also explores how tools support technology lifecycle management and boost capabilities for channel partners and the businesses they support, from SMB customers to the enterprise. Distribution-hosted platforms are already driving the next wave of digital transformation, with new capabilities and offerings coming online every day.

Distributors provide a similar boost to security sales and adoption. In the latest GTDC report, we asked cybersecurity vendors to rank the distribution-powered programs and services that contribute most to their success and shared deep insight from a number of thought leaders on that topic. According to the research findings, cybersecurity vendors place the highest value on the technical support, new market development, marketplaces/ digital platforms, lead generation and billing/collections capabilities of their distributors. These relationships allow them to more cost-effectively scale their channel businesses. Nearly two-thirds of those respondents indicated that collaborative sales engagements had the biggest impact on the successful adoption of more advanced technologies. Whether selling hardware, software or cloud solutions, distribution makes it easier for vendors to sell, support, invoice and collect payments for their cybersecurity offerings.

In 2024, GTDC also launched the first in a regular series of articles that will explore the various channel opportunities with artificial intelligence (AI). While early in the adoption stage, solutions providers, vendors and distributors are figuring out how to best leverage these technologies inside their businesses while building practices and portfolios to support the evolving needs of end customers. Our team will engage a variety of industry thought leaders on this topic, provide additional research and share the results of those activities in future articles.

GTDC will revisit some familiar, highly valued topics in the next few months, beginning with a ground-breaking study that builds off the Vation Ventures’ Distribution 2025 report completed several years ago. This research project will deliver answers to the questions vendors need to know to effectively navigate the channel, including how to capitalize from the latest technology trends and new market opportunities.

What is the future of distribution? Which professional services opportunities do distributors bring to the table? How will AI impact the channel community? Our 2025 research projects will explore each of these topics with a focus on the vendor’s perspective. .

Highlighting the Distribution Effect Across the Globe

Since its inception, GTDC has quantified and qualified the value of distribution to the vendor community regardless of location. On February 19-20 in 2025, we will hold our 23rd annual GTDC Summit North America at the Seabird Resort in Oceanside, California, emphasizing our long-term commitment to the channel ecosystem. We bring together top executives from the distribution and vendor community to discuss the latest economic, business and technology and build and fortify alliances.

Strengthening the global technology community has always been one of our highest priorities. In 2007, GTDC expanded its footprint with a dedicated team in EMEA, hiring Peter van den Berg as General Manager of the region, building out a distribution sales database and launching an annual event shortly after. The results of those efforts will be on display this spring at GTDC Summit EMEA, April 1-3 in Madrid, where our team will highlight the issues of greatest importance to the European vendor and distributor community. In addition to covering regional trends, initiatives and opportunities, the event features keynotes from thought leaders with a global perspective on the technology industry. Economists, analysts and other channel specialists will share their unique insight at each of our GTDC Summits.

That includes our latest global expansion, creating a presence in APJ earlier this year with the hire of Ananth Lazarus to spearhead community development in that region. Those responsibilities include recruiting new Vendor Advisory Council members and creating area-specific initiatives, research and content. The former Microsoft, IBM and Compaq executive was instrumental in the success of our inaugural event last month in Singapore, which brought together many vendor and distribution executives to network and discuss topics most relevant to the IT community in that critical corner of the globe..

Looking Ahead

2025 is shaping up to be a dynamic year for the technology industry. Between rising cyber threats and the momentum of AI, which analysts predict will accelerate the next IT refresh, vendors’ resources may be taxed more than ever. Political transitions are creating even more uncertainty around where and when to invest.

Strong distribution relationships help reduce those burdens and risks, especially in the sales, marketing, billing/ collections and service delivery areas. That support allows vendors and solution providers to focus their resources on other key priorities like developing new offerings and revenue streams.

Distributors provide flexibility and lower risk profiles. Those value propositions truly matter, especially when M&A and private equity are trending upward, and metrics like time to market for new solutions and profit growth are heavily scrutinized by potential investors.

As the research shows, distributors have become “change agents” for the IT industry and are pivotal to the success of new and well-stablished technology vendors. They serve a crucial role in the supply chain, acting as intermediaries between OEMs, developers and solution providers, offering a range of unique services that add value to all parties, including end users. That value proposition remains strong and is sure to grow in the coming years with the increasing complexity of the technologies and business models, along with the escalating demand for new services and resources. Distributors continue to invest and expand their offerings to deal with whatever challenges their vendor and solution provider partners face.

Register today to attend one or more of our 2025 GTDC Summits to gain more insight on strengthening your company’s go-to-market strategies. North America and EMEA registration is now open and we expect to send out the APJ “save the date” soon - we look forward to having you join those conversations.