The Global Technology Distribution Council has released new research that looks at direct, single-tier, and partner-led indirect business models, examining factors like technology price points, audience, maturity and more. Their findings – the two tier model consisting of resellers and distributors produces the best return for vendors.
Those going direct were found to have problems around costs as well as the challenge of reaching SMB customers. This new research also examined the cloud model.
Why do we care?
Anyone surprised that the Distribution Council found that Distribution is most profitable? I had to include my snark there.
For me, the challenge of last mile for SMB and SME customers is the key competitive difference. It’s HARD to market to all small businesses everywhere. That’s the value here for providers.
I think this misses the subtle nature of the move to ecosystems, and I want to tee up a larger piece coming out this weekend on exactly this. Those key differences between a channel and what a channel is versus an ecosystem. Look for that this weekend.
Source: Channel Pro UK