GTDC CEO: Distributors Are Evolving, So Must The Channel’s Understanding Of Their Role

The rise of platforms has completely shifted how distributors do business in the channel.

The role of distributors is undergoing a fundamental shift, becoming less about logistics and more about orchestration, integration and insight, according to Frank Vitagliano.

“The ecosystem has gotten so complex over the past five or six years,” Vitagliano, CEO of the Global Technology Distribution Council, told CRN. “Somebody’s got to orchestrate all of that. Somebody’s got to manage the relationships, link all the partners together. Distributors do that.”

While traditional services like financing, warehousing and technical support remain foundational, Vitagliano said that the rise of platforms has completely shifted the business. He said there are three reasons why platforms have become essential to the distributor value proposition: streamlined operations, marketplace centrality and AI-powered sales insights.

“It’s just so much more efficient to do business off a platform than it is the traditional way,” he said. “From a productivity standpoint, it’s a huge deal.”

Beyond efficiency, distributors are increasingly becoming the stand-out players with robust, multi-vendor marketplaces, offering integrated solutions, certifications and testing that single-vendor marketplaces can’t match.

But the most groundbreaking evolution, according to Vitagliano, is how AI is enabling distributors to generate actionable sales leads.

“One of the distributors, I’ll stay neutral, called it going from an order taker to an order maker. And that’s exactly what’s happened,” he said.

Earlier this year, GTDC released a report on onboarding that aims to demystify the path for vendors looking to engage with distribution for the first time, or re-engage with a fresh strategy. Vitagliano said it’s already drawing attention from emerging vendors trying to figure out not only how to go to market, but how to be “channel-ready.”

“Most new vendors start with products built for end users, not for the channel. There’s a big difference,” he said. “Things like training, support, how to target the right solution providers, those nuances matter.”

“Our core constituency is the vendor community,” he added. “They tell us what help they need, and we build our efforts around that.”

Still, he acknowledged that a major part of GTDC’s ongoing mission is educating a constantly renewing marketplace, especially those inside vendor organizations who might not grasp the full muscle of a modern distributor.

When it comes to cloud-first marketplaces like Pax8, which resists being labeled a distributor, Vitagliano took a pragmatic view.

“None of the major players are ‘just’ distributors anymore. That word doesn’t even mean what it used to,” he said. “Pax8, Ingram Micro, TD Synnex, Arrow, they’re all offering a combination of services that customers need. Whether you call it distribution-like, cloud-like, or AI-enabled, the lines have all blurred.”

But by teaming up and collaborating, he believes both groups can serve the channel more holistically.

“With everything going on, AI, platform transitions, workforce upskilling, this is a critical time for the channel,” he said. “The solution providers are closest to the customers and the customers are asking the tough questions. They need help.”