GTDC 2025 Outlook: Distribution Value Is On Rise In Cloud Era

“The survey shows that once again distributors are responding to what is happening in the technology market with cloud computing and digital transformation and are providing increased levels of service and support to ensure their customers are successful in this new era,” said Global Technology Distribution Council (GTDC) CEO Frank Vitagliano.

Exclusive research from the Global Technology Distribution Council (GTDC) shows that distributors are poised to thrive in the cloud computing market with 61 percent of survey participants expecting greater than 10 percent annual sales growth for distributors through 2025, said GTDC CEO Frank Vitagliano.

“What this means is distributors are going to play a significant role in growing digital transformation sales through partners with significant investments in areas like cloud marketplaces, and subscription services for Software as a Service (SaaS) and Platform as a Service (PaaS) and emerging technologies like security and artificial intelligence,” said Vitagliano, a 30 year channel icon who took the helm of the GTDC in April. “The amount of growth expected over the next five years shows the strength of distribution’s core competencies in the cloud era.”

[Related:IT Distribution Preps To Ride A Wave Of Changes: GTDC's Frank Vitagliano]

Among the most valued distribution supply chain capabilities ranked by survey participants for the digital transformation era were: virtual warehouse support for SaaS and cloud solutions, integration services and global logistics.

The top five technology trends driving the 2025 double digit distribution sales growth: security, cloud, artificial intelligence/machine learning, big data analytics and internet of things.

Among the recent signs of distribution’s strength in the cloud era are distribution behemoth Ingram Micro’s $500 million investment in its cloud business; continued new investments in emerging technologies expected from Tech Data in the wake of Apollo Global Management’s $5.4 billion buyout to take Tech Data private and new investments in cloud by D&H Distributing.

Vitagliano, a passionate advocate for the role distribution plays to drive partner success, said the survey titled, Tech Distribution 2025, shows that the bread and butter core competencies of distributors are once again coming to the fore as partners transform for the cloud computing era.

“The survey shows that once again distributors are responding to what is happening in the technology market with cloud computing and digital transformation and are providing increased levels of service and support to ensure their customers are successful in this new era,” said Vitagliano.

Vitagliano says one of the big takeways from the survey- which was conducted by Vation Ventures- is that the top go to market services cited by participants are longtime distribution staples including partner enablement, partner credit and financial services, partner recruitment and marketing and lead generation programs.

“It shows that even with big investments distributors are making in cloud marketplaces that the basic core competencies of distribution are important and valued in the cloud era by everybody in the supply chain,” said Vitagliano.

The report also raises the ramifications of the $130.9 billion in venture capital invested in companies in 2018, surpassing the dot.com era. “The venture capital community recognizes that from a go to market standpoint distribution matters,” said Vitagliano. “In fact, they are making sure emerging tech vendors understand the value associated with going to market with distribution.”

Ultimately, Vitagliano said the Tech Distribution 2025 study is a sign of the sanguine outlook for distribution in the cloud era.

“The report shows that distribution- which has continually morphed to provide services to help the IT industry grow- is on the right track,” said Vitagliano. “The outlook for distribution is very healthy as we look out over the next five years.”