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Amazon’s B2B Play Has Solution Providers On The Defensive

At XChange 2019, analyst Michael Diamond discusses research showing big retailers like Walmart and Amazon are increasingly targeting the B2B market, and that means solution providers should think about redefining their go-to-market strategy.

Recent moves from big retailers like Amazon and Walmart have some solution providers redefining their go-to-market strategies.

“With the big guys getting involved in this space, there’s a risk that they can take the client and run with it,” said Rick Tashman, managing partner at Ardmore, Pa.-based Tashmnan Tech Group, which specializes in data center design.

The worry stems from the retailers’ push into the B2B market, with “Amazon Business” and “Walmart for Business” being two examples. The platforms sell a range of IT equipment and products in bulk. Amazon Business also offers technical services.

“With so much intelligence from folks like Amazon, providing analytics and mapping businesses, the stakes are getting higher for solution providers to up- and-cross-sell as much as they can and get into more departments than they can because those bigger guys will get into those accounts,” said Michael Diamond, director of industry analysis for B2B technology at the NPD Group, at XChange 2019, hosted by CRN parent The Channel Company.

Diamond says it’s more critical than ever for solution providers to adopt a strategic planning process that takes into account key intelligence topics.

“Looking at markets and looking where disruption is and thinking how technology can be used to solve those problems—that’s where people need to be thinking.”

Watch CRN’s video for more coverage.

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