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GTDC’s Frank Vitagliano: Distribution Key To Digital Transformation, Supply Chains, As-A-Service Models

‘There’ll be lots of technology delivered in the traditional way, and lots that get delivered as a service. So there’s going to be a need for new training and financial support, [and] the distributors will be providing a different level of service to the solution providers as they move forward. And that’s significant because things are not going to get less complicated than they are today,’ says Global Technology Distribution Council CEO Frank Vitagliano.

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How is that money impacting the distribution business?

It enables significant investment. And it enables distributors to step back and really focus on how and where they are going to make investments. In the case of Ingram Micro, which went from a public company to being owned by HNA to now being owned by Platinum [Equity], there’s clearly an opportunity because Platinum wants to make significant investments and they’re not tied to public markets.

And as you know, with the 90-day shot clock that everybody talks about relative to being a public company--every 90 days you’re providing earnings--you can’t think about the longer-term perspective. But conversely, TD Synnex is a public company and now has the opportunity to combine two very large entities with two very significant budgets and using those dollars in a very focused way to invest in the areas that clearly make sense, and of course it’s all around digital transformation. And so there’s a huge gross dollar amount of investment dollars that can be focused very effectively.

And in the case of an IPO in the public market, same scenario: All of a sudden, there are additional investment dollars that will be provided to focus on these areas. So the net net of it is, it’s all very positive and it provides all of the players in the industry the opportunity to really look at ways to grow and expand the business opportunities in a time when there’s huge opportunity to do that.

 

 
 
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