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GTDC’s Frank Vitagliano: IT Distribution Consolidates, But Still Key To Channel Success

‘I think the vendors will benefit from stronger distributors and ones that make significant investments because the vendors will take advantage of those. I think the solution providers and the MSPs will benefit. And then finally the end-user customer will benefit. So I view it as very positive,’ says GTDC CEO Frank Vitagliano.

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Is this consolidation good for the IT industry ?

The neat thing about the distributors that are part of the GTDC is they all provide the basic functionality and the basic services that distribution provides. But each of them are different in terms of areas of expertise. There are some niche distributors that are excellent at what they do, and they’ve had relationships in place for years with their customers. And that isn’t going to change. So ultimately I think everybody will benefit from this. I think the vendors will benefit from stronger distributors and ones that make significant investments because the vendors will take advantage of those. I think the solution providers and the MSPs will benefit. And then finally the end-user customer will benefit. So I view it as very positive, and I think it’s indicative of what people in the smart money in the marketplace views as good investments.

How do solution providers, the VARs and the MSPs, benefit from this kind of consolidation when they will be dealing with fewer distributors going forward?

I think the service level will increase because if you look at what’s happening right now in the marketplace, and it’s always happened, we’ve always seen significant technology advancements, but this is unusual. What we’re dealing with right now is really unusual with the proliferation of cloud-based services, with a major focus on security, with major transition coming with everything-as-a-service. There’s a lot happening that requires support and the incremental services that the distributors have traditionally always provided. And if anything, it’s getting more complicated, not less. ...

Everything-as-a-service is a great example. Every vendor is transitioning to everything-as-a-service because it makes sense. And because it looks like it’s going to hit very squarely what customers are looking for. Customers are asking for it and they want it because it makes. Well guess what? Solution providers are right in the middle of that. And they’re trying to figure out how to transition their business to be able to support that. And traditionally, when solution providers have tried to figure out how to transition their business, or when they’ve needed support in certain areas, they clearly go to the distributors. Those relationships have been in place forever. So they’re going to benefit from the increased investments. They’re going to benefit from the added services and service levels that result from this. And when the distributors are all focused on improving their service level, that is nothing but good for their customers.

 
 
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