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ScanSource CEO Mike Baur On Distributor Consolidation, Intelisys

‘I think anything where you have fewer choices is not a positive. Most customers, most consumers, we all want choices, reasonable choices. But I think the key is, do you have value-added offers in the marketplace, enough of them, because if you don’t and if there’s not an opportunity to differentiate, then I think the magic goes out for this industry,’ says ScanSource CEO Mike Baur.

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Channel Consolidation Not Always A Good Thing

Scansource CEO Mike Baur told CRN that consolidation in the channel in general risks going too far.

“I view consolidation historically for channel partners, our sellers and our suppliers, as not a positive,” Baur said in an interview. “I’ve never seen a positive come from that for the whole industry.”

The consolidation in distribution comes as distributors are continually re-invent themselves to keep up with and indeed stay ahead of the curves coming the channel’s way by adopting new cloud, edge, digital transformation, and similar technologies and turned them into products and services solution providers can then turn into recurring revenue.

In a wide-ranging interview, Baur also told CRN that the disruptions caused by supply chain issues are for not limited primarily to the need for more advanced planning to ensure that customers’ orders are shipped.

He also put in a pitch for ScanSource’s Intelisys telecom business for solution providers looking to embrace the recurring revenue model, but warned that they need to be prepared to spend three years before reaping the full rewards.

For a look at how ScanSource is doing in a sea of change, click through the slideshow.

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