IT Channel in Rude Health as Distribution Grows 5% YoY in 1H 2018

The IT Channel has had a strong start to the year with a combined H1 18 YoY growth rate in distribution of 5.1% and resellers in most countries more optimistic about the coming 12 months than they were a year ago, according to CONTEXT, the IT market intelligence company.

Our much-anticipated ChannelWatch 2018 report is compiled from interviews with a representative sample of over 7,000 resellers to provide key insight into market trends and channel priorities across 14 countries: Australia/New Zealand, Baltics, Czech Republic, France, Germany, Italy, Poland, Portugal, Russia, Slovakia, Spain, Turkey, and the UK.

It found that all countries are in growth this year following a slight decline in H2 2017 where year-on-year (YoY) growth was 4.6%. Some markets have expanded at a rapid double-digit YoY growth rate in 2018 including Russia (21.7%) and Portugal (10.2%).

The majority (63%) are optimistic about business in the next 12 months, with just 10% believing they’ll be worse off and less than a third believing things will stay the same. Only Germany, Poland, Slovakia and the UK are less positive about the next 12 months than when they were polled in 2017, with the latter’s pessimism likely to be linked to Brexit uncertainty.

Portugal, Spain, Australia/New Zealand and Baltics were the most optimistic countries.

The number of resellers has also stabilised: after a decline of 3% noted last year, the YoY drop this report was a near negligible 0.3%. It’s also a mature market, with nearly half (49%) of those companies surveyed being over 15-years-old and just 14% less than five years-old.

Business services was named by the largest number of resellers (14%) as accounting for over a quarter of sales and the vertical they expect most growth in this year. It’s number one in six out of 13 countries, although retail tops the list in Eastern Europe (Baltics, Poland, and Slovakia) and Turkey while manufacturing is the pre-eminent vertical in Germany, the UK and Russia.

by AS

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IFA 2018: Consumer Electronics Gets Smarter

The Internationale Funkausstellung Berlin (IFA) show claims to be the world’s largest consumer electronics show. With over 1,800 exhibitors and 250,000 visitors from 31st of August-5th of September, it was certainly a mind-boggling place to experience. Continue reading

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Listening to the voice of IT resellers – the latest annual ChannelWatch Report

Each year CONTEXT listens to IT resellers to learn where they are and what they are looking for – where they are investing for growth, what they look for from distributors and vendors, and what they are doing to assure their future role in the IT industry. This is a vital, but difficult exercise given the diffuse nature of the channel.

The work of analysing these multiple voices is translated into our annual ChannelWatch report, a much-anticipated online survey providing detailed insight into reseller behaviour, opinions and attitudes. Offering a “bottom-up” view of evolving market trends and insight into the business issues experienced at the IT coal face, it’s a must-read for suppliers and distributors looking to consolidate, optimise and improve their indirect selling strategies, and complements the highest quality sales and pricing data at every point in the supply chain.

The story so far
The big picture is that the IT distribution market in 2018 appears to be in relatively good health. All of the 13 countries covered in the study saw positive year-on-year (YoY) growth in the first half of 2018, with a combined YoY growth rate of 5.1%. This compares to the previous six months in which some countries including the UK and Turkey slipped into negative growth.

From a reseller perspective growth is dominated by services and more firms are looking to adoption of new technologies in categories like security software, 3D printing and Smart Home. The General Data Protection Regulation (GDPR) also loomed large in the first half of the year for many players as the channel scrabbled to recalibrate internal operations to comply with the strict new EU legislation. However, it also offered opportunities for growth in a related category – security software.

That’s not to say the IT channel isn’t without its share of challenges, and resellers have been candid in their responses throughout the report. The main message for distributors is that their partners would like to see more support and training. This is especially true of smaller resellers who feel like their distributors are focusing perhaps a little too much on their larger clients.

More insight to come
This is just a very small snapshot of the insight and trends you can find in CONTEXT ChannelWatch 2018. Our interview sample of over 7,000 resellers covers the United Kingdom, France, Germany, Spain, Italy, Portugal, Netherlands, Poland, Czech Republic, Slovakia, Russia, Turkey, and Australia/New Zealand.

New for this year is the addition of CONTEXT reseller metrics to complement and enhance the survey responses, in order to provide an even more accurate picture of what’s going on. You’ll also find insight into specific trends such as the emergence of etailers as distributors, granular detail into which cloud services are proving most popular, and vendor channel marketing programmes.

If you’re looking to deepen your understanding of the IT market to aid decision-making and improve performance and growth, stay tuned as we launch the report in the weeks to come.

by AS

 

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Validate – don’t just boast about – your customer or company credentials

Companies know that what customers, prospects and future employees trust most, is peer validation. But only leaders and innovators are using the latest technology and social media methods to obtain that validation. Continue reading

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CONTEXT Brings Specialist IT Channel Insight to Argentina

At CONTEXT we’re constantly striving to bring insight and actionable market intelligence to the IT channel. Over the past three decades that central mission has seen us expand into 16 Western European countries, and even further afield: to Russia, Dubai, Japan and Brazil. We’re delighted to be taking the next step of our journey in South America by launching the first ever distributor panel in Argentina. It’s been a tough year for the channel there so far, but this is an opportune moment to offer CONTEXT’s unique market analysis, so that channel organisations can make crucial business decisions with greater confidence going forward. Continue reading

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Filed under Company news, IT Distribution, IT Pricing, Market Analysis, Uncategorized

As IoT Threats Hit the Mainstream, Opportunities Emerge for the Channel

The Internet of Things (IoT) does not represent the future of IT: it’s already here. From factories to hospitals, traffic systems and connected cars to the smart home, IoT devices and systems are deeply embedded into the world around us. It’s estimated there will be over 30 billion of these connected “things” in the world by 2020. But an escalation in real-world attacks against consumer-grade devices has prompted new warnings about security gaps.

Channel players should keep a close eye on developments. There are already opportunities here to add value for partners and end users by promoting IoT security. These will only increase as the risks from insecure devices go mainstream. Continue reading

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IFA 2018: What Can We Expect?

Radio was cutting edge technology almost a century ago, and the Internationale Funkausstellung Berlin (IFA)or Berlin International Radio Show, can truly claim to be “a partner to the future” having been a showcase for new technologies since 1924. The week-long event is still drawing in the crowds, and it’s estimated that this year’s IFA will welcome more than 1,800 exhibitors and 250,000 visitors when the doors open on 31st August— many of them industry professionals looking to build out their networks and scout for the latest technology innovations.

Relative newcomers to the technology show scene CES and MWC may have stolen some of the new products thunder earlier in the year, but this venerable exhibition still has the capacity to surprise, and provide a tantalising snapshot into the cutting edge of consumer technology. Continue reading

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