Category Archives: Enterprise IT

Thoughts from DISTREE EMEA

This year there were 500+ participants in the flagship event, and the buzz was back. The focus was on new technology, and everyone attending the conference can feel good about where we are. No, it is no longer the A brands – that has been the case for a number of years. But we have to get over this – HP, Intel, Acer, Microsoft and others no longer support conferences as they did before – they focus more on the big international events.

But in a world where new technology is exploding with fast growth rates and boundless innovation, more than ever there is the need to bring people together so that people can sit down and meet the latest innovative brands. And that is where the DISTREE model works well, because of the scheduling of meetings which means that vendors know that, if they pay to come, they will get a minimum number of meetings. And we had many of the big players here this year – Tech Data, Ingram Micro, Also, Exertis, Cool Blue and Amazon, as well as dozens of other smaller distributors.

DISTREE

But it is not just about meetings, and that is where the interest of the event comes in. As Ilona Weiss, CEO of ABC Data put it in her blog after the event, it is the time to “pick up the rhythm of global markets and predict accurately the direction in which things are changing so that I can buy enough time for ABC Data to adjust its course.” This comes from the informal discussions with other tech leaders, and also the rich thought leadership on offer, with keynotes and workshops which illuminate and stretch people’s imagination.

This year CONTEXT organised an invitation only event for C Suite executives from selected distributors and other invited guests. The content was rich, and the tone was set by Patrice Arzillier, Managing Director of Exertis Continental Europe, and board member of Exertis plc. He opened up to a series of questions about Board investment decisions, their approach to acquisitions and the challenges they face.

The meeting was done under Chatham house rules in order to create the right ambiance for senior executive sharing, but with Patrice there was no need, as he launched into a frank and open dialogue with the other participants in the room. These times of exchange are vital for the health of the industry, and to give each other the chance to “adjust your course if necessary”. This discussion was enriched by the input from Peter Van den Berg, the head of the GTDC in Europe and a presentation from Michael White of Quadmark, showing the new financial drivers of distribution, emphasising the need to have different measures for different types of revenue stream, and to take into account all investments, not just working capital.

The other theme we covered was strategic collaboration, and the level of congruence between the presentations was remarkable – old style confrontational negotiations are out, and the smart money is on those who find strategic ways of collaborating. One of the speakers, Marcos Garcia Esteban, until recently Purchasing Director of Worten (the Portuguese/Spanish tech retailer), spoke of high-level contacts between retailer and brand to find innovative ways of delivering product. Distributors are the “midfield” players, he said, and can bring everyone together in the new technology ecosystem.

Adam Williams, who has spent the last 6 months bringing a smart home product to market, laid out the complexity of the new emerging technology market and echoed Marcos, saying that distributors are the best placed to act as brokers between the various parties. Lastly Alan Clayton, a mentor at the Investment fund SOSV, one of the largest providers of seed capital to technology start-ups, spoke of the role he saw distributors playing in bringing products to market. “I need someone who, as a one-stop shop, can broker space in the top retailers in Europe.” His final call to action was memorable, for distributors to become “Co-creators of global brands.” A great and positive thought to keep distributors going forward in the right direction.

by AS

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Filed under Enterprise IT, IT Distribution, Market Analysis, PCs, Retail, Supply Chain

35 Years and counting… stories from the IT frontline

To mark CONTEXT’s 35th year anniversary, co-founder and CEO Jeremy Davies reflects on the early days of the IT industry and the beginnings of CONTEXT.

It’s now 35 years since CONTEXT began tracking the IT business. That’s quite a thought in itself. The fact that we have been able to create a business from scratch and – despite all odds – still be here, thriving, 35 years later.

But what’s even more stunning is to have been a witness to the changes that have taken place since those pioneer PC days. And what has kept us in business has been that change: not only have we watched it but we lived it, taking an active part as a small and growing business, embracing the latest technology as it unfurled and integrating the new as we built the platforms and processes needed to track the burgeoning IT industry.

So, a few facts to illustrate. In the 1980’s, magazines were king. Vendors advertised in Magazinemagazines, prices, specifications and even dealer lists. To track prices, one had to track magazines. This intensely manual job resulted in output that every month saw huge physical printed files sent out to subscribing customers. If you wanted to know specs and pricing, you opened a folder and leafed through pages of printed text. A huge step forward was achieved when data files began to accompany the printed “books”.

Surveying dealers was another challenge. To create our master dealer list in the UK, we got hold of the Yellow Pages directory, and telephoned every entry that had the word “computer” in it. We asked three simple questions: Do you sell microcomputers? Which ones do you sell? Which ones are you authorised to sell?The calls were done by a dedicated in-house team who, after building the list, started contacting resellers every two months, asking for sales figures. These were manually entered into paper spreadsheets, and the calculations done – you got it, manually. Printed reports then appeared every two months detailing these aggregated and projected sales of PCs, Printers and Software.

This is not to say there were no computers involved from the beginning. There was one. It was an Osborne 1 portable computer, running CP/M on a 4.0 MHz Zilog Z80 processor and 64 KB of RAM. Twin 5.25” floppies and a 5” screen completed the picture. As work volumes grew, we invested in our first IBM twin floppy PC. And then came hard disk drives… but that’s another story!

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CONTEXT’s first office was at 9-11 Kensington High Street, which is now a hotel

 

 

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Channel Predictions for 2018: The drivers of change

As part of a series of Prediction blogs for 2018, we interviewed Tim Curran, CEO of the Global Technology Distribution Council (GTDC) on his views of what this year might bring for the channel.

The pace of technology industry change continues to accelerate – and with it comes unprecedented opportunity as well as significant potential for disconnects and dislocation. Continue reading

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Filed under Enterprise IT, IoT, IT Distribution, Market Analysis, Retail, Uncategorized

Channel Predictions for 2018: Cloud, virtualisation and security

CONTEXT recently interviewed Sam Routledge, CTO of Softcat plc and Abdel Bennour, Sales Director of Ingram Micro in France on their Channel Predictions for 2018

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Sam Routledge, Softcat


Hybrid Cloud becomes Reality
I’d say that the year ahead is the time that hybrid cloud becomes a reality. Most cloud deployments have been new applications and services, or backup/ DR for on premise workloads. With Microsoft releasing Azure Stack and VMware partnering with AWS, customers will have serious options for genuine, interchangeable, hybrid cloud.

 

If you would like more detail, I wrote a post on this just before the turn of the year.

A French distributor speaks about cloud, virtualization and security
In a rapidly IT environment, it is critical to remain focussed on basics – partners first. On premise business still has great days ahead. Cloud, virtualisation or cyber security are overperforming and should be considered as key areas of development in 2018.

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Abdel Bennour, Ingram Micro

I would recommend that we all keep an eye on the human aspects of digital transformation which we have started.

From a personal point of view, life balance has always been a key success factor to manage the pressure of work. So more than just a resolution it’s a daily action which is part of my DNA. So I launch a New Year resolution of S.I.S : Smile, Interests (of others before yours) and Sincerity which is one of the best ways to care about yourself and others.

I wish all of you an amazing, healthy prosperous and joyful year 2018.

 

 

 

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Attracting and retaining talent in the Channel

Guest blog by Jessica Hadleigh, Marketing Manager at Thames Distribution Ltd

Last Tuesday, I was lucky enough to be invited to be part of a panel at the new format Channel Live conference, discussing a topic that I am very passionate about; attracting and retaining new talent into the tech channel.

Hosted by Adam Simon, the Global Managing Director of CONTEXT, the panel was truly a wealth of experience that included David Jones, Chief People Officer of Daisy Group, Leon Conway, Co-founder of Channel People, David Pitts, Partner and Founder of Trust Business Partners, and myself.

Our industry is constantly evolving and with every new advancement – technological or otherwise – comes the need for a new skillset to keep our businesses current. Continue reading

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Q2 Round-up: New iPad Launch Softens Consumer Slate Sales Slump

With unrivalled insight into the Western Europe ICT supply chain, CONTEXT has been following with interest the evolution of the PC and mobile computing market. In many ways, Q2 saw a continuation of trends, with PC volume sales continuing to fall and consumer tablet demand remaining weak as buyers divert their spending to smartphones.

However, as always, there were some interesting caveats behind the headline statistics, not least the impressive performance of the new iPad launched in March.

Tablets and detachables
It’s true that overall consumer tablet demand remained weak during the second quarter. Shoppers continued to shift their budgets to other technologies that have come to represent the content consumption devices of choice in this market segment. Larger screened smartphones in particular have become popular for activities like writing emails and using apps as they’re always on and close-at-hand for consumers.

However, year-on-year volume decline was softened somewhat thanks to the launch in March of Apple’s seventh generation iPad. The 9.7in tablet is more powerful than the iPad Air 2 but also heavier and lacking several of the latter’s features such as a Smart Connector, and fully laminated, anti-reflective screen. However, its relatively low-price tag seems to have attracted consumers in large numbers and it sold well in Q2.

This is not unusual for Apple products, which often see strong initial sales. But if consumers continue to flock to the model, it would seem to suggest there’s a need for a high-quality iPad option with a price point more in line with current market trends.

Elsewhere, business detachables continued to grow year-on-year in Q2, dominated by Apple and Microsoft products but with Lenovo making impressive inroads. New products such as Apple’s iPad Pro with a 10.5in screen and Microsoft’s fifth generation Surface Pro helped drive this growth. Business detachables still aren’t selling in huge volumes, but it was one of the few segments to post growth in the quarter.

PC Average Selling Prices continue to rise
On the face of it, the PC market overall saw a bigger than expected drop of -15% year-on-year in terms of volume sales. However, there’s more to this trend than meets the eye. For one, Q2 2017 had fewer trading days than the same period last year and some April sales had been brought forward to March in anticipation of rising prices.

Despite weak demand in some segments, the quarter fared better from a revenue perspective, down just -2% year-on-year as average selling prices (ASPs) continued to rise. The growth in ASPs year-on-year continues to be driven by a blend of currency, component costs and a richer product mix; with the shift to high-end models a welcome continued trend.

Weaker-than-expected sell-through meant that inventory levels are a bit higher than desired, but not worryingly so. It’s likely that the “back-to-school” period will be used to get rid of extra stock, driving a reduction in pricing quarter-on-quarter.

by MCP

 

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GTDC EMEA Summit – Positive at the midpoint of the year

At the recent GTDC EMEA Summit, the CONTEXT data and team were in evidence as the preliminary results of its annual 2017 ChannelWatch survey were unveiled in a dedicated workshop, and the GTDC Rising Star awards were selected using the CONTEXT data.

There was a real buzz this year with over 175 attendees, a record number of vendors, and senior executives from across the industry. The location was excellent with top class hospitality in the Kempinski Hotel in Vienna.

The conference opened with an upbeat introductory speech from Tim Curran, the CEO of the GTDC. Europe is on the move, growing faster than the US, and with excellent results in Q1 2017. Curran also took the occasion to remind members of the services provided by the GTDC.

We were then treated to a fascinating glimpse into the future by “futurist and humanist” Gerd Leonhard. Bringing together a myriad of ideas about the current technology explosion, he closed off his speech with a slide which really sums up the challenge ahead. Humans can only advance at a linear pace, whereas technology capabilities are advancing exponentially. We need to deal with this so that we don’t become “useless humans” and we must channel the new technology to the benefit of all mankind.

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From GTDC Keynote Presentation by Gerd Leonhard, 13/6/2017 ©

The final session of the morning, before breaking off into workshops and 1-to-1 meetings, was a Distribution panel, hosted by Peter Ward. On the panel were Graeme Watt, formerly CEO of Avnet Europe, now SVP Value at Tech Data; Jeremy Butt, Executive VP of Westcon EMEA; Ilona Weiss, CEO of ABC Data; Eric Nowak, President of Arrow ECS EMEA; Svens Dinsdorfs, CEO of Elko; and Anton Herbst, Head of Strategy at Tarsus.

The discussions were broad-ranging around the future of Distribution, the impact of recent consolidations, and there was a plea from Graeme Watt for vendors to think solutions not products, in order to get the right results for customers. An interesting debate took place about the importance of recruiting and retaining the best talent in the tech industry, a challenging area. One of the panellists said that often when people have been trained up in a specialist area, they are subsequently targeted for recruitment by resellers or vendors. This is definitely the stuff of future discussions for this audience to grapple with and find solutions.

In the CONTEXT workshop the preliminary results of the ChannelWatch survey for 6 out of 17 countries – UK, France, Germany, Spain, Italy and Poland – were presented. A number of questions were asked by attendees at the GTDC conference who were curious to know more. As Andy Dow, Group Marketing Director of Tech Data UK said, “The more deeply you dive, the more you understand that you need to dive even deeper.”

In this year’s ChannelWatch survey we had an overwhelming response of nearly 7,000 resellers, supported by our distributor partners who shared the survey with their reseller clients. The respondents were mainly owners, CEO’s and senior management, covered a broad spectrum of resellers, VAR’s, etailers and retailers, as well as small, medium and large sized companies.

Overall resellers in these countries are confident about 2016 and optimistic about 2017. This has been confirmed by a stellar opening to 2017 with 5% growth in Q1 panel revenues in these countries compared to last year, ranging from 13% growth in Spain to 1% in the UK. The outlying country for optimism is Spain (71% think that 2017 will be better than 2016) and the country with the highest number of doubters is the UK where 20% see 2017 as being worse than 2016.

The preliminary ChannelWatch data supports the encouraging opening talk by Tim Curran, and we look forward to a positive second half of the year.

The full results of the ChannelWatch survey will be made available in the coming weeks.

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by AS

 

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