Tag Archives: CONTEXT ChannelWatch

Cloud and mobile drive growth prospects for Central and Eastern Europe

Much of the value CONTEXT offers its clients comes from the insight we distil from data collected at every point in the channel supply chain. One of the main sources of this sales and pricing data is the distributor. So we took time out to get some deeper analysis with Ilona Weiss, CEO of ABC Data.

ABC Data is a leading IT hardware and consumer electronics distributor for Central and Eastern Europe, covering markets including Poland, Romania, Hungary, the Czech Republic, Slovakia, Lithuania, Latvia and Estonia. The Warsaw-headquartered company sells thousands of products from over 400 suppliers, so it has great visibility into what’s going on.

Cloud drives growth
Smartphones and cloud services offer some of the biggest opportunities for 2018 and beyond, according to Weiss. in 2014, ABC Data bought Apple distributor iSource, which is a leading distributor of Apple devices in Poland. Moreover, ABC Data is extending its vendor portfolio all the time with new additions such as the Chinese giant Xiaomi. Being the first distributor of Xiaomi in Central and Eastern Europe, ABC Data was largely responsible for boosting the sales of this brand in the region. Recently, in close cooperation with the vendor, ABC Data has opened the first official Xiaomi store (called Mi Store) in the biggest shopping mall in Warsaw. The plan for upcoming months envisages extending the range of the Chinese company’s products in the distributor’s offer.

ABC Data’s cloud platform is a more recent investment, launched in 2017, but also seeks to tap a demand among business customers to drive innovation and growth through digitalisation. With ABC Data, cloud partners have access to a wide and diversified range of offerings, such as virtual servers, storage, tools for creating proprietary applications and solutions enabling data archiving and back-up. These are sourced from both global and local suppliers. Recently, ABC Data signed a contract for the distribution of Microsoft CSP (Cloud Solution Provider) products in the entire CEE region. As Ilona Weiss explains, cloud computing is the future of modern IT. It is gaining more and more recognition among companies and institutions in Poland, as well as from resellers and integrators associated with ABC Data, who are interested in selling cloud solutions provided to them by ABC Data.

This chimes with the findings of the CONTEXT ChannelWatch Survey from the end of 2017 that reported nearly half of global resellers are preparing to sell cloud services — especially back-up (53%), storage (47%) and business apps (35%). Like many of its counterparts, ABC Data is seeing a great deal of interest from the vendor community as business models become more cloud focused. With channel partners and vendors increasingly looking to offer combined solutions, Weiss sees an opportunity to grow by developing value-added distribution services in this space.

New investment areas
As for the rest of 2018, she claims that many businesses in the region will be investing in new desktops and particularly notebooks as part of the upgrade cycle. The trend will be particularly acute in the SMB space. Meanwhile, in the consumer market, the growth of digital entertainment is expected to lead to growth in the video gaming sector, which is very promising, she says.

Despite a turbulent past couple of years in the regional IT market, things are on the up and Weiss is optimistic about the future. The main cause for this is the room to grow in the above-mentioned areas of cloud and mobile, but also value added distribution and e-commerce.

Indeed, following the acquisition of the S4E company in mid-2016, ABC Data Group has significantly improved its position in the VAD area. In the coming months the group has plans to concentrate on further consolidating its position on the services market and adding value by, among other things, consistent development of its specialist products and services portfolio and by expanding its educational offer.

On the other hand, 2018 marks the 20th anniversary of the creation and first tests of the ABC Data’s sales platform – InterLink, today available in 9 language versions to thousands of B2B clients in the CEE region. It has played a key role in popularising e-commerce solutions and online shopping in Poland and in the region. ABC Data’s CEO believes that it is precisely the innovative, intuitive and trouble-free e-commerce platforms and m-commerce solutions that are the mainstay of this business.

This is why the company is constantly focused on the development of further functionalities of the InterLink sales platform. Recently, the feature of fast online payments was added. Currently, the company continues to develop the mobile version of the platform, m-InterLink, available to ABC Data’s partners in individual CEE countries. The m-InterLink application was launched last year and has gained a wide acclaim among the Polish customers.

The Company is also constantly increasing the scale of ABC Data’s operations in the CEE region. The result of these activities is the systematic improvement of sales. Only in the first quarter of 2018, ABC Data achieved a 41% increase in sales revenues in Slovakia, a 26% increase in Romania and a 16% increase in the Baltic countries. – This is why I’m not afraid for ABC Data’s future – says Weiss – We are the only company in the industry that operates directly in eight CEE countries, and we are still developing our business – she summarises.

by AS

 

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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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