Tag Archives: IT distribution

The next 35 years

Throughout 2018 CONTEXT has been marking its 35th birthday – we have used this anniversary year to look back and celebrate the growth of a company from small beginnings to being a serious force in the IT industry. On the occasion of the latest GTDC EMEA Summit last week –where vendor and distributor leaders meet and debate the most current issues in the industry – Jeremy and Howard Davies, CEO’s and co-founders, took the occasion at a CONTEXT vendor dinner to look forward to the next 35 years. Continue reading

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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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Filed under Connectivity, IT Distribution, Mobile technology

Eurozone Blues

1999 was a momentous year for CONTEXT. Not only were we facing the Y2K bug, but at midnight on 1 January 1999, the national currencies of participating countries in Europe, aka the Eurozone, ceased to exist independently. Their exchange rates were locked at fixed rates against each other.

By then we had built up a pretty successful pan-European price tracking and comparison service, PriceWatch. It had depended for years on our ability to monitor prices and VAT rates across different countries and currencies thus enabling customers to perform apples to apples comparisons across a huge swathe of IT products, from desktops to printers to displays.

The service started in the late ’80’s thanks to a chance comment from Unisys: was there anything we could do about tracking prices as the work involved was causing them a headache? We obliged, and started turning out huge folders, updated monthly, filled with pages of indexed specifications and prices, which then graduated into – gasp – an accompanying 3.5” floppy with the data in digital form. Many a CONTEXT old-timer will remember the wrapping and binder duty into the late hours of the night to meet deadlines.

The big question we faced was this: with the introduction of the Euro, was that the death knell for our European Pricing Service? The pundits said yes. Why would any manufacturer pay for data on prices when transparency was assured thanks to the common currency?

Of course, we need not have worried. In fact, if truth be told, the manoeuvring by vendors attempting to rationalise VAT rates and prevent grey market activity gave us more work than ever before.  The PriceWatch service grew, and is now an extremely successful component of the suite of information products we provide today across the globe.

by JD

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

Russia Goes Graphics Card Mad as State Crypto-mining Efforts Increase

Has Russia become a nation of gaming fanatics? At first look it appears so: CONTEXT figures from the graphics card market show growth of 250% year-on-year in distribution sales for Q1 2018. That’s an increase of €7m to €30m to reach second in Europe behind Germany.

These figures came after an already strong 2017 year for graphics cards across Europe. The market grew by 90% year-on-year for Q1 2018, according to our distribution sales-out data. Nvidia GTX 10 series sales account for 75% of the European year-on-year market growth and Asus has the vendor top spot. Power, performance enhancements and new features have caught the eye of consumers, who waited a relatively long time to change out their older graphics cards as previous 800 and 900 series for Nvidia disappointed in terms of real gains.

But this isn’t the whole story.

A crypto-mining revolution
While graphics cards are a key component in gaming PCs, they’re also vital to the mining of crypto-currency. Can you guess which country is embracing crypto-mining with great enthusiasm? That’s right, Russia.

The truth is that mining for digital currency is an intensive task requiring large amounts of energy to power computers and cool machines. In fact, the process globally now consumes the same amount of electricity every year (33TWh) as Denmark, according a one recent report. Russia is at an advantage in having a cold climate in many parts of the country, plus cheap energy: ideal conditions to build farms of graphics cards to mine crypto-currency.

This isn’t necessarily being done by private enterprises and entrepreneurs with an eye for a quick buck. State-run bank Sberbank recently admitted buying a huge number of graphics cards, even apologising for the shortage which caused prices to double. Russia certainly wouldn’t be the first nation state to embark on a crypto-mining spree to swell its state coffers: North Korea is also said to be investing significant resources into operations in order to skirt international sanctions, although many of its efforts are said to be illegal, relying on botnets of compromised computers to mine currency.

In fact, most of the European markets have seen triple digit-growth in graphics card revenue on the back of rising crypto-currency valuations. So how is the market responding?

Last year we saw the launch of a new “mining” series of graphics cards tailored specifically to this new use case. However, interest has been disappointing and we’ve not seen anything in our distribution sales-out numbers to compare to the growth of standard models. The GTX 1060 and 1070 remain the number one cards for crypto-mining in their power/price combination.

It will be interesting to see how the market evolves this year. Clearly, graphics cards makers believe there is some mileage in developing tailored solutions for the new crypto-mining market, and will be disappointed to see how little impact they’ve made early on. Some will argue they shouldn’t change a winning formula. But either way we’re likely to see some stronger marketing efforts for the new “mining” series going forward.

by GM

 

 

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Wi-Fi Mesh Systems Start to Find their Feet in the Corporate Market

At CONTEXT we’ve seen consumer awareness of smart home products across Europe slowly start to take off over the past 18 months. That’s why the launch into the market of Wi-Fi Mesh systems last year seemed like a smart move, designed as they are to enhance Wi-Fi coverage for internet-connected gadgets around the home.

However, this hasn’t quite proven to be the case. It’s not the consumer but the corporate space which appears to be showing most interest. Continue reading

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Filed under Connectivity, IT Distribution, Market Analysis, Smart Home, Smart Technology, Uncategorized

Is distribution dead?

Distribution is dead? The provocative catch phrase spoken by CEO of the GTDC – Tim Curran in his opening speech at the recent inaugural GTDC APAC meeting in Singapore.

It was clear by the end of Tim’s presentation that the state of distribution is quite the contrary and that distribution is thriving more than ever before. He spoke of the continued acceleration in the advancement of technology, the shift towards Cloud and the as-a-service model bringing with it annuity income and a host of different opportunities; that value-added services now define distribution and simple box moving is not enough anymore. It was like a group of paparazzi had descended on the room when Tim presented his slide on over 42 value added services that distributors can and should have in their repertoire.

The event was attended by senior executives from major regional distributors including: SiS, Innovix, Ingram Micro, Westcon-Comstor, TechData, Arrow ECS, Synnex & Compuage Infocom with many of the top Vendor brands present there too. There was no shortage of discussions, interest and a willingness to learn and share information and experiences.

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I think that most attending would agree that the panel discussion hosted by Peter van den Berg (GM GTDC EMEA & APAC) was a highlight, senior executives from Compuage Infocom, Huawei, Ingram Micro, Red Hat and Westcon-Comstor commented on the most common misunderstandings between distributors and vendors and how to minimize pain points.

The group’s agreement covered the following important points:

  • The Enterprise space is growing at a rapid rate and vendors are asking distribution to do more,
  • End point device distribution is still important but more so the pre-sales, post-sales and training offerings provided,
  • The 2-tier distribution model is under immense pressure and traditional IT resellers need to adapt to survive – therefore enablement & training is key whilst also looking to new partners and how to better serve them.

It was the first GTDC APAC summit – CONTEXT is proud to have been associated with the event, and we look forward to many more, and to the growth of the GTDC presence in this region.

by CV

 

 

 

 

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

Why using the right type of Analytics is the most important factor in gaining true insight

Everyone in the market research industry knows that we’re drowning in data. But the mere fact that there is lots of it, doesn’t necessarily mean it’s more useful than back in 2013 when there was only about 1/8th of today’s total available amount [1]. The key is whether that data is A. ‘analysable’ (i.e. databased, processed, categorised and readily available), and B. analysed well. Continue reading

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Filed under Enterprise IT, IT Distribution, IT Pricing, Market Analysis