Tag Archives: technology channel

CONTEXT predicts another year of growth for IT Distribution

After a strong 12 months, the team at CONTEXT is predicting continued channel growth for 2019, with digital transformation and the Fourth Industrial Revolution driving new opportunities, although macroeconomic headwinds including Brexit will inevitably have an impact.

These are the key findings from a new report we issued this week. Technology and Channel Predictions 2019 brings together insight from channel business leaders and CONTEXT experts to reveal the biggest issues and trends facing EMEA technology companies over the coming year, and country views from some of the major economies in the region.

The past 12 months saw year-on-year growth of 6.7% in distribution, accelerating quarter-on-quarter to reach 9.1% in Q4 2018. However, growth will start to slow in Q2 2019 and will achieve 3-6% YOY growth thanks to OECD forecasts of reduced demand in EU economies and the impact of Brexit.

We are urging channel players to ensure they have contingency plans and adequate stock in place in the event of a no-deal Brexit, and that they budget to cover any temporary downturns in revenues caused by social upheaval like the French gilets jaunes protests.

Although many distributors have been able to focus on organic growth during 2018, market consolidation is happening and could increase in 2019, driven in part by price pressure from etailers.

However, digital transformation offers a great opportunity for the channel to drive growth and differentiation this year. Those that succeed will meet growing demand for secure solutions, hybrid cloud, and hyper-converged infrastructure whilst evolving their own value propositions to align with new consumption models.

The Fourth Industrial Revolution will also bring continued growth opportunities in areas such as AI, IoT, 3D printing and autonomous vehicles (e-mobility).

by AS

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The trends behind the headlines: register for the CONTEXT autumn webinars

IT channel businesses thrive on data. Whether you’re a reseller, a vendor or a distributor, only market data of the highest quality and accuracy will do when making those crucial business decisions. That’s why CONTEXT has become an essential partner for the channel over the past three decades. Our latest ChannelWatch Report offers unrivalled insight into key market trends and channel priorities — compiled from interviews with over 7,000 resellers across 14 countries worldwide.

Sometimes stories in the trade media are written more to generate clicks than provide considered market insight. So if you want the truth behind the headlines, register for our upcoming autumn webinar series. We’ll be offering a comprehensive review of the year from a reseller perspective, insight into emerging categories, and a discussion of how data analytics can provide much-needed visibility into the impact of the US-China trade dispute. Continue reading

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HPE Distribution Partner Conference

“In my end is my beginning” TS Eliot.
I think the best way to capture the recent HPE Distributor Partner Conference is to take the very closing words of the event from Paul Hunter, the Worldwide head of partner sales.

“We are humble. We are winners. We have the strength in our portfolio of products.
The channel is growing faster than the rest of our business. Have a competitor in mind. It is now all about execution.”

Each player in the tech market has their own DNA – in HPE’s case long-standing relations with the channel and an understated but competitive approach to business. As the CONTEXT numbers show, they are the #1 in value distribution in Europe and Russia with 18.1% market share, and after two years of transformation following the demerger on one hand and the acquisition of new products they are doing everything to stay in that position. The end of the conference was a new beginning – the gauntlet was thrown down to the channel to pick up these products and run with them, and to focus on execution.

HPE senior management were open with one-to-one meetings, and a Q&A session at the end where they literally bounced ideas around the room through the use of a microphone wrapped in a soft ball.

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The HPE leadership team on stage for Q&A

They had commissioned proprietary research from CONTEXT which we shared openly with the delegates showing both the distributor perception of the strength of the HPE go-to-market proposition as well as the areas where they felt they needed more support.

For CONTEXT it was a privilege to be there and to meet distributors from across the world. Literally there was barely a geography that was not represented and so we were able to link up with people from Latam, Africa, and Asia-Pacific as well as Europe and the Middle East. We look forward to developing those relationships in the coming months and coming back with channel results from new places which we can add to our already global panel.

A personal favourite moment for me was the presentation by Bob da Vita of the Simplivity product. He managed to squeeze into 15 minutes what he would normally do in 1 hour minimum. But less is more as all of the 15 minute presentations demonstrated and I came away with a sense of the excitement of the hyper-converged infrastructure market, which we are following closely in CONTEXT. Indeed we are launching this month a new report on integrated systems using virtual categories and covering composable infrastructure, converged systems and hyper converged systems.

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Bob da Vita presents Simplivity

Finally, to conclude, an Englishman who was young during the 1960’s, cannot omit to mention the joy and delight of having dinner aboard the Queen Elizabeth 2, or QE2, the ocean liner now moored as a hotel in Dubai, which had its maiden voyage in 1969. The QE2 was known for its world cruises, and so it was a memorable and fitting place to hold the closing dinner for a global event, after three days of being together with distributors and HPE representatives from all nations.

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The dinner menu

by AS

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