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GTDC Quarterly Newsletter – Summer 2007 |
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This issue at a glance…
The Momentum Continues By Tim Curran CEO, Global Technology Distribution Council From every perspective, the mantra is virtually the same. SMB is the epicenter, the growth engine – where it’s at when people talk IT. Vendors know it. Solution providers live it. And distributors breathe it day-in and day-out. New manufacturers and software publishers continually turn toward distributors with this reality in mind. The NPD Group Distributor Track® includes 88 new vendors over the past two quarters and reveals exciting trends across numerous product categories, including double-digit growth in storage systems, communication solutions, notebooks, and even desktop PCs – a segment that many analysts once expected to go completely direct. A number of long-term IT industry leaders have now reversed course from direct-model convictions to embrace the channel and distribution as the most cost-effective means of reaching SMB markets worldwide. While SMB-focused distribution initiatives extend across the entire vendor community, technological shifts also point squarely toward the channel and strengthening supply-chain connections. The integration of voice, video, data and wireless systems represents a sweeping force, a distinct new call for multi-vendor solutions. This traditional unparalleled advantage of distributors stands tall time and again, regardless of how the IT landscape changes. Such a strong foundation continually enables new services development, skill-set expansion, and endless market opportunity. Take a deep breath. Absorb the magnitude of what’s taking place in the industry today. Exhaling may take some time, as we’re only on the doorstep of a vast new frontier. Enjoy the success. GTDC Summit 2007: Bridging the Gap A highly productive experience is anticipated for vendor channel executives and GTDC member leaders attending GTDC Summit 2007: Bridging the Gap, Sept. 25-26, 2007, at the Fairmont Hotel in Newport Beach. Here are just a few of the key issues and topics that will be covered:
Help Ensure Your Vendor Partners Reach the Highest Levels at Summit 2007! Tremendous networking opportunities represent another key benefit of GTDC Summit 2007: Bridging the Gap. The vast majority of attendees are VP-level or above, making for a truly unique and invaluable business partner leadership conference. Please help encourage senior executives in the vendor community to register immediately to ensure their participation. Your support is greatly appreciated! 
2007 Rising Star Awards UpdateSixteen vendors will be recognized for outstanding growth in IT distribution at GTDC Summit 2007: Bridging the Gap. Revenue categories include the industry’s largest at $500 million or more in annual sales through distribution; $100 - $500 million; and $20-$100 million. We’ll announce the winners in a future edition of this newsletter in addition to distributing a related press release from the GTDC and supporting winning vendor announcements. Amsterdam Worldwide Vendor Workshop Addresses Key Issues The GTDC’s Worldwide Vendor Workshop in Amsterdam, June 14-15, provided a unique forum for 10 distributors and 17 vendor companies to discuss key industry issues and opportunities. Nearly 50 industry executives shared their views, learned about current trends, and came away with an expanded understanding of ways to improve supply-chain partnerships. Presentations included The Working Capital Challenge by Karen Griffiths, SVP Finance and CFO Europe of Ingram Micro, and The New European IT Channel by Steve Brazier, President & CEO of market research firm Canalys. Panelists and audience members covered operational best practices amidst changing market dynamics, addressing a diverse range of topics covered by the presenters: the “cash crunch” caused by longer payment cycles from resellers to distributors as vendor terms and conditions become increasingly restrictive; challenges in addressing environmental concerns; the decline of direct sales and growth of online reseller business; market consolidation; fast growth in East Europe and the Middle East as well as Asia’s growing economic power. European Distributor Database Coming Soon! The European location of this most recent workshop – among a series that the GTDC hosts – reflects the growing international participation and worldwide member base. This expansion also includes plans to roll out a European Distributor Database providing extensive product sell-through data and other market trend analysis across the region. E-mail the GTDC at info@gtdc.org if you would like to learn more about the Worldwide Workshops or the European Distributor Database service. Investor Relations Conference Goes Deep Beyond the Numbers The GTDC’s annual Investor Relations Conference, May 9, gave top investment firms a clear perspective on the latest trends and successes in IT distribution. Attendees at the New York event included buy- and sell-side analysts who cover the industry and invest in GTDC member companies.
The annual event provides extensive opportunity for analysts and distributor executives to engage and gain a broader perspective on the overall industry, reseller channel initiatives, and supply-chain leaders. Access the Investor Relations Conference Webcast for more information. DCC SerCom Joins the GTDC 
DCC SerCom, the technology distribution division of Irish plc DCC, is the latest organization to join the ranks of the GTDC membership. The company markets and sells information technology and consumer electronic products in Britain, Ireland and Continental Europe through its subsidiaries including Micro Peripherals Ltd., GEM Distribution, Sharptext and Distrilogie.
DCC was founded in 1976 by Jim Flavin, Executive Chairman, and listed on the Irish and London stock exchanges in 1994. DCC is headquartered in Ireland and currently employs approximately 6,000 people. DCC has achieved compound annual growth in earnings per share of 15.6% over the last ten years. 
The Right Track:Distribution Industry News Reports & Trend Data Check out some of the latest press coverage on the impressive growth of the IT distribution industry: New Technology, SMB Driving Distribution Growth (CRN, June 2007) Good Times in Distribution (eChannelLine, July 2007) … and dig into key product sales and pricing trends with the The NPD Group Distributor Track®, the most comprehensive market research information available on product sell-through in the IT distribution industry. |
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