Distribution and the way forward
Sukh Rayat | As seen in IT Reseller, UK -- The world of distribution is fast changing, with new challenges and expectations being ever present. IT Reseller spoke with Sukh Rayat (pictured), vice president EMEA at Avnet, to get his view on how the landscape is changing.
There have been a considerable number of acquisitions within distribution over the past few years, resulting in a global market that is served increasingly by larger global distributors. Margin erosion on hardware is affecting everyone in the channel, from vendor to reseller, as a result of commoditisation and increased demand – one of the opportunities in technology that lies ahead is to leverage the mobility boom.
Avnet’s Sukh Rayat believes that within the Auto ID industry, distributors need to think carefully about the skills they have and the services they can offer as VARs are increasingly looking to distribution to supplement their own skill base as they try to capture as much of this new business as possible. “In order to support the ever increasing opportunities, distributors need to have in-house specialists to advise the reseller and partner community on the most appropriate solutions and to enable them to extend their service offering,” he commented.
Full-Services and Solutions distribution
With this trend in mind, Rayat maintains that the coming 12 months or so will see an even greater demand for the ‘Full Services and Solutions’ type of distributor. “Distributors need to think more and more about the challenges resellers and solution providers face and then develop their own business model around providing the end-to-end assistance. This will include everything from providing financing, software development, training and professional services,” he said.
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