News09

IT distributors continue to demonstrate that their "indirect model" is the preferred and most cost-effective means for technology companies to reach and serve B2B markets, according to the Global Technology Distribution Council (GTDC), an industry association representing more than $100 billion in member sales.

"Such substantial growth rates are particularly impressive given the slowing demand environment," commented GTDC CEO Tim Curran, noting that distributors' broad multivendor portfolios are less susceptible to any single vendor's challenges. "Distributors deliver a full range of channel services, sales reach and coverage with a very low cost structure that can be quickly adjusted as market trends change. These and other advantages continually strengthen vendor partnerships and enable sharper overall focus on business opportunities."

About The Global Technology Distribution Council

The GTDC recently commissioned an in-depth independent study analyzing all the relevant elements of an IT manufacturer's selling, general and administrative (SG&A) expenses as a percentage of sales by channel. This "Costs of IT Distribution" report validates that distribution partnerships give vendors the ability to focus more on — and invest more in — their core competencies, such as R&D and introducing high-quality products. Distributors' ability to sell and support comprehensive multivendor solutions is a key advantage in serving solution providers with SMB customers.

Despite softening economic conditions last year, 93 tech vendors with at least $15 million in revenue (through multiple distributors) experienced double- or triple-digit year-over-year growth in the U.S. via tracked distributors. Based on actual distributor sales aggregated in The NPD Group Distributor Track®, the list includes a broad range of emerging and well-known companies across multiple technology categories, such as: ASUS with 130% growth, LG 101%, Red Hat 58%, and Polycom 49%.

The Global Technology Distribution Council (GTDC) is a worldwide industry association dedicated to defining and promoting the role of wholesale distribution in a successful and healthy information technology channel. The Council is comprised of the computer industry's top wholesale distributors dedicated to serving "the channel," a network of skilled value-added resellers and retail stores focused on providing hardware, software, and services to businesses and consumers around the globe. GTDC members include ABC Data, Actebis, Arrow Electronics, Avnet, Bell Microproducts, DCC SerCom, D&H, Esprinet, Ingram Micro, Magirus AG, Redington, ScanSource, Synnex, Tech Data, Westcoast LTD and Westcon.

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