Modernizing the Channel Model - Part 1

May 23, 2018

 

The traditional channel model represented by technology distributors and resellers is under pressure to continue to deliver profitable growth for their shareholders and equity partners; just as they have for the better part of three decades.

 

And yet, the rapid pace of technological change and complexity, combined with the end customer’s demand for business outcomes has made the channel’s job more daunting than ever.

 

The cloud – private, public and hybrid – has changed the building blocks of the data center, and IoT, analytics, artificial intelligence, and mobile technologies have all spawned a new round of Innovation. This is evidenced in the consistent growth of venture funded deals over the last four years, with 2017 up 4% in the number of deals, but up nearly 25% in deal volume (over $210 billion in funding).

 

This change has put pressure on legacy architectures, which can’t scale to meet the new world demands of Digital Transformation. As a result, distributors and resellers, who have built their business models on legacy data center architectures, must look to modernize their business models. To their credit, that work is well underway, but time is of the essence.

 

The focus of this blog is to expose the key challenges and provide approaches to help meet those challenges. We look forward to the conversation.

 

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