Economic analysis finds partner-led indirect business model produces consistently higher returns than direct and single-tier models, as shown in four real-life business examples
Tampa, FL (GLOBE NEWSWIRE) - A new report commissioned by the Global Technology Distribution Council (GTDC) reveals that a partner-led go-to-market (GTM) strategy — one that leverages channel partners and is supported by distributors — produces consistently higher returns than other GTM strategies.
“Distribution’s Edge: An Economic Analysis of Routes to Market for ICT Products and Services,” an update on two GTDC reports from a decade ago, examines what it takes to form and optimize a GTM strategy, based on a technology’s price point, target audience, maturity and more. Specifically, it scrutinizes the direct, single-tier and partner-led indirect business models in great detail, highlighting key economic factors and real data to compare and contrast them.
“The findings paint an intimate picture of go-to-market strategies in our industry, including some nuances many people likely don’t know or understand,” said Frank Vitagliano, CEO of the GTDC. “But it’s important to recognize that these are all elements discussed daily within IT companies around the globe. As a result, the takeaways from this report should resonate just as strongly as the ones we discovered 10 years ago.”
While each of the three leading business models offers distinct pros and cons, “Distribution’s Edge” finds through economic analysis and projections that the two-tier model continues to produce consistently high returns, which goes for traditional vendors selling physical goods and new-age, born-in-the-cloud companies that sell software as a service.
The study also showcases four real-world companies and their 2020 GTM strategies, courtesy of data from Vation Ventures, LLC, an industry consultant for high-tech vendors.
Insider Insight with Industry Experts
GTDC Summit 2020, a global virtual event coming Nov. 10, will offer a deeper look into the conversation surrounding the findings in “Distribution’s Edge,” featuring sessions, roundtables and exclusive content on the latest in IT distribution.
“Distribution’s Edge” was developed by CommCentric Solutions and Vation, two channel business experts. To produce this report, study authors examined sales data, market data tabulated by industry researchers (including Vation), and financial information from leading tech vendors and distributors. In addition, study authors completed qualitative interviews with thought leaders, channel practitioners and technology developers.
About the GTDC
The Global Technology Distribution Council (GTDC) is the industry consortium representing the world’s leading tech distributors. GTDC members drive an estimated $150 billion in annual worldwide sales of products, services and solutions through diverse business channels. GTDC conferences support the development and expansion of strategic supply-chain partnerships that continually address the fast-changing marketplace needs of vendors, end customers and distributors. GTDC members include AB S.A, Almo Corporation, Arrow Electronics, CMS Distribution, Computer Gross Italia, D&H Distributing, ELKO, Exclusive Networks, Infinigate, Ingram Micro, Intcomex, Logicom, Siewert & Kau, SiS Technologies, SYNNEX, Tarsus, Tech Data, TESSCO Technologies, Inc., TIM AG and Westcon-Comstor.
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