Resellers look to distribution to underpin 2020 ambitions

Details from Context's ChannelWatch research continue to emerge with the analyst house revealing that distribution is going to play a key role in supporting reseller success.

Although most resellers quizzed pointed to digital transformation being the main driver for channel growth this year that created pressures for distribution.

Before 2019 closed out Context shared the headline finding that resellers were feeling more optimistic about the prospects for this year, when compared to 2018, and it has now added more meat on the bones about why they are feeling upbeat.

The UK is leading the way with customers embracing digital transformation and that is shaping where resellers are lining up their investment, behind cloud, networking, cybersecurity and workplace optimisation.

The Context report also found that globally 20% of resellers have developed their own intellectual property in areas such as software and database development, which should help them land more from digital transformation projects. 

But the research also highlighted the crucial role that distribution will have to play if the channel is going to be successful. Resellers expressed some doubts about the levels of support that they were being given.

There were pressures on distributors to provide cloud-related services, provide education and training and on-time delivery was seen as a major priority.  Other items on the reseller wish list, included  more competitive pricing and wider product availability.

“We know from our research that the big blockers to digital investment are a lack of understanding of the opportunities and a reluctance on the part of resellers to change their business models. But distributors can and should play a key role in helping to remove these barriers for their channel partners,” said Context’s director of global channel relations Mette Tripp.

“The feedback we collected from global resellers indicates that there’s plenty of room for improvement in areas like cloud services and training. To stay relevant as they enter the new decade, distributors need to enhance relations with those resellers who are investing for the future," he added.

The ChannelWatch report also found that there are more new resellers entering the market than the number exiting, underlining the growth and health of the indirect world.