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Luis Alvarez Tim Henneveld

President and CEO COO
Alvarez Technology Group TIM
Page 6 Page15

About the Report Sam Barhoumeh

Managing Director
Ready Networks
Rob Moyer
VP of Cloud, Mobility and IOT
SYNNEX
Page 13 Page 9
Priming Partnerships for Changing Channels is based on in-depth interviews with channel
Amy Belcher David Portnowitz
executives providing a 360-degree perspective on how distributors, vendor partners and solution VP, Global Channel Marketing CMO
providers are responding to new market demands. Sweeping developments are addressed and Enablement, Xerox Star2Star Communications
through candid discussions with top industry leaders across all dimensions of the channel, Page 13 Page 17
supplemented by data collected and analyzed in emerging markets such as the cloud. This
Eric Buck Darryl Shaper
independently researched report provides concise “Tips from the Top” and detailed coverage Sr. Director of Worldwide Partner Sales VP of Digital Cloud Group
on the distributor-led ecosystems that are growing throughout the world. Ruckus Network Arrow Electronics
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Renee Bergeron Philip de Souza

The Changing Industry Landscape .................................................................. 4 Sr. VP of Global Cloud Channel CEO
Ingram Micro Aurora IT
Broad Differences, Wide-Open Opportunities ............................................... 6 Page 9 Page 11

Paolo Castellaci Brandon Williams

New Connections & Directions ........................................................................ 8 President Director of U.S. Mobility Channel
Computer Gross Italia Panasonic
Sharpening the Services Edge Globally ............................................................ 10 Page15 Page 12

Ideally Positioned to Transform Business ........................................................ 12 Sergio Farache Jim Wittry

Senior VP of Global Cloud Solutions General Manager of Alliances and Channel
Tech Data Cloud Genera
Overcoming Challenges in Europe .................................................................. 14 Page 17 Page 16

Powering Up Possibilities, Preventing Pitfalls ................................................. 16 David Grant Murray Wright

COO President and CEO
Westcon International TESSCO Technologies, Inc.
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 The Changing Industry Landscape
”Relationships” is how Philip de Souza sums up what
makes a great distribution partnership. “It’s about trust,
being able to have fast access to knowledgeable people
who understand our business and what our customers
need,” he says.
As president of Aurora IT, a Los Angeles-area solution
provider business he founded in 1990, de Souza’s
perspective on the channel’s evolution comes from
more than three decades of related experience. “We’ve
seen dramatic changes firsthand,” de Souza explains,
noting that the industry initially thrived on product
procurement at the best possible prices. “I’ve literally
observed and participated in the sea change that’s
occurred. Distributors deliver much greater value
compared to when pick/pack/ship was the mainstay.”
Although Aurora competes on multiple fronts, they
focus sharply on cybersecurity solutions today. Vendors
that enter the mix must fit their data encryption and
regulatory compliance strategies, “including roadmaps
for each product involved, compatibility, end-of-life
scenarios across unified platforms, and intricate details
on how it all works together.”
A Channel of Champions
“I have champions at various distributors,” de Souza
adds, pointing out that these connections enable
“ramping up my team on the engineering or sales side,
ensuring we have the right certifications and support 
as well as training and financing.”
Distributors now lead “vast ecosystems that contribute
significantly to our success,” de Souza says, “fostering
peer-to-peer and vendor engagement unlike ever
before in solving complex problems.”
“In the old days, the channel fixated on price and Click Here to View the Shift
on-time product delivery. Customers expect so much
more now – an exceptional seamless experience that
depends heavily on strategic partnerships. That’s Technology distributors have evolved from their pick/pack/ship heritage to become
today’s channel and where we can all expect to supply-chain leaders at the center of dynamic channel ecosystems.
advance in the years ahead.”

Plowing New Frontiers

Salinas Valley, Calif.-based solution provider Alvarez
Technology Group is plowing new IoT frontiers with
a distribution partnership that illustrates both the
challenges and opportunities today’s channel faces.
Turn the page for a look at how they’ve carved a
unique industry niche deploying sensors to modernize
the way farms monitor and maintain proper irrigation
and soil conditions.

4 5
 Broad Differences, Wide-Open Opportunities
Technology distributors are not all created equal. They each
have different strengths and focus areas. As with vendors,
solution providers are increasingly selective about these
partnership decisions. They can literally make or break 
their businesses.
Take a channel operation like Alvarez Technology Group (ATG),
one of the early adopters of IoT solutions with a relatively
narrow niche that could grow materially in conjunction with
distributors. The Salinas Valley, Calif.-based company’s own
transformation includes a shift in decision makers they target,
mirroring another aspect of most solution provider’s success
today: effectively reaching line-of-business (LoB) leaders, who
are increasingly influential in SMB as well as large enterprises.
The parallel at ATG, however, is a bit unique compared to
typical corporate settings.
Instead of calling on agricultural company IT office workers 
as they did several years ago, ATG specialists today are more
likely to strap on boots and head directly to the fields, where
ranch hands and foremen gain enormous value from the
company’s services.
Where IoT Ingenuity Flows
“Over the past five to six years, one phenomenon we saw hit Strong Roots Give
home with farmers is their struggle to deal with water issues
and labor challenges,” remarked ATG President and CEO Luis Solution Providers
Alvarez. “We started to think about how we could help them
better address some of those concerns.”
Unlimited Growth
Potential
The answers translated into IoT sensors that enable more judicious
decisions in fields about watering needs as well as testing for “Trusted advisor” role of
trace sulfites and nitrates in soil, minimizing the risk for hefty channel companies is 
fines associated with runoff into nearby streams and rivers. gaining ground over 
“product brands.”
Alvarez is ready to branch out beyond the farmlands with other
types of IoT solutions, and he views alliances with distributors
and vendors as crucial, yet he also recognizes that not all have
the same IoT commitment. “Those investing in IoT education,
expertise and comprehensive solutions for diverse market VARs are well-positioned to reach 
segments are going to gain a huge advantage,” Alvarez said. all levels – from C-suite to LoB 
“We are eager to scale what we have learned and can do in  decision makers and influencers
new groundbreaking ways.” as well as IT leaders.
XaaS business models have taken
hold across the channel; however, 
not all solution providers will 
make the grade.

Tips from the Top Comprehensive multivendor

solutions, financing and logistics
“Put having a conversation above trying to sell us something. form the bedrock foundation of
That’s a key reason behind who we choose as a primary distributors and channel
distributor. Are they engaged with us on the same journey ecosystems.
where we ultimately both make money? Will they connect 
us with peers that we can help turn onto IoT as it emerges 
as the next big thing?”
— Luis Alvarez
— President and CEO
— Alvarez Technology Group

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New Connections & Directions
Today’s most innovative technologies will someday
be obsolete. That’s the way of the world. In the same
way, today’s business processes and IT consumption
models will also look much different in the future. It’s
that churn — the constant technological evolutions
and revolutions — that require the IT channel keep
pace. More so, vendors and solution providers
increasingly rely on their distribution partners to stay
ahead of the market to ensure customers get the
solutions they need to solve today’s and tomorrow’s
business problems.
From cloud to Internet of Things to blockchain to
whatever the next Next Big Thing is, distributors are
making investments, forging relationships and
developing the specialized capabilities, services and
solutions necessary for vendors and solution providers
to be successful.
It would be inaccurate to say distributors are creating
a “new channel” because everything is built upon the
Top 5 Reasons vendors
turn to distributors in the cloud
1. Customized pricing plans for customers
2. Access to cloud partners
3. Online provisioning of cloud services
4. Expertise in cloud business models
5. Private label billing
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Tips from the Top
“Engage and invest together. We want to ensure our partners
are here with us 10 years from now and we can only do this by
evolving our thinking and our business models together.”
— Rob Moyer
— VP of Cloud, Mobility and IOT
— SYNNEX
solid foundation of logistics, financing and support
that’s been in place for decades. It’s also inaccurate “Lines are blurring all over the channel, and companies
to say distribution has met its goal, because any like ours are transforming. Recognize that we’re a software
improvements and advancements made are not provider, a platform operator, an enablement partner.”
complete — and never will be. There’s always tomorrow, — Renee Bergeron
and there’s always “what’s next.” That’s why strong — Sr. VP of Global Cloud Channel
partnerships between vendors, distributors and — Ingram Micro
solution providers are so important to the IT industry.
As we all move toward increasingly complex ecosystems
with truly remarkable business and technological
capabilities, distributors are centrally positioned to
develop, deliver and drive it all.
“When you’re talking about bringing next-gen
technologies to market, maintaining a consistent
relationship with us is critical to success,” said Sergio
Farache, senior vice president of global cloud solutions
at Tech Data. “It’s all about how to help vendors and
solution providers grow faster, reduce friction, increase
value and lower costs. That’s what we do best.”
 Sharpening the Services Edge, Globally
The channel is quickly evolving to meet new demands and deliver
IT through new consumption models, making collaboration and
mutual investment paramount. Of course, knowing where —
and when — to invest is also important. Distributors leverage
forecasting and analysis tools while taking direction from the
market to develop new connections, specialized capabilities,
and enhanced services and solutions for future opportunities.
Those skills are a big ingredient for Xerox’s success in the channel,
said Amy Belcher, vice president of global channel marketing and
enablement. Vendors need to view their distributors as extensions
of their own channel sales organization, she said. That way, both
sides are aligned and can work together more cohesively.
“Sales coverage is one of the top reasons vendors want to partner
with distributors. Plus, we need them to activate and onboard
net new partners and increase skills and capabilities of existing
partners,” Belcher said. “Their partnerships are important to us,
and I know they feel the same. That’s a good feeling.”
Collaboration Breeds Success
Part of working together is knowing how a vendor’s technologies
fit into a larger solution. Vendors need to be cognizant that
Click Here to View Interactive Image
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their products often aren’t standalone, rather they are
components in a solution to a more complex need. For their
part, distributors need to understand how those products
work with other parts of the solutions, and provide the services
necessary to make it all function, said Murray Wright, CEO of Tips from the Top
TESSCO Technologies, Inc., a Hunt Valley, Md.-based distributor
that recently joined the GTDC. “Distributors solve difficult problems. They play a big role in getting
us up to speed, whether it’s in financing models, training and
The core competency of distribution is to efficiently and certifications or other general knowledge. This is how you run your
effectively get those products deployed as part of an end business better — through strong partnerships with knowledgeable
solution, especially in leading edge technologies, including IoT industry leaders.”
and wireless infrastructure, Wright said.
— Philip de Souza
— CEO
“Many people make and sell IoT technology, but what they have — Aurora IT
are components of a solution. That puts the onus on distribution
to assemble IoT solutions able to be deployed in specific end “If we’re aligned around product messaging and marketing support,
markets, such as transportation, oil and gas or utilities,” Wright we can attack the market and drive efficient growth. Lack of
said. “In the consumer space, the concept, and adoption of, alignment is wasted time and effort on both sides.”
the smart home has implications not only for new consumer — Darryl Shaper
devices and products, but also for the infrastructure needed to — VP of Digital Cloud Group
support the exploding adoption of ‘always connected’ devices. — Arrow Electronics
We understand these challenges and bring solutions to market
– for both consumers and infrastructure owners.”
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 Ideally Positioned, Transforming Business
Distribution added more than 400 vendor companies
over the past two years, according to The NPD Group, and
that number is expected to continue rising. The breadth
and depth of distributor service offerings is driving that
continued growth globally.
Darryl Shaper, Vice President of Digital Cloud Group, at
Arrow Electronics, believes distribution is ideally positioned
to provide the services and support to enable solution
providers and drive demand for new technologies in
the market.
“Solution providers are undergoing a huge change in
the way that their business works. Distribution can help
by bringing a cloud- and a SaaS-provisioning platform
and billing platform to suppliers, partners and end
customers,” Shaper said. “It’s much easier to buy multiple
cloud solutions through distribution than individually
going to each SaaS and IaaS provider.
Distribution has the ability to provide the
provisioning and billing, scaling up and
down on a pay-as-you-go basis, for
multiple vendors.”
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Distributors’ development of subscription-based billing
platforms has been a boon to solution providers’ business
with Ruckus Network — and helped expand Ruckus’ overall
reach with partners, said Eric Buck, senior director of
worldwide partner sales.
“When partners sell our wired and wireless solution
together, they realize 40 percent greater profitability,”
Buck said. “Ideally, distributors help us improve how we
engage and manage partners through best practices,
while also using their footprint to proactively recruit
and develop partners on our behalf.”
Strong distribution partnerships can also help vendors
more effectively manage the financial and other challenges
associated with new consumption models, said Brandon
Williams, director of U.S. mobility channel at Panasonic.
“Despite the long-term financial benefits, the short-term
impact to resellers’ cash flow can be a challenge,” Williams
said. “Distributors play a vital role not only in providing
our resellers the financing options they need, but also
the business consultation to diversify their businesses in
sustainable long-term ways.”
More than 400 companies have
been added by GTDC members in
the U.S. over the past two years
Tips from the Top
“A distributor today must have a consumption-based model —
it’s really a requirement now. Distributors that are focused on
providing value like that will thrive.”
— Sam Barhoumeh
— Managing Director
— Ready Networks
“Distributors are outstanding — but that doesn’t mean they’re
a magic bullet to fixing a vendor’s operational inefficiencies.
Vendors need to dedicate time and focus to cultivating their
distribution relationships.”
— Amy Belcher
— VP, Global Channel Marketing and Enablement
— Xerox
“I want suppliers to understand the level of investment
that distribution has. There are great economies of scale in
distribution, beyond just having a sales rep in a territory,
whether that’s warehousing, project management,
technical support or engineering support.”
— Murray Wright
— President and CEO
— TESSCO Technologies, Inc.
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 Overcoming Challenges in Europe
In Europe, traditional services like logistics and
financing remain crucial and enterprise adoption of
cloud and other leading-edge technologies is less
consistent from country to country. But as cloud, IoT
and other newer innovative solutions and consumption
models gain steam, distributors are transforming their
own businesses there as well.
“Distributors today are recognized as technology
ecosystems experts, capable of delivering affordable,
efficient services as repeatable, volume-based SKUs
or on a one-time basis for a specific project,” said
David Grant, COO of Westcon-International. “We have
the capability, the capacity and the coverage to be
recognized as services leaders, delivering results
together with our partners.”
That’s the case even in regions where channel partners
are not as cloud-ready, according to Paolo Castellacci,
president of Computer Gross Italia. To close the gap,
distributors like Computer Gross have developed
enablement activities and built significant service
portfolios to bring partners up to speed more quickly
and help generate demand for cloud and other
technologies in the market, he said.
“We are becoming a solution and cloud
aggregator by bringing together disparate
vendor offerings with different levels and
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types of cloud services. For us to do that, collaboration
with vendors is crucial. Vendors recognize the value that
we provide,” Castellacci said. Tips from the Top
The recent enactment of the pan-European General “We have to collaborate with vendors to embrace the cloud,
Data Protection Regulation (GDPR) should fuel even adapting the right business models to meet the changing
faster cloud adoption across Europe and pave the way needs of this new ecosystem and maintain economic
for distributors to add even more value to the market, sustainability.”
said Renee Bergeron, senior vice president of global
— Paolo Castellaci
cloud channel at Ingram Micro. — President
— Computer Gross Italia
“Some countries have taken a more cautious approach
to technology. GDPR will help address some of those “Value-added distributors have the skills, tools and
concerns,” Bergeron said. “Overall, cloud in EMEA is experience to enable solution providers to put everything
growing super fast. It’s a more expensive market to together into cohesive solutions that solve real-world
go after. We still have more currencies to address, business problems.”
but where there’s challenges, there’s opportunity. — Tim Henneveld
Vendors rely even more on — COO
distributors to manage services — TIM
across multiple countries
and currencies.”
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 Powering Up Possibilities, Preventing Pitfalls
In any industry, in any partnership, it’s important to focus on the things that can drive success, and also avoid the mistakes and missteps that can
inhibit growth. The IT distribution market is no different. These “makers and breakers,” culled from conversations with distributors, vendors and solution
providers, are critical to their respective growth and in expanding the overall market.
Maker: Industry Expertise
As new technologies hit the market, solution providers, and even
customers, need to know how to use them. Real value-added
distributors have the skills, tools and experience to enable solution
providers to put everything together into cohesive solutions that
solve real-world business problems, said Tim Henneveld, COO of
TIM, a Wiesbaden, Germany-based distributor.
“The good news is that vendors and solution providers recognize
that value,” Henneveld said. “They tell us that’s a competitive advantage
for us, and it’s why they trust as long-term business partners.”
Breaker: Demand Generation Gaps
Despite investments and increasing cloud capabilities, some cloud
vendors say distributors still have work to do to become leaders in
the cloud marketplace.
“The biggest challenge for all distributors is creating demand. They’re
servicing demand, but creating demand is a work in progress,” said
Jim Wittry, general manager of alliances and channel, Cloud Genera.
“Distribution will continue to have significant play because the
market is growing rapidly. They’re getting some revenue but haven’t
maximized their value add to the communities — yet.”
Breaker: Growing Pains
Star2Star Communications, a Sarasota, Fla.-based manufacturer
of cloud-based VoIP solutions, counts on distributors to increase
its partner base of resellers, agents and interconnects, but success
is a two-way street and knowing how to manage distribution
relationships is a work in progress, said David Portnowitz, the
company’s chief marketing officer.
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Tips from the Top
“Distribution partners are instrumental in helping
tech companies like ours move into new markets.
That includes the master agent space for us,
and now our number of agents and revenue are
higher than ever.”
“We try to be very open, to give the distributor clear direction. That’s
the only way both sides succeed. That may mean critiques on both — David Portnowitz
sides, giving feedback, but it makes both sides better in the long — CMO
run,” he said. “Distributors know cloud is the way to go. It’s been an — Star2Star Communications
education for customers, for partners, but as we progress more and
more it will be easier and quicker for both sides.” “A consistent business model approach is key to
successful distribution partnerships, especially
Maker: Trusted Relationships when you’re talking about next-gen technologies,
whether it’s cloud, analytics, cognitive computing
Distributors collaborating with vendors can accelerate adoption of or IoT. It allows you to drive your own agenda.”
cloud, IoT, blockchain and other innovative technologies as well as — Sergio Farache
new consumption purchasing models, says Sam Barhoumeh, CEO of — Senior VP of Global Cloud Solutions
Ready Networks, an Evanston, Ill.-based solution provider. — Tech Data
“What’s made us successful is distribution really is part of our
formula for how to solve a problem — integrating our business
into distribution and not just use it as means to product, but as an
extension of our team,” he said. “If I need a vendor resource, I know I
can do that with my distributor. It’s all about alliances and integration
and combining together to be successful.”
With decades of experience in a constantly evolving industry, IT
distributors feel they have the perspective, skills and resources to
ensure long-term success for both vendors and solution providers.
“We understand the need to continuously evolve in this business.
We want to ensure our partners are here with us 10 years from now
and we can only do this by evolving our thinking and our business
models together,” said Rob Moyer, vice president of cloud, mobility
Completely anonymous, highly informative
and IoT at SYNNEX. “Working closely with our vendors enables us
to embrace non-traditional revenue streams and find new ways to All participants receive link to aggregate findings of our
monetize IT solutions and services. We look forward to many more upcoming distribution industry report scheduled for
years of success together.” November 2018 release!
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