The IT distribution landscape has long been riddled with inefficiencies, slow processes, and barriers that frustrate vendors and partners alike. From cumbersome quoting mechanisms to a culture plagued by redundancies, the old model was ripe for disruption. Enter HAT Distribution, an innovative player that’s not just addressing these challenges head-on but is redefining what efficiency in distribution looks like. Here’s a deep dive into the challenges the IT distribution industry faces and the solutions that HAT brings to the table for vendors and resellers alike.
Traditional distribution model: Distis as mere middle men
In the past, technology distributors focused primarily on selling products and licences to IT professionals. The primary emphasis was on the technology itself, with little consideration for the end user’s specific business outcomes. This distribution model involved selling individual products and licences to IT suites, with limited collaboration between the technology side and the business side. In this broken model, distributors were mere quality takers, doing not much more than holding money and providing credit, all for a significant chunk of the profit.
The HAT difference: Disties as ecosystem orchestrators
At HAT, we see ourselves as quality makers, not takers. We believe as distributors we have the power to add value across the entire IT ecosphere, growing opportunities for our partners. Driven by the everything-as-a-service model, our born-in-the-cloud distributor has shifted from a product-centric model towards a holistic approach that centres on meeting the precise needs of end-users and delivering tangible business outcomes.
Traditional distribution model: Leaving sales to the vendors
The responsibility for sales used to fall squarely on the vendors’ shoulders. This approach came with a raft of challenges and drawbacks, ultimately resulting in blowout sales rep costs, wasted resources, and inefficiencies. Here’s a closer look at some of the key issues associated with the old school distribution model.
Inflated sales rep costs: Vendors typically shouldered the burden of hiring and maintaining a dedicated sales force. This meant significant overhead costs in terms of salaries, benefits, training, and ongoing support. These expenses often spiralled out of control, particularly for vendors with expansive product portfolios and large target markets.
Wasted sales representative resources: Beyond the financial implications, the traditional model led to the underutilisation of sales account management resources. Sales teams found themselves chasing down leads that weren’t well-qualified or spending time on repetitive administrative tasks rather than focusing on high-value sales activities. This misallocation of resources was a drain on productivity and profitability.
The HAT difference: A seamless extension of your existing team
At HAT, we become the face of your business, bringing leads to our channel partners so reps can focus on high level accounts: Our three-fold model streamlines sales and marketing and brings better ROI from your existing sales players.
Lead generation expertise: HAT Disti excels in lead generation, leveraging their market insights and industry connections to identify and qualify potential customers. By doing so, they ensure that resellers, including managed service providers and smaller partners, are presented with high-quality, ready-to-convert leads, reducing the need for these partners to invest heavily in their own lead generation efforts.
Efficient resource allocation: With HAT Disti taking the lead in generating and nurturing potential customers, resellers can optimise the allocation of their sales representatives’ resources. Sales teams can focus on core competencies such as building customer relationships, closing deals, and delivering outstanding service, rather than diverting energy towards lead generation and qualification.
Cost savings: The HAT Disti model brings about cost savings for resellers, particularly smaller partners and managed service providers, by reducing the overhead associated with maintaining a large sales force. This democratisation of lead generation and support allows vendors to access a broader market, serving the SMB and mid-market segments, and facilitating our partners ability to scale.
Traditional distribution model: Country-centric business models
IT businesses were traditionally built from the ground up, often with a focus on serving local or national markets. As one executive from TD Synnex noted at the GTDC Forum in 2021,
“We all built our businesses from the base of the country on up.”
This old school method of focusing on building markets from at the country level has given way to a global focus that requires a shift in the way tech is both distributed and deployed.
The HAT difference: Your ‘boots on the ground’ partner in a global marketplace
HAT Disti takes a dynamic approach to distribution that sets them apart in several key ways:
Local presence with global reach: HAT Disti works closely with global clients to serve as the local ‘boots on the ground’, effectively becoming the face of the product in various markets. This approach ensures that products and services are not just distributed but also understood and represented at the local level, fostering strong connections with customers around the world.
Exemplary partnerships: HAT Disti’s commitment to acting as a bridge between global clients and local markets is exemplified through strategic partnerships with clients like Paessler. These collaborations illustrate how HAT Disti facilitates meaningful relationships that drive successful market expansion.
Embracing XaaS on a global scale: HAT Disti fully embraces the concept of XaaS (Everything as a Service) on a global scale. This means going beyond traditional distribution by offering a comprehensive range of “as-a-Service” solutions, tailored to meet the diverse needs of both local and international customers. It’s about delivering a holistic approach to service delivery, from Software as a Service (SaaS) to Infrastructure as a Service (IaaS), to support clients in a rapidly evolving digital landscape.
Traditional distribution model: Inefficient billing and cash flow issues
We’ve long seen billing processes introduce inefficiencies that impact partners, especially smaller ones, in significant ways. Waiting for vendors to provide monthly billing data to distributors, who then add their margin before passing it on to partners, created delays that disrupted cash flow. Smaller partners, in particular, were vulnerable to these delays, as missing a billing cycle literally brought operations to a standstill.
HAT Difference: With automation HAT has your back
At HAT Disti we come from a partner’s background. This firsthand experience means we intimately understand our partner’s pain points, especially when it comes to billing inefficiencies.
HAT Disti’s commitment to automation is driven by this deep understanding. We prioritise your cash flow because we know it’s king for our partners. Our system is built to ensure timely billing, eliminating the delays that plague the traditional model. With HAT, you’ll experience efficient, reliable billing processes that keep your business running smoothly. At HAT, we’ve got your back, plain and simple.
Traditional distribution model: Lack of technical expertise and training
In the traditional model, partners often grappled with a lack of technical expertise and adequate training. They relied on distributors who were often trying to adapt archaic processes to fit with new, fast-paced technologies. This gap in technical know-how slowed down execution, deployment, and limited distributors involvement.
HAT difference: Technical knowledge, seamless Integration
At HAT Disti, we distinguish ourselves through our deep understanding of partner needs, stemming from our partner and system integrator background. We’ve been in the trenches for 16 years, building systems and processes tailored to this generation’s tech landscape.
Our goal at HAT Disti is to make our partners’ lives easier. We shoulder some of the burdens faced by vendors and partners, providing value at every step. Whether it’s helping with onboarding or navigating the technical aspects of a sale, we ensure our partners have the knowledge and resources they need.
We understand the intricacies of software licensing models and can clearly explain these models to our partners. Moreover, we can provide quotes and technical pre-sales services when required. This expertise adds value from the very beginning of the engagement, setting a different distribution experience in motion.
Furthermore, at HAT Disti, we understand the importance of deal registration, a familiar concept for our partners. We recognise that technical knowledge, infrastructure integration, and certification are crucial components of the value we provide. This holistic approach ensures that our partners not only receive the right solutions but also gain the technical understanding necessary to thrive in the ever-evolving tech industry.
Ready to make the change to a different kind of distributor? Let’s sit down for a beer (or soft drink!) and discuss how we can partner up. Get started today.