Let’s face it, the traditional IT Distribution model is broken.
Historically, IT distribution thrived in a world where physical products dominated, Software as a Service (SaaS) was a mere concept, and the cloud referred to atmospheric conditions. However, as SaaS continues to grow exponentially, the complexities it brings to the table are proving to be a challenge for the classic distribution setup.
There’s been a huge paradigm shift in how software is licensed, billed, and supported. This shift isn’t just about the technology; it’s about customer expectations. Customers today expect instant services, streamlined billing, and impeccable technical support.
Distributors need to be evolving. If they don’t adapt fast and invest in a new business model that enables value creation across the ecosystem, they will lose their worth and die out.
New born-in-the-cloud distribution disruptors such as HAT Disti are at the forefront of a seismic shift in the industry, challenging outdated norms and championing a new era of digital-first, partner-centric distribution.
Why IT distribution is broken
In the warp-speed digital age, traditional IT distribution models show glaring inadequacies. IT distribution originally emerged in an era where hardware reigned supreme, and software was a product to be shipped, not a service to be streamed.
Consequently, distributors are often struggling to accommodate the complexities of the Everything as a Service (XaaS) paradigm, where software licensing, billing, and support are bringing new challenges.
The challenge, however, goes beyond logistics and infrastructure. In the era of SaaS vendors and monthly subscriptions, a significant portion of distribution services become redundant. With vendors reaching customers directly and implementing services without intermediaries, the role of distributors risks being whittled down to mere credit facilities or inefficient marketers that sap resources.
Many distributors, instead of tapping into the rich vein of data analytics and IoT, remain stuck in outdated operational modes missing valuable opportunities to create robust audit trails and advanced stock management.
Further to this still, many distributors who are growing their offerings, aiming to provide value added services and logistics, seem to be taking a unilateral approach, with a single minded focus on resellers.
The remedy: How distributors can revamp their role
The distribution industry stands at a crossroads, a tipping point if you will. While digital technologies like automation, shifting customer demand, and new business models exert pressure, they also offer the pathway for distributors to transform, to not just remain relevant but become indispensable.
From distributor to orchestrator: Distributors need to see themselves as orchestrators, vital cogs in the supply chain. This involves being hands-on with purchasing, sales, pricing, messaging, and customer interaction, ensuring streamlined operations throughout.
Harnessing disruption: Instead of being overwhelmed by disruptive trends, distributors need to embrace them. This involves upskilling, especially at management levels, to harness tools like automation and data analytics effectively.
Elevated customer focus: Distributors need to transcend traditional roles and prioritise customer satisfaction. This entails eliminating waste and unnecessary expenditures, ensuring that every step in the ecosystem adds value. Further to this, today’s CIOs grapple with time constraints, complex operating environments, and the integration of hardware infrastructure, cloud services, and consultative support. Distribution companies are in a unique position of being able to offer aggregation services that tie everything together, a value that is often overlooked and under implemented. To elevate customer focus, distributors must engage in vital dialogues with CIOs to align support with their specific needs and demonstrate the impact they have had with similar organisations.
Solution aggregation: By bundling technologies and services from various sources, distributors can offer comprehensive solutions that cater to diverse business models – resale, subscription, as-a-service, and more.
Diverse talent influx: To foster innovation and enrich customer experience, distributors need to tap into varied talent pools, drawing in fresh perspectives and skill sets.
Strategic implementation: Distributors need to develop a keen sense of discernment – knowing when to adopt a new strategy or technology and when to steer clear.
Cost control and automation: Recognising that not all operations and costs are directly within their control, distributors might need to resort to external resources, including retraining initiatives for their workforce. By leveraging automation capabilities they can ensure that partners are paid on time, every time.
HAT: The cloud-born disruptor
HAT Distribution, a cloud-born distributor, have witnessed these pain points first hand and are forging a new path for the distribution sector. HAT understands that simply moving a product from Point A to B, and taking a large percentage of the profit margin for the privilege doesn’t add value to their partners.
Instead, this new breed of distributor acts as a digital orchestrator, weaving together multiple threads of the tech ecosystem. With a keen focus on emerging sectors and key partnerships with vendors such as Paessler and Lansweeper, HAT recognises that there’s more to distribution than simply stocking products and holding the money.
Dr. Carmit Yadin, CEO of DeviceTotal discussed their partnership with HAT in the following terms: “We are delighted to team up with HAT Distribution for our expansion into the ANZ market. With HAT’s unparalleled commitment to providing added-value solutions, we are confident that our partnership will elevate the level of risk management practices across the region, ultimately helping businesses navigate uncertainties with confidence.”
Dr Yadin’s sentiment sums up exactly what HAT stands for; building loyalty across the ecosystem, creating long lasting partnerships and integrating technical capabilities to continuously expand the channel’s reach.
The path forward
HAT’s philosophy isn’t just about addressing the present – it’s about pioneering the future. HAT Disti is relentlessly committed to driving innovation in the Australian IT channel. Our overarching aim is clear: to cultivate a vibrant ecosystem that not only boosts partners’ profitability but also equips them to navigate an ever-evolving technological landscape.
As the digital revolution continues to reshape industries worldwide, one message is clear: It’s high time to rethink IT distribution. Are you prepared for the future, or are you still tethered to the limitations of the past?
Contact us today and let’s catch up for a drink to discuss how a partnership with HAT Distribution can grow your business.