• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • IT Distributors Hope Sales Have Hit Bottom in U.S.

    June 15, 2009 Timothy Prickett Morgan

    The IT sales channel, through which the majority of server, storage, and software products actually travel from factories to end user customers, is hoping that the worst of the economic meltdown is over.

    Just prior to a meeting of members held last week in London and just after a meeting held in New York in mid-May, the Global Technology Distribution Council, called the bottom of the market, at least in the United States. The GTDC is an industry association representing some of the biggest names in IT distribution–Arrow Electronics, Avnet, Bell Micro, Ingram Micro, Magirus, Synnex, Tech Data, and others–with combined global sales of over $100 billion.

    “The recession that has hurt industries across the world is still a challenging reality,” explained Tim Curran, the GTDC’s chief executive officer, in a statement. “But it appears that the downturn has leveled off in the U.S. market for IT distributors. “Our members are encouraged and look forward to driving growth again as market conditions further improve.”

    That assessment is based on a little thing called Distributor Track, as sales tracking service that GTDC members have participated in since 2002 and which breaks down and then aggregates their sales by product, industry segment, and reseller channel as well as tracking pricing trends. With the economy in the pits and big projects on hold, netbooks, wireless products, and network-attached storage are the big winners, particularly since small and medium businesses are still spending some money and are buying such products.

    The GTDC added that during the last IT recession, which started in 2001 and lasted probably through late 2003 to early 2004 in my estimating, IT hardware and software makers wanted to pull back from the channel and push products more directly in the hopes of maintaining margins. But this time around, says the GTDC, pushing through a broad and diverse set of channels seems to be the way to go, and this is one of the reasons why the IT sector apparently has one of the highest productivity and efficiency levels compared to the wholesale distribution setups in other industries. (I have no way of quantifying that statement, and GTDC didn’t do it either.)

    Speaking last week in London, as this report at The Register covered, the luminaries from the big distributors said that this was a much worse IT recession than the one early in the decade in terms of its magnitude, breadth, and depth, and that some parts of the IT channel would grow next year while other parts might not see growth until 2012. Of course, getting any growth at all compared to 2009 won’t be all that hard. Getting real growth in 2011 is the real challenge for all IT players, as is keeping the costs as low as possible as revenues will undoubtedly continue to slide this year.

    Perhaps more disturbingly, the distributors said in a follow-on report that they are worried that a large number of their resellers would go bust this year, something on the order of 15 percent, which is as bad as the recession of the early 1990s was on the reseller community.

    RELATED STORIES

    Distributors Arrow and Avnet Deal with the Meltdown

    Arrow Lets Mid-Market Resellers Buy Sales Campaigns

    Arrow Hit by X64 Downturn, Proprietary Servers Do OK

    Avnet Hit By Economic Downturn in Fiscal Q2

    Avnet Partners with Sanko for Turkish Expansion

    Avnet to Resell VDoc Content Management Suite in U.S.

    Arrow and Avnet Say Their June Quarters Exceeded Expectations

    Avnet Buys Ontrack for Asian Expansion

    Avnet Expands in the United Kingdom and Ireland with Horizon Buy

    Arrow Buys French Midrange Distributor

    Avnet Builds Out EMEA Business with ACAL, Magirus Acquisitions

    Avnet’s Second Fiscal Quarter Propped Up By EMEA Sales

    Arrow Buys Agilysys’ IT Distribution Business for $485 Million

    Avnet Buys GE’s Access Server Distribution Biz for $412.5 Million

    Server Reseller Avnet Shows Good Numbers in Fiscal Q1



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 18, Number 23 -- June 15, 2009

    Sponsored by
    WorksRight Software

    Do you need area code information?
    Do you need ZIP Code information?
    Do you need ZIP+4 information?
    Do you need city name information?
    Do you need county information?
    Do you need a nearest dealer locator system?

    We can HELP! We have affordable AS/400 software and data to do all of the above. Whether you need a simple city name retrieval system or a sophisticated CASS postal coding system, we have it for you!

    The ZIP/CITY system is based on 5-digit ZIP Codes. You can retrieve city names, state names, county names, area codes, time zones, latitude, longitude, and more just by knowing the ZIP Code. We supply information on all the latest area code changes. A nearest dealer locator function is also included. ZIP/CITY includes software, data, monthly updates, and unlimited support. The cost is $495 per year.

    PER/ZIP4 is a sophisticated CASS certified postal coding system for assigning ZIP Codes, ZIP+4, carrier route, and delivery point codes. PER/ZIP4 also provides county names and FIPS codes. PER/ZIP4 can be used interactively, in batch, and with callable programs. PER/ZIP4 includes software, data, monthly updates, and unlimited support. The cost is $3,900 for the first year, and $1,950 for renewal.

    Just call us and we’ll arrange for 30 days FREE use of either ZIP/CITY or PER/ZIP4.

    WorksRight Software, Inc.
    Phone: 601-856-8337
    Fax: 601-856-9432
    Email: software@worksright.com
    Website: www.worksright.com

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Taking Care of PC5250 Popup Keypad Problems Crossroads Pushing VTL Solution to System i Customers

    Leave a Reply Cancel reply

TFH Volume: 18 Issue: 23

This Issue Sponsored By

    Table of Contents

    • Infrastructure Business Monopoly
    • Power6+ Blade Performance: IBM’s Competitive Analysis
    • PowerVM Hypervisor Gets Active Memory Sharing
    • Mad Dog 21/21: Playing For Keeps in Peoria
    • CIOs Cut IT Spending 5 Percent in Q1, Gartner Says
    • European and Australian Server Markets Collapse in Q1
    • Lotus Brags of Microsoft Partners Flocking to Foundations Appliance
    • IT Distributors Hope Sales Have Hit Bottom in U.S.
    • IBM Does Social Networking on New Business Partner Site
    • IBM Presents Awards to Most Innovative Business Partners

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Security Still Top Concern, IBM i Marketplace Study Says
    • Bob Langieri Shares IBM i Career Trends Outlook for 2023
    • Kisco Brings Native SMS Messaging to IBM i
    • Four Hundred Monitor, February 1
    • 2023 IBM i Predictions, Part 4
    • Power Systems Did Indeed Grow Revenues Last Year
    • The IBM Power Trap: Three Mistakes That Leave You Stuck
    • Big Blue Decrees Its 2023 IBM Champions
    • As I See It: The Good, the Bad, And The Mistaken
    • IBM i PTF Guide, Volume 25, Number 5

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2022 IT Jungle

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.