Distributors must shift their focus from credit management and logistics to supporting their customers in selling, managing, and billing new subscription and consumption services.
The IT distribution landscape is changing rapidly as digital services become increasingly important. Distributors must adapt their approach to stay competitive and continue providing value to their customers. This involves moving away from traditional values like credit management and logistics and focusing on helping their customers sell, manage, and bill new kinds of subscription and consumption services.
Digital Distribution Platforms: The Future of IT Distribution
Vendors and distributors are transitioning to new digital delivery models to adapt to the changing landscape. As a result, digital distribution platforms have emerged as essential tools to support this shift. Existing systems often struggle to handle recurring and consumption-style offerings or require extensive customization, and people-based processes can be too expensive to maintain margins.
Key Features of Modern Digital Distribution Platforms
Seamless Integrations: Modern platforms integrate seamlessly into the supply chain, connecting vendors and downstream customers.
Cost-effective SaaS Platform: Digital distribution platforms are often delivered as cost-effective SaaS solutions, which are highly extensible via APIs and webhooks. This allows distributors to build valuable technical IP and reduce costs through digital automation.
Comprehensive Catalog: Distributors can quickly build a comprehensive cloud services catalog, thanks to easy and fast services on-ramp.
Expert Support: Top platforms provide expert customer success and support teams to assist distributors throughout their journey.
Flexible Provisioning: Modern platforms offer notification provisioning or full end-to-end service automation.
Customization: Distributors can add value to their reseller customers by customizing the platform to their needs.
Cost Offset Options: Distributors have the option to resell higher plans to offset or remove their distribution platform costs.
Global Reach: Leading platforms are multi-tenant with comprehensive language and currency support.
The Future of IT Distribution
In the era of digital services, distributors must evolve to meet the needs of their customers. By leveraging digital distribution platforms, distributors can support their customers in selling, managing, and billing new subscription and consumption services. This shift in focus will be critical for the success of IT distributors as the industry continues to change.
Key Takeaways for the Role of IT Distribution
The IT distribution channel must adapt to the changing landscape by embracing digital services and shifting its focus to support its customers.
By leveraging digital distribution platforms, IT distributors can remain competitive and continue providing value to their customers in the era of digital services.
Embracing these platforms and adapting to new business models will be crucial for IT distributors to thrive in the digital age.