The Evolving Value of Distribution

Channelnomics’ Larry Walsh responds to the perception that distribution is declining in value to vendors’ go-to-market equation and channel programs.

A recent poll found that channel chiefs see distribution’s contribution to channels declining as the market shifts to service-based models and cloud delivery mechanisms. This perception is nothing new. The value that distribution brings to vendors’ go-to-market equation is always in question, as vendors are always on the lookout for ways to cut complexity and costs from their channel programs. Yet despite the recurring value question, the distribution segment persists. The reason distribution exists in the first place is because its absence makes it more expensive for vendors to get their products to partners and customers. Without distribution support, vendors would have a significantly harder time operating in emerging markets, managing logistics and support, and enabling partners – particularly in the long tail. In this episode of Changing Channels, Channelnomics’ Larry Walsh breaks down the reasons why vendors persistently question the value of distribution, what many get wrong about distribution capabilities and contributions, and what vendors need to think about before considering discarding distribution relationships.

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Episode Resources:

Host Larry Walsh: https://bit.ly/3beZfOa

Larry’s Blog: http://bit.ly/3rZ1WtT

2021 Channel Forecast and 2021 Channel Chief Outlook: Discover what your channel peers and partners are doing in 2021 and beyond. Get your copy of both reports for insights that inform your strategy development, guide your decision-making, and help you benchmark performance: https://channelnomics.com/library/.

 

Credits:

Production: Changing Channels is produced by Modern Podcasting. For virtual content capture and video-first podcasts, check out http://www.modpodstudio.com.

Host: Larry Walsh https://bit.ly/3beZfOa

Voice-Over: Denise Quan