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The Channel for Business Product Sales Will Flatten-- and be Dominated by a Small Number of Mega Channels

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The Channel for Business Product Sales Will Flatten-- and be Dominated by a Small Number of Mega Channels

By Braham Shnider

The sale of physical products (something with a SKU number) and some horizontal-based consumption based services (mainly IaaS) will be dominated by a small number of mega channels. In this blog I will deal with why this is going to happen, what the future will look like and the implications for us all.

Let’s begin with “Why?”

As I wrote in an earlier blog, we as individual consumers are increasingly using B2C digital sales channels over traditional consumer channels. Through advanced analytics, B2C digital sales channels know what and who we like or not, who we are influenced by, what we want to buy, how price sensitive we are etc. As B2B customers, many of us also want this hyper-personalized customer experience in the B2B buying process. Most business customers prefer to do their own research using search, social media, chat, blogs etc.

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Dustin Names Thomas Ekman CEO

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Dustin Names Thomas Ekman CEO

The board of Nordic reseller Dustin chooses Thomas Ekman as new president and CEO, a position he will assume from 1 January 2018. He succeeds Georgi Ganev, who leaves the position by end 2017.

Ekman joins Dustin from the Cabonline Group, where he was CEO. Previous to that he was CEO of Tele 2, and is currently a member of the Com Hem board.

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Tech Data Presents Brand Refresh

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Tech Data Presents Brand Refresh

Tech Data follows on the €2.45bn acquisition of the Avnet Technology Solutions business with a rebranding effort-- one establishing a single brand across all markets throughout the world.

The rebrand does not involve a logo change, but the company colour palette and graphic devices are updates to "incorporate both [the company's] foundation and new dimensions."

"As we evolve our business in anticipation of what's next, the Tech Data brand has evolved as well. Today we are proud to introduce the new Tech Data and the next chapter in the history of our company," CEO Bob Dutkowsky says. "Our new global brand is centered on the proven strength of the Tech Data name and provides a unified promise of integrity, expertise and excellence."

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EET Group Names Søren Drewsen CEO

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EET Group Names Søren Drewsen CEO

Pan-European IT and technology distributor EET Group announces Søren Drewsen as CEO. He succeeds John Thomas, who steps down after a 20-year tenure in order to "spend more time with his family."

Thomas will remain at EET Group as a member of the board, as well as shareholder along majority owner FSN Capital. His successor, Søren Drewsen, joins EET Group from a position as VP and group managing director and head of N. Europe at UK-based roofing systems manufacturer Icopal/BMI Group. He holds a Master of Science and Bachelor degrees in both Marketing and Organisation from Copenhagen Business School.

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Record 2016 for Storit

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Record 2016 for Storit

Storit, the holding company of CMS Distribution, announces a record fiscal 2016 with revenue increasing by 82% over 2015 to £325 million. Profits are up by 126%, reaching £12.3m.

"Our Enterprise business continued to outpace the market, driving strong growth in security, information management, storage and open source technologies, along with our Retail channels, which also delivered high growth," CEO Frank Salmon says. "As our customers continue to deliver innovation around digital transformation, the business portfolio continues to drive change and open doors to new thriving markets.”

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Systemax Sells European Operations

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Systemax Sells European Operations

Systemax offloads nearly all of its European Technology Products Group (aka Misco)-- outside of still profitable operations in France-- for an undisclosed sum to Hilco Capital.

The transaction sees Misco acquired by a new company formed by the management buy-in team led by Hilco and former Selection Services CEO Alan Cantwell. Hilco is a specialist in taking over ailing businesses, having acquired the Staples UK retail business in November 2016 and HMV back in 2013.

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Tech Data Completes Avnet TS Acquisition

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Tech Data Completes Avnet TS Acquisition

Tech Data finalises the €2.45bn acquisition of Avnet Technology Solutions (TS) business, creating what the distributor describes as "a premier global IT distributor with unmatched capabilities."

The combined Tech Data-Avnet TS operates in 40 countries and has an end-to-end porfolio of solutions and services ranging "from the datacentre to the living room." Avnet TS also brings partnerships with 40 vendors addressing the needs of 20000 countries in over 80 countries.

"This is a momentous day in our company's history and we are excited to welcome our talented colleagues at Technology Solutions to the Tech Data family," Tech Data CEO Bob Dutkowsky says. "Our combined company is perfectly positioned at the epicentre of the IT ecosystem — with the scale and scope to serve dynamic markets throughout the world-- giving our customers access to an end-to-end portfolio of IT solutions and efficiently bringing our vendors' products to new customers in more markets."

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ALSO Buys into France With BeIP

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ALSO Buys into France With BeIP

ALSO starts 2017 with an acquisition-- specifically French networking and security specialist distributor BeIP. The two parties agreed to keep the buying price secret.

BeIP offers a network and security infrastructure porfolio featuring the likes of Barracuda, Aruba Networks and AirWave, as well as related support services, across France and Africa. It focuses on market verticals such as telcos, and hopes achieve 2016 revenues of €20 million, a 30% increase over the previous years.

Post-acquisition BeIP CEO Erwan Le Guin remains a minority shareholder in the company, and will continue working with ALSO.

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Strong Performance in Tech Data's Q3 2016

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Strong Performance in Tech Data's Q3 2016

Tech Data sees double-digit Y-o-Y growth in global non-GAAP operating income for fiscal Q3 2017-- specifically by 14% Y-o-Y, reaching $81.1 million, on net sales worth $6.49 billion, a 1% Y-o-Y increase.

European revenues (making 60% of the global sales) see a 1% Y-o-Y increase to $3.9bn, with non-GAAP operating income for the quarter growing by 11% Y-o-Y to $42.2m. On the other hand American sales are up by 2% Y-o-Y to $2.6bn as non-GAAP operating income grows by 16% Y-o-Y to $42.5m.

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