Channelnomic’s Larry Walsh on 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.