SOURCE: Global Technology Distribution Council

Global Technology Distribution Council

September 29, 2009 10:52 ET

IT Distribution Industry Organization Sees Sales Stabilization Beginning in Both U.S. and Europe

Global Technology Distribution Council Tells Vendor Summit Attendees Now Is Crucial Time to Increase Overall Collaboration as Each Region Shows Signs of Improvement

NEWPORT BEACH, CA--(Marketwire - September 29, 2009) - GTDC SUMMIT -- The IT distribution industry is preparing to capitalize on increasing sales opportunities in the U.S. and Europe, according to the Global Technology Distribution Council (www.gtdc.org), which completed its 8th annual Vendor Summit last week, Sept. 22-23, at the Fairmont Hotel in Newport Beach, Calif. The event featured keynote speakers Paul Otellini, Intel President and CEO, and Dominic Orr, President and CEO, Aruba Networks, as well as extensive panel discussions and industry research perspectives that included encouraging U.S. and European market reports from the NPD Group and Context.

"It's particularly exciting to see that the European market is beginning to show similar signs of stabilization that we started seeing in the U.S. earlier this year," commented GTDC CEO Tim Curran, who presented at Vendor Summit 2009 on the healthy financial performance, outlook and enhanced service offerings of the IT distribution industry. "Our confidence is supported by aggregated sales-out data from leading IT distributors. This data shows improving demand conditions and other positive developments, such as a leveling in U.S. average selling prices. Collaboration and execution between distributors and vendors is especially crucial right now -- and from what we experienced at Vendor Summit this year, it's clear that these partnerships are stronger than ever."

IT resellers turn to distributors for comprehensive solutions on demand, backed by the credit to enable purchases and a full range of services to support specialized business requirements. Distributors are proven to have the most cost-effective approach to reaching and enabling these solution providers, who are instrumental in meeting the needs of small and midsize businesses as well as home consumers and large enterprises worldwide. The technology industry, recognized as a key driver of economic growth, relies heavily on distributors to help fuel broad-based market recovery.

Poll Shows Vendors Plan More Sales Through Distributors and Less Direct Business

This year's Vendor Summit, themed "Building Business in IT Distribution," polled the nearly 200 attendees about market conditions as well as current challenges and new opportunities. Among the findings, nearly half of those polled cited plans to increase sales through distributors and decrease direct sales. The vast majority of other related responses indicated that the ratio of direct sales to indirect sales through distributors is likely to remain constant. Breakout sessions and panel discussions at GTDC Vendor Summit delved into many industry topics, with emphasis on how best to capitalize as the demand environment accelerates. Independent analysts also shared insights focused on "Blueprints for Revenue and Profitability Growth," as part of this unique industry event -- the only one of its kind, engaging the highest level channel and distribution executives as well as channel research experts.

The GTDC Vendor Summit also honored the industry's "Rising Stars" in terms of U.S. sales growth and market share gains through IT distributors over the past year. These awards are determined based on NPD Distributor Track® results -- the industry's most reliable source for U.S. market trends, including actual sales and pricing data, unlike other market research that frequently depends on estimated sales and forecasts. For more information on the GTDC's research partnerships in the U.S. and Europe, visit http://gtdc.org/salesout.htm.

About The Global Technology Distribution Council

The Global Technology Distribution Council (www.gtdc.org) is a worldwide industry association dedicated to defining and promoting the role of distribution in a successful and healthy information technology channel. The Council is comprised of the computer industry's top distributors dedicated to serving "the channel," a network of skilled value-added resellers and retail stores focused on providing hardware, software, and services to businesses and consumers around the globe. GTDC members include AB. S.A (WSE: ABPL), ABC Data, Actebis, Arrow Electronics (NYSE: ARW), Avnet (NYSE: AVT), Bell Microproducts (PINKSHEETS: BELM), Computer Gross Italia, DCC SerCom, D&H, Esprinet, Ingram Micro (NYSE: IM), Intcomex, Magirus AG, Redington (BSE: REDI), ScanSource (NASDAQ: SCSC), Synnex (NYSE: SNX), Tech Data (NASDAQ: TECD), Westcoast LTD and Westcon.

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