JUNE 2017
Vendor M&A Leads to Channel Consolidation
Phil Harvey
The pressure to go big or go home brings a new sense of urgency to channel partners who are looking to remain a valued part of the technology supply chain.

The technology industry is growing fast; there's no doubt about that. And as it grows, vendors need to think about how changes to their businesses can reshape and influence their distributors and channel partners.
The urge to get bigger and achieve scale in technology continues unabated. The combined 68 companies in the IT sector of the S&P 500 have the second highest earnings growth rate (20.6%) of any sector during the first quarter of this year, according to Thomson Reuters. The IT sector of the S&P 500 alone is expected to earn $56.8 billion in Q1 2017, compared to earnings of $47.1B in Q1 2016.
To keep that growth going, companies need to get bigger, reach more customers and move quickly. That often means making acquisitions and vendor movements in M&A are having an undeniable effect on their distributors, resellers and solution providers.

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Partner Buzz
"Channel [business] is growing at a good 20 to 30 percent clip per year across all carriers and masters, so it's definitely a rising tide. However, we're not certain that the tide is rising fast enough to keep up with the girth of these suppliers and all these mergers."
-- ­Patrick Oborn, co-founder of Telarus, a master agent in Sandy, Utah,
commenting on how telecom consolidation is forcing his business to grow so as not to lose a seat at the table when big carriers combine.
"The PC is alive and kicking," said Venero. "That pane of glass on the PC that gives workers access to all of the tools and solutions needed to operate is more important than it has ever been. The PC will never die."
--Bob Venero, CEO of Holbrook, N.Y.-based solution provider Future Tech,
 commenting on HP's second fiscal quarterly earnings report, which featured a 10 percent growth in PC sales and a 2 percent growth in printer sales.
Solution Providers
Symantec Shakes Up North American Distribution: Tech Data Out From Symantec Enterprise, Arrow Cut From Blue Coat

DXC Technology CEO: Sales Team 'Blown Away' By Combined CSC-HPE ES Partnership Network

Xerox Buys Midwest MSP, Deal Is First In $100M Plan To Make Multi-Brand Resellers Xerox-Exclusive

Internet of Things / Platforms
Beyond The PC: Intel's Drive Into High-Growth Emerging Tech Markets Will Be Powered By Partners

Crowdstrike Lands $100M Funding Round, Looks To Expand Globally And Invest In Partners

Report: Microsoft To Buy Security Analytics Company Hexadite For $100M

Tanium Lands $100M In New Funding, Says "No Impact" On Possible IPO Plans
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