Tech Data Pivots Toward High Margin Products
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March 11, 2019

The distributor says it will focus on higher-value, higher-margin products to drive growth and profitability for itself and partners

Channelnomics Staff

Broadline technology distributor Tech Data didn’t light up investors with its modest growth in 2018, but it has a solution: Doubling-down on high-value, high-margin products such as cloud computing, Internet of Things (IoT) and security.

An example of high-value products with commensurate investment is cloud computing, which Tech Data has made significant investments, including the launch of its Cloud Solution Factory. The program provides partners with support for integrating, delivering and supporting complex cloud solutions, as well as simplified administration and billing mechanisms.

Some reports say Tech Data will divest of less advantageous and low-growth technologies such as personal systems. However, Tech Data says it will continue to sell and support across the spectrum of technology products regardless of the growth potential. The difference, Tech Data says, is the level of available support and resources applied to different technologies.

(Excerpt) Read more Here | 2019-03-11 11:12:11

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