Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
The triple whammy of Brexit, Covid and component shortages has put IT distribution in the spotlight over the last 15 months.
Both figuratively and literally, the stock of the channel's middle tier has arguably never been higher, with publicly listed distributors around the world outperforming Amazon and Google since the start of the pandemic.
Distributors may be facing renewed questions about their role in the ecosystem, but research by CRN confirms the enduring buoyancy of the sector.
The top 40 UK IT distributors on our radar* generated collective revenues of £12.9bn in their most recent financial years on record, up 7.3 per cent year on year.
All are eager that distribution throws off its traditional reputation of being just 'a van and a bank' or a 'necessary evil', and recasts itself as the hub of a modern IT channel characterised by cloud and as-a-service, peer-to-peer partnerships and marketplaces.
In this first instalment, we count down those ranked 40th to 26th, outlining their areas of focus and catching up with their MDs along the way. View those ranked 25th to 11th here, and those in the top 10 here.
"We recognised that UCaaS would dominate the market"
40. Pragma
Revenues: £8.8m
Headcount: 32
Specialism: UCaaS and VoIP
Key vendor: Ericsson-LG
HQ: Washington, West Sussex
Founded in 2012 by three former Crane executives, this UCaaS specialist is among a minority of companies in this report to focus on just one vendor in the form of Ericsson-LG, for which it acts as sole UK representative.
Although its revenues dipped four per cent to £8.8m in its year to 30 September 2020 (according to numbers it shared with us), it expects its top line to rebound to hit between £11m and £12m this year.
Quickfire Q&A with MD Tim Brooks
null
What specialism is your firm known for, and what sets you apart from your peers?
Pragma specialises in delivering the iPECS UCaaS and VoIP solutions from Ericsson-LG, working in close partnership with high-growth resellers. We offer flexible commercial and licencing options to enable our resellers to compete and win with a differentiated solution providing high margins.
What's the biggest misconception about distribution?
Most vendors and distributors seek to appoint as many resellers as they can. We do the opposite. We aim to deliver the maximum possible revenue through the smallest number of resellers.
Do you expect to grow in 2021?
Yes. As a result of strong sales in the UCaaS sector and the launch of our new iPECS One UC and Collaboration service based on WebRTC technology, we expect sales to be up around 30 per cent YoY.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
Pragma started trading as a traditional distribution business in 2012, providing on-premise VoIP solutions. However, we recognised at that time that UCaaS would dominate the market in future and started working then on developing a cloud service model with Ericsson-LG. We were the first country to launch iPECS Cloud in 2016 and this now represents more than 60 per cent of our revenues.
Tell us one thing most people won't know about your company?
Unlike almost every other UCaaS provider, Pragma is channel only, we have never sold any product or service directly to an end user, nor would we.
*Brokers, sub-distributor and others not holding direct contracts with vendors were not considered for this report. We also chose to exclude those specialising in technologies outside CRN's core market. This includes distributors of mobile phones, industrial components, gaming software and office supplies. For the top ten, where possible we have isolated a UK distribution total. But the headline revenue numbers of those further down the list often contain international as well as UK sales. For hybrid reseller-distributors, we have attempted to split out just the distribution number. For hybrid manufacturer-distributors, we chose not to do this. The figures in this report are based on data from Companies House, or figures shared by the company.
Which hardware distributor is predicting 2021 will be a 'year of growth'? Find out on the next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"2021 will be a year of growth"
39. Varlink
Revenues: £10.5m (+3%)
Headcount: 26
Specialism: Auto ID and EPoS
Key brands: Zebra, Sunmi, SBV (own brand), Honeywell, Janam
HQ: York
Founded in 2005 by CEO Mike Pullon, Varlink carries over 20 brands in the Auto ID and EPoS space.
According to numbers it shared with us, the York-based firm saw revenues rise three per cent to £10.5m in its year to 31 December 2020, with revenue tracking nearly 50 per cent up in 2021.
Quickfire Q&A with Varlink's Mike Pullon
What specialism is Varlink known for, and what sets you apart from your peers?
Auto ID and EPoS products, supported by incredibly knowledgeable and helpful sales and technical support people
What's the biggest misconception about distribution?
Actually I think that our customers understand the value that we offer and the role we have in the channel.
What's been your biggest disappointment of the last year?
The impact that Covid had on so many people and on so many sectors of the economy.
Do you expect to grow in 2021?
After four months we are 48 per cent up - so, yes, I expect 2021 will be a year of growth.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
As a hardware distributor, the cloud has been positive as a number of our vendors have harnessed its potential and that has driven sales.
Tell us one thing most people won't know about your company?
One of our warehouses was previously occupied by a distributor of gas cylinders and our staff room is housed in the cage that was used to store the gas.
Which distributor's name is Italian for 'cloud'? Find out on the next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"Our name is Italian for ‘cloud'"
38. Nuvola Distribution
Revenues: £10.5m (+50%)
Headcount: 31
Specialism: UC, networking and cloud
Key vendors: Alcatel Lucent Enterprise, LiveAction, NFON, 8x8, Garland Technology, NICE -InContact, Sangoma, Ring Central, I3 Technologies, Aver
HQ: Reading, Berkshire
This UC and VoIP distributor was created in 2013 from channel services business Nuage Communications (which now acts as Nuvola's services division).
Including the contribution of March 2021 Irish acquisition Electromaster, Nuvola generated revenue of £10.5m in its year to 30 June 2020, up from £7m a year earlier, according to numbers it shared with us. Around a third of the total is drawn from outside the UK.
Quickfire Q&A with MD Michael Lloyd
What specialism is your firm known for, and what sets you apart from your peers?
Nuvola was created from a professional services business and we have always looked at providing technology and services from the start.
Which emerging vendors are you betting big on this year?
Nice, Nice InContact, 8x8, Garland and Adaptiv
Have you made any significant vendor signings in the last 12 months?
Yes: 8x8, Nice, Nice InContact, Adaptiv
What's the biggest misconception about distribution?
It's all about box shifting
How would you summarise the health of the distribution sector in 2021?
7/10. Distribution has to have a good hard look at itself and embrace the changes of the technology and GTM models whilst working with vendors to ensure their products are accessible to a larger variety of resellers.
Do you expect to grow in 2021?
Yes. Second half.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
We were aware of this from the very beginning, building the business into five pillars with the cloud being one of the cornerstones. We have de-risked the business with vendors such as 8x8, NFON, NICE InContact, Ring Central and ALE Rainbow and distributing to our partners via both agency and wholesale models. Of course we provide services around all these products. And finally Nuvola is Italian for ‘cloud'.
How do you see the role of distribution changing in the 2020s?
Distribution must allow their reseller partners access to new technologies and solutions as easy as possible, which is where professional service wrap and pre-sales is key.
Tell us one thing most people won't know about your company?
A third of our revenue comes from outside the UK
Which distie brands itself as a 'partner community' and grew 30% in its last year? Find out on the next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We don't call ourselves a distie… more a partner community"
37. Quattro Business Solutions (QBS Group)
UK revenues: £11.1m (+30%)
UK headcount: 12
Specialism: Microsoft business applications
UK HQ: Pontypridd
Founded in 2013, this Netherlands-based Microsoft Dynamics specialist claims to support over 800 partners in 25 countries.
Its UK arm saw revenues for its year to 31 December 2019 rise 30 per cent to £11.1m (informally, the company told us 2020 revenues stood at about £13m). Its 12 UK staff all have partner-facing roles, with operations/back office functions carried out from its Dutch HQ.
Quickfire Q&A with UK lead Will McIntee
What specialism is your firm known for, and what sets you apart from your peers?
Maniacal biz apps focus!
What's the biggest misconception about distribution?
I think it's pretty accurate… boring.. staid.. price not value focused. It's why we don't call ourselves a distie… more a partner community.
How would you summarise the health of the distribution sector in 2021?
ERP is a little behind the curve in terms of transitioning from an on-prem to a cloud-first model. 2021 is the first year where I would say for ERP it's now first choice.
What's been your biggest disappointment of the last year?
Turn it on its head - I was amazed by the resilience of our channel. Not one bad debt, not one business partner out of business… and not one partner churned from QBS.
Do you expect to grow in 2021?
25-30 per cent
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
Created a value proposition to help build capability and capacity in the channel, provide partners with all the support they need and help build sticky, long term revenue.
How do you see the role of distribution changing in the 2020s?
It has to be way more services driven - not a transactional hub. Invest in a different value proposition.
Tell us one thing most people won't know about your company?
Our UK team has more than 180 years' experience in the world of Dynamics, ERP and CRM!
Which cloud distie was bought by a giant US giant in 2019 and now has 100 staff? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We were one of the first cloud service providers in the UK"
36. Inty, a ScanSource Company
Revenues: £17.9m (+43%)
Headcount: Circa 100
Specialism: Cloud software
Vendors include: Microsoft, Acronis, Bitdefender, Barracuda, Zoom, RingCentral, 8x8
HQ: Bristol
This cloud software distributor hasn't filed any full accounts since it was acquired by $3bn-revenue US comms distributor ScanSource in 2019, but old numbers for calendar 2018 show a turnover of £17.9m.
Founded in 1997, Inty partners with the likes of Microsoft, Acronis and Zoom.
ScanSource cited Inty's Cascade cloud aggregation platform as motivation for the acquisition. It now counts Inty as its only UK business following its decision to offload its European hardware business in December (which has subsequently ceased trading).
Quickfire Q&A with Marcus Ollenbuttel, SVP, Digital Distribution at intY, a ScanSource Company
What specialism is your firm known for, and what sets you apart from your peers?
We were one of the first cloud service providers in the UK and our people and dedicated cloud practices position us well in helping partners navigate Microsoft Azure, modern workplace and cyber security.
Have you made any significant vendor signings in the last 12 months?
Yes, we have added many new vendors to our line card, including Bitdefender, Zoom, 8x8, Nimble, RingCentral, SCB Global, Masergy, EvolveIP, LogMeIn, and Bam Boom Cloud.
What's the biggest misconception about distribution?
A big misconception about distribution is that it doesn't help a reseller grow, or add value to the channel. In fact, helping our partners grow and adding value to their business are our highest priorities.
How would you summarise the health of the distribution sector in 2021?
Very good from a cloud point of view.
What's been your biggest disappointment of the last year?
Not getting to see in person all the new people we added or getting out to see customers and learning how we can add more value to their business.
Do you expect to grow in 2021?
We see great opportunity ahead for our partners in 2021.
How do you see the role of distribution changing in the 2020s?
Distribution has more to add to the channel through additional services and dedicated practices whose focus brings professional services and opportunities to partners.
Tell us one thing most people won't know about your company?
We were established in 1997 and the name intY comes from the original company, Intelligent Technology.
Which storage distie is predicting 2021 will be a "good year"? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"2021 is on course to be a good year"
35. Smithie UK
Revenues: £18.5m (+2%)
Headcount: 12
Specialism: Storage
Key vendors: Samsung, Asus Global, Philips & Lite-on Digital, Asbis Enterprise PLC, Amitra net (Pioneer), HikVision technology, Anker Technology, Apacer, VERBATIM
HQ: Basingstoke
Warehouse size: 10,000 sq ft
Founded in 2003 by Shane Hilden, this storage and components distributor saw revenue rise two per cent to £18.5m in its year to 31 October 2020. It counts Samsung among its major vendors.
Q&A with MD Shane Hilden
What specialism is your firm known for, and what sets you apart from your peers?
Optical and SSD. My senior sales team have been with me for 25 years - plus they know their stuff.
null
Which emerging vendors are you betting big on this year?
Anker Technology (home security)
Have you made any significant vendor signings in the last 12 months?
Yes, two: Hikvision entry level storage and Anker Technology Home security.
What's the biggest misconception about distribution?
How [people] think it's all about the price!!
How would you summarise the health of the distribution sector in 2021?
I can only go by Smithie: we had a good start to 2021.
Do you expect to grow in 2021?
Well, 2020 saw over £200k leap in profits and 2021 is on course to be a good year.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
The cloud needs the products we sell!! It's been great.
How do you see the role of distribution changing in the 2020s?
Be honest; look after your customer.
Which distie believes it is Europe's largest rugged devices distie? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We are probably the largest client distributor of rugged devices in Europe"
34. Ci Distribution
Revenues: £21m (+22%)
Headcount: 25
Specialism: Rugged devices
Key vendors include: Kanguru, Coolermaster, iKey, Getac, MSi
HQ: Basingstoke
Part of £125m-revenue powerhouse Centerprise, this rugged device specialist has seen revenue almost double in the space of two years to hit £21m in the 12 months to 31 August 2020 (according to numbers it shared with us).
Carrying over 30 vendors and serving over 600 resellers, Ci Distribution's Basingstoke and Telford offices focus on rugged devices and gaming/security, respectively.
Quickfire Q&A with Ci Distribution managing director Jon Atherton
What specialism is your firm known for, and what sets you apart from your peers?
Rugged- we are the industry experts.
Which emerging vendors are you betting big on this year?
Alibaba Cloud - Anduril - BlueRiver Tech… check them out.
Largest UK warehouse?
Caerphilly, Sunny South Wales. We will be announcing an expansion to this facility shortly.
Have you made any significant vendor signings in the last 12 months?
Yes - Zebra, with some exciting new products being announced in the coming weeks.
How would you summarise the health of the distribution sector in 2021?
Strong, but consolidation will gain further pace.
What's been your biggest disappointment of the last year?
Not meeting my customers and suppliers face to face.
Do you expect to grow in 2021?
Yes, with some exciting new announcements around the corner. 😊
Tell us one thing most people won't know about your company?
We are probably the largest client distributor of rugged devices in Europe.
Which distie is now a £20m-plus revenue outfit after adding Chromebooks to its portfolio? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We know everything there is to know about thin clients and Chromebooks"
33. Getech
Distribution revenues: £22.6m (+109%)
Total headcount: 85
Specialism: Thin clients and Chromebooks
Key vendors: Lenovo, Acer, HP, Google, Igel
HQ: Ipswich
This hybrid reseller-distributor told us it drew £22.6m of its circa £48m revenues from distribution activities in its year to 31 December 2020.
Traditionally just a thin client specialist, Ipswich-based Getech's distribution arm generated £9.9m of Chromebook sales last year, according to figures it shared with us, and expects 2021 distribution revenue to hit around £25m.
Quickfire Q&A with managing director Guy Watts
What specialism is your firm known for, and what sets you apart from your peers?
Thin client and Google Chrome solutions and knowing absolutely everything there is to know about each technology.
Which emerging vendors are you betting big on this year?
ControlUp (complete infrastructure management tool for VDi and cloud) and Device Trust (contextual security)
Have you made any significant vendor signings in the last 12 months?
Acer Chrome distribution at beginning of 2020
Largest UK warehouse?
Ipswich: 36,000sqft
What's the biggest misconception about distribution?
That it's all pile ‘m high and sell ‘m cheap. It never has been for Getech; for us it's all about sharing our knowledge with resellers to enable them to offer their users the best value high performing solutions.
How would you summarise the health of the distribution sector in 2021?
Very strong demand for IT and digitalisation has never been healthier.
What's been your biggest disappointment of the last year?
Ipswich Town's failure to gain promotion from league 1
Do you expect to grow in 2021?
Yes, significantly across all divisions and technologies
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
I don't agree: every solution needs a device, an access route and advice to make it all work, so as digitalisation reaches new markets, the demand for Getech's competency in our niche markets will continue to grow.
How do you see the role of distribution changing in the 2020s?
Digitalisation is complex, and complex solutions need designing and support. The channel will continue to demand ever increasing levels of technical guidance and commercial support from their distributors of choice.
Tell us one thing most people won't know about your company?
Over 30 per cent of our workforce have worked for Getech for 20 years or more.
Which distie has grown from zero to £24m revenue in six years? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We are on target to grow 30 per cent"
32. Kite Distribution
Revenue: £24.3m (+23%)
Specialism: Cybersecurity
Vendors: Agari, Bitdefender, Corero, Cryoserver, Entrust, Extrahop, Infoblox, Keysight, Redseal, Thales, Zivver
Headcount: 18
HQ: Leicester
Upon its launch in 2014, Kite co-founder Mark Hatton told CRN he would view it as a "complete failure" if the security VAD was not seen as a major player within three years. He was one of three former bosses of Sphinx - which was acquired by Arrow in 2010 - to found the Leicester outfit.
Today Kite outfit works with 11 cybersecurity and networking vendors including Infoblox and Extrahop, with revenues in its year to 31 December 2020 powering up by nearly a quarter to £24.3m.
Quickfire Q&A with MD Dave Marshall
What specialism is your firm known for, and what sets you apart from your peers?
null
We specialise in security, especially working with more complex security technologies due to our vast wealth of experience in the channel, including the grey hairs to prove it and helping our partners and vendors connect with their target end users.
Have you made any significant vendor signings in the last 12 months?
Agari, Corero and Zivver
What's the biggest misconception about distribution?
The biggest misconception about distribution is that we just shift tin and licenses. Speak to any of our partners and vendors and they will vouch for the vale add that we offer to them.
How would you summarise the health of the distribution sector in 2021?
In the value-add space, we are only seeing opportunities to grow both with our partners and vendors and with new threats emerging all the time and with the new way of working, I only see this improving.
What's been your biggest disappointment of the last year?
I had a three-week holiday booked for the family to visit China and Australia which was a reward for supporting me for the last seven years…..now delayed indefinitely!!
Do you expect to grow in 2021?
We do. We are on target grow at least 30 per cent in 2021.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
The role of a VAD is to connect partners to vendors and this hasn't changed. The value-add services that we offer continue to be relevant as trends change from hardware to virtual and from perpetual to subscription.
Tell us one thing most people won't know about your company?
At the end of 2014 we employed nine people. Those same nine people all still work for Kite today.
Which security VAD has set its sights on international growth after bagging PE investment? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
‘We spot emerging cybersecurity vendors'
31. Distology
Revenues: £25.8m (+60%)
Headcount: 35
Specialism: Cybersecurity
Key vendors: Okta, LogRhythm, Beyond Identity, Yubico, Verkada, Shape Security (F5)
HQ: Stockport
This ambitious security VAD has set its sights on international growth after taking on private equity investment from NorthEdge Capital in February.
Founded in 2014, Distology generated revenues of £25.8m in its year to 31 March 2021, up from £16.1m in 2020 and £7.8m in 2019. Based in Salford, it launched an Amsterdam office in 2018 and is now eyeing expansion into the US and Germany.
Quickfire Q&A with Distology CEO Hayley Roberts
What specialism is your firm known for, and what sets you apart from your peers?
We spot and really support new, emerging cyber security vendors into Europe through our channel partner base. And those channel partners really trust our focus and dedication to deliver excellent service levels and expert vendor knowledge.
null
Which emerging vendors are you betting big on this year?
Passwordless is huge, so I am backing one of our latest signings Beyond Identity as an emerging vendor.
Have you made any significant vendor signings in the last 12 months?
Oh yes, LogRhythm was a big signing for us, not just because they are significantly larger than most of our new vendors, but because they are underestimated and we have a lot potential with their new offerings for cloud and recent acquisition in NDR.
What's the biggest misconception about distribution?
It's that distribution is just transactional and an unnecessary additional step (and cost). But, for those vendors and channel partners who we support, we build markets, filter noise and, in each customer project, we are often instrumental in defining the solution to the end customer, which is great value for everyone involved.
How would you summarise the health of the distribution sector in 2021?
Given the fact that private equity have acquired and backed IT distribution businesses recently eg Tech Data, Infinigate and Distology latterly, I believe the health of distribution and what we can offer as a service is in a good state.
What's been your biggest disappointment of the last year?
The COVID impact was a huge disappointment, as it meant some larger deals that were forecast were delayed. Regardless, we still saw significant growth on every level and we are starting to see a more buoyant start to FY22 for us and I am extremely proud of the attitude of the team.
Do you expect to grow in 2021?
We're forecasting significant growth and fully expect to achieve it, so we've been hiring to make it a reality.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
We set up from the start to embrace cloud, actively focusing on SaaS; in fact, it's our speciality and any small amount of hardware we work with is drop shipped. As time has gone on we also intend on embracing the public cloud marketplaces in whatever way best benefits our vendor and channel partners.
How do you see the role of distribution changing in the 2020s?
Distribution needs to be more focused on due diligence of new tech coming to market and also understand what our reseller partners need in detail before throwing products out to market. It's too easy to say a product will gain traction, as we have a good base of resellers, but that blanket approach does not work as a strategy for growth.
Which £28m-revenue VAD sold up last month? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We focus on ‘Next Big Thing' solutions"
30. Cloud Distribution
Revenues: £28.3m (+18%)
Headcount: 29
Specialism; Cybersecurity and networking
Key vendors: Extreme Networks, Arista Networks, Vectra Networks, PCYSYS, Pulse Secure, Peplink, Altaro Software (Hornet), Acronis, Cynet Security, Censornet
HQ: Newbury, Berkshire
Considering that the ink was still drying on its sale to Nuvias this month, we have opted to profile this Newbury-based cybersecurity and networking specialist separately from its new parent.
Founded in 2009, Cloud shot to success partly on the back of its partnership with Meraki, and today counts Extreme Networks, Arista, Vectra and Pulse Secure among its vendors. Revenues for its year to 31 December 2020 hit £28.3m, according to numbers it shared with us.
Rigby Capital-owned VAD Nuvias said it plans to operate Cloud as separate business for at least the next few years, with its branding changing slightly to 'Cloud Distribution, a Nuvias company'.
Quickfire Q&A with chief strategy officer Adam Davison
What specialism is your firm known for, and what sets you apart from your peers?
Our cloud-first vendor portfolio is focused on disruptive "Next Big Thing" Cyber Security, Networking & SaaS solutions.
Which emerging vendors are you betting big on this year?
Vectra Networks, PCYSYS, Cynet Security, Censornet and Ava Security
Have you made any significant vendor signings in the last 12 months?
Censornet, Link11 and Ava Security
What's the biggest misconception about distribution?
It's so much more than logistics and finance. It's about long-term relationships, creating value, and enabling partner and vendor growth.
How would you summarise the health of the distribution sector in 2021?
All things considered; the sector is in good shape. Supply chain issues and a potential talent shortage may cause a few bumps in the months ahead, but on the whole we're really positive about the future.
What's been your biggest disappointment of the last year?
Not being able to meet both our existing staff and new hires in person, as well as the usual face to face engagements with partners and vendors.
Do you expect to grow in 2021?
Yes!
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
Our business was built on a cloud-first strategy, we embrace the digital transformation leveraging the cloud - it's business as usual for us.
How do you see the role of distribution changing in the 2020s?
Distribution will continue to play a vital role as a core enabler of digital transformation. For us it will be "business as usual" recruiting partners and then enabling them to create, find and close business opportunities with our vendors. Sales, technical and marketing enablement platforms will be critical as distribution becomes a business service for resellers, SIs, MSP's and MSSPs.
Tell us one thing most people won't know about your company?
We consume at least 10,000 cups of coffee a year.
Which £32m-revenue distie had to rename itself after a trademark disupte? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"IT distribution has shown resilience"
29. Purdicom
Revenues: £32.6m (+0.2%)
Headcount: 52
Specialism: wireless, networking and security
Key vendors: Commscope, RUCKUS, Cambium, Siklu, Watchguard, Nomadix, CertaUPS
HQ: Wantage, Oxfordshire
Founded as ‘Selcoms' in 2005 by managing director Hugh Garrod, this Oxfordshire-based wireless networking specialist posted flat revenues of £32.6m in its year to 31 December 2020 (according to top-line numbers it shared with us).
Counting Ruckus among its vendor allies, Purdicom draws around 12 per cent of its top line is from continental Europe.
Quickfire Q&A with Purdicom MD Hugh Garrod
What specialism is your firm known for, and what sets you apart from your peers?
null
Purdicom leads the way with wireless, networking and security technologies, helping our customers with full end to end solutions, allowing them to lean on us every step of the way.
Which emerging vendors are you betting big on this year?
Auvik Networks - having tested it and now using it ourselves we see how valuable a product like this would be to give visibility and control to your network.
Have you made any significant vendor signings in the last 12 months?
Nomadix, a vendor that provides Internet access gateways, casting solutions and voice assistance for MDU and hospitality.
Largest warehouse?
7,500sq2
What's the biggest misconception about distribution?
That distribution does not add any value.
How would you summarise the health of the distribution sector in 2021?
Despite the recent challenges of Covid-19 and Brexit, IT distribution has shown its resilience through continued growth.
What's been your biggest disappointment of the last year?
Meeting and collaborating face-to-face with our customers, vendors and our colleagues.
Do you expect to grow in 2021?
Yes. By 25 per cent. And we are on target.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
Working closely with our largest vendor has enabled us provide input into how the products are positioned and the GTM strategies that fit our partners' wants and needs as well as their customers. Cloud is a great opportunity and not a threat to our business.
How do you see the role of distribution changing in the 2020s?
With the rise of (everything) as a Service, more value-add, more professional services and support for partners moving from a reseller/VAR model into the MSP space.
Tell us one thing most people won't know about your company?
Purdicom was originally called Selcoms, and although we kept the same registration number, we changed our name in 2013 as we had a trademark dispute.
Which £32m-revenue outfit marks itself out with a laser focus on security? Find out on the next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"We are not jack of all and master of none"
28. Infinigate
UK revenues: £32.7m (+43%)
UK headcount: 40
Specialism: Cybersecurity
Vendors include: SonicWall, Kasperksy Lab, Trustwave, Extreme Networks, Barracuda Networks
UK HQ: London
Billing itself as Europe's largest security-focused VAD, Infinigate owes its UK presence to its 2012 acquisition of Vigil Software.
According to numbers the company shared with us, its UK revenues rose 43 per cent to £32.7m in its year to 31 March 2021.
Founded in 1996, Switzerland-based Infinigate now operates in 11 countries across western Europe, with 450 staff and revenues of €570m. It swapped private equity backers in March 2021 as Bridgepoint acquired a majority share from HIG Capital.
Quickfire Q&A with UK MD Justin Griffiths
What specialism is your firm known for, and what sets you apart from your peers?
Security. We are genuine experts in our field and are not jack of all and master of none.
What's the biggest misconception about distribution?
We are so much more than a credit line.
How would you summarise the health of the distribution sector in 2021?
Thriving if you focus on the right things.
What's been your biggest disappointment of the last year?
Not being face to face with staff, vendors and customers
Do you expect to grow in 2021?
Absolutely. The security market is thriving
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
Being smart. Cloud is not new; you just have to adapt.
Tell us one thing most people won't know about your company?
We have moved into a cool part of London. When we open you are all welcome to come see what makes us so special.
Which memory distributor grew double digits in its latest year? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"Supply challenges could last until 2022"
27. Simms International plc
Revenues: £34.3m (+12%)
Headcount: 30
Specialism: Memory
Key vendors: Kingston, Micron, Intel, ATP, and Innodisk
HQ: Lenham, Kent
Strong lockdown demand across key segments of Simms International's portfolio helped the memory distributor record a 12 per cent revenue hike for its year to 31 December 2020.
Founded in 1990, the Kent-based outfit's website carries testimonials from the likes of Insight, Overclockers, CCS Media, Computacenter and eBuyer.
Quickfire Q&A with Simms International CEO Andrew Henderson
What specialism is your firm known for, and what sets you apart from your peers?
Our focus is memory and storage
Have you made any significant vendor signings in the last 12 months?
We started partnering with Micron in 2020
Do you expect to grow in 2021?
Yes
What advice would you have for resellers and end users concerned about the current component shortage?
The current market conditions mean we are in a "perfect storm" of increased demand coupled with unprecedented supply challenges. Therefore communication is key about the market. Discuss projects which require memory storage at the outset and factor in longer lead times.
We believe the current market conditions will remain for Q2 and Q3 2021 at the very least, with some reports suggesting this will last until mid 2022.
Tell us one thing most people won't know about Simms?
Simms started trading as Mr Simms in 1990. 31 years ago!!
Which memory distributor claims 'distribution is ready for growth' in 2021? Find out on next page...
Top 40 UK IT distributors you need to know: Part One
The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 40th to 26th...
"Distribution is ready for growth"
26. M2M
Revenue: £34.6m (-32%) (of which £22.3m UK)
Headcount: 26
Specialism: Memory
Key vendors: Samsung, Intel, Micron (Crucial), SK hynix, G.Skill
HQ: London
Launched in 1998 by Ged Mitchell, this SSD and memory distributor saw revenue dip by nearly a third in its year to 31 December 2019 as "significant" price erosion during the period dented its top line.
The London-based Samsung distributor expects to grow in 2021, however.
Some £12.3m of its £34.6m 2019 sales were drawn from outside the UK.
Quickfire Q&A with MD Ged Mitchell
Which emerging vendors are you betting big on this year?
SK hynix and Intel - in light of the recent acquisition, we are working closely with both vendors and are excited about the new opportunities this will bring for our customers. Stay tuned!
Have you made any significant vendor signings in the last 12 months?
Gigabyte, Mellanox, Hitachi
What specialism is your firm known for, and what sets you apart from your peers?
We adopt a consultative sales approach and work as a trusted advisor, placing the correct product into the right environment. We also hold stock on all lines to support JIT.
What's the biggest misconception about distribution?
That's there's no value add
How would you summarise the health of the distribution sector in 2021?
Refined and ready for growth
What's been your biggest disappointment of the last year?
The unwarranted rise in logistical costs coupled with the subsequent drop in service levels.
Do you expect to grow in 2021?
Yes
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
This is M2M's expansion. The rise of the cloud presents so many opportunities for growth but we can't reveal our trade secret
How do you see the role of distribution changing in the 2020s?
We see the role of distribution becoming more of a strategic partner and a lead in end-customer relationship through all verticals.
Tell us one thing most people won't know about your company?
Shorts and flip flops must be worn from April to September
Stay tuned to CRN next week as the countdown continues...