Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
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 7.6 per cent year on year.
All are eager that distribution throws off its traditional reputation of being just 'a van and a bank', and recasts itself as the hub of a modern IT channel dominated by cloud, peer-to-peer partnerships and marketplaces.
In this second instalment, we count down those ranked 25th to 11th, outlining their areas of focus and catching up with their MDs along the way. Check out those ranked 40th to 26th here, and the top 10 here.
"We recently committed to becoming the first carbon-neutral IT distributor"
25. DataSolutions
UK revenues: £35.1m (+2%)
UK headcount: 10
Specialism: Digital workspace, security, networking, cloud
Key UK vendors: Citrix, Check Point, Lakeside, IGEL, Ordr
UK HQ: Camberley, Surrey
Largest warehouse? 6000sq feet - Dublin
Founded in 1991, this Irish VAD now generates just over half of its £66m revenues from the UK after launching an operation here in 2016.
Counting Citrix as its largest UK vendor, Dublin-based Data Solutions' UK revenues rose two per cent to £35.1m in the year to 31 March 2021 after more than doubling the previous year, according to figures it shared with us. In April, it claimed it had achieved carbon-neutrality and launched a major campaign around sustainability under the Techies Go Green banner.
Quickfire Q&A with group managing director Michael O'Hara
Which emerging vendors is your UK operation betting big on this year?
Security technology is evolving rapidly in response to modern IT trends and threats, so we have high hopes for vendors addressing these areas such as Orca Security for protecting cloud workloads, Ordr for securing the rapidly expanding world of IoT devices and ColorTokens for delivering Zero Trust and Micro-Segmentation.
Have you made any significant (UK) vendor signings in the last 12 months?
Data Solutions' security division grew significantly in 2020, with revenue increasing by €7.5m (compared to the previous year). Growth was driven by increased demand for IT security solutions and our new vendor partnerships with Orca Security, Neustar and D3 Security. We also added Hive IO and AppCure to our Data Centre portfolio of vendors.
What specialism is your firm known for, and what sets you apart from your peers?
We've seen an increasing realisation from vendors that the biggest is not always the best. Large distributors who built their businesses rapidly have lost sight of their purpose and with it the personal touch. Ultimately, customers don't buy processes and automation - they buy from valued suppliers, those that spend the time to develop relationships, understand the customers' needs and provide service.
Our vendor partners welcome this approach.
Do you expect to grow in 2021?
Yes, we expect to continue to expand our business in the UK again this year. As we come out of lockdown and the economy starts to open up again, there is a growing confidence returning to the market. We feel this will drive sustained investments in IT particularly cloud/hybrid cloud and IT security.
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?
For many years, the vast majority of DataSolutions' sales have been of software licenses and more recently cloud services. The primary functions of a value-added distributor have moved beyond the basics of providing good logistics and credit terms so selling licenses and subscriptions is nothing new. Many of our vendors have also transitioned to delivering their solutions as cloud services so it has been a steady evolution of our business to adapt rather than being a shock.
Tell us one thing most people won't know about your company?
We recently made the commitment to become the first carbon-neutral IT distributor in the world (to be the best of our knowledge) by 2022. The environment and our planet's future is hugely important to us as a business. We initiated the set-up of Techies Go Green, a community for like-minded technology companies who want to begin their sustainability journey and take positive steps to become carbon neutral. We have over 70 signatories from leading IT companies that have already signed up and our aim is to grow this to 100+ by June.
*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 VAD has hit £36m revenues just six years after its inception? Find out on next page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We left traditional hardware distribution to other players"
24. Ignition Technology
Revenue: £35.8m (+25%)
UK headcount: 43
Specialism: Cybersecurity
Key vendors: Okta, Sailpoint, BeyondTrust, Cato, Blackberry, Digital Guardian, Corelight, C3M, Axonius, Synack
HQ: Farnborough, Hampshire
This cybersecurity VAD had grown from zero to £35m turnover in six years, with revenue in its year to 31 March 2021 swelling by a quarter.
Founded in 2015 by Peter Ledger, Phil Brown, Sean Remnant and Paul Risk, Ignition is headquartered in Farnborough, Hampshire and also has an office in Finland.
Quickfire Q&A with Ignition MD Peter Ledger
Which emerging technologies are you betting big on this year?
Cloud security, API security, analytics
Have you made any significant vendor signings in the last 12 months?
Spycloud, Synack and Siemplify.
What specialism is your firm known for, and what sets you apart from your peers?
The ability to articulate and message solution selling of new and innovative security solutions.
What's the biggest misconception about distribution?
That it's all about hardware, logistics and finance.
How would you summarise the health of the distribution sector in 2021?
Buoyant: vendors need the channel and relationships more than ever to scale.
What's been your biggest disappointment of the last year?
Not being able to get in front of staff, customers and suppliers in person.
Do you expect to grow in 2021?
Yes - 20 per cent-plus
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 born in the cloud six years ago. We made a strategic decision to focus on software-based security solutions, leaving traditional hardware distribution to the existing players. We have a warehouse which we only used for our marketing collateral.
How do you see the role of distribution changing in the 2020s?
Distribution needs to evolve with the rise of cloud to address multiple consumption models whilst still adding value.
Tell us one thing most people won't know about your company?
Over 50 per cent of our team is female showing our commitment to equality in the workplace.
Which distie is forecasting £50m revenues on the back of booming demand for IT? Find out on following page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"Covid caused a huge increase in the IT footprint"
23. Target Components
Revenues: £39.8m (+15%)
Headcount: 60
Specialism: Components
Vendors include: Gigabyte, Intel, Team Group, Cooler Master, Seagate, Western Digital, PixL, AMD, Marvo, Ubiquiti, Inno3D
HQ: Castleford, West Yorkshire
This Yorkshire-based components distributor saw revenue rise by 15 per cent to £39.8m in its year to 31 March 2021 (according to fresh numbers it shared with us), and expects its top line to hit £50m in its current fiscal 2022 on the back of feverish demand for home-working and home-schooling tech.
Known for its focus on independent retailers, etailers and SMB resellers, the 23-year old firm claims to offer over 10,000 product lines, from cables and laptop parts to servers and networking products.
Quickfire Q&A with MD Paul Cubbage
What specialism is your firm known for, and what sets you apart from your peers?
Historically we were seen as the distributor that looked after independent retailers, but we've seen in the last few years that the same ethos that works well with indies is equally appreciated by all types of customers.
Which emerging vendors are you betting big on this year?
Our exclusive brands PixL (monitors and monitor arms) and Marvo (gaming peripherals) have been our most successful ever UK brand launches. In VGA, Inno3D have ambitious plans for the UK market and we're excited to be working with them. In networking we're seeing significant growth in Ubiquiti and Teltonika winning business in some interesting areas such as electric car charging facilities.
Have you made any significant vendor signings in the last 12 months?
We're constantly developing our range, with recent additions including Inno3D, Mercusys, PNY, Netac, and EnerJ, plus we were recently appointed official Nvidia partners.
What's the biggest misconception about distribution?
That it's just box-shifting with no value add or support.
How would you summarise the health of the distribution sector in 2021?
Vibrant. The covid impact on home-working and home-schooling caused a huge increase in the IT footprint, and much of this will endure beyond covid. That means ongoing additional demand for repairs, upgrades and replacements which is great for our customers and by extension for distribution.
What's been your biggest disappointment of the last year?
Bolton's form in the first half of the season. Fortunately, all's well that ends well.
Do you expect to grow in 2021?
Absolutely. We're forecasting in excess of £50m sales, up from £40m in our year just ended (March 2021).
How do you see the role of distribution changing in the 2020s?
Covid, component shortages, and to a lesser extent Brexit have shown how important it is to be adaptable. Distributors that genuinely put their customers and partners first and can adapt quickly to changing circumstances will continue to thrive. Those that can't and struggle to differentiate their offering will find it tougher, so I think we'll see a gradual process of the biggest distributors trying to emulate aspects of the smaller ones to try to remain relevant.
Which distie wants to be known as more than just Europe's largest spare parts player? Find out on the next page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"The demand is there but component shortages may slow us down"
22. EET
UK revenue: £42.6m (-18%)
UK&I headcount: 35
Specialism: Spare parts, hardware
Key vendors: HP, HPE, Dell (spare parts and accessories); Ubiquiti, Cambium, Raritan (network); Star Micronics, Newland, Socket Mobile (PoS and Auto-ID); Evoko, AIRTAME, Aver (Pro-AV/workplace collaboration)
UK HQ: Uxbridge, Greater London
Headquartered in Denmark, this €450m-revenue spare parts and hardware distributor's UK arm turned over £42.6m in its year to 31 December 2019.
An 18 per cent drop in its top line here was due to large infrastructure project delays in its surveillance business and reduced sales of specialised components, the firm told us, adding that it recently consolidated five offices in favour of a new office and logistics facility in Uxbridge (pictured) and office in Dublin.
Quickfire Q&A with UK MD Sunil Bouri
What specialism is your firm known for, and what sets you apart from your peers?
We have always been recognised as Europe's largest spare part distributor. However, we did a rebrand late last year and launched a new website to fully represent our comprehensive product and solution offering across point-of-sale & auto-ID, network, pro-AV/workplace collaboration and surveillance.
Which emerging vendors are you betting big on this year?
We have expanded the range of our own-brand products namely CoreParts, eStuff, Gearlab and Vivolink. Created to extend the lifespan of devices, accessorise and protect mobile products, equip new ways of working and build professional audio visual solutions respectively.
What's the biggest misconception about distribution?
Distribution has fallen into the stereotypes at times but there is no doubting it's fast paced with passionate people who care and strive to do things better each day.
How would you summarise the health of the distribution sector in 2021?
We have already seen how dynamic and resilient distribution can be through Brexit, the pandemic and supply-chain constraints. Technology will keep evolving so we will continue to see growth and further acquisitions.
What's been your biggest disappointment of the last year?
The impact covid-19 has had on people's livelihoods, mental health and families. This has also kept us away from our colleagues and meeting our vendors & customers.
Do you expect to grow in 2021?
Yes, significantly. The demand is there but component shortages may slow us down. We currently have an unprecedented amount on back order with some vendors.
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 has changed the way we consume technology but has helped fuel digital transformation, innovation and of course flexible working. This all still requires hardware.
How do you see the role of distribution changing in the 2020s?
Improved levels of communication, support & education with even more of a consultative approach to help customers and their end users with product selection and solution building.
Tell us one thing most people won't know about your company?
We've planted over 110,000 trees. We are determined to reduce the impact of our activities on the climate and will continue to plant one tree for every five outbound shipments through our partnership with Ecologi.
Which Microsoft CSP grew by a third in its latest year? Find out on the following page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"It's a competitive sector, with lots of new entrants"
21. Vuzion/Cobweb
Revenues: £44m (+33%)
Headcount: 100 (across Vuzion and Cobweb)
Specialism: SaaS
Key vendors: Microsoft, Mimecast, Acronis, DocuSign, Global Relay, AvePoint, Exclaimer
HQ: Hampshire, Fareham
Managed cloud outfit Cobweb launched distribution arm Vuzion in 2016 after securing indirect CSP status with Microsoft.
CRN understands that Vuzion now generates in the region of 80 per cent of Cobweb's total revenues, which rocketed by a third to £40m in its year to 30 April 2021 (according to numbers it shared with us). Billing itself as a cloud aggregator, Vuzion's vendor allies include Microsoft, Acronis and Mimecast.
Quickfire Q&A with Vuzion MD Michael Frisby:
What specialism is your firm known for, and what sets you apart from your peers?
We're a born-in-the-cloud distributor with a deep technical heritage. When Vuzion first launched we leveraged our 20-plus years of running cloud services to focus on helping resellers build out solutions on Microsoft Azure. We continue to focus on Azure alongside Microsoft 365, and in particular Teams with Voice.
Which emerging vendors are you betting big on this year?
signNow - newish entrant in to the eSignature market that is focused on the SMB segment.
Have you made any significant vendor signings in the last 12 months?
We've focused on Microsoft Teams and Business Voice in the last 12 months and have launched partnerships with Wavenet and Gamma - we are seeing an acceleration of voice attach to Microsoft 365.
What's the biggest misconception about distribution?
That it's just about transactional relationships. Cloud distribution requires a much deeper partnership between distributor and reseller, enabling operational efficiency for resellers as they adapt to a monthly recurring revenue model.
How would you summarise the health of the distribution sector in 2021?
I would say that it is a very competitive sector, with a lot of M&A activity and new entrants coming in to the UK - eg Pax8.
What's been your biggest disappointment of the last year?
Losing both my parents
Do you expect to grow in 2021?
Absolutely - we're targeting 35 per cent-plus YoY growth for Vuzion.
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 born in the cloud and so for us the transition from physical on-premise infrastructure to the cloud is all upside.
How do you see the role of distribution changing in the 2020s?
To drive operational efficiency we expect to see ever closer integration and automation between the resellers systems (PSA, CRM etc.) and our service delivery platform.
Tell us one thing most people won't know about your company?
Our rolling 30-day NPS score is currently 83 (from Reviews.co.uk) and 95 per cent of our partners would recommend us.
Which Devon-based distie was recently snapped up by a US firm? Find out on the next page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We are investing heavily in Microsoft Azure"
20. Sigma Software Distribution
Revenues: £47.3m (+12%)
UK headcount: 29
Specialism: Software
Key vendors: Canonical, Corel, Flexera, Intel, ManageEngine, MindManager, Quest, SAP, Smartbear, Solarwinds
HQ: Ashburton, Devon
Formed in 2003, this software specialist was part of the privately owned CDF Group (which also owns reseller Grey Matter). In November 2020 CDF was acquired by Wayside Technology Group, a US firm whose distribution arm, Climb Channel Solutions, has a European office in Amsterdam.
According to numbers Sigma shared with us, the group's distribution revenues hit £47.3m in its year to 31 December 2020, with the majority generated in the UK.
Quickfire Q&A with VP of Distribution, EMEA, Jane Silk
Which emerging vendors are you betting big on this year?
Not an emerging vendor but an emerging platform - we are investing heavily in Microsoft Azure - enabling resellers to move their customers to the cloud.
Have you made any significant vendor signings in the last 12 months?
All of our vendor signings are significant to us. Our recent focus has been aligning our current and new vendors with our Microsoft CSP offering - delivering solutions for Microsoft cloud not just licensing.
What's the biggest misconception about distribution?
That it adds no value!
How would you summarise the health of the distribution sector in 2021?
Variable - like many other industries, success in IT distribution is dependent on the relevance of its offering.
What's been your biggest disappointment of the last year?
Not being able to meet up with colleagues and partners in an informal setting where we're able to just enjoy each other's company.
Do you expect to grow in 2021?
Absolutely and the signs are good so far!
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?
At Sigma, software has always been our focus so the rise of cloud has been more about adapting to and understanding how customers want to consume, access and pay for their software.
How do you see the role of distribution changing in the 2020s?
Distribution will need to continue to evolve to remain relevant recognising that just ‘delivering' products or just providing a platform or marketplace is not enough.
Which UK competitor do you respect the most, and why?
Westcoast - like us they provide great customer service and have loyal resellers who value what they deliver.
Tell us one thing most people won't know about your company?
Our office is in a renovated maltings building where grain was converted into malt and used to make great locally produced beer!
Which distributor has created its own beer? See following page for the answer...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We have created our own beer"
19. Giacom
Revenues: £48.9m (+38%)
Headcount: 76
Specialism: Cloud software
Key vendors: Microsoft, Acronis, Bitdefender, Vade, Skykick
HQ: Hull, East Yorkshire
This cloud software distributor saw revenues vault by more than a third to £48.9m in its year to 31 July 2020 as it expanded the breadth of services it offers to resellers complement Microsoft's core offering.
In November, the channel-only outfit - which claims to reach 70,000 end-user SMEs through its network of partners - was acquired by Daisy spin off Digital Wholesale Solutions.
Quickfire Q&A with CEO Mike Wardell
What specialism is your firm known for, and what sets you apart from your peers?
Giacom exists to help the channel (our customers) be more efficient and effective. This has led us to develop our cloud platform with their requirements in mind and we continue to evolve this based on ongoing feedback and suggestions.
Which emerging vendors are you betting big on this year?
At Giacom, the vendors we see making a bigger impact in the coming year are the security and backup vendors, as people continue to work remotely. In our portfolio we expect to continue to see strong performance from Webroot, Acronis, Vade, Usecure and Skykick
Have you made any significant vendor signings in the last 12 months?
We have added a number of vendors to the cloud marketplace, in particular Webroot's security offering, Usecure cyber security training, Bit Titan to help our customers migrate their services and Nuvolex which helps our customers save time managing their customers.
What's the biggest misconception about distribution?
The biggest misconception about distribution would be that it's all about buying and selling products - whether that's physical boxes or a license. But it's not. Like most sectors, successful, profitable businesses are the ones who really understand what their customers need and deliver a buying experience to match. Today, customers aren't just buying the product, they're buying the service and ultimately into the brand..
What's been your biggest disappointment of the last year?
The biggest disappointment of 2020 would have been not being able to get the whole Giacom team together physically. It's been a tough year with the ongoing pandemic, but at Giacom, we've also had a lot to celebrate: reaching the one million mark on licenses through the Cloud Market; another great year of financial results; Hull City, who we sponsor, becoming league champions, to name a few. Usually, we'd come together as a whole team to mark those occasions and celebrate everyone's contribution. Due to COVID-19 restrictions, we've instead held virtual celebrations which have still been fun.
Do you expect to grow in 2021?
Absolutely. We have ambitious growth targets for the next three years. Remote and hybrid working have fuelled the growth of cloud-based software solutions and that is set to continue. Giacom doesn't sell directly to end-users, but we are well placed to help the channel take advantage of this opportunity.
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?
Giacom is a cloud services specialist - the Cloud Market was built for the cloud. We didn't bolt cloud services onto an existing hardware distribution business. We've grown by supporting IT businesses as they start to transition their customers to the cloud, and then by adding to our suite of products and services as cloud maturity grows. We're the natural choice to support customers that are both just starting out or those who have more complex needs.
Tell us one thing most people won't know about your company?
Giacom has its own beer. We created two custom India Pale Ales (IPAs) with a local brewer a few years ago for Christmas gifts for customers and the Giacom team - it went down very well.
Which £50m-revenue outfit claims to be the UK's longest-running trade-only distie? Find out on following page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We kept the full team working through lockdown"
18. Northamber
Revenues: £52.8m (+5%)
Headcount: 100
Specialism: AV, print, security, infrastructure
Key vendors: 3m, 10zig, Aver, Avocor, Brother, Canon, Eaton, Edis, Eizo, Fujitsu Scanners, Kemp, Micron Crucial, Sony, Supermicro, Vivitek, WatchGuard
HQ: Chessington, Surrey
Billing itself as the UK's longest-running trade-only distributor, this London-listed distributor saw revenues rise by five per cent to £52.8m in its year to 30 June 2020.
Some 2.1 percentage points of that growth was organic, with the remaining 2.9 per cent generated by Audio Visual Materials, an AV distie Northamber acquired for £2.14m in February 2020.
During the year it moved its warehouse from Weybridge to Swindon, realising a £10.8m exceptional gain on the disposal of the former.
Quickfire Q&A with MD Alex Phillips
What specialism is your firm known for, and what sets you apart from your peers?
We are a technical distributor and have several speciality technology areas across AV, document management, network security and infrastructure focusing on applicability for SMB, education and public Sector. Our long-term view to supporting our partners was evident over the last year as we kept the full team working and actually recruited more people to the team (even in categories that saw demand drop due to lockdowns) so we could do more to help partners.
Largest UK warehouse?
Our main 50,000 sq ft warehouse is in Swindon with easy access to the UK transportation network.
What's the biggest misconception about distribution?
That it's just box shifting! Some distributors like us offer so much more to our channel and their end users. For example our Northamber Solutions team we can take a potentially complex VDI solution and offer resellers a better value, higher-margin end-to-end solution combining vendors like Parallels, SuperMicro, 10Zig and Kemp whilst making the job simpler for the reseller by designing, configuring and delivering a working solution on day 1.
How would you summarise the health of the distribution sector in 2021?
Overall the sector is looking healthy. However, different sub-sectors have been affected in different ways by lockdown, Brexit and product shortages.
What's been your biggest disappointment of the last year?
Missing industry events, trade shows and of course the CRN Awards
How do you see the role of distribution changing in the 2020s?
The big multi-nationals will keep getting bigger, focusing more and more on fulfilment of mega brands at the lowest cost to serve whilst the value-add segment will become increasingly important to development brands and partners who need the in-country help.
Tell us one thing most people won't know about your company?
Northamber is the longest-running trade only distributor in the UK and we are proud to have been serving the UK channel for over 40 years!
Which £55m-revenue firm claims to be the UK's largest pure-play cybersecurity VAD? Find out on following page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We've brought on some big names in cloud cybersecurity"
17. e92plus
Revenues: £55.6m (-1%)
Specialism: Cybersecurity
Vendors include: Check Point, Forcepoint, Trend Micro, Bitglass, Connectwise, Bitdefender, Ping and Cloudflare
Headcount: 57
HQ: Surbiton, Surrey
Billing itself as the UK's largest pure-play cybersecurity VAD, e92plus saw revenues dip by one per cent to £55.6m in its year to 31 December 2019.
Founded in 1989, it counts Forcepoint and Check Point among its long-standing allies, with iBoss and Cloudflare among the Surrey-based outfit's 2021 vendor signings.
Quickfire Q&A with CEO Mukesh Gupta
What specialism is your firm known for, and what sets you apart from your peers?
Cybersecurity, and that we're the largest pure-play cybersecurity VAD.
Have you made any significant vendor signings in the last 12 months?
We've brought on some big names in cloud cybersecurity - iboss, Cloudflare, Lookout, Sumo Logic and Bitglass. There's no doubt where the growth is.
What's the biggest misconception about distribution?
Defining distribution by logistics or warehouses is an example of where we're often underestimated. We bring a lot more value to the channel!
How would you summarise the health of the distribution sector in 2021?
Distribution has helped keep the channel moving and successful in a pandemic - we've been ensuring product supply, providing credit and financial help, delivering new technology and services so partners could help their customers adapt and survive.
What's been your biggest disappointment of the last year?
The challenge of not being able to recruit fast enough to meet the opportunity.
Do you expect to grow in 2021?
Absolutely, the market is growing just as the threats are.
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?
In over 30 years, our value and differentiation was never just in logistics - it was about business growth and enablement for both our vendor and reseller partners.
How do you see the role of distribution changing in the 2020s?
Distribution will of course adapt as the technology landscape evolves, but our core focus won't change and we'll continue to invest and take risks where we see opportunities
Tell us one thing most people won't know about your company?
The ‘92' in e92plus refers to 1992 and the UK joining the EU and opening up markets…. that definitely makes us feel our 30+ years old!
Which hardware distie claims to hold £7m of stock? Find out on following page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We distribute the world's leading gaming hardware brands"
16. Spire Technology
Revenues: £77.3m (+37%)
Headcount: 67
Specialism: Components, gaming hardware
Key vendors: Asus, Corsair, TP-Link, ASRock, Palit, ADATA
HQ: Verwood, Dorset
Founded in 1990, this consumer-focused distie claimed lockdown has turbo-charged demand for the laptops, displays, webcams, headphones and networking products it carries as it unveiled a 37 per cent revenue spike in its year to 1 May 2020.
Based in Dorset, Spire claims to offer over 2,500 products, working with vendors including Asus and Corsair.
Quickfire Q&A with MD John Appleton
What specialism is your firm known for, and what sets you apart from your peers?
Specialist suppliers of gaming hardware, distributing the world's leading gaming hardware brands.
We have an experienced (eight years average length of service), knowledgeable and proactive sales team supported by flexible customers services and finance teams.
Have you made any significant vendor signings in the last 12 months?
Yes: PNY Technologies (Pro Graphics, Quadro, flash), Fractal Design (Premium PC gaming hardware - Case, PSU, cooling & accessories), Sapphire Technology (AMD graphics), Lexar (SSD, flash)
Largest warehouse?
28,000 sq ft
How would you summarise the health of the distribution sector in 2021?
It appears to be in good shape
What's been your biggest disappointment of the last year?
Whilst we were quick to adapt to home working, it's great to be welcoming back our colleagues into the building again. One of the benefits of our whole company working under one roof is our ability to react more quickly and effectively to day-to-day situations.
Do you expect to grow in 2021?
Yes
Tell us one thing most people won't know about your company?
We were formed over 30 years ago as an Atari distributor and remain a trade-only distributor.
Which distie has apsirations of becoming a $1bn business? See following page for the answer...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"We have aspirations to be a $1bn business in the near future"
15. Sahara Presentation Systems
Revenues: £78.7m (+8%) (£39m of which UK)
Specialism: AV
Key vendors: Clevertouch, Epson, Conen, Sedao, Smart Metals, Roth
UK headcount: 100+
HQ: Dartford, Kent
Billing itself as an audio visual distributor that "happens to also distribute its own brand" - namely interactive touchscreen offering Clevertouch - Sahara was acquired for by smaller, NASDAQ-listed peer Boxlight in September 2020.
Dartford-based Sahara saw revenues rise eight per cent to £78.7m in its year to 31 December 2019, but that total includes nearly £40m of sales from outside the UK. CRN also understands that Clevertouch generates in the region of 85 per cent of its top line, putting its third-party distribution revenues around £12m.
Quickfire Q&A with Sahara CEO Mark Starkey
Which emerging vendors are you betting big on this year?
Clevertouch - it is our own brand and we are growing rapidly by selling globally and developing a whole eco system around Clevertouch Technologies
Have you made any significant vendor signings in the last 12 months?
Nothing significant - in fact we served notice on a couple of vendors which we though were less strategic in our go to market strategy. For us it is all about having a very clear and defined strategy
What specialism is your firm known for, and what sets you apart from your peers?
We are a specialist audio visual distributor with a particular strength in the education sector. We are experts in projection and interactive flat panel displays.
What's the biggest misconception about distribution?
Too many people think there is minimal value add in distribution. If you work with a distributor who has deep knowledge in a particular market, or of certain product sets, then it can help significantly grow the sales pipeline of any vendor.
How would you summarise the health of the distribution sector in 2021?
Sahara had its most profitable year ever in 2020 and we are on track to have another record year in 2021. For us the health of the distribution sector is very strong although we are aware that some of our competitors struggled during COVID lockdown, so I guess the market health is mixed.
What's been your biggest disappointment of the last year?
Not being able to visit customers face to face and travel to see our international partners and customers
Do you expect to grow in 2021?
Yes - significantly
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?
There is an old expression - revenue is vanity, profit is sanity. We may not be the biggest distributor out there but we are certainly one of the most profitable. You need to sell what your customers want to buy and if that is not a physical product, then it should not make any difference. We sell a lot of software and there is no physical product to ship so the challenges of cloud are not really significant for us. We embed cloud solutions into the products that we sell. It is all about staying relevant to your customer.
Which UK competitor do you respect the most, and why?
No one stands out in the distribution business. I respect certain resellers such as Softcat which have grown significantly and have built a dynamic and aspirational business.
Tell us one thing most people won't know about your company?
We recently sold Sahara to a US listed NASDAQ business, Boxlight. Shaun Marklew, Pat Foley and myself were all appointed as execs onto the Boxlight board, which means that we are now running a US-listed business with aspirations to be a $1bn business in the near future. Very exciting times ahead.
Which Mitel and Avaya distie ranks 14th in our rundown? See next page for answer...
Top 40 UK IT distributors you need to know: Part Two
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"Distribution is like an athlete in its prime"
14. Nimans
Revenues: £95.9m (-7%)
Specialism: Comms
Vendors include: Jabra, BT, Yealink, EPOS, JPL, Unify
HQ: Salford, Greater Manchester
Headcount: 224
This comms distributor saw revenues shrink seven per cent to £95.9m in its year to 31 December 2019, going by the most recently filed annual accounts of ‘Nycomm Ltd' (updated: the firm told us its 2020 revenues stood at £116m - up 8.5 per cent YoY).
Founded in 1985 by the late Julian Niman, the Salford-based outfit is part of £130m-revenue Manchester-based IT group Nycomm,.
Q&A with group CMO Steve McIntyre
What specialism is your firm known for, and what sets you apart from your peers?
The range and depth of our stock and that we have the best logistics performance in the industry for next day delivery backed up with helpful and experienced staff. If you absolutely, definitely, must have UC product on the desk tomorrow - call Nimans - experience is everything.
Have you made any significant vendor signings in last 12 months?
Ericsson LG and Zoom added to our 4 new cloud UC platforms alongside NEC Univerge Blue and Beyond Connectivity
What's the biggest misconception about distribution?
It's about shifting boxes - It's everything outside of the box that matters
How would you summarise the health of the distribution sector in 2021?
It's like an athlete in it's prime!
What's been your biggest disappointment of the last year?
Having to work remotely, whilst we had a great year sales wise, we missed out on being together as the Nimans family.
Do you expect to grow in 2021?
Most definitely!
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 rise if cloud provides other opportunities, that's why we've launched our 4 new cloud UC platforms this month. There is still a big market for on-premise and all communications regardless of where they are hosted need hardware of some kind at either end and we're happy to provide it.
How do you see the role of distribution changing in the 2020s?
Service wraps will become more important to enhance product offerings and the XaaS revenue model brings new opportunities that will drive new hardware adoption and changeout in new directions.
Tell us one thing most people won't know about your company?
We are the largest distributor of EPOS products in the world!
Which £100m distie is on an international growth charge? Find out on the next page...
Top 40 UK IT distributors you need to know: Part Two
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"As a scale-up company we will grow significantly again"
13. QBS Technology Group
Revenues: £109m (+42%)
UK headcount: 75
Specialism: SaaS, software
Key vendors: DocuSign, TeamViewer, SolarWinds, Sharegate, Jetbrains
HQ: London
This software specialist has grown rapidly through acquisition to become a £125m-revenue runrate powerhouse.
Differentiating itself through its own platform, QBS' recent conquests include Zedsphere and AlphaGen in the UK, as well as German Compuwave and French Seiner Informatique. Group revenues for its year to 31 March 2021 hit £109m - up from £77m in 2020 an £64m in 2019 - QBS told us, with the bulk of sales still drawn from the UK.
Q&A with group CEO Dave Stevinson
What specialism is your firm known for, and what sets you apart from your peers?
We are totally dedicated to emerging software publishers. All our product is shipped electronically via our software delivery platform. So we will keep on developing the platform and adding functionality.
Which emerging vendors are you betting big on this year?
As a distributor dedicated to emerging software publishers - it is what we do. It would be terribly wrong to have favourites.
Have you made any significant vendor signings in the last 12 months?
Guilty - Solarwinds, Smartbear and Unitrends are three.
What's the biggest misconception about distribution?
Simply the naïve concept that it adds cost - when in reality it creates value.
How would you summarise the health of the distribution sector in 2021?
In a word - "contrasting". Naturally there are fewer of us in the club and the big are getting much bigger - the rest of us are specialising.
Do you expect to grow in 2021?
Absolutely - as a scale-up company we will grow significantly again. The quality of that growth is improving too.
How do you see the role of distribution changing in the 2020s?
The role will not change significantly in the next decade - all changes will be incremental improvements.
Which UK competitor do you respect the most, and why?
Our biggest competitor is "Publisher Direct" - and our mission is to bring that business through the channel via our software delivery platform to optimise the software delivery process.
Tell us one thing most people won't know about your company?
What QBS actually stands for!
Which distie has just launched its own brand of sustainable products? Find out on the next page...
Top 40 UK IT distributors you need to know: Part Two
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"Our own brand Excel is the No1 in the UK"
12. Mayflex
Revenues: £118m (+4%)
Specialism: Cabling
Key vendors: Excel, Hikvision, Avigilon, Axis, Paxton
Headcount: 250
HQ: Birmingham
Owned since 2015 by French electrical product distributor Sonepar, this infrastructure, networking and IP security solutions distributor started off life in 1917 as Mayall & Co, a distributor of Swan kettles.
Accounts for its year to 31 December 2019 show revenue rising four per cent to £118m, with 95 per cent of the total generated in the UK.
Partnering with vendors including Axis and Paxton, Mayflex launched its own cabling brand, ‘Excel', in 1997, before introducing its own line of ‘Aura' AV connectivity products in March 2021.
Quickfire Q&A with MD Andrew Percival
What specialism is your firm known for, and what sets you apart from your peers?
Infrastructure cabling for IoT systems. Our own brand Excel is the No1 in the UK market thanks to its partner programme, business development team, and pre- and post-sales technical resource, and support tools
Largest warehouse?
Excel House, Birmingham 85,000sq ft
Which emerging vendors are you betting big on this year?
Not limited to vendors, but expecting big growth in AI/AR data driven building security/management systems, and body-worn camera systems.
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Have you made any significant vendor signings in the last 18 months?
Hikvision in January 2020, Tripp Lite in March 2021 and also in March 2021 the launch of our own brand of AV connectivity products, Aura.
What's the biggest misconception about distribution?
That all we do is add value through credit lines.
What's been your biggest disappointment of the last year?
Birmingham City's continued on- and off-pitch performance.
Do you expect to grow in 2021?
Yes, we always expect to grow!
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 infrastructure products provide connectivity for devices that form part of most cloud-based solutions, and we provide a range of such devices in the form of CCTV cameras, and network attached access control so for us growth in cloud solutions is positive. We are also expanding our focus to look at opportunities in the fit out of datacentres with both cabling and security systems a large part of customer investment in this vertical.
How do you see the role of distribution changing in the 2020s?
We will need to be more digitally competent to meet customer demands for seamless omnichannel experience.
Tell us one thing most people won't know about your company?
We were the first to remove single-use plastic from over 90 per cent of parts sold under our Excel cabling brand, and we have repeated this first in the audio visual connectivity market with the March 2021 launch of Aura.
Which Warrington-based distie ranks 11th in our rundown? Find out on next page...
Top 40 UK IT distributors you need to know: Part Two
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 25th to 11th...
"Growth will depend on the availability of stock"
11. VIP UK
Revenues: £156.7m (+40%) (of which £122.3m UK)
UK headcount: 138
Specialism: Components, peripherals
Key vendors: AMD, Asustek, MSI, Gigabyte, Benq
HQ: Warrington
This Warrington-based components distributor branded its year to 30 June 2020 "the most successful year in our 30-year trading history" as enforced home working and leisure time stoked demand for its gaming PCs and peripherals.
Revenues from continuing operations hiked 40 per cent to £156.7m.
Its UK business generated £122.3m of the total, although that figure includes the contribution of VIP's own brands, including its Zoostorm PCs.
Quickfire Q&A with VIP Group chairman Jatti Sahni
What specialism is your firm known for, and what sets you apart from your peers?
Agility - delivering with a focused drive and having a proactive approach to support partners in the ever-changing market conditions.
Which emerging vendors are you betting big on this year?
Based on the current shortages in the market, I would bet on whoever can provide the best allocation of stock to fulfil the considerable demand.
Have you made any significant vendor signings in the last 12 months?
There has been significant potential to capitalise with our current vendor partners throughout the last 12 months, particularly when working through the challenges surrounding the pandemic. As a result, it has not been a priority focus over the past year.
Largest warehouse?
96,000 Sq Ft
What's the biggest misconception about distribution?
That distributors are just box shifters and don't offer much additional value.
How would you summarise the health of the distribution sector in 2021?
Both challenging and healthy in equal measure. We've seen challenges across the board in supply, and yet significant growth throughout the channel.
What's been your biggest disappointment of the last year?
Despite the fantastic success and growth we have seen this year, it's a shame that it has come during one of the most unprecedented and difficult times for individuals and families.
Do you expect to grow in 2021?
There is definitely potential for growth, though this will depend on the availability of stock during the upcoming 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?
We haven't seen a massive impact from this so far - hardware upgrades were not an end-user priority prior to COVID. Due to a multitude of factors I believe the demand for hardware will continue to rise. Saying that we all have to continue to adapt.
How do you see the role of distribution changing in the 2020s?
Automation, integration, and migration onto digital platforms will be integral to our successes. Equally making that facility available for our resellers enabling them to grow.
Stay tuned on CRN this week as our countdown of the UK's largesst distributors concludes...