45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
Who are the UK's top IT distributors, and how do they view the market going into the final four months of 2022?
This three-part feature counts down the 45 largest UK broadliners and VADs on CRN's radar by revenue, beginning with those ranked 45th to 31st*....
See part two here, and part three here.
45. Prianto Ltd
Revenue: £7.6m (+39%)
Staff: 10
Specialism: Enterprise software, virtualisation
Top vendors: Quest Software, Droplet, Osirium, Unitrends, TeamViewer, Runecast, Micro Focus
HQ: Newbury, Berkshire
The UK arm of this pan-European enterprise software distributor turned over £7.6m last year, according to numbers it shared with us. It counts Quest Software and Unitrends among its vendor partners.
Globally, Munich-headquartered Prianto boasts revenues of around €150m and 140 staff. The UK operation, which functions as a sales arm only, launched in 2011, with DACH, France Benelux, CEE, Canada and USA among the other territories now covered.
Q&A with Prianto Ltd CEO Yuri Pasea
Have you made any significant vendor signings in the last 12 months?
Micro Focus. They have been a key partner for the Prianto group for a number of years, and our contract has recently been expanded to the UK. This year we signed Osirium. They are a British vendor specialising in PAM and PEM technologies. Osirium is disruptive, and its technology is at the forefront of the market with new compliance rules.
Which emerging vendor/technology are you tipping for take-off in 2022?
Droplet and Runecast. Both vendors have disruptive and innovative technologies. They have grown significantly, and our pipeline is very healthy. We are excited about the work our partners are delivering in this space.
Do you expect to grow in 2022?
Yes, fundamentally, we have already seen significant growth in FY22, and FY23 we are expecting to continue our growth curve. We are also expanding the team in the UK to continue our growth trajectory and moving to a new office in Q3.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Why would it be a concern? We are not looking to sell any time soon.
How is the chip shortage impacting you, and when will it end?
We haven't seen too much impact from this; being mainly a software distributor! We have seen end users moving more desktops to the cloud as the lead time for laptops has increased.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Distribution mergers are cyclical, and I believe we are at the end of this current phase. We see continued consolidation with MSP partners and MSP vendors.
Distribution mergers are cyclical, and I believe we are at the end of this current phase
As most are aware we are seeing a lot of M&A in the industry but also at end-user level, daily we are working on migration projects with our partners to merge environments following acquisitions. This is a subject matter that will not be going away anytime soon we believe.
What, if any, role does distribution have to play when it comes to sustainability?
We think it is the responsibility of all organisations to play a role in sustainability. I'm sure most if not all distributors are playing their part.
What's been your biggest business mistake?
Prianto doesn't make mistakes!
*Brokers, sub-distributors 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 £11m-revenue unified comms distributor is in the process of leading a two-tier transition for one of its key vendors? Find out on the next page...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
44. Nuvola Distribution
Revenue: £11m (+10%)
Staff: 50
Specialism: Unified comms
Top vendors: Alcatel-Lucent Enterprise, Spectralink, Sangoma, 8X8, Gamma, Yealink, NFON.
HQ: Reading
This Reading-based UC, cloud, network, data WiFi and AV specialist is just one of two Alcatel-Lucent Enterprise distributors in the UK, and also works with the likes of RingCentral, NFON and Mitel.
Tracing its roots back to 2010, Nuvola expanded its Irish presence last year by acquiring Electromaster. Nuvola does not break out revenues on Companies House but turned over £11m in its year to 30 June 2022, according to numbers it shared with us.
Q&A with Nuvola managing director Michael Lloyd
What's been your biggest business highlight of 2022 so far?
Being given the responsibility by Alcatel Lucent to transition all their direct partners over as Nuvola partners. Nuvola is the only ALE distributor in the UK across both the ALE comms and data offering, and as such we have contracted the ALE direct resellers from ALE, who no longer hold direct resellers relations.
Do you expect to grow in 2022?
Yes, in both TO/GP and new vendors into our portfolio and a significant number of new resellers as the channel recognises the importance of our personal relations style with partners and our extensive and experienced professional services team.
What's the one market trend everyone else is missing?
The Microsoft Teams ecosystem across certified vendors to deliver to deliver a complete solution for resellers.
Have you made any significant vendor signings in the last 12 months?
Yes: Yealink, Gamma, Luware, Spectalink.
Distributor share prices have cooled over the last 12 months. Is that a concern?
No, as we are privately owned and distribution will naturally acclimate as it should. We anticipated this and have led the way in augmenting the traditional distribution model by building a strategy around technology divisions including a professional services arm to support demand from vendors and resellers in engineering expertise requirements.
Vendors are anticipating the end [to the chip shortage] imminently
How is the chip shortage impacting you, and when will it end?
Vendors are anticipating the end imminently. The impact has led to a more competitive market as logistics were affected, but we are seeing that starting to smooth out now.
What's been your biggest business mistake?
A bad haircut once.
Which £13m-revenue Microsoft Dynamics distributor rebranded to a new name earlier this year? Find out on the next page....
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
43. Companial
UK revenue: £12.7m (+14%)
UK staff: 6
Specialism: Microsoft business applications
UK HQ: Pontypridd, Wales
Known until recently as Quattro Business Solutions (QBS Group), Netherlands-based Companial claims to support over 1,000 Microsoft Dynamics partners in 75 countries.
Its UK arm saw revenues rise by 14 per cent to £12.7m in calendar 2020, according to the latest accounts filed on Companies House.
QBS Group rebranded as Companial in February 2022 upon its merger with Lithuania-based peer 1ClickFactory, with which it had operated a strategic partnership since 2017. The enlarged company claims to employ around 200 staff, with offices in The Netherlands, Wales, Spain, Germany, Denmark, Sweden, Finland, Lithuania and the US.
Which distributor's MD is targeting 10 per cent growth this year? Find out on the following page...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
42. EnableX Group
Revenue: £16m (+82%)
Staff: 43
Specialism: Comms
Top vendors: Ericsson-LG, Ribbon, So Connect, Braxtel, Yealink
HQ: Pulborough, West Sussex
Founded in 2012 by a trio of former Crane executives, Ericsson-LG ally Pragma Group has almost doubled in size since last year's Top Distributors report after joining forces with Techland this March under the ‘EnableX' umbrella.
Pragma Group (which also includes the Candio brand) saw revenues swell from £8.8m to £12m in its year to 30 September 2021, according to numbers it shared with us. Adding in Ribbon distributor Techland, its top line for the period stood at around £16m.
Q&A with Pragma Group co-founder Tim Brooks
What's been your biggest business highlight of 2022 so far?
The creation of EnableX group, a new entity which acquired both Pragma Group (Pragma Distribution and Candio) and Techland, a specialist Ribbon distributor and services partner.
Do you expect to grow in 2022?
Yes, we're targeting 10 per cent top-line growth across the group but also significantly increasing our recurring revenue.
What's the one market trend everyone else is missing?
Providing high-impact, low-cost white-label digital services that help end users drive digital transformation. Candio and our channel have seen huge growth with these services.
We're targeting 10 per cent top-line growth across the group
Have you made any significant vendor signings in the last 12 months?
Yes, Ribbon through the acquisition of Techland.
Which emerging vendor/technology are you tipping for take-off in 2022?
SBCaaS to enable resellers greater flexibility and differentiation to support MS Teams, Zoom Phone and integrating legacy VOIP deployments.
How is the chip shortage impacting you, and when will it end?
Thankfully our vendors, and Ericsson-LG in particular, have done an excellent job of maintaining supply which together with our investment in greater stock levels has protected our resellers against chip shortages.
What, if any, role does distribution have to play when it comes to sustainability?
We all have a key part to play in sustainability and protecting our environment. At EnableX we have eliminated the use of plastics in our warehouse and have significantly reduced use of new packing material through recycling.
Which distributor suffered a 10 per cent revenue crunch in its latest year? See next page to find out...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
41. Trust Distribution
Revenue: £16.3m (-10%)
Staff: 48
Specialism: Telecoms and networking
Vendors include: Mitel, NEC, Yeastar, Yealink, Konftel, Panasonic Telephone Systems, Netgear, Snom
HQ: Heywood, Lancashire
Founded in 2005, Trust Distribution spearheaded Mitel's return to a two-tier channel approach in 2011 and today claims to supply 6,000 telecoms product lines across 150 vendors.
The Lancashire-based distributor characterised a ten per cent revenue dip in its year to 30 November 2020 a "credible year of trading" amid "unprecedented events".
It acquired West Sussex-based peer SOS Communications in the final month of the period in a move designed to bolster its service offerings and geographical presence.
See next page to find out which £16m-revenue distributor had an "outstanding year", with revenues up by more than a half...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
40. Varlink
Revenue: £16.4m (+56%)
Staff: 27
Specialism: Auto ID and EPoS
Top vendors: Zebra, Sunmi, Janam, Seagull, SBV (Varlink's own brand)
HQ: York
Founded in 2005, Varlink works with over 20 vendors in the auto ID, mobile computing, print and EPoS arena, offering same-day delivery from its warehouse in York.
CEO Mike Pullon characterised calendar 2021 as an "outstanding year" as revenues vaulted from £10.5m to £16.4m (according to numbers he shared with us).
Q&A with Varlink CEO Mike Pullon
What's been your biggest business highlight of 2022 so far?
Experiencing an improvement in supply chain constraints.
Do you expect to grow in 2022?
2021 was outstanding for Varlink - it's unlikely that we will grow on that result but we will be up on 2020.
Have you made any significant vendor signings in the last 12 months?
Yes we have: TSC label printers and Newland scanners and data capture terminals.
Which emerging vendor/technology are you tipping for take-off in 2022?
SoftPOS is going to have significant impact.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Given the supply chain issues it is not surprising and it should improve as products begin to flow into stock again.
How is the chip shortage impacting you, and when will it end?
There is no escaping the fact that we have not had the stock that has been required by the market
There is no escaping the fact that we have not had the stock that has been required by the market. In the past couple of months we have seen some improvement but we don't expect resolution until some point in 2023.
What's been your biggest business mistake?
Getting too excited about emerging brands and bringing them to market too early - pioneering for brands is expensive.
See next page to find out which distribution MD believes product shortages have helped cover up a 'flat' market...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
39. Smithie UK
Revenue: £17.5m (-6%)
Staff: 13
Specialism: SSD
Top vendors: Samsung Electronics, Samsung Semi-Conductors, Asus, Liteon, Verbatim, Antec, Anker Technology, Goodram
HQ: Basingstoke
Billing itself as the "go-to source for premium storage and IT hardware components", Smithie UK partners with the likes of Samsung, Asus and Antec and claims to consistently hold over £3m in stock. Founder Shane Hilden conceded that it has been "a turbulent two years" for the distribution sector (see below), with Smithie seeing revenue in its year to 31 October 2021 fall six per cent to £17.5m.
Q&A with Smithie UK MD Shane Hilden
What's been your biggest business highlight of 2022 so far?
Making it through a turbulent two years.
Do you expect to grow in 2022?
Would be nice, but no.
All distributors have had a difficult year
What's the one market trend everyone else is missing?
How to sell with a margin!
Which emerging vendor/technology are you tipping for take-off in 2022?
Not sure, the market is flat.
2022 will have been a successful year for your company if… we will make a profit but has been a tough year.
Distributor share prices have cooled over the last 12 months. Is that a concern?
I think so. All distributors have had a difficult year.
How is the chip shortage impacting you, and when will it end?
I believe the market is flat, which has covered up the shortages.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
Market condition will continue to force M&A.
What's been your biggest business mistake?
Not following my gut!
Which distributor (other than your own company) do you feel has done a good job over the last year?
I am not sure any distributor in the IT market could hold up their hand and say it has done a good job in 2022.
The next distributor in our countdown is this feature's youngest, but already turns over £18m. See next page to discover their identity...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
38. Titan Data Solutions
Revenue: £18m (+40%)
Staff: 29
Specialism: Storage
Top vendors: Quantum, QNAP, Seagate, Scale Computing, Datacore
HQ: London
Founded in November 2018 by four former Beta Distribution staff, this feature's youngest company has quickly amassed a team of nearly 30 staff. According to numbers it shared with us, its revenues pogoed from £12.8m to £18m in its year to 31 March 2022.
Based in 1 Canada Square in Canary Wharf, the data storage specialist has warehousing facilities in Rainham, Klundert, Netherlands and Tredager, Wales.
Q&A with Titan Data Solutions MD Ben Jackson
What's been your biggest business highlight of 2022 so far?
Securing our Investors in People Gold accreditation.
Do you expect to grow in 2022?
Yes, our budget for this year is £24m.
What's the one market trend everyone else is missing?
Over 90 per cent of data is not analysed, leaving huge data silos and multi-tiered environments. We are seeing many end users retreating from the cloud - companies who did not categorise or tag their meta data, have been left with huge egress costs. Data is in fact moving faster to the edge than the cloud, and this is where Titan are focused currently.
Have you made any significant vendor signings in the last 12 months?
Datacore and Exascend
Which emerging vendor/technology are you tipping for take-off in 2022?
Scale Computing
2022 will have been a successful year for your company if… we hit budget and recover our currency losses from Q1
Distributor share prices have cooled over the last 12 months. Is that a concern?
This mirrors industry trends. Some major manufacturers have seen a 70 per cent decline in their share price this year alone, with the chip shortage and logistics challenges being the primary drivers I'm sure.
How is the chip shortage impacting you, and when will it end?
Everyone has been affected. We don't anticipate this to be resolved until the end of 2023. I think it's generally been accepted globally, therefore our priority is to manage expectations and report accurate information to our reseller community.
We don't anticipate [the chip shortages] to be resolved until the end of 2023
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
I think history has shown us that nothing is ever off the table. M&A has always created opportunity for specialist distributors like Titan and I hope to see this continue throughout '22.
What, if any, role does distribution have to play when it comes to sustainability?
Becoming carbon neutral should be an aspiration for all distributors to achieve. However, in an industry where collecting badges and accreditations is rife, we must move away from this culture, and truly educate ourselves.
What's been your biggest business mistake?
My optimism is both a blessing and a curse so there's many mistakes I have made the past four years in business, however the relentless headwind of global events that Titan have encountered in COVID, Brexit, shortages, inflation and potentially now a recession since incorporation, forcing us to constantly self-analyse and evolve.
Which £24m-revenue VAD is looking to shake up the market with a new approach? See next page for more...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
37. Ethos Technology
Revenue: £24m (+60%)
Staff: 30
Specialism: Storage
Key vendors: Pure Storage, Cohesity, Hitachi Ventara, Panzura, Datacore
Founded in 2015 with an aim of "bridging the technology gap between the USA and the UK", Ethos Technology counts Pure Storage and Cohesity among its vendor allies.
The Oxfordshire-based storage VAD claims it is on course to turn over £70m in its year to 31 January 2023 after logging revenues just shy of a respective £15m and £24m in fiscal 2021 and 2022 (according to numbers it shared with us).
Q&A with Ethos Technology CEO Omar Galbraith
What's been your biggest business highlight of 2022 so far?
Winning several major partner contracts due to our value add.
Do you expect to grow in 2022?
Yes, we are looking at over 200 per cent growth this year.
What's the one market trend everyone else is missing?
We believe that cloud native software and APIs utilising a hybrid approach will be the way forward. We hear a lot of public cloud-first only strategies, until pricing, reliability and migration are discussed.
2022 will have been a successful year if we continue to grow and sign at least one of two vendors we are in late discussions with
Have you made any significant vendor signings in the last 12 months?
Hitachi Vantara, Valtix and Panzura.
Which emerging vendor/technology are you tipping for take-off in 2022?
Valtix and Panzura.
2022 will have been a successful year for your company if… we continue to grow and sign at least one of two vendors we are in late discussions with.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Not for us we are completely self-funded with no outside investment and considerable growth.
How is the chip shortage impacting you, and when will it end?
Luckily, it's not impacting us as our core vendors. Pure and Cohesity are still offering lead times of two to four weeks. As to when it will end… that depends on winter and the chance of further lockdowns or Covid restrictions in manufacturing regions.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
I think in this market we will see a lot of consolidation, both within distribution and reseller world. When the world's economies are struggling, and doubt is in business, this tends to happen.
What, if any, role does distribution have to play when it comes to sustainability?
All vendors we represent reduce, power cooling and footprint in the DC. All our vendors have their own high ESG score.
What's been your biggest business mistake?
Ethos had the opportunity to sign one of two vendors many years ago and we picked the wrong horse and no longer work with the vendor we selected. The other is now a multi-billion-valued tier one. We won't make that mistake again.
Which VAD boss rues not setting up his own business earlier? See next page for more...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
36. Kite Distribution
Revenue: £24.5m (+1%)
Staff: 20
Specialism: Cybersecurity
Top vendors: Infoblox, ExtraHop, Keysight Technologies, Corero Networks Security, Immersive Labs, Entrust, Thales Cloud Security, Appgate, Bitdefender MSP, Cryoserver
HQ: Leicester
This Leicester-based security VAD characterised a one per cent revenue calendar 2021 revenue rise as a "very positive result" factoring in Covid. Pre-tax profits also expanded from £696,000 to £735,000.
Founded in 2014 by three former bosses of Sphinx, Kite works with ten vendors including Infoblox, Extrahop and Corero.
Quickfire Q&A with MD Dave Marshall
What's been your biggest business highlight of 2022 so far?
Seeing more and more partners and vendors face to face
Do you expect to grow in 2022?
We are tracking to grow.
[My biggest business mistake was] not taking the opportunity to set up my own business sooner in my life
What's the one market trend everyone else is missing?
Not replying to this.
Have you made any significant vendor signings in the last 12 months?
Immersive Labs has been a great signing for us and has hit the ground running. We should also have one or two before the end of the year. Watch this space!
Which emerging vendor/technology are you tipping for take-off in 2022?
DevSecOps.
2022 will have been a successful year for your company if… we continue to grow despite the fallout from chipset supply issues, global economic impact and cybersecurity skills shortage.
How is the chip shortage impacting you, and when will it end?
We are seeing some extended lead times but they are improving all the time.
What, if any, role does distribution have to play when it comes to sustainability?
I think every business needs to play its part in helping to protect the planet. We are always looking at ways at reducing our carbon footprint.
What's been your biggest business mistake?
Not taking the opportunity to set up my own business sooner in my life.
Which IT group's distribution arm has grown quickly into a £25m business? See next page for the answer...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
35. Ci Distribution
Revenue: £25m (+19%)
Staff: 25
Specialism: Rugged devices
Top vendors: MSI, ASUS, Razer, GETAC, Panasonic, Prowise
HQ: Basingstoke
The distribution wing of IT group Centerprise, Ci Distribution claims it is on course to post revenues of £33m in its year to 31 August 2022, having grown its top line by 19 per cent to £25m in fiscal 2021 (according to numbers it shared with us).
Ci Distribution has two distinct sales teams in Basingstoke and Telford that focus on rugged devices and gaming and security products, respectively. It claims to serve over 600 resellers each year.
The wider Centerprise business saw overall revenues fall from £123.7m to £104.6m in its fiscal 2021.
Q&A with Ci Distribution managing director Jon Atherton
What's been your biggest business highlight of 2022 so far?
Continuing our YOY 20 per cent growth journey….
Do you expect to grow in 2022?
Yes: onwards and upwards!
I envisage a further six months' delays and a further six months before we see shipment times back to normal levels
Have you made any significant vendor signings in the last 12 months?
Yes ASUS ROG (Republic of Gamers) and Razer
Distributor share prices have cooled over the last 12 months. Is that a concern?
Not at all, it gives the Tier 2 and 3 distributors further scope to expand
How is the chip shortage impacting you, and when will it end?
Sadly, the whole channel is affected. I envisage a further six months' delays and a further six months before we see shipment times back to normal levels.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
I see further mergers as the behemoth distribution companies tackle the global shortages on product, retail downturn, and margin erosion.
What's been your biggest business mistake?
To not empower earlier in my career the many gifted individuals I have had the pleasure to work with.
Which distributor saw 2021 revenues dip 13 per cent? See next page for more....
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
34. Simms International
Revenues: £29.7m (-13%)
Staff: 30
Specialism: Memory
Key vendors: Kingston, Micron, Intel, ATP, and Innodisk
HQ: Lenham, Kent
Counting Kingston among its vendor allies, Simms International logged a 13 per cent revenue dip in calendar 2021 amid an "unpredictable" trading backdrop that fuelled a drop in consumer and workplace spending.
The memory specialist said it was "extremely proud" of its performance during the year, with CEO Andrew Henderson telling CRN that it hopes to match its 2021 revenue tally in 2022 (see below).
Q&A with Simms International CEO Andrew Henderson
What's been your biggest business highlight of 2022 so far?
The agility and resilience shown by my colleagues
The market trend we all need to be thinking about is sterling versus US$
Do you expect to grow in 2022?
We are hoping to achieve our 2021 revenue so no or little growth
What's the one market trend everyone else is missing?
The market trend we all need to be thinking about is sterling versus US$
Have you made any significant vendor signings in the last 12 months?
No significant new vendors in past 12 months but are in discussions currently with two potential partners
2022 will have been a successful year for your company if… if we have navigated the way through the many global challenges such war in Ukraine, inflation, and cost of living
How is the chip shortage impacting you, and when will it end?
I think the chip shortages or supply chain challenges will continue into 2023 but this will depend on demand.
What, if any, role does distribution have to play when it comes to sustainability?
I think distribution has a vital part to play in sustainability.
What's been your biggest business mistake?
Completing this and other similar Q&As!!
Which £30m-revenue distributor counts LEGO Education among its recent vendor signings? See next page for more...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
33. Getech
Distribution revenues: £31.7m (+40%)
Total headcount: 88
Specialism: Thin clients and Chromebooks
Key vendors: Igel, Lenovo, HP, Dell, Google, Acer, Asus, Teradici, LEGO Education, Merlyn Mind
HQ: Ipswich
This hybrid reseller-distributor enjoyed a bumper calendar 2021 as total revenues swelled by over £25m to hit £74m (according to unpublished numbers it shared with us). Distribution generated £31.7m of the total.
Known traditionally for its thin client prowess, the Suffolk-based education and public sector also now distributes Chromebooks and recently inked a contract with LEGO Education.
Q&A with managing director Guy Watts
What's been your biggest business highlight of 2022 so far?
Signing two new vendors in two new technology/pedagogical areas that are ideal for resellers in the education sector featuring AI and STEM.
Do you expect to grow in 2022?
Yes, absolutely - our budget plans included modest growth for 2022 as we were unsure of the backlash from the pandemic, but once again we have far exceeded our budgets.
Have you made any significant vendor signings in the last 12 months?
Yes, two major signings: LEGO Education (for STEM) and Merlyn Mind which is the world's first AI-based classroom assistant that has been proven to give back up to ten hours of teaching time a week to teachers
Which emerging vendor/technology are you tipping for take-off in 2022?
STEM and AI, obviously.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Not relevant to Getech as we transitioned to an EOT [employee-owned enterprise] in 2021 which benefits all our staff.
How is the chip shortage impacting you, and when will it end?
Resellers and end users alike are now very aware of the ongoing chip shortages and seem to be more understanding. As long as we keep partners updated we see very little impact.
What, if any, role does distribution have to play when it comes to sustainability?
Distribution has to take a leading role. Our partners look to us to provide them with the advice guidance and information to help them succeed. Sustainability is one of the main focusses across public sector, so Getech needs to be ahead of the game on sustainability. We have set our carbon neutral and net zero targets and we have documented a number of sustainability projects that we ourselves have undertaken .
What's been your biggest business mistake?
Trusting suppliers and partners implicitly. Normally that trait works very well but occasionally someone is economical with the truth. Although that is rare it really can disappoint.
See following page to discover which VAD boss claims his team achieved 184 per cent of its annual plan?
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
32. Infinigate UK
Revenue: £32.8m (+1%)
Staff: 40
Specialism: Cybersecurity
Vendors include: SonicWall, Trustwave, Barracuda Networks, A10 Networks
HQ: London
The UK arm of this pan-European cybersecurity distributor posted flat revenues of £32.8m in the 12 months to 31 March 2022 but is banking on "significant growth" in its current year according to MD Justin Griffiths (see below).
Globally, Infinigate's top line will imminently widen from €800m to €1.3bn after the Switzerland-based outfit last month agreed to acquire the security business of 11th-ranked Nuvias. The deal is awaiting regulatory approval, with the Nuvias brand set to be phased out over the course of 12 months, CEO Klaus Schlichtherle told CRN.
Quickfire Q&A with UK MD Justin Griffiths
What's been your biggest business highlight of 2022 so far?
Infinigate's UK team achieving 184 per cent of its annual plan. Being able to meet vendors and customers again face to face. Almost feels like the old days
Do you expect to grow in 2022?
Yes. Significant.
What's the one market trend everyone else is missing?
How and who to recruit. Too many companies just target people with bigger salaries and think that is the answer.
Have you made any significant vendor signings in the last 12 months?
Yes. Cybereason and iVanti.
Too many companies just target people with bigger salaries
Which emerging vendor/technology are you tipping for take-off in 2022?
SOAR - security orchestration, automation and response. It describes the convergence of security automation/orchestration, security incident response and threat intelligence platforms.
Distributor share prices have cooled over the last 12 months. Is that a concern?
Not if you're in the right sector.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
More of the same. Consolidation will be a continuing trend
What's been your biggest business mistake?
Believing loyalty is a thing these days 😊
Which security VAD grew 25 per cent in its latest year? See final page...
45 Distributors You Need to Know 2022 - Part One
Meet the UK IT distribution players ranked 45th to 31st in this year's countdown
31. Ignition Technology
Revenue: £35.8m (+25%)
Staff: 55
Specialism: Cybersecurity
Top vendors: Beyond Trust, Okta, SailPoint, Corelight, BlackBerry, Cato Networks, Security Scorecard, Abnormal Security, Axonius, Google (Chronicle and Siemplify).
HQ: Farnborough, Hampshire
Founded in 2015, this Hampshire-based cybersecurity distributor banked a £1.4m net profit on revenues that leapt by a quarter to £35.8m in its year to 31 March 2021.
It is now part of seventh-ranked Exclusive Networks after its larger rival acquired it in July 2021 in a bid to "double down on our services for start-up vendors" (in the words of Exclusive CEO Jesper Trolle).
Q&A with Ignition UK&I country manager Dave Risk
What's been your biggest business highlight of 2022 so far?
Being able to get back out in front of partners and suppliers in person, plus the collaboration with our new parent company Exclusive Networks. We have also opened in three new regions globally.
Do you expect to grow in 2022?
Yes!! We are increasing revenues, headcount and global locations including a larger UK headquarters.
What's the one market trend everyone else is missing?
At Ignition we don't follow trends, we start them!
Have you made any significant vendor signings in the last 12 months?
Yes, we signed Abnormal Security and Security Scorecard earlier this year and are close to signing a number of others in the second half of 2022. Watch this space.
Which emerging vendor/technology are you tipping for take-off in 2022?
Abnormal Security is one to watch. They provide a unique approach to secure email gateway solutions and have a rockstar team.
We are close to signing a number of other [vendors] in the second half of 2022. Watch this space.
Distributor share prices have cooled over the last 12 months. Is that a concern?
No, the distribution landscape is dynamic. The key is to stay relevant and adapt to the market conditions.
How is the chip shortage impacting you, and when will it end?
It's not impacting us at all. At Ignition we specialise in software-based security solutions. Our model is different to that of a traditional hardware-based distributor.
2022 has seen a couple of blockbuster distribution mergers already. What M&A trends do you expect to see over the next 12 months?
I would expect to see continued consolidation throughout 2022 as larger distributors look for new routes to market, whether that's expanding existing capabilities into new geographies or acquiring new capabilities through M&A or new innovative alliances and partnerships. The challenge is to continue to remain relevant and create value for partners.
CRN's Distributors You Need to Know countdown will continue next week...