Distributors you need to know 2024 - Part One
From niche specialists to multi-billion broadliners, CRN ranks 42 distributors to watch in the UK for 2024
In the two years since CRN's last Distributors You Need to Know list, much has shifted on the UK distribution scene – from the big tremors such as Westcoast Group merging with rival European giant ALSO Group, to the smaller shakes such as Northamber entering Ireland with its purchase of Renaissance Technology Services.
On a more existential level, the past two years have seen major distribution players redefine their place in the channel by deepening vendor ties and continually innovating on the services front, leading to the term VAD becoming near-ubiquitous.
With several of the distributors who made the 2022 list now being part of rival groups, the impact of post-pandemic M&A is evident in this year's ranking.
This three-part feature counts down the 40 largest UK broadliners, specialists and VADs on CRN's radar by revenue, starting with those ranked 42nd to 30th.
Stay tuned for parts 2 and 3 where we will be ranking number 29 through 16 and then, finally the top 15 disties in the UK.
42. ABC Distribution
HQ: Leeds, West Yorkshire
Formed during lockdown, Leeds-based ABC Distribution is already punching above its weight. The distributor declined to disclose its revenue numbers for its most recent financial year, which is why we've included it in the ranking at number 42, based on prior numbers.
However, MD Chris Walsh told CRN of all the effort the distributor has been putting in to staff up, hit revenue targets and, most importantly, maintain its reputation for partner engagement.
Q&A with managing director Chris Walsh
What is your current headcount?
"Around ten including developers, and staff behind the scenes."
What has been your highlight of 2024 so far?
"Reaching four years since the birth of the company and realising we have achieved something so far that at times we dare not even dream of.
"To be at this stage now, with an exciting strategy for this next financial year that is planned, for the first time since the business was started, we are doing more than working hard. It is a phrase I generally don't like but working smarter now is key."
Do you expect to grow further by the end of the financial year – in terms of revenue and headcount?
"100 per cent. Our turnover didn't quite hit where we hoped last year but that was due to a number of multi-year deals becoming one-year deals which at the time was sole destroying but fast forward to this year and we will now see revenue that had those multi-year deals happened last year we wouldn't have seen.
"We have also been overjoyed with the number of partners we are dealing with outside of the UK so whilst that can bring its own headaches our collective ‘European' business is going strong."
Have you made any major vendor signings this year?
"Adding DNS Filter & Secpod to the mix this year is an attractive proposition for us but we also believe that in the current climate and strategy we have in place with Spycloud preparing for 2025 they are almost like a new vendor."
What do you think are the biggest M&A trends impacting distribution this year?
"Smaller vendors being acquired sooner than we would like doesn't help.
"Perimeter 81 being acquired by Check Point as one example but the big boys seem to put their hands in their pockets a few years earlier than they used to and when you specialise in launching new vendors to the UK market you often can lose money in year one and need a good three year period to claw back investment made in the said vendor.
"It does mean upon launching a vendor we are more mindful now how quick the investors or founders may hope to sell the company on so we can make an educated decision into how we engage with that vendor."
What's one market trend that nobody is talking about?
"In our market I don't believe we miss areas but sometimes forget about the simple things.
"As technology evolves and we rely on machine learning/AI, I can't help but feel we are neglecting what we have said for years and that is relating to most team sports ‘You are only as strong as your weakest link'.
"Often, your weakest link in business is the staff who are busy on many fronts and can be open to user error.
"This is what machine learning and AI is meant to reflect but like any of these ‘technologies' if the information you feed it from the outset isn't the quality needed then as the saying goes, ‘rubbish in equals rubbish out'.
What have been your biggest business growth areas this year?
"I am happiest with our growth of partner engagement more than a particular revenue stream.
"We have a great partner community, and I think they know we don't sign a new vendor every month so we only take technologies to them when we believe it compliments what their current business model is and we try not to push a square peg in a round hole for the sake of a ‘partner meeting'.
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