Distributors emerge as digital force in cloud & AI
The Global Technology Distribution Council has published new research mapping how IT distributors are shaping the sales and adoption of cloud services, artificial intelligence tools and hyperscaler platforms across the technology channel.
The report, titled Distribution: The Digital Force Multiplier, draws on surveys of vendor executives and interviews with channel leaders in North America, Europe, the Middle East and Africa, and Asia Pacific and Japan. It portrays distribution as a more strategic part of the digital supply chain than in earlier market phases, with an expanding role in subscription commerce, multi-vendor integration and partner programmes.
Distributors have traditionally handled logistics and financing for technology suppliers. The research argues that the model now extends into software-led and consumption-based go-to-market approaches. It highlights investments in digital platforms, data analytics and lifecycle services as vendors shift more of their portfolios to cloud and XaaS offerings.
GTDC also casts distributors as coordinators across fragmented routes to market, particularly when suppliers sell through a mix of direct teams, channel partners and marketplaces. The report points to the operational burden of subscription billing, renewals and usage-based models, noting that many suppliers lack the internal resources to scale these processes quickly across regions and partner types.
Changing value
Frank Vitagliano, CEO of GTDC, said distribution now sits closer to the centre of many technology sales strategies than vendors previously assumed.
"Today's distributors have advanced far beyond the critical logistics and credit services mission," Vitagliano said. "Distribution is now a major force multiplier-helping cloud and AI and hyperscaler-focused suppliers reduce risk, scale faster, enter new markets and orchestrate increasingly complex digital ecosystems. Those services are layered on top of all the time-tested valued services that vendors have come to expect from their trusted distributor partners."
The report includes several quantified findings from vendor respondents. Partner ecosystem growth ranked as distribution's most important contribution to go-to-market success for 80% of vendor executives surveyed. Sales enablement resources were cited by 57%, reflecting demand for training and tools linked to cloud and AI offerings.
Digital platform adoption also featured strongly: 86% of suppliers surveyed said they already use at least one digital platform or are evaluating options. The report describes these platforms as an "operating system" for go-to-market execution, with online transactions, lifecycle management and analytics among the functions suppliers expect to access through distributor systems.
Hyperscaler ties
The relationship between vendors, distributors and hyperscalers remains in flux as infrastructure suppliers expand their partner ecosystems and marketplaces. The report found that 60% of vendors have direct relationships with hyperscalers, while 40% use a hybrid approach combining direct engagement with a distributor-supported model.
The study frames distribution as a bridge between hyperscalers and the broader partner landscape. It also highlights distributors' role in bringing multiple vendors into packaged solutions-common in cloud and security deployments where customers buy bundles of services rather than single products.
Beyond sales execution, the research points to risk and financial exposure as factors shaping vendor decisions. It says distributors help reduce risk and manage renewal cycles in subscription businesses, and highlights marketplace onboarding and AI-driven analytics as emerging areas of work alongside established services such as credit and fulfilment.
GTDC is an industry consortium representing technology distributors. Member companies drive an estimated USD $180 billion in annual worldwide sales of products, services and solutions through diverse business channels. Members include Arrow Electronics, D&H Distributing, Exclusive Networks, Exertis, Ingram Micro, Redington, TD SYNNEX and Westcon-Comstor, alongside regional distributors across Europe, the Middle East, Africa, Asia Pacific and Latin America.
The report is available through the GTDC Knowledge Hub, alongside other research on channel trends and distribution models.