Describe current threats on IT channel in EMEA Prepared by Lemon Operations and Compubase

1. Current threats that impact IT
distribution in EMEA
Jack Mandard - Compubase
Laurent Glaenzer – Lemon Operations

2. • Share a high level view on
current threats impacting
channel distribution in EMEA
• Share 3 vendor attitudes
• Open up a discussion among
the group

3. Margins
Credit risk
Hybrid
Models
Redistribution
Changed
revenue
streams

4. Gfk
WE sales (PC, printers,
supplies, software) decline by
17% in Revenues
Idc
S2: 15% drop in revenues,
10% in units
2009 forecast: from 5,9% to
2,6%
US: from 4,2% to 0,9%
Western Europe: 1%
Gartner
6% in 2012
3 000B revenues shortage
+18,7% PC in F. Q3 (Jul-Sep)
+23,8% S2
Notebooks: + 42,1% (60% of
PC)
Desktop PC: -3%
Netbooks: +95% (15% of
Notebooks)

5. Financial Crisis
Vendors margin
improvements
Lack of breakthrough
technology
Reduction of MDF
and other
Market Shrinks
collateral discount
Over-
ASP Drop
distribution
Margin Reduction

6. Multichannels
Monochannels
“Creative”
Everywhere
Direct or indirect only
Models
No conflict management
No conflict
Requires strong brand
Coverage risk
Ex: MS
Ex: Apple
Ex: Autodesk

7. • 10-15 credit closure per day against 4-5 last year
• Disappearance rate in Compubase database
from 10 to 15% every year

9. IT
Office
Office
Telecom
IT
Equipment
Vendors
Equipment
Telecom
Virtualization
Office
1st
Telecom
tier
IT
Equipment
SaaS
IP
Office
2nd tier
Telecom
IT
Equipment
Customers
Customers
YESTERDAY
TODAY

10. IT & Telecoms
Digital Home
• Germ
Europe’s Big 5 Distribution Organization
any
• UK
• Franc
e
• Italy
Vendors 30% use the
• Spain
Manufacturer Software Publisher Indirect channel Strong
Distributors
(packaged software)
Clients 54% use the Weak
Indirect channel
ISV
Software sold through 23% use the
Indirect channel
a license mode
Overseas
Telecoms Distributors - Broad liner
Distributors
Operators
17% use the Large
Indirect channel
Consulting
Company
Overseas
Specialized Regional or Large national IT Master
dealers
Distributors Sub - Dealers VARs
Sub Distributor
Distributors & Dealer
Mass Retail Distribution Ind.
Retail IT - Assembl Systems & Local
Local Software
Non IT IT &
IT Dealers Telecoms VARs Telecoms Integrators Consult
ers
specialist
Retail
e-Tailer
ant
Integrators Services
IT Super Dpt. Store Hyper
Store market
Individuals SoHo Lower SMB Upper SMB Local Mid Market Large Firms Public Services Very Large
< 10 empl. 10-50 empl. 50-250 empl. Authorities 250 – 500 500 – 2500 Central Accounts
empl. empl. Administration > 2500 empl.
© compuBase 2008

11. • Average age at creation: 39
• People having created their Company in 1984
are now 63
• Vast majority of family owned Companies
• Huge consolidations expected

12. • All analysts maintain their long term
forecasts (IDC 6% Ww)
• Breakthrough technologies should
hit the market in 2009/10 (internet,
printing,..)
• Increase of Companies shifting from
direct to indirect (Dell, PTC,
Bentley, ..)

13. We donʼt care…
We protect ourselves…
We heartily care…

14. • Our exposure is minimum as most of
our business is done through
wholesalers
• It will clean the market, only the best
ones will stay
• We keep focusing on end-users
communication

15. • We identify where are the weakest
spots in our channel
• We build an ad-hoc strategy for
each of them (help or leave)
• We cautiously monitor our partner
performance to proactively address
the red dots

16. • Channel loyalty is a key factor of our
strategy success
• We coach our channel for them to
build a successful business
• Their success is our success
• We build a multi year channel vision
that help us and our partners be
where we want to be

17. • Do you see other threats that havenʼt
been mentioned here?
• Are you proactively driving channel
transformation in your own business?
• Which of these attitudes characterizes
your Company?