01732 759725 08 NEWS : Distributors Chip and skills shortages dent channel confidence Most VARs, MSPs and system integrators are looking forward to another year of single figure growth, according to a survey of UK partners by Nuvias Group. New research by the distributor reveals that 75% of respondents grew by between 2% and 10% in 2021, with 62% expecting to increase revenue by the same amount this year. More than one third (35%) say they expect to grow by more than 10% in 2022, slightly lower than the 40% who were predicting that level of growth in 2021’s survey (in the end, only one quarter of those anticipating growth of more than 10% last year achieved it). Nuvias attributes the decline in expectations to a more realistic understanding of the long-term ramifications of the pandemic and other challenges, such as the global chip shortage, the shift to hybrid working and the difficulty in recruiting people with the right skills. Interestingly, competitive bidding emerges as the biggest challenge, cited by 62% of respondents this year, compared to only 18% in 2021. The role that distributors can play in helping the channel to overcome these obstacles is highlighted by the fact that half of respondents are looking to Nuvias for help with pre-sales support and marketing and lead generation. More than one third (38%) value its assistance in supply chain/ order tracking. On a more positive note, there are growth areas, notably cybersecurity, which is seen as the biggest opportunity by 78% of respondents, followed by cloud security (56%) and, in distant third place, network visibility (27%). Network visibility is cited by three times more respondents this year than last (27% vs. 10%), most likely because of the need to manage extended networks to support hybrid working practices. Overall, respondents are ambivalent about hybrid working. While 40% find it beneficial for productivity and 30% for strategic thinking, 40% say that it makes running their business harder. One fifth (22%) find the inability to see customers and colleagues in person frustrating. www.Nuvias.com Mark Glasspool n Nuvias Group has increased its footprint in Eastern Europe with the acquisition of Netsafe, a fast growing value-add cyber security and networking distributor operating in Romania, Croatia, Serbia, Slovenia and Bulgaria. Netsafe will continue to operate under its existing brand as a Nuvias Group company. Commenting on the acquisition, Nuvias Group CEO Simon England said: “Nuvias sees significant promise and opportunity in the Eastern European market. With Netsafe we have a platform for considerable growth in this region. We have a very strong match in our philosophy and approach to specialist value-added distribution, making for a solid base for accelerated growth.” PSCo underpins Brompton Technology partnership with £2m LED investment In a new partnership between the two companies, specialist LED distributor and tradeonly rental company PSCo (part of Midwich) is investing £2 million in cutting-edge LED video processing products from Brompton Technology paired with Absen LED cabinets. Ideal for virtual production and broadcast applications in the film, TV and live event sectors, Brompton Technology’s LED processors are able to realise reactive, photo-real VFX backgrounds that sync perfectly with the camera for fully immersive filming. Tessera LED processing products in particular are leading the way in virtual studio development with features that help create a real-time rendered virtual world such as High Dynamic Range (HDR), ultra-low latency and high frame rate. To meet current demand for virtual production and broadcast applications, PSCo is taking delivery of 300sqm of Brompton-Absen LED cabinets in June 2022. The stock is available now to pre-order for purchase or rental, on a first-come, first-served basis. Stuart Holmes, Director of PSCo, said: “This exciting new partnership with Brompton Technology offers our rental partners greater choice across our LED range, as well as meeting increasing demand for LED in virtual studio and broadcast applications. Our £2m investment in the new Brompton-Absen cabinets will offer an alternative to existing Brompton-powered LED cabinets whilst addressing the shortfall in stock across the market.” Starting this month, PSCo will be hosting regular training courses at Innovation House in Bracknell to help customers understand the unique capabilities and powerful feature set of Brompton Technology-powered LEDs. [email protected] • 01344 592 222 New trade-in options offered by Tech Data Tech Data has expanded its range of trade-in deals for the assured recycling and asset disposal of enterprise and infrastructure equipment from brands such as HPE, IBM and NetApp, after striking new partnerships with third-party recycling and refurbishment companies. Mark Glasspool, Tech Data Services Director, UK and Ireland, said: “There is tremendous interest in recycling and re-using IT equipment and with the enhanced range of options we are launching our partners can help their customers to extend the lifecycle of their IT products and find really competitive trade-in options when they need to update or refresh their infrastructure. By doing this, partners can get a better return on their investments while moving towards their sustainability goals.” https://uk.techdata.com/ Midwich announces 2022 charity partners Over the last two years employees at specialist AV distributor Midwich Group have raised more than £45,000 for mental health charity Norfolk and Waveney Mind, through initiatives like an annual quiz, festive raffle and physical activity challenges. They have also donated 315kg of goods for its shops and provided more than 100 hours of volunteering. In the last 10 years, the distributor, which recently confirmed 14 new charity partners for 2022/23, has raised in the region of £200,000 for local and national charities including Nelson’s Journey, Big C, East Anglia’s Children’s Hospice (EACH) and East Anglian Air Ambulance. www.midwich.com Channel Partner Challenges Challenges around competitive bidding jumped from 18% in 2020 to 62% in 2021. Shifting the focus of competitive bidding from price to value, based on a differentiating service offering is how partners can ensure ongoing profitability and sustain revenue streams. Distributors can support partners by complementing their service offering. The ramifications of the pandemic were underestimated. For example, adjusting to a new remote operating model was not a negligible challenge, requiring a change to the way of doing business and related supporting tools. Additionally, the disruption to the supply chain, although anticipated, had far-reaching repercussions, resulting ultimately in semiconductor shortages,
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