An Open Letter to Intelisys Partners
The recent ScanSource deal has many of your peers wondering how secure their relationships and recurring revenues are with Intelisys. Valid concerns especially in light of the recent headlines from ScanSource about its performance:
“We had a disappointing finish to fiscal year 2016 with sales and EPS below our expectations due to lower sales volume and lower gross margin,” said Mike Baur, CEO, ScanSource.
Not a great first impression for Intelisys partners. On a similar line of discussion, CompTIA pushed out a thought-provoking piece asking if distribution’s business challenges should concern IT pros. The answer is yes and it’s not only the IT pros who should be concerned, it’s the IT vendors and distributors too.
The increasing demand for cloud and IT security are bringing the WAN and the LAN together as a sale and service – making secure, scalable and managed connectivity services a must for Agents and MSPs. But where do the connectivity vendor relationships lie? With master agents, not mainstream distribution. We built those bridges decades ago – placing recurring revenue streams at the root of our business. It is how we work, and it is why cloud and connectivity services are where we specialize.
ScanSource, a publicly held specialty distributor, saw opportunity, made their move and disrupted “business as usual” across the distribution landscape, igniting a conversation that’s long been ignored. I applaud them for this.
Buying or aligning with a master agent to get to the connectivity and cloud services both Agents, MSPs and other vendors need access to stay in the game and win is good business for an IT distributor in good standing. The problem here for me isn’t the purchase, it’s the performance. The deal is done – it’s the distraction already built into the model that concerns me and should concern you too.
As the founder and CEO of PlanetOne, I am encouraging Intelisys partners to explore their options. Let’s discuss diversifying your revenue streams for business continuity and assurances, if nothing more. The industry is changing rapidly and competition and collaboration are coming in from all angles. We have more than 250+ vendors within our portfolio, a booming Cloud and Connectivity Practice, and a reputation for excellence in everything we do.
If you share my concerns about what’s next, are on the fence about what to do, or have a deal in play and think it’s time to diversify, let’s talk. I can be reached directly at 800.231.6264.
Ted Schuman | CEO