Westcon-Comstor’s core purpose is clear – to catalyse channel growth as much through collaboration and trust as harnessing technology trends and solutions, according to Rene Klein, EVP, Europe.
The pursuit of channel growth and the development of partner organisations is woven through everything Westcon-Comstor does, from driving cloud model innovation to advancing sustainability goals. From a tech perspective, its current growth is underpinned by strong performances in the key technology domains of cybersecurity and networking which, combined, accounted for 89 per cent of revenue in FY24. Cybersecurity was particularly buoyant with revenue growing 17 per cent to reach 42 per cent of the total revenue mix. Initiatives such as the company’s 3D Lab – which allows multi-vendor cybersecurity solutions to be tested against specific use cases in a virtual demo environment – continue to be a point of differentiation, according to Klein.
The increasing importance of cybersecurity as a growth engine for the channel is complemented by the rise of hyperscaler cloud marketplaces, which Klein says has been one of the defining tech trends of recent years and is reshaping how end users procure and deploy software. “The rise of AWS Marketplace in particular is leading end users across enterprise and SMB to change their purchasing behaviour in favour of the pre-defined budgets and flexible pricing on offer, including the ability to leverage AWS credits and retire spend commitments,” stated Klein. “This has implications for the channel.”
Westcon-Comstor’s AWS Marketplace programme enables partners to transact key elements of its cybersecurity and networking portfolio across multiple vendors via private listings on AWS Marketplace as part of an end-to-end sales process. “The opportunity is there for the channel to be at the centre of the cloud marketplace ecosystem which is only going to grow in size and strategic importance over the coming years,” added Klein.
Speedy deals
He pointed to research house Forrester which found that channel partners selling in AWS Marketplace can close deals up to 50 per cent faster. Meanwhile, Canalys predicts that global sales of third party vendor software and services through cloud marketplaces will hit $45 billion by 2025, up 84 per cent CAGR over five years. Klein also noted that partners are well equipped to tap into these growth markets.
“If you look at the megatrends of our time, from cloud to AI and security, partners have unparalleled expertise and insight,” he commented. “Channel partners are at the heart of the technology ecosystem and their level of expertise and knowledge is, in my opinion, higher than it has ever been. As a sector we need to acknowledge and shout louder about the huge role we all play in bringing new and exciting technologies to market, driving scale and unleashing innovation.
As a sector we need to acknowledge and shout louder about the huge role we all play in bringing new technologies to market, driving scale and unleashing innovation
“Of course, this level of understanding can always be deepened and strengthened. And the greatest barrier to innovation is resistance to change and a tendency to continue doing things in the same way purely out of habit and comfort. That said, across the channel there are many companies with a strong desire to embrace a more agile way of working, rooted in innovation and that willingness to ‘move fast and break things’ that we’ve seen in Big Tech.”
Westcon-Comstor’s own research shows that partners feel a particular need to become more sophisticated in their use of data to maximise cross-sell and upsell opportunities and drive adoption of new products and solutions. Almost all respondents said data was a key investment focus for the next 12 months, with a perhaps surprisingly high 70 per cent stating that they already have an in-house data and analytics function.
“The willingness to invest in data capabilities demonstrates a recognition among partners that data analysis can help them accurately identify customer segments, predict buying behaviour and offer proactive customer support, leading to improved customer satisfaction, retention and sales,” stated Klein.
But the research also shows that access to the right data is the biggest obstacle facing partners in their pursuit of recurring revenue models, and that deploying data effectively is a challenge for many partners. “Handling multiple diverse data types emerged as partners’ biggest practical challenge in the application and utilisation of data, with more than half of those surveyed highlighting this as an issue,” commented Klein. “Therefore it is incumbent on those across the channel, including distributors, to equip partners with the data and analytics they need to seize new growth opportunities and complete their journey to a subscription, software and services-based future.”
Community building
To make the most of the opportunities at hand Westcon-Comstor is also focused on building communities and shared learning. Its Tech ConneX initiative provides an interactive peer-to-peer platform that enables partner tech professionals to engage with vendors and Westcon-Comstor experts in a sales-free environment. They share knowledge, crowdsource answers to questions, connect with like-minded experts and build their own communities. This distributor-led, multi-vendor, tech-to-tech platform is open to members of Westcon-Comstor’s exclusive opt-in Tech Xpert community which has grown to more than 2,300 participants across EMEA since its launch in 2022.
“The platform offers the ability to receive near real time responses to direct messages, Q&As and forum discussions, find and connect with local peers, join vendor groups, develop skills and more,” explained Klein. “Partners can develop their ability to better support customers and increase new logo wins. This community-based model involves a fundamental rethink of the traditional approach to how we do business and build relationships across the channel. Distributors operate at the heart of the value chain and are ideally placed to drive the creation of communities and shape the evolution of the channel.”
Westcon-Comstor is also taking a more coordinated and joined-up approach to sustainability, working to reduce its carbon footprint while helping partners achieve their own sustainability goals. “Sharing our own experiences is a key part of these efforts which we are doing in the most transparent way possible,” stated Klein. “We publish an annual report that gives a breakdown of our global emissions and details the key challenges we’ve faced. Such levels of transparency are vital to create the more sustainable channel that we all want to see.”