Feeds

Direct vendors to out-sell indirect channel

Resellers can expect a beating in the next two years

  • alert
  • submit to reddit

High performance access to file storage

The direct channel will outstrip the indirect channel in PC shipments by 2001, according to IDC. The analyst group forecast that worldwide sales would be bigger for direct sellers for the first time thanks to changes in distribution and business customers using internal technical staff. The report, part of the IDC's US PC Channel Review and Forecast, 1997-2003, said that direct channels had also been striding ahead with laptop sales. It noted that the success of direct sales, from companies such as Dell, was partly at the expense of the reseller channel. Although both were seeing shipments increasing, the indirect channel's growth rate was well below that of the overall market. Until 2003, shipments through the indirect channel would have a compound annual growth rate (CAGR) of 7 per cent, compared with 12 per cent for the overall market, it said. "The traditional value-added resellers that make up the commercial channel are being affected by a fundamental shift in the distribution mode," said Joseph Rigoli, analyst at IDC's emerging consumer and PC channels research programme. "End users are increasingly shifting procurement activity to those that are best at logistical efficiency - direct distributors - while often using in-house technical expertise basic for integration services." The report suggested that the biggest growth rate was likely to come from what it defined as the "other" channel, which IDSC defines as Internet or mail order sales that have no human interaction. This is expected to see shipments show a CAGR of 23 per cent by 2003. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.