IT Manufacturers Can Reduce Total Costs Through Distribution, According to Study

ST. PETERSBURG, FL--(Marketwire - September 29, 2008) - IT distributors are the lowest-cost means for technology manufacturers to enable business-to-business solution selling, according to a comprehensive independent research report released today by the Global Technology Distribution Council (GTDC). Conducted by Milwaukee-based 21st Century Equity Research, the study presents average total estimated costs of nine leading IT companies specializing in systems, storage, peripherals, software, networking and other IT product categories. The approach included analyzing all selling, general and administrative (SG&A) data supplied by participating vendors in aggregate ranges pertaining to their U.S. businesses, by channel, over the past year.

"This study validates what is often not realized by many industry observers as well as some IT manufacturers themselves: Two-tier distributors represent both the best and most cost-effective way to reach and serve B2B markets, particularly with the crucial advantage of selling products as part of comprehensive solutions," commented GTDC CEO Tim Curran. "Among the takeaways is that distribution partnerships give vendors the ability to focus more on and invest more in their core competencies, such as R&D and providing high-quality products that meet changing business needs."

21st Century Equity Research leveraged a detailed online questionnaire as well as follow-up interviews with study participants, which included financial and operations personnel of participating companies. The report focuses on the most relevant cost categories across all channels.

For more information on the Costs of IT Distribution report and the GTDC, go to www.gtdc.org.

About The Global Technology Distribution Council

The Global Technology Distribution Council (GTDC) is a worldwide industry association dedicated to defining and promoting the role of wholesale distribution in a successful and healthy information technology channel. The Council is comprised of the computer industry's top wholesale distributors dedicated to serving "the channel," a network of skilled value-added resellers and retail stores focused on providing hardware, software, and services to businesses and consumers around the globe. GTDC members include ABC Data, Actebis, Arrow Electronics, Avnet, Bell Microproducts, DCC SerCom, D&H, Esprinet, Ingram Micro, Magirus AG, Redington, ScanSource, Synnex, Tech Data, Westcoast LTD and Westcon.

Contact Information: GTDC MEDIA CONTACT: Chuck Miller (727) 939-1562