Dubai market maturity set to drive regional technology growth: Tech Data

According to the company, the distribution market for 2002 has reached $850 millions in the UAE alone, with an expected growth of 17% for 2003.

Steve Lockie, managing director of Tech Data, said: "The movement we are seeing in the regional IT product distribution market right now is showing a trend towards increased awareness of the need to move from shifting boxes to providing value added logistics management and support services. That movement is driving growth and further maturity at a regional level, without doubt."

Lockie's bold statement comes in response to a number of announcements made by figures in the distribution industry in Dubai that aim to drive the IT reseller market forward. "It is great to see that other distributors in the market have decided to join in the movement to drive more advanced IT reseller channel capabilities in the Middle East and therefore speed up the adoption of technology in the market," said Lockie.

The advanced maturity of Dubai's market is demonstrated by the movement towards delivering 'value added' services through the distribution network that services the people that buy information technology throughout the region, according to Lockie.

"This includes extending significant and realistic initiatives in market development, training, education and credit management to the channel that aim at helping resellers across the region identify, target and fulfill business opportunities that require various degrees of IT skills," says Lockie.

For the last two years, Tech Data has been extending value added services support to the regional reseller market, aiming at driving expanding the revenue opportunities in the market and moving the channel away from price based competition. "Other distributors now joining our efforts mean that the industry is finally driving the channel towards common goals," says Lockie. "It's a movement we welcome."

As the face of the industry in the region changes, new challenges, according to Lockie, are ahead of distributors. "If we map the industry maturity in developed markets to the Middle East, the biggest challenge will be in speeding up the maturity process while continue focusing on the core business of distribution." Lockie explains that distributors need to invest in two directions simultaneously: the technical skills of their own staff that eventually should be transferred to the channel and in the core of their logistics management operations.

Lockie also sounded a warning for Dubai's technology companies: "Cost efficiency and timely delivery will always top the priority list of the channel in the region." According to Tech Data's Reseller Channel Research 2002 conducted by IDC, delivery of IT product on time and at a cost advantage still tops the priority list of the regional reseller market. The challenge, according to Lockie, is to continue creatively developing distribution strategies that help reduce the channel costs. "Lower costs means more financial resources available to develop the business," explains Lockie.

"While the industry now follows our lead, the challenge ahead of Tech Data is into bringing new strategies that continue driving the regional markets forward," Lockie ended.

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