White-labeled services offer solution providers another opportunity to extend their brand. Arrow Electronics only does white-label services when there's a scarcity of a particular skillset - such as a security analyst - in the market or when the distributor can spread a single investment across multiple partners, said Steve Robinson, vice president of global cloud solutions for the Centennial, Colo.-based company.    

Although distributors aren't going to play in every white-label space, Robinson said selective white-labeling can enable solution providers to continue to present themselves as a trusted advisor, even in areas where there's a skill shortage or high barriers to entry.

White-labeling makes a partner's relationship with a distributor strategic since it enables the solution provider to maintain complete control over the client relationship, said Eddie Jefferson, CEO of Jefferson Technologys, a Georgia-based independent software vendor (ISV).

Jefferson said white-labeling makes it possible for a small solution provider to capitalize on fast-growing areas of the IT market while maintaining continuity of service and ensuring the end customer isn't lost.

"Conflict in the channel is mainly why us millennials move away from distribution," he said.