IT Distribution Providers To Add Telecom Practices

The August merger between IT distributor ScanSource and master agent Intelisys made big waves in the telecom channel. The deal highlighted a valuable opportunity that many IT distributors are leaving on the table: lucrative recurring revenue that comes from selling telecom services.

With business models shifting away from large, upfront IT spending in favor of monthly subscription-based pricing, IT distributors are looking at ways to include recurring networking, cloud, and voice services within their businesses.

Following the ScanSource-Intelisys deal, many industry pundits predicted that 2017 would see more consolidation in the distribution space as these companies look to acquire master agents. Some master agents could also join forces by way of mergers next year.