AWS Re:Invent: Distribution Still Vital to Hyperscalers’ Growth, Says TD Synnex

AWS RE:INVENT—There has been some debate over the potential threat to partners and distributors from the cloud hyperscalers – especially around cloud marketplaces. But TD Synnex this week maintained that distribution has an important role to play in helping cloud hyperscalers grow their businesses.

TD Synnex's Denis Fouquet

At AWS re:Invent this week in Las Vegas, Denis Fouquet, VP EMEA software and cloud at TD Synnex, provided an insight into the distributor’s relationship with AWS. He said TD Synnex has been making inroads with AWS over the past couple of years. This has led to AWS gaining a better understanding of the role distribution plays in the cloud.

“They used to go direct, or sometimes Tier one with a big SI, but this was a strategic choice for them to go with the distribution,” he said. “They have learned from us; we have learned from them.”

Fouquet said TD Synnex brings value to the relationship with AWS through the recruitment, onboarding, and training of partners.

“We are used to working with partners within the SMB market. We know how to onboard partners. More than this, it’s about giving them technical skills,” he said.

The distribution giant’s access to SMB partners across its different regions is also a valuable asset.

“We know the markets. We can bring this knowledge and we do our best to know which business partners are developing, are changing, which vertical market they’re in, and which market is growing.”

Fouquet believes AWS will continue to scale its operations via partner recruitment. “They will take a strong place with partners over the next few years, even more than now. They started the process a few years ago and they will continue to expand,” he said.

Role of Distribution in Cloud Marketplaces

Fouquet also believes there is an important role for distribution with cloud marketplaces, like AWS Marketplace. This is also the view of channel analyst Canalys, which said marketplace momentum will increasingly depend on partners. This is because cloud marketplaces are far from the automated, self-service platforms they were initially expected to be.

“Most enterprise deals involve complex sales processes and negotiations, often with multiple partners. And as more complex technologies become available on marketplaces, customers are seeking expert partners to help them discover, procure, deploy, and manage these technologies,” said Canalys’ Alistair Edwards.

In fact, Canalys forecasts that by 2025, close to a third of total marketplace transactions will involve channel partners.

New Gen AI Platform from TD Synnex

Elsewhere at AWS re:Invent, generative AI (gen AI) dominated the headlines. TD Synnex itself said it was expanding its AI enablement and training with a new solution that uses AI to analyse and understand images and videos. It will function as an initial distributor of the Intel Geti software platform in the U.S. and Europe.

TD Synnex’s recent Direction of Technology report showed the number of partners offering AI/ML solutions skyrocketing by 625 percent globally. In North America, AI/ML is the top technology skill partners are looking to hire for in the coming months. 

The same day (Thursday) the distributor named its European president Patrick Zammit as its new chief operating officer. Zammit will coordinate the company’s business strategy to drive growth across all technologies, geographies, and vendors,. He will also seek to accelerate the adoption of new, high-growth technologies around the globe. The company said it would announce a new leader for its business in Europe in the coming weeks.