<h1>Preparing a Global Distributor for the Future of Cybersecurity Services</h1>
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<h2>Overview</h2>
<p>A €5 billion global distributor specialising in cybersecurity solutions faced significant market disruptions as digital transformation reshaped the industry. With cloud adoption and hyperscale marketplaces disrupting traditional business models, the company recognised the need to shift from a hardware and license-based distribution model towards a service-led, software-driven future. To remain competitive, the distributor needed a strategy to prepare for a smooth transition into becoming a global cybersecurity service provider.</p>
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<h2>Challenge</h2>
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<li><strong>Cloud and Market Disruption:</strong> The rise of cloud-based services, software-as-a-service (SaaS), and hyperscale marketplaces were undermining the traditional distributor model. This introduced complexity, especially as hyperscale players often bypass distributors, leaving vendors without the sales, marketing, and support traditionally provided by distributors.</li>
<li><strong>Role of New Influencers:</strong> Beyond the conventional reseller-distributor-vendor relationship, new players such as influencers began playing a role in closing deals, further complicating attribution and effort recognition across the channel.</li>
<li><strong>Strategic Shift Needed:</strong> The distributor required a forward-looking strategy that would enable seamless transactions between Managed Service Providers (MSPs), vendors, distributors, and hyperscalers, and address the growing influence of non-traditional deal participants.</li>
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<h2>Solution</h2>
<p>While the project is still in its preparatory and consultation phase, the strategic foundation has been carefully defined:</p>
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<li><strong>Strategic Realignment:</strong> A key contributor to the development of a strategy to transition the company from its traditional distribution model towards a software-led, service provider business, positioning them to tackle future disruptions.</li>
<li><strong>Navigating Market Complexity:</strong> Designed an approach to manage the impact of hyperscale marketplaces on the distribution model, and created a framework to support vendors, MSPs, and distributors in maintaining frictionless transactions, even when hyperscale providers bypass the traditional channel.</li>
<li><strong>Strategic Collaboration Proposal:</strong> Developed a proposal for strategic collaboration between large MSPs, distributors, vendors, and hyperscalers, ensuring that the company could continue playing a vital role in the ecosystem. This included retiring Enterprise Discount Plans (EDPs) using vendor products and introducing new ways to attribute effort across multiple players in closing deals.</li>
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<h2>Results</h2>
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<li><strong>Foundation Laid for Future Growth:</strong> The consultation and strategy work has positioned the distributor to move forward with a defined roadmap, ensuring they are prepared for the shifts in the market. The groundwork has been set for future implementation.</li>
<li><strong>Strategic Insight:</strong> The approach has allowed the distributor to remain competitive while navigating the growing complexity introduced by SaaS, cloud services, and hyperscale marketplaces.</li>
<li><strong>Prepared for Execution:</strong> With a clear strategic plan in place, the company is now ready to execute on these strategies when the time is right, ensuring a smooth and effective transition to becoming a global cybersecurity service provider.</li>
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<h2>Key Takeaways</h2>
<p>This preparatory phase demonstrates the importance of strategic foresight and adaptability in addressing industry disruptions. By developing a robust strategy and laying a clear foundation, the company is positioned to transform its business model and succeed in a rapidly evolving market.</p>
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