TD Synnex’s UK&I MD and SVP has responded to Pax8’s guerilla marketing broadside, saying the distributor is “proud of who we are”, and that he “welcomes the conversation about the importance of distribution”.
Pax8 on Sunday took the unusual (and presumably quite expensive) step of running a full-page ad in the New York Times.
In it, Pax8 CEO Scott Chasin accused the world’s two largest IT distributors – TD Synnex and Ingram Micro – of “selling the past”.
Founded in 2011, Pax8 grew rapidly to breach the $1bn ARR mark by 2022. It brands itself aggressively as a cloud marketplace, rejecting ‘distribution’ as a relevant label despite competing against distribution businesses.
The stunt garnered mixed reaction from Pax8 peers including Giacom, Distology, e92plus and QBS Software, with the latter’s CEO suspecting that the move was designed to “shape investor sentiment”.
Pax8’s decision to use “legacy” marketing tactics in an effort to distance themselves from a “legacy” area of the market was questioned by Canalys Chief Analyst Jay McBain, meanwhile (see LinkedIn post, bottom).
“A bit surprised”
In a statement to IT Channel Oxygen, TD Synnex UK&I VP Watts confirmed he had seen the ad and was “a bit surprised by the approach”.
“It’s not the style we would adopt but each to their own and we respect our competitors. As you ask, we’re proud of who we are, and we are never complacent – we always strive to do better,” Watts said.
“We welcome the conversation about the importance of distribution, and we are proud to be known as a leader in this area. It’s true that the word distribution doesn’t fully describe all the value and specialisation we bring to the market but it’s what you do that matters, not what you’re called.
“We offer a vast array of services and solutions, backed up by significant pre- and post-sales technical resources, to support partner needs from the transactional to the complex. Whether it’s providing IT equipment at scale, delivering cloud solutions through StreamOne marketplace, or creating innovative programs such as Destination AI, we are focused on helping partners to harness the future of technology innovation and the power of data.
“We have to earn the right to exist every day, and we do that by evolving, innovating and delivering value for our vendors and partners.”
Iain Tomkinson, Sales Director at software VAD ASM Technologies, said he saw Pax8’s ploy as “a successful marketing campaign that I wouldn’t take too seriously”.
“Distribution is still relevant. It’s a changing dynamic, but it’s certainly not outdated,” he added.
In a statement to IT Channel Oxygen, Pax8 said: “We have nothing further to add at this time.”
