Tech Data Set for Windfall after ASCII Deal

By Sara Driscoll  |  Print this article Print


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Distribution giant see's coffers boosted following partnership with VAR community group.

Tech Data could be in for a $100 million windfall following its deal to partner with ASCII Group.

ASCII Group is a 1,000-member reseller community group, which leverages its membership to get better pricing and deals in the marketplace. The deal means that ASCII members will get specific discounted deals, bundles, pricing and marketing from Tech Data, according to Alan Weinberger, chairman and CEO at ASCII.

"This is the first deal we have had with Tech Data for a number of years," he told Channel Insider. "We expect this to grow incremental sales for Tech Data by around $100 million as our members move business from other distributors to Tech Data to take advantage of the deals we will get through it."

Although the decision of which distributor to use is up to each member, Weinberger said it is likely that Ingram Micro could be hardest hit.

"We are a for profit organization, so it means we can play favorites. We have this deal with Tech Data, which means we will bring more volume to it. Our members then get better deals and Tech Data gets incremental business." He said the deal is aimed mainly at SMBs. "We believe that Tech Data would do a better job of serving our SMB members than Ingram Micro could," he added.

Pointer Click here to read more about what Tech Data is doing to help VARs.

The ASCII Group, which does about $1 billion through distribution in the United States, also has deals with Bell Micro, Synnex and D&H. "This [Tech Data] deal will not take anything away from our existing partners; it will attract more members to the group, giving our existing distribution partners a bigger base to sell to." Weinberger said with Tech Data on board ASCII hopes to increase membership by 25 percent within a year. "We are a community of independent VARs and everyone is starting to see the value in communities," he added.

Sara Driscoll began her journalism career at 16 years old on her local newspaper, The Watford Observer. Working part time, she covered a range of beats. Leaving to complete her Journalism Degree at Bournemouth University, UK, Sara then went on to graduate and work for Emap. She began as a reporter on APR, Emap's construction title, being promoted to senior reporter with a year.Sara then joined VNU Business Publications as Deputy News Editor on CRN, the weekly trade title for channel players. She covered industry/business news from vendors, distributors and resellers, product announcements, partner announcements as well as market and trend analysis, research and in depth articles to predict up and coming trends in the sector. She was promoted within a year to News Editor, a year later to Deputy Editor and the following year became Editor. Sara remained editor of CRN for three years, launching the magazine on new platforms including CRN TV and eBooks, as well as several magazine and web site redesigns. She was called on for expert industry comment from various publications including appearing on live BBC news programs. Sara joined Ziff Davis Enterprise as Editor of eWeek Channel Insider. She runs the title in all formats – online up to the minute news, newsletters, emails alerts and events. She also manages the brand of Channel Insider in all formats - events, shows, awards, panel debates and roundtables.Sara can be reached at:sara.driscoll@ziffdavisenterprise.com