June 5, 2013 at 21:32Overview of the IT distribution market in Ukraine: corporate sector
We know that copy-paste is not very welcome on the hub, but in this case we saw a solid review, so we decided to retype it, because it is not on the hub. The review is worthy of being reprinted.
The total volume of the IT market of Ukraine in 2012, according to various sources, is estimated at $ 3-3.2 billion. This figure has not practically changed compared to 2011. We are talking about sales of software and hardware without taking into account outsourcing programming services, the volume of which at this stage cannot be reliably calculated. At the same time, the total cost of IT services does not exceed $ 300-400 million, officially sold software - $ 200-300 million. The remaining mass of sales ($ 2.4-2.5 billion) falls on hardware components. Most of these products came to the country thanks to domestic distributors. Moreover, if we subtract from the total market volume the share of services that are provided mainly by integrators, then the total volume of the domestic IT distribution segment can be determined in the range of $ 2.8-3 billion.
But there is a large share of user solutions - from tablets to computer
mice, which account for 70-75% of sales. In view of the specifics of our publication as a whole and this article in particular, we will only consider the segment of corporate solutions, which in 2012, according to our data, amounted to $ 600-650 million. There are players and specifics of work in this direction that deserve a separate analysis.
Also note that in the field of corporate solutions, despite the general drop in demand, major customers play the main role. The SMB sector has not yet become decisive. As before, the main supply of IT solutions (hardware, software, services) in 2012 was completed in projects for the 15-20 largest customers. Among them are banks (PrivatBank, Ukrsotsbank, Oschadbank), communication operators (Kyivstar, MTS, Astelit, Ukrtelecom), industrial groups (DTEK, Metinvest, and Ar-SelorMittal Kryvyi Rih "), government agencies (Ukrposhta, UkSATSE, Naftogaz, Ukrtransgaz, Ukrhydroenergo) and several others.
Multi Vendor Distributors
Ukrainian distributors in the corporate solutions segment can be divided into two main groups - multivendor, representing products in several market niches, and specialized, which focus on promoting one or two priority areas.
The largest companies belong to the first group. In particular, it includes four IT distributors - ERC, MUK, MTI, Megatrade, which in 2012 accounted for about 70% of deliveries to the corporate sector of the Ukrainian market. All these companies, despite their differences, have a set of common characteristics that allow them to be assigned to the same group.
Among the characteristic parameters: annual sales in the corporate segment of at least $ 50 million; wide affiliate network consisting of hundreds of companies (dealers, integrators); an extensive portfolio of suppliers of IT solutions for many segments (servers, storage, LAN, software, SCS, VKS, UPS, software, security systems, components and other directions), the number of represented manufacturers ranges from forty to more than eighty; own training and service centers; staff of several hundred people.
At the same time, each of the companies adheres to its own business model (Table 1). For example, Megatrade delivers all deliveries only to the corporate segment, while most of the products sold by ERC relate to the user market. In the MUK nomenclature up to 80-85% are solutions for large customers and SMB. The multi-vendor distributor MTI is actively working in the corporate IT sector, but the company has been developing this area for only a few years, and a significant share of the supply falls on consumer solutions, where MTI has more than twenty years of experience.
As for the distribution by sales volumes, here the market leader is ERC. At the same time, deliveries to the corporate segment occupy a relatively small share in the overall business of the company. In general, this result was achieved due to the large gross sales and the well-established distribution channel - the company's partner network consists of more than 1,700 participants, and the portfolio of manufacturers includes more than eighty brands (Table 2). Recall also that ERC has been operating in the Ukrainian market since 1995.
The second place, according to the estimates of CB, with a slight margin from the leader is occupied by MUK, which maintains contacts with more than 900 partners. Unlike ERC, the company focuses on the corporate segment. The total number of brands represented by the company on the Ukrainian market is more than forty. Also note that the MUK service center is an authorized partner of APC by SE, AudioCodes, Cisco, Dell, EMC, Fortinet, Fujitsu, Hitachi Data Systems, HP, Huawei, IBM, Iomega, Samsung, Tripp Lite, etc. In addition, own training center provides professional training in solutions of HP, Fortinet, Extreme Networks, Fujitsu, VMware. At the same time, MUK is actively increasing the number of brands offered. So, in 2012 and the first half of 2013, contracts were signed with nineteen companies, including: AlgoSec, Allied Telesys, AMP (TE Connectivity), Aruba Networks, ASUS, Brickcom, Gazer, Gigamon, Google APPS, Kingston, KUB, Nakivo, OKI, Qihan, Ricoh, Samsung, Schneider Electric, VCE, ZyXEL. Active negotiations are ongoing with twelve manufacturers, so the list of MUK partners will expand this year.
Note that MUK (Merisel Ukraine) began operating in our country since 1997 as a regional division of the Russian distributor Merisel CIS (subsequently Verysell), but already in 1998 MUK became an independent company.
The third place in terms of deliveries to the corporate IT segment is shared by MTI and Megrade. MTI (on the market since 1991) represents in our country more than 65 brands and cooperates with almost five hundred partners throughout Ukraine (there are about 150-200 in the corporate sector). This year, the company received the status of distributor of SCS Molex PN solutions in Ukraine. Prior to this, MUK was engaged in the promotion of the trademark; since 2013, it has preferred TE Connectivity, but at the same time has retained the right to supply Molex PN products in the CIS countries (except Ukraine). MTI also actively promotes Microsoft solutions, is one of the largest suppliers in Ukraine of servers and storage systems from HP, IBM, Dell. Note that MTI does not have its own training center in the field of corporate IT, but supports a service center.
In addition to the distribution business, MTI also develops other business areas. It also includes the Pretoria network of computer equipment stores; system integrator SI BIS; MTI Security Systems - supplier and integrator of security systems; own automated logistics complex of class “A” and other structures.
The activities of Megatrade began in 1996 and is fully concentrated in the corporate segment. The distributor’s affiliate network covers several hundred companies, and the number of represented brands is about forty. Megatrade works in all main areas of the corporate IT market in Ukraine (Table 2) and is actively expanding the portfolio of proposed solutions. Over the past year, such companies as Synology and HDS (corporate storage systems), TP-Link (network equipment), Bosch Security Systems and AceCop (video surveillance systems) have appeared among Megatrade partners. Moreover, the company is the only distributor in Ukraine of the brands Conteg, Simon, Bosch Security Systems, Delta, Synology, Stulz, TP-Link (only for the SMB segment). The company's service center is authorized by manufacturers such as Aten, 2N Telecommunications, IBM, Eaton, Delta, NetApp, and service partners in the framework of distribution agreements are Cisco, Digi, Allied Telesis, Alcatel-Lucent, Axis, RAD. In addition, the company has the only Stulz training center in the country. Recall that Megatrade is part of the Octava group of companies (along with Inkom, Datagroup, Best Power Ukraine, etc.).
According to representatives of the largest Ukrainian distributors, despite the abundance of manufacturers on the market, only ten well-known brands provide the main sales revenue in the corporate sector. Among them are IBM, HP, Fujitsu, Dell, EMC, Cisco, Oracle, HDS, APC by SE, Microsoft. It is also worth noting that the distributors of the Big Four, as well as some small companies, carry out activities not only in Ukraine, but are also representatives of many brands in the CIS countries
All four of the above companies are not only suppliers of products, but also work in the direction of project distribution (or as it is also called Valueadded distribution, VAD). This model implies that the company's specialists are actively involved in the development and implementation of projects that use the equipment they supply, as well as provide additional technical, consulting and service services. It is worth noting that this model is becoming increasingly popular, especially during the economic downturn. The fact is that the direct distribution margin, which is obtained on the price difference from the manufacturer and for the dealer, is steadily declining. Simple sale of “boxes” and licenses brings less and less income. On the other hand, the situation is complicated by small suppliers with a short lifespan, who either try their hand at the corporate segment, or are created for specific projects. In any case, their overhead costs are lower and the margins are higher than those of large distributors, which allows small companies to exist and occupy certain niches, while eroding the market.
The response of major distributors is to provide additional professional services. So, a company can conduct a pre-project audit, analyze documentation, provide consulting services, even develop a project sketch - not to mention the possibilities of high-quality service support and training for customer employees. In addition, the own financial resources of a large distributor make it possible to provide partners with a commodity loan, deferred payment and other services.
It is also worth noting that competitors of distributors are often also
integrator companies that have the status of direct partners and the right to independently import the products of one or another manufacturer into the country. But this situation does not have a decisive influence on the market, since in most cases integrators still turn to the services of distributors, who, as a rule, have more established supply channels.
“Second tier”
In addition to the four above-mentioned companies, there are about a dozen more suppliers on the Ukrainian market, which can be attributed to the “second tier” of multi-vendor distributors in the field of corporate IT. However, their total share does not exceed 15-20%.
Characteristic features of such companies are the presence in the portfolio of several dozen brands representing various areas, support of relationships with dozens of partners in Ukraine, specialization in certain segments. In some cases, it is possible to have your own training or service center. The annual turnover is usually an order of magnitude lower than that of the companies of the first group. Multi-vendor second-tier distributors include IQ Trading, KM Disti, ELKO, Asbis Ukraine, Bankcomsvyaz, UTTK, DEPS, Romsat, RRC Ukraine, Secnet, Netwell Ukraine and several more companies. However, there cannot be too many prominent multidisciplinary suppliers in the relatively small Ukrainian market of corporate IT.
Due to the relatively small resources (compared to the four leaders), distributors of the second group have a pronounced specialization in some areas and relatively weak positions in others. For example, IQ Trading occupies a strong position in the SCS segment (Table 2) and CCTV. In the first case, the company offers Legrand, Odeskabel products, Estap, Teko and Euroformat cabinets, DKS Ukraine trays. Last year, the distributor's portfolio was replenished with integrated solutions for the data center of the Dutch developer Minkels (a member of the Legrand Group). In the field of CCTV, IQ Trading supports a wide range of diverse solutions that allow you to create full-fledged software and hardware security systems for video surveillance and control, but at the same time continues to develop competence in in this direction. For example, to Axis, ACTi, Bosch in 2012 added Samsung Techwin products. IQ Trading also promotes in our country software of the Milestone, Netavis, LuxRiot, ITV, Agent Vi brands, which is intended for CCTV and video analytics systems.
The emphasis on two areas of distribution - SKS and CCTV - is also noticeable at Romsat, which offers Comm Scope (Systimax), OK-net cable solutions, ZPAS cabinets and video surveillance systems AVtech, Bosch Security Systems, Geovision, Panasonic, ACTi, Samsung Techwin. In addition, the company offers many other solutions that are not related to the IT sector - in the segment of sound systems, cable and satellite TV, fire alarms, etc.
A notable player in the segment is KM Disti, which has a strong position in the supply of HP server products, D-Link network solutions, Intel and Supermicro components, as well as the development of several other well-known brands.
Bankcomsvyaz is both a distributor and a prominent integrator. The main deliveries are in the SCS segment (Euroformat, TE Connectivity, DCS of Ukraine, OBO Betterman, Legrand) and video surveillance (Ganz, JMK, Geovision). In addition, Bankomsvyaz is a long-term supplier of Fujitsu solutions, but the positions of the Japanese manufacturer in the Ukrainian market in recent years are very insignificant, and MUK and ERC carry out most of the sales.
Quite large distributors are UTTK and DEPS. The first of them occupies a strong position in the field of IP-telephony and video conferencing systems, the second offers in the domestic market a wide range of solutions for cable TV and data transmission over optical networks (PON, DWDM, CWDM). Several companies represent international distribution groups in Ukraine. Among them are ELKO, Asbis Ukraine, Secnet, Netwell Ukraine, RRC Ukraine. Moreover, the first company specializes more in solutions for the consumer market, and the last - in information security systems, being also a distributor of Juniper Networks network solutions.
Specialized Distributors
The largest group of IT distributors in the corporate sector is represented by specialized companies that work in one or two market niches. Some of them import products of only one manufacturer into Ukraine (in this case, they can be called mono-vendor distributors). The total sales volume of specialized companies is about 10-12% of the volume of the Ukrainian corporate IT distribution market.
Typical representatives of single vendor suppliers are, for example, Alpha Grissin Infotech Ukraine (offering Emerson Network Power products to Ukrainian partners) or Rittal LLC - the main representative of the German manufacturer Rittal. Both vendors develop and produce integrated solutions for creating data center infrastructure.
In some cases, the same distributor combines the principles of specialization and single-vendor - as a result, a company appears that delivers solutions from one manufacturer to one or two market niches. An example of this is Synergia SE, the exclusive provider of R&M solutions in Ukraine. There are dozens of specialized distributors in our country, especially in the field of corporate software (Table 3), information security systems, SCS, there are similar companies in the field of LAN, telephony, and VKS. Often such organizations are also integrators of supplied solutions. Specialized distributors include, for example, Luger Energy Systems, Madek, NTT Energy. The first represents in our country HiRef (air conditioning) solutions, Dessu Tessari Energia, Elen brand UPS and ASCO electrical components (owned by Emerson). Madek supplies FG Wilson diesel generator sets, APC by SE and Gamatronic UPSs, Schneider Electric and ABB switchboard equipment, Eurodiesel diesel-rotary UPSs and a number of other specialized solutions. NTT Energy imports into Ukraine General Electric UPS, SDMO DGU, Ortea stabilizers, Efore built current systems, Victron Energy inverters.
The current situation in the corporate IT distribution segment is such that even the absence of a market drop is already a good sign. Over the next year, growth is not expected here, even the most optimistic experts say only about a possible increase in market volumes by no more than 3-4%. At the same time, a realistic forecast implies continued stagnation. Such conditions provoke distributors to search for new sources of income. For some companies, this has become a transition to the corporate sector, someone is expanding the portfolio of brands represented or increasing sales of custom solutions. Small companies leave the market, giving initiative to large organizations - thus, there is a tendency to strengthen the role of leaders and consolidate the market.
In the coming year, the main potential of the Ukrainian corporate IT market is seen in the field of large projects for government agencies and industry - large customers with tangible pent-up demand.
Networks and Business magazine thanks the Megatrade, MUK, MTI, ITBiz, and DEPS companies for their help in preparing the material.
Igor KIRRILOV,
CB
No. 2 (May) 2013
Article on the journal’s website.
If there are questions (you can ask in comments) on the topic - we will transfer it to the editor.
The total volume of the IT market of Ukraine in 2012, according to various sources, is estimated at $ 3-3.2 billion. This figure has not practically changed compared to 2011. We are talking about sales of software and hardware without taking into account outsourcing programming services, the volume of which at this stage cannot be reliably calculated. At the same time, the total cost of IT services does not exceed $ 300-400 million, officially sold software - $ 200-300 million. The remaining mass of sales ($ 2.4-2.5 billion) falls on hardware components. Most of these products came to the country thanks to domestic distributors. Moreover, if we subtract from the total market volume the share of services that are provided mainly by integrators, then the total volume of the domestic IT distribution segment can be determined in the range of $ 2.8-3 billion.
But there is a large share of user solutions - from tablets to computer
mice, which account for 70-75% of sales. In view of the specifics of our publication as a whole and this article in particular, we will only consider the segment of corporate solutions, which in 2012, according to our data, amounted to $ 600-650 million. There are players and specifics of work in this direction that deserve a separate analysis.
Also note that in the field of corporate solutions, despite the general drop in demand, major customers play the main role. The SMB sector has not yet become decisive. As before, the main supply of IT solutions (hardware, software, services) in 2012 was completed in projects for the 15-20 largest customers. Among them are banks (PrivatBank, Ukrsotsbank, Oschadbank), communication operators (Kyivstar, MTS, Astelit, Ukrtelecom), industrial groups (DTEK, Metinvest, and Ar-SelorMittal Kryvyi Rih "), government agencies (Ukrposhta, UkSATSE, Naftogaz, Ukrtransgaz, Ukrhydroenergo) and several others.
Multi Vendor Distributors
Ukrainian distributors in the corporate solutions segment can be divided into two main groups - multivendor, representing products in several market niches, and specialized, which focus on promoting one or two priority areas.
The largest companies belong to the first group. In particular, it includes four IT distributors - ERC, MUK, MTI, Megatrade, which in 2012 accounted for about 70% of deliveries to the corporate sector of the Ukrainian market. All these companies, despite their differences, have a set of common characteristics that allow them to be assigned to the same group.
Among the characteristic parameters: annual sales in the corporate segment of at least $ 50 million; wide affiliate network consisting of hundreds of companies (dealers, integrators); an extensive portfolio of suppliers of IT solutions for many segments (servers, storage, LAN, software, SCS, VKS, UPS, software, security systems, components and other directions), the number of represented manufacturers ranges from forty to more than eighty; own training and service centers; staff of several hundred people.
At the same time, each of the companies adheres to its own business model (Table 1). For example, Megatrade delivers all deliveries only to the corporate segment, while most of the products sold by ERC relate to the user market. In the MUK nomenclature up to 80-85% are solutions for large customers and SMB. The multi-vendor distributor MTI is actively working in the corporate IT sector, but the company has been developing this area for only a few years, and a significant share of the supply falls on consumer solutions, where MTI has more than twenty years of experience.
As for the distribution by sales volumes, here the market leader is ERC. At the same time, deliveries to the corporate segment occupy a relatively small share in the overall business of the company. In general, this result was achieved due to the large gross sales and the well-established distribution channel - the company's partner network consists of more than 1,700 participants, and the portfolio of manufacturers includes more than eighty brands (Table 2). Recall also that ERC has been operating in the Ukrainian market since 1995.
The second place, according to the estimates of CB, with a slight margin from the leader is occupied by MUK, which maintains contacts with more than 900 partners. Unlike ERC, the company focuses on the corporate segment. The total number of brands represented by the company on the Ukrainian market is more than forty. Also note that the MUK service center is an authorized partner of APC by SE, AudioCodes, Cisco, Dell, EMC, Fortinet, Fujitsu, Hitachi Data Systems, HP, Huawei, IBM, Iomega, Samsung, Tripp Lite, etc. In addition, own training center provides professional training in solutions of HP, Fortinet, Extreme Networks, Fujitsu, VMware. At the same time, MUK is actively increasing the number of brands offered. So, in 2012 and the first half of 2013, contracts were signed with nineteen companies, including: AlgoSec, Allied Telesys, AMP (TE Connectivity), Aruba Networks, ASUS, Brickcom, Gazer, Gigamon, Google APPS, Kingston, KUB, Nakivo, OKI, Qihan, Ricoh, Samsung, Schneider Electric, VCE, ZyXEL. Active negotiations are ongoing with twelve manufacturers, so the list of MUK partners will expand this year.
Note that MUK (Merisel Ukraine) began operating in our country since 1997 as a regional division of the Russian distributor Merisel CIS (subsequently Verysell), but already in 1998 MUK became an independent company.
The third place in terms of deliveries to the corporate IT segment is shared by MTI and Megrade. MTI (on the market since 1991) represents in our country more than 65 brands and cooperates with almost five hundred partners throughout Ukraine (there are about 150-200 in the corporate sector). This year, the company received the status of distributor of SCS Molex PN solutions in Ukraine. Prior to this, MUK was engaged in the promotion of the trademark; since 2013, it has preferred TE Connectivity, but at the same time has retained the right to supply Molex PN products in the CIS countries (except Ukraine). MTI also actively promotes Microsoft solutions, is one of the largest suppliers in Ukraine of servers and storage systems from HP, IBM, Dell. Note that MTI does not have its own training center in the field of corporate IT, but supports a service center.
In addition to the distribution business, MTI also develops other business areas. It also includes the Pretoria network of computer equipment stores; system integrator SI BIS; MTI Security Systems - supplier and integrator of security systems; own automated logistics complex of class “A” and other structures.
The activities of Megatrade began in 1996 and is fully concentrated in the corporate segment. The distributor’s affiliate network covers several hundred companies, and the number of represented brands is about forty. Megatrade works in all main areas of the corporate IT market in Ukraine (Table 2) and is actively expanding the portfolio of proposed solutions. Over the past year, such companies as Synology and HDS (corporate storage systems), TP-Link (network equipment), Bosch Security Systems and AceCop (video surveillance systems) have appeared among Megatrade partners. Moreover, the company is the only distributor in Ukraine of the brands Conteg, Simon, Bosch Security Systems, Delta, Synology, Stulz, TP-Link (only for the SMB segment). The company's service center is authorized by manufacturers such as Aten, 2N Telecommunications, IBM, Eaton, Delta, NetApp, and service partners in the framework of distribution agreements are Cisco, Digi, Allied Telesis, Alcatel-Lucent, Axis, RAD. In addition, the company has the only Stulz training center in the country. Recall that Megatrade is part of the Octava group of companies (along with Inkom, Datagroup, Best Power Ukraine, etc.).
According to representatives of the largest Ukrainian distributors, despite the abundance of manufacturers on the market, only ten well-known brands provide the main sales revenue in the corporate sector. Among them are IBM, HP, Fujitsu, Dell, EMC, Cisco, Oracle, HDS, APC by SE, Microsoft. It is also worth noting that the distributors of the Big Four, as well as some small companies, carry out activities not only in Ukraine, but are also representatives of many brands in the CIS countries
All four of the above companies are not only suppliers of products, but also work in the direction of project distribution (or as it is also called Valueadded distribution, VAD). This model implies that the company's specialists are actively involved in the development and implementation of projects that use the equipment they supply, as well as provide additional technical, consulting and service services. It is worth noting that this model is becoming increasingly popular, especially during the economic downturn. The fact is that the direct distribution margin, which is obtained on the price difference from the manufacturer and for the dealer, is steadily declining. Simple sale of “boxes” and licenses brings less and less income. On the other hand, the situation is complicated by small suppliers with a short lifespan, who either try their hand at the corporate segment, or are created for specific projects. In any case, their overhead costs are lower and the margins are higher than those of large distributors, which allows small companies to exist and occupy certain niches, while eroding the market.
The response of major distributors is to provide additional professional services. So, a company can conduct a pre-project audit, analyze documentation, provide consulting services, even develop a project sketch - not to mention the possibilities of high-quality service support and training for customer employees. In addition, the own financial resources of a large distributor make it possible to provide partners with a commodity loan, deferred payment and other services.
It is also worth noting that competitors of distributors are often also
integrator companies that have the status of direct partners and the right to independently import the products of one or another manufacturer into the country. But this situation does not have a decisive influence on the market, since in most cases integrators still turn to the services of distributors, who, as a rule, have more established supply channels.
“Second tier”
In addition to the four above-mentioned companies, there are about a dozen more suppliers on the Ukrainian market, which can be attributed to the “second tier” of multi-vendor distributors in the field of corporate IT. However, their total share does not exceed 15-20%.
Characteristic features of such companies are the presence in the portfolio of several dozen brands representing various areas, support of relationships with dozens of partners in Ukraine, specialization in certain segments. In some cases, it is possible to have your own training or service center. The annual turnover is usually an order of magnitude lower than that of the companies of the first group. Multi-vendor second-tier distributors include IQ Trading, KM Disti, ELKO, Asbis Ukraine, Bankcomsvyaz, UTTK, DEPS, Romsat, RRC Ukraine, Secnet, Netwell Ukraine and several more companies. However, there cannot be too many prominent multidisciplinary suppliers in the relatively small Ukrainian market of corporate IT.
Due to the relatively small resources (compared to the four leaders), distributors of the second group have a pronounced specialization in some areas and relatively weak positions in others. For example, IQ Trading occupies a strong position in the SCS segment (Table 2) and CCTV. In the first case, the company offers Legrand, Odeskabel products, Estap, Teko and Euroformat cabinets, DKS Ukraine trays. Last year, the distributor's portfolio was replenished with integrated solutions for the data center of the Dutch developer Minkels (a member of the Legrand Group). In the field of CCTV, IQ Trading supports a wide range of diverse solutions that allow you to create full-fledged software and hardware security systems for video surveillance and control, but at the same time continues to develop competence in in this direction. For example, to Axis, ACTi, Bosch in 2012 added Samsung Techwin products. IQ Trading also promotes in our country software of the Milestone, Netavis, LuxRiot, ITV, Agent Vi brands, which is intended for CCTV and video analytics systems.
The emphasis on two areas of distribution - SKS and CCTV - is also noticeable at Romsat, which offers Comm Scope (Systimax), OK-net cable solutions, ZPAS cabinets and video surveillance systems AVtech, Bosch Security Systems, Geovision, Panasonic, ACTi, Samsung Techwin. In addition, the company offers many other solutions that are not related to the IT sector - in the segment of sound systems, cable and satellite TV, fire alarms, etc.
A notable player in the segment is KM Disti, which has a strong position in the supply of HP server products, D-Link network solutions, Intel and Supermicro components, as well as the development of several other well-known brands.
Bankcomsvyaz is both a distributor and a prominent integrator. The main deliveries are in the SCS segment (Euroformat, TE Connectivity, DCS of Ukraine, OBO Betterman, Legrand) and video surveillance (Ganz, JMK, Geovision). In addition, Bankomsvyaz is a long-term supplier of Fujitsu solutions, but the positions of the Japanese manufacturer in the Ukrainian market in recent years are very insignificant, and MUK and ERC carry out most of the sales.
Quite large distributors are UTTK and DEPS. The first of them occupies a strong position in the field of IP-telephony and video conferencing systems, the second offers in the domestic market a wide range of solutions for cable TV and data transmission over optical networks (PON, DWDM, CWDM). Several companies represent international distribution groups in Ukraine. Among them are ELKO, Asbis Ukraine, Secnet, Netwell Ukraine, RRC Ukraine. Moreover, the first company specializes more in solutions for the consumer market, and the last - in information security systems, being also a distributor of Juniper Networks network solutions.
Specialized Distributors
The largest group of IT distributors in the corporate sector is represented by specialized companies that work in one or two market niches. Some of them import products of only one manufacturer into Ukraine (in this case, they can be called mono-vendor distributors). The total sales volume of specialized companies is about 10-12% of the volume of the Ukrainian corporate IT distribution market.
Typical representatives of single vendor suppliers are, for example, Alpha Grissin Infotech Ukraine (offering Emerson Network Power products to Ukrainian partners) or Rittal LLC - the main representative of the German manufacturer Rittal. Both vendors develop and produce integrated solutions for creating data center infrastructure.
In some cases, the same distributor combines the principles of specialization and single-vendor - as a result, a company appears that delivers solutions from one manufacturer to one or two market niches. An example of this is Synergia SE, the exclusive provider of R&M solutions in Ukraine. There are dozens of specialized distributors in our country, especially in the field of corporate software (Table 3), information security systems, SCS, there are similar companies in the field of LAN, telephony, and VKS. Often such organizations are also integrators of supplied solutions. Specialized distributors include, for example, Luger Energy Systems, Madek, NTT Energy. The first represents in our country HiRef (air conditioning) solutions, Dessu Tessari Energia, Elen brand UPS and ASCO electrical components (owned by Emerson). Madek supplies FG Wilson diesel generator sets, APC by SE and Gamatronic UPSs, Schneider Electric and ABB switchboard equipment, Eurodiesel diesel-rotary UPSs and a number of other specialized solutions. NTT Energy imports into Ukraine General Electric UPS, SDMO DGU, Ortea stabilizers, Efore built current systems, Victron Energy inverters.
The current situation in the corporate IT distribution segment is such that even the absence of a market drop is already a good sign. Over the next year, growth is not expected here, even the most optimistic experts say only about a possible increase in market volumes by no more than 3-4%. At the same time, a realistic forecast implies continued stagnation. Such conditions provoke distributors to search for new sources of income. For some companies, this has become a transition to the corporate sector, someone is expanding the portfolio of brands represented or increasing sales of custom solutions. Small companies leave the market, giving initiative to large organizations - thus, there is a tendency to strengthen the role of leaders and consolidate the market.
In the coming year, the main potential of the Ukrainian corporate IT market is seen in the field of large projects for government agencies and industry - large customers with tangible pent-up demand.
Networks and Business magazine thanks the Megatrade, MUK, MTI, ITBiz, and DEPS companies for their help in preparing the material.
Igor KIRRILOV,
CB
No. 2 (May) 2013
Article on the journal’s website.
If there are questions (you can ask in comments) on the topic - we will transfer it to the editor.
