GTDC APJ MD explains the challenges for disties in 2026

Ananth Lazarus, managing director APJ explains how Aussie disties can get ahead in 2026.

With the pace of change that is sweeping the tech space, capability alignment with market needs is a major opportunity and challenge for distributors, according to Ananth Lazarus, managing director APJ, GTDC.

Speaking to CRN Australia, he explained how disties can remain profitable in the current economic climate.

“Akin to most markets, balancing capacity, coverage, capabilities and financial wherewithal with ensuring profitable mutually beneficial relationships is key,” he said.

“Across the globe, distributors are evolving to invest in the power of the platform including marketplaces, rapidly moving to services to support their ecosystem needs and using the power of data in smarter ways.

“Clearly these are some of the areas vendors will look to as they optimise their distribution strategy.”

In a new GTDC report it noted that distribution remains the most cost-effective route-to-market for technology suppliers.

That value is rising rapidly in the cloud era as emerging and legacy vendors look to scale sales, support and other operations around these virtual offerings without requiring onerous investments in resources and training.

The report highlighted that leveraging distributors to accomplish those objectives provides a greater return on those limited funds and allows technology companies to expand more readily into new markets.

Lazarus explains why distribution is seen as the most cost-effective route-to-market.

“Technology distributors remain the most effective route to market because they deliver scalable reach, reduced risk and critical services that vendors cannot efficiently replicate on their own,” he explained.

“These companies act as strategic intermediaries, providing technical enablement, financing, digital marketplaces and orchestration that accelerates partner productivity and enables quicker market expansion.”

He continued, “GTDC research consistently shows that distributors drive innovation, speed time to market, and increase ROI for vendors and solution providers making it the most proven and cost‑effective GTM model for modern technologies.

“Their ecosystems help vendors enter new markets faster while supporting complex solutions at global scale.”

For vendors, Lazarus said they should prioritise these partnerships, create full transparency with their channel and direct activities and mutually invest in growth opportunities.

“Clear communication of goals, realistic targets, and shared expectations builds trust and prevents margin‑eroding misalignment,” he explained.

“Providing timely data, enabling integration options and supporting joint planning improves operational efficiency and accelerates results.”

Lazarus noted that strong onboarding with defined timelines, comprehensive training, and clarity around roles sets the foundation for long‑term success.

“Maintaining fair terms, safeguarding distributor profitability and collaborating on market development will ensure a more productive, enduring alliance,” he added.

Australian outlook for 2026

Lazarus said the GTDC views the Australian tech market in 2026 as mature, resilient, and strategically significant.

“[This is] characterised by steady demand across segments, strong cloud and cybersecurity adoption, and developed distributor and partner ecosystems,” he said.

“GTDC sees success in Australia being driven by ecosystem collaboration, distributor platform leverage, and a continued pivot toward outcome-based and services-led models.

“Distributors that invest in enablement, automation, and partner success will be best positioned to capture value in a competitive but fundamentally strong market.”