Channel Segmentation

The UK Channel encompasses the network of businesses involved in the distribution and sale of technology products and services. This includes manufacturers, distributors, resellers, and service providers collaborating to deliver technology solutions to the market.

In Inside Track, the channel is meticulously segmented. This complex structure has been refined over more than a decade to ensure it is as intuitive as possible. Inside Track uniquely categorises each company, in line with the diagram below, ensuring no duplication in our business counts.

SIC Codes

The Standard Industrial Classification (SIC) code is a system used to classify businesses by the type of economic activity they perform. It helps categorise and understand the industry sectors in which companies operate. The following SIC codes are valid organisations for the Channel though not all organisations with these SIC codes may be operating within the Channel.

Sorting Capabilities in Inside Track

Users of Inside Track can effectively sort companies based on their Channel role and segment. This capability is illustrated in the diagram below, providing a visual representation of how businesses are categorised according to their primary activities.

Channel Role: Refers to the main function or activity of a company within the UK Channel.

The following table outlines Larato’s definitions of key Channel roles:

Consultant	Primary service is advice but may sell products as well. E.g. Microsoft Dynamics Consultancies often sell Dynamics. Software developers, digital media companies with e-commerce, cyber-security capabilities classed as consultancies. Website developers are consultancies at this level. Software developers where they are developing for Products like Microsoft Business Intelligence that sits alongside Office 365. Exclude software developers where there is no obvious channel connection; e.g. insurance software, banking, business process software development, fintech. Managed Print is a consultancy at this level.
Distributor	Supplies another organisation’s products or services to a wholesale or resale channel. E.g. Ingram Micro, Vuzion, Westcoast. Some are Value Added Distributors. Historically, distributors would have had warehouses because they would distribute hardware and software from a central location. Now, they sell digital services as well and so their role in the channel has changed.
Managed Services Provider	Provides managed services “as a Service” only. If an organisation provides on-premise and cloud services, they are categorised as a reseller.
Reseller	Resells other organisations’ products and services to end customers. Value Added Resellers are companies that offer their own services packaged with the products/ services they resell.
Wholesaler	Wholesales products and services to channel partners; avoids or does not sell direct to end customers.
Vendor	Develops products for sale by channel partners (e.g. Sage, Microsoft, Cyber Essentials, Cisco, Oracle)
Media	Technology Publications or Publishers. Not TV or Radio technology companies.

Inside Track then drills down into the Channel segment which is the prime specialism of the company.

Channel Role	Channel Segment	Definition
Consultant	AI	Consultants specialising in AI
	Cybersecurity	Consultants specialising in cybersecurity
	Data Analytics	Consultants specialising in data analytics
	Digital Web Services	Consultants specialising in digital web services
	Hardware and Software	Consultants specialising in hardware and software
	ICT	Consultants specialising in ICT
	IT Services and Support	Consultants specialising in IT services and support
	Software Development	Consultants specialising in software development
	Telecom Engineering	Consultants specialising in software development
	TV and Radio	Consultants specialising in TV and Radio
	Voice	Consultants specialising in voice
Distributor	Cybersecurity	Distributors of cybersecurity products and services.
	Hardware and Software	Distributors of hardware and software products and services
Managed Services Provider		Provides managed services “as a Service” only. If an organisation provides on-premise and cloud services, they are categorised as a reseller
Reseller	AI	Resellers of AI solutions
	Cybersecurity	Resellers of cybersecurity solutions
	Data Analytics	Resellers of data analytics solutions
	Digital Web Services	Resellers of digital web services
	Hardware and Software	Resellers of hardware and software products. These resellers often operate physical or online shops, typically without professional service support
	ICT	Resellers of voice and IT services
	Integrator	Resellers integrating various technology solutions
	IT Services and Support	Resellers of IT services, excluding telephony
	Software Development	Resellers of software development solutions
	Telecom Engineering	Resellers of telecom engineering solutions.
	TV and Radio	Resellers of TV and radio solutions
	Voice	Resellers of communication services, including calls, minutes, phone systems, and broadband. This category excludes IT support but includes mobile, satellite, radio communications, and more.
Wholesaler	Data Centre \| Hosting	Wholesalers of data centre and hosting services to channel partners, avoiding direct sales to end customers.
	Hardware and Software	Wholesalers of hardware and software products to channel partners, avoiding direct sales to end customers
	Telco \| Network	Wholesalers of network services, owning telecommunications infrastructure
	Telco \| Network \| Altnet	Wholesalers of network services, owning infrastructure as an alternative network provider
Vendor	AI	Vendors developing AI products for sale by channel partners
	Cybersecurity	Vendors developing cybersecurity products for sale by channel partners
	Data Analytics	Vendors developing data analytics products for sale by channel partners
	Hardware and Software	Vendors developing hardware and software products for sale by channel partners
Media	Industry publications	Media focusing on technology-specific publications