ScanSource is a technology distributor that acts as an intermediary between manufacturers and roughly 25,000 channel partners, including value-added resellers and service providers. The company manages two primary segments with distinct models. Specialty Technology Solutions is a wholesale business that buys and resells hardware and software, focusing on barcode scanners, physical security, and networking equipment. Major suppliers for this segment include Cisco and Zebra. This business generates profit through the spread between purchase and sale prices, supplemented by supplier rebates. The Intelisys & Advisory segment operates under an agency model, connecting sales agents with cloud and connectivity providers. Instead of holding inventory, Intelisys earns recurring commissions on monthly billings from multi-year contracts. ScanSource is currently executing a strategy to converge hardware sales with recurring cloud services, allowing partners to bundle multi-vendor solutions. The company aims to shift its profit mix toward these recurring revenue streams to improve predictability. To support partners, ScanSource provides pre-sales engineering, technical training, and financial services. Internal investments in digital tools and acquisitions of managed connectivity providers like Advantix and DataXoom drive growth. The company uses its cash flow to fund these acquisitions and repurchase shares.