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Westcon NSM_v3

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Andrea Salanco

on 13 June 2013

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Transcript of Westcon NSM_v3

Westcon Sales Kickoff – June 21, 2013
$130 BILLION+
in global revenue
187 COUNTRIES
Serving 95% of the world:
Executive
Conferences
New in 2013
April 9-10
Distribution Leaders Top Vendor Channel Execs Independent Experts
+
+
Issues Analysis & Recommendations
FCPA Regulations
Transportation Costs
Credit Management
Services Delivery
Phishing Scams
Sample Focus Areas
Investor Relations Support
Focused on buy- and sell-side financial analysts
Capacity attendance each year
Spotlight on distribution and technology industry trends
May 2, 2013
The ideal source
for distribution
industry insight!
Tech Distribution
Industry Performance
Source: The NPD Group / Distributor Track Data Panel
Inside the
At the Center of Diverse Value Chain

Broadline
Specialty
Hybrid
Tech
Distributors
Trends
Market
Source: US Census Bureau – Latest Wholesale Trade Report – Table 1. Revised (Adjusted1) Estimates of Monthly Sales, Inventories, and Inventories/Sales Ratios of Merchant Wholesalers Except Manufacturers' Sales Branches and Offices
Specialized communities
E-business integration
Vertical markets
Demand generation
Managed services
Licensing
Config & assembly
Channel marketing
Logistics
Credit/leasing
Technical support
Cloud programs
Education and training
Certification
Account management
Solution selling
Partnerships will Power the Future
Costs of IT Distribution
Understanding the Technology Distribution Business
Redefining Distributor Value
Tech Distribution’s Role in the Cloud
Sales-out databases supporting detailed analysis down to SKU level
Thank you!
Source: Raymond James
Costs of IT Distribution
Understanding the Technology Distribution Business
Redefining Distributor Value
Tech Distribution’s Role in the Cloud
Sales-out databases supporting detailed analysis down to SKU level
Leverage GTDC resources to
support mutual success!
Databases
& Research
GTDC Cost Study
Cost Study Findings
2-Tier Distribution Takeaways
Tech Distribution 2013
Inside the Value Chain
Tech industry distributors consistently manage inventory most effectively..
.
...And deliver clear ROI, service and cost advantages
.
2-Tier distribution offers mostly LOWER costs than:

Web
1-tier VAR direct
Manufacturer direct
Mail order / retail direct
LOWEST COST for B2B and solution sales
Where Tech Distribution is Headed
Evolution of Distributor Value
Major Forces Reshaping the Tech Distribution Industry
Web
Mobile
Cloud
Adding content here on how the Internet has affected distribution:

Revenue growth
Increased efficiency (SG&A reference)
eTailer engine
Need more info on Asia online resellers
Shift continues from COMPUTERS to HANDHELD devices...
GTDC Member Highlight:
U.S. handheld growth:
Revenue up 94.8%
Unit volume up 80.2%
ASPs increased 8.1%
Computers (PC and laptops) relatively flat in revenue, unit volume and ASP
Trendsetters
A World of New Opportunities
"Distributors aggregate products and services specifically for the channel, so they are a clear go-to partner as this aspect of our industry unfolds.”
Arlin Sorensen
Founder, CEO
HTG PEER GROUPS
1
2
3
DISTRIBUTION DELIVERS
DISTRIBUTION DELIVERSD
Distribution delivers:
Complete Solutions
Enablement
Education
Distributor Service Offerings in the Cloud
• Network Security and Monitoring
• Virtual Desktop
• Collaboration Hosting
• SaaS
• IaaS
• Web Hosting
• Application Hosting/Management
Key
Findings
Each distributor interviewed plans on leveraging standard core competencies of Warehousing, Credit Financing, Channel Reach, Channel Enablement and Customer Service.
Many distributors have now built accretive revenue and margin competencies to serve the Cloud Model:
White Label Provisioning and Billing
Virtual Warehouses
Virtual Reseller
Storefront Portals
Electronic Software Delivery (ESD)
Some distributors are extending their technical excellence to become the technical support help desk for the cloud, alleviating vendors and resellers from post-sales support.
Manufacturers with cloud offerings through distribution include:
Intel
Microsoft
Cisco
HP
McAfee
Symantec
Trend Micro
BMC
Rackspace
Computer Associates
VMWare
Alert Logic
IBM
Vault
Logix
Kaseya
N-able
EMC
Autodesk
Adobe
Kaspersky
Oracle
Novell
Savvis
NORTH AMERICA
EUROPE
Source: NPD


On-site services
Advanced remote managed services delivery
Emerging cloud models
Category transformation
opens new channel doors
Issues Analysis & Recommendations
Databases & Research
Investor Relations Support
Executive Conferences
Global Focus Areas
Tracking the tech distribution industry ...
from category leaders to "Rising Stars"
Sept. 10-11
June 12-13

Expands market reach

Lowers shipping/handling/warehousing costs

Optimizes channel credit and collections

Better overall service and higher margin potential
Pundit Predictions
IC IT - Disty
Setting the Record Straight
PERCEPTION:
The Web will make distributors obsolete
REALITY:
Distributors became online sales growth engines
DEMAND GENERATION
PROFESSIONAL SERVICES
MOBILE DEVICE MANAGEMENT
Unprecedented Ways to Grow!
3PL, KITTING, LOGISTICS
HW/SW/SERVICE RENEWALS
CENTERS OF EXCELLENCE
Adding success stories
2000
2002
PERCEPTION:
ESD will erode distributor software sales
REALITY:
Distributor licensing services enabled channel success
2003
PERCEPTION:
Convergence trends will cause
distintermediation
REALITY:
Convergence opened new business doors
for distributors
"The industry's leading distributors are playing a major role to help VARs get the skills, products and services they need to play."
"Distributors Hone in on Four Areas to Give VARs a Louder Voice in Convergence"
(VAR Business, Feb. 2003)
2007
PERCEPTION:
Direct movement will take away distributor market share
REALITY:
Indirect was validated as critical route to market
History Lessons of Misperception
2000
2003
2002
2007
2012
2012
PERCEPTION:
Distributor business will drift away on the cloud
REALITY:
Distributors already in the cloud with programs for public, private and hybrid solutions
Service Expansion
MOBILITY
VAR COMMUNITIES
GLOBAL PROCUREMENT
TRAINING
MARKETING
"The 2010s are arguably as different from the 1980s as 1950, with ubiquitous electricity, automobiles, and broadcast radio, was from 1850."
Booz & Co. 2012
A World of New Opportunities
The cloud opens ...
Distribution delivers...
COMPLETE SOLUTIONS
ENABLEMENT
EDUCATION
COMPLETE SOLUTIONS
ENABLEMENT
EDUCATION
Distributor Service Offerings in the Cloud
Network Security and Monitoring
Virtual Desktop
Collaboration Hosting
SaaS
IaaS
Web Hosting
Application Hosting and Management
GTDC Member
SPOTLIGHT
GTDC Member
SPOTLIGHT
GTDC Member
SPOTLIGHT
Surpassing all-time high reached in 2008 by more than $10 BILLION in 2012!
Distributor

Sales
Distributor sales include: AGYS, ARW, AVT, IM, SCSC, SNX, TECD, Westcon
Note: Vendor sales exclude service revenue. Vendors include CSCO, EMC, IBM, HPQ, and MSFT.
2011
2012
2010
SOLUTIONS
Distributors outperforming vendors due to comprehensive mix
Sales Growth % Change
Distributor SG&A as % of Sales
Distributor Operating Margin
Distributor Operating Margin
Despite challenging global market conditions, distributors have maintained relatively stable operating margins
Down nearly 14% from 10 years ago
US GTDC Members process
300 MILLION

software license seats per year
Mar Week 5 2013
Rev % CH Prev Yr: -4.5%
13 Wk Rev % CH Pr Yr: 6.2%
13 Wk Trend $: 869M
Revenues: 1,605M
Apr Week 4 2013
Rev % CH Prev Yr: 3.5%
13 Wk Rev % CH Prev Yr: 3.4%
13 Wk Trend $: 877M
Revenues: 1,071M
June Week 5 2012
Rev % CH Pr Yr 10.6%
13 Wk Rev % CH Pr Yr: 3.3%
13 Wk Trend $: 896M
Revenues: 1,833M
May Week 2 2013
Rev % CH Pr Yr: 3.8%
13 Wk Rev % CH Pr Yr: 1.9%
13 Wk Trend $: 874M
Revenues: 766M
Sept Week 5 2012
Rev % CH Pr Yr: 2.6%
13 Wk Rev % CH Pr Yr: 0.4%
13 Wk Trend $: 892M
Revenues: 1,736M
Dec Week 5 2012
Rev % CH Prev Yr: -12.1%
13 Wk Rev % CH Prev Yr: 2.0%
13 Wk Trend $: 971M
Revenues: 1,428M
Westcon: Wired Network Devices
All Distributors: Wired Network Devices
Westcon: Wireless Networking Devices
All Distributors: Wireless Networking Devices
Westcon: Telecom
All Distributors: Telecom
Full transcript