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Mobility, Cloud, Digital Transformation on Varnex Partners’ Road Map

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Lynn HaberSYNNEX VARNEX SPRING CONFERENCE — No one goes it alone when building their business. For partner firms, that means cultivating vendor relationships, distributor relationships and relationships with other channel-partner firms.

Attendees on the second day of the Synnex Varnex 2017 Spring Conference, held this week in Austin, Texas, learned that from Peter Larocque, Synnex president North America, Technology Solutions, who boasted about the distributor’s recently released quarterly financial results that showed revenue of $3 billion — a 9.4 percent increase when compared to the same quarter a year ago. It was an 8.6 percent year-over-year improvement.

Synnex's Peter LarocqueHe called the company a “long-term repeat offender” when it comes to increasing company headcount, which it did by more than 10 percent last year. Synnex also has made investments in technology, R&D and facilities. Larocque noted that the state of Varnex is excellent and thanked event attendees for producing 10 percent year-over-year growth in purchases.

The Synnex executive also pointed to partner strengths: in clients (up 17 percent fiscal year on year), network hardware (up 30 percent year on year), service support (up 15 percent year on year); and its public cloud applications and services business (up 45 percent).

“The public cloud applications and services business is a huge land grab,” he said, adding that adjacent sales to cloud services is significant. “So, if you’re not participating or thinking about participating and are on the sidelines — it’s a bad place to be,” Larocque said.{ad}

Mobility was another big growth opportunity (40 percent year over year), as well as opportunities for growth in adjacent areas. The distributor realized twice the activations – or 160,000 – in 2016, and double the number of partners in the program for cloud and mobility.

Another hot area for partners was and continues to be vertical markets, and is the distributor’s largest business at over $4 billion. Synnex revenue in verticals grew 10 percent year on year. The Varnex verticals business was up 24 percent — education was up 12 percent; federal up 37 percent, state and local up 24 percent, and health care 4 percent, etc.

Not only is the distributor making investments in existing verticals but is expanding into regulated industries such as utilities, transportation and health care.

TSD revenue was also up – 22 percent year on year – but was up 65 percent for Varnex members.

“We put TSD together 10 years ago to solve complex solutions and to help you when you needed help to get over the goal line,” Larocque told the audience.

Finally, Larocque addressed digital transformation, calling it a huge business, the future, and a good place to be, noting the third platform as a primary growth driver — estimated to be a $5.3 trillion opportunity worldwide by 2020. For partners, that means opportunity in …

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… cloud, security and IoT, across industries.

“If you did a seminar for your customers on digital transformation, you think you’d get about 10 people to show up — but you’d get 100. People want to understand how to get to that next level,” he said.

Partner opportunities are in devices, bandwidth, security, and analytics and data transformation needs services.

“Cloud is a diverse place for how people buy things for the data center. It’s complex and software competency is a must. People are looking at not just spinning up compute anytime of the day – spinning up storage instances – but they’re looking at us to give them an assessment of what to do and how to move applications easily and cheaply to any desired group in the data center,” said Larocque.{ad}

Additionally, he pointed out that knowing how to do data migrations is a must-have competency, as well as security, which is omnipresent in IoT and the data center — and being able to offer them either on premises or off-premises is important for partners.

Adding device as a service is another Synnex strategy to help partners win in IoT. Contracts can be scaled up or down (with limits), and Synnex will bill the end user or provide tools to partners to do it themselves.


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