Synnex: SMB Cloud Revenue Up 300%

Synnex‘s revenue from cloud sales to small and medium businesses (SMBs) is up 300 percent in 2014, said Peter Larocque, president of distribution – North America for the IT distributor, in opening remarks Monday at the Synnex Varnex fall 2014 meeting in Las Vegas.

Cloud was one of the highlights of Larocque’s year-to-date report card, which he delivered to an audience of about 700, including some of the 414 U.S. and Canadian members of its Varnex community. Synnex’s fiscal year ends Nov. 30.

The SMB cloud revenue is generated from Synnex’s CloudSolv business unit, which provides public cloud services. CloudSolv now boasts 4 million cloud seats under management. ConvergeSolv, which supports private cloud builds, also grew 20 percent. And, Larocque said cloud-related services such as data migration and data center assessments are growth offers in the ServiceSolv business unit.

Synnex’s Microsoft business also grew 70 percent, with a significant driver being the software giant’s cloud offers. Office 365 was a significant contributor to that growth, said Rob Moyer, vice president of the Synnex Microsoft Global Business Unit and Cloud Services, in a follow-up interview. It’s early days for Azure, he added, noting the trend line was positive.

Cloud is only one of several “bets” the company made in 2014, Larocque said. The others included vertical solutions, mobility solutions and refresh.

Vertical solutions were dominated by the public sector, particularly state and local government and education (SLED). “SLED business is growing over 40 percent and testing the federal business is our largest segment,” Larocque said.

Refresh business also continues to be strong. In 2013, it grew double digits as a result of XP losing support from Microsoft. “We expect another big year in refresh with Windows Server 2003 going out of service in July,” he said.

Larocque didn’t report metrics for its MobilitySolv business unit, but encouraged partners to become engaged. He reminded partners that the opportunity was beyond selling smartphones to connecting devices vis a vis the Internet of Things (IoT). “For us it’s about three things — managing the device, connecting the device and servicing the device. These are strategic to our MobilitySolv program,” he said.

Overall, Larocque said, “2014 has been an absolute home run for us year to date.” He said growth is coming from both the second platform (PCs, LANs, servers, maintenance) and the third platform (cloud, mobility, big data and analytics). The second platform, the traditional business, is still growing at 2.5 percent. “I don’t want anyone to think that tomorrow that third platform has won and everything else is done,” he said.

“It’s not one or the other. It’s both,” he said, noting Synnex advocates a hybrid approach.

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