Tech Data: Key Vertical Markets Growing Rapidly

TECH DATA TechSelect Partner Conference — Partners might want to focus on one of a handful of vertical markets. That was a key takeaway from a presentation by Marty Bauerlein, Tech Data’s senior vice president, U.S. sales, at the distributor’s fall partner conference Wednesday in Boca Raton, Florida.

Tech Data's Marty Bauerlein says partners should go "vertical."Members of the company’s TechSelect community were responsible for $1.1 billion in sales in the first six months of Tech Data’s fiscal year (Feb. 1-July 31), but what’s perhaps more interesting is the growth in public-sector, education and health-care technology markets.

Through the second quarter, public-sector revenue was up 14 percent year over year.

“Our federal business is in hypergrowth mode … servers and PCs in the federal market are blowing up in a good way,” Bauerlein told the crowd of roughly 400 attendees. “We’re also seeing heavy growth in the fed space in storage and networking … you [partners] are killing it.”

Tech Data also has seen its partners selling more in the education vertical. It, too, has grown double digits over the past year thanks to flourishing supply-chain and integration services.

“We’re doing a lot of project management in the education space,” Bauerlein said.

The jewel of the verticals might be health care, which has seen a 34 percent spike from last year. Why? Device sales – the demand for 2-in-1 computers and high-end tablets is skyrocketing.

“We are very focused in bringing you new and emerging vendors,” Bauerlein told partners. “We’re adding some very interesting vendors to our line card in health care to make sure we’re offering you value in the market.”

Overall, Bauerlein said, tech sales are growing between 2 and 3 percent, but the TechSelect community’s growth rate is 5.5 percent.

“We don’t compare ourselves to our competition anymore,” Bauerlein said. “We compare ourselves to our potential.”

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