Dutkowsky To Become New Tech Data CEO

Tech Data on Wednesday named Robert Dutkowsky, the former chief executive of J.D. Edwards and two other high-tech companies, as the man to replace Steve Raymund as the distributor's CEO.

Dutkowsky, 51, plans to step down as president and CEO of Egenera, though he will retain the chairman's title at the Marlboro, Mass.-based maker of enterprise blade server products, to become only the third CEO in Tech Data's 32-year history.

He's scheduled to take the reins at the Clearwater, Fla.-based distributor Oct. 2, when Raymund will relinquish the CEO title after more than 20 years in that position. Raymund will retain his title as chairman.

Dutkowsky will be responsible for Tech Data's day-to-day operations, and Raymund will continue to oversee corporate governance -- as well as answer any questions that Dutkowsky may throw at him, the two executives said.

"Steve and I have been in dialogue now about the opportunity at Tech Data for a while. And once Steve got comfortable with me as a potential candidate to join the company and I got interested in the company, we very quickly started to talk about how this might work," Dutkowsky said. "So from my point of view, it feels like we've been talking about transition for a long time, and we're really comfortable with the plan that we've laid out. And that plan includes logical hand-offs for relationships with customers and vendors between Steve and myself."

Before running Egenera, Dutkowsky was J.D. Edwards' CEO and led the ERP software maker's 2003 sale to PeopleSoft for $1.7 billion. Prior to that, he served as CEO at GenRad, where in August 2001 he orchestrated a $260 million sale to Teradyne.

Dutkowsky also has a long track record of channel partnerships during a 20-year career at IBM and three years at EMC, where from 1997 to 2000 he was executive vice president of markets and channels, responsible for the storage giant's worldwide sales, marketing and services operations. His tenure at EMC included a stint as president of Data General, the unit responsible for EMC's AViiON storage products sold through the channel.

At IBM, Dutkowsky served as regional vice president of product marketing for the RS/6000, S/390 and AS/4000 product lines; vice president of distribution for IBM Asia Pacific; and executive vice president of worldwide sales and marketing for the RS/6000. At one time, he reported directly to former IBM CEO Lou Gerstner.

Raymund and Dutkowsky said they didn't know each another before Tech Data's CEO search, which Raymund disclosed in January, but found they had enough mutual acquaintances to gather information about the other.

"It wasn't too hard to check Bob out, given 20 years at IBM. He certainly made a great name for himself there based on his many accomplishments in the company and since, which from our point of view lowered the risk and increased the comfort level," Raymund said.

"[He had] lots of experience in one of the best-run companies in the world, IBM, and considerable executive and industry experience beyond that," he said. "And in ERP companies, which is certainly helpful in aiding his understanding of how systems work and IT, which is so important in a distribution context."

NEXT: A closer look at Dutkowsky and the company he takes over.

Raymund learned what several former J.D. Edwards solution providers and colleagues knew: Dutkowsky is a well-respected, seasoned manager with a proven channel track record.

While Dutkowsky was at J.D. Edwards, VARs viewed him as "a good guy who supported the channel," said former J.D. Edwards partner Paula Nielsen Milano, now CEO of Irvine, Calif.-based Ki Solutions.

"He was seen as the guy who came in to sell the company. That's how people felt, but maybe that was in hindsight," Nielsen Milano said. The combined PeopleSoft/J.D. Edwards was subsequently acquired by Oracle. "Everything was fine with partners up until PeopleSoft came in," she added.

When Dutkowsky starts at Tech Data next month, he will takes the helm of a company that posted a $155.5 million loss for its second quarter ended July 31, which was largely due to a writedown related to its its Europe, Middle East and Africa operations. Tech Data's Americas sales rose 6 percent in the quarter, a performance better than its European operations but lagging competitors Ingram Micro and Synnex for the same region.

"Our Americas business has performed well. Steve [Raymund] and the team have done a lot of hard work in Europe," Dutkowsky said. "They've announced plans and programs in Europe to re-energize the business. That's a hard process. It takes time, energy and focus. I hope I jump into that and add value there."

Tech Data also has seen some high-level executive departures during the CEO search. Most recently, 10-year company veteran Bob Johnson stepped down as head of the distributor's sales division comprised of retailers and direct marketers. And two executives said in July they were leaving: Thomas Ducatelli, senior vice president of sales, and Tamra Muir, vice president of software product marketing.

Solution providers said Dutkowsky's challenges will include establishing his autonomy in the shadow of Raymund. "I would think, based on where the organization is, that Raymund will be a part of any changes," said one solution provider executive close to the distributor. "But I've got to believe that [Dutkowsky] will have to set boundaries and would not have taken the position unless Raymund has agreed to give him the freedom to act. They need some new thinking."

Several longtime Tech Data VAR customers said Dutkowsky's biggest hurdle could be revitalizing the company internally.

"Whoever comes in better be able to look at the strategic landscape and craft a vision for the company and get the organization re-energized," said a top executive for a large regional solution provider. "We sense it everyday in our interactions with the company. It is in limbo. They are floating in outerspace. It seems to me like an organization adrift right now. They need to pick a course and go get it."

NEXT: Dutkowsky on Tech Data's challenges, and what's next for Raymund.

Dutkowsky said he's well-aware of the challenges involved in running a low-margin business that has faced recent operational obstacles.

"I need to spread out and talk to customers, employees, vendors and partners, listening carefully to why customers do business with us [and] why they don't do business with us, [and] why employees chose to work with Tech Data. I also will talk to our important vendors to make sure they think of Tech Data first when they bring out a new product or service. We need to solidify those important relationships," Dutkowsky said.

"The [final] thing you want to focus on is the senior management team, the people leading the company every single day," he said. "How do I help them do their job better? I want to be ultra-hands-on for the first 100 days."

Raymund will leave the chief executive post as a pioneer of computer products distribution. The only other Tech Data CEO was his father, Edward C. Raymund, who founded the company in 1974. Both Edward Raymund and Steve Raymund are members of CRN's Industry Hall of Fame.

Raymund told CRN in May that it was important for the new CEO to run day-to-day activities. "We need to be clear that CEOs can't be encumbered by a founder/chairman that is looking over their shoulders and second-guessing and interfering. My attitude is that I will provide as much help as I can and be available to the CEO in any way," he said at the time.

This week, Raymund admitted that it's a bittersweet moment giving up day-to-day control of the company he helped build.

"I've made a lot of great friends in the industry. There's a lot of my heart and soul I've invested in this company. That part makes it hard to leave. On the other hand, look at what's involved in a CEO job in 2006 with a global enterprise company. Do I want to do that for 25 years or try other things on for size? That's the decision my wife and I have made, really, over the last couple years."

"It's not an easy thing to do," he added. "But I've been ready for a while to close the chapter on an exciting portion on my life and see what it's like."

BARBARA DARROW contributed to this story.