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D&H Co-Presidents On Standing Out Amid The Tech Data-Synnex Merger: ‘We Are Like Evolution Versus Revolution’
Joseph F. Kovar
‘When you have big mergers, a lot of times there are big revolutions. There’s a lot of major changes that have to occur. We like to have lots and lots of little tweaks, survey our customers monthly about what’s important to them, about how we can serve them better and lean in on service,’ says Dan Schwab who, along with his brother Michael, speak to CRN about the merger and a host of other topics.
D&H Co-Presidents See Nothing But Opportunity
D&H Co-Presidents Dan (pictured left) and Michael Schwab (pictured right), who are the third generation of Schwabs to run the family-owned 104-year-old distributor, told CRN they see nothing but opportunity in the wake of the upcoming merger between Tech Data and Synnex. This opportunity comes in large part because, unlike the upcoming distribution juggernaut’s $57 billion in revenue from SMB to enterprise partners around the globe, D&H’s $5 billion in revenue comes almost exclusively from SMB and midmarket partners in North America.
With Tech Data and Synnex’s plan to merge the two companies into a distribution powerhouse, it will be able to leapfrog rival Ingram Micro, which is undergoing an acquisition by a private equity company, to some time this year become the world’s largest distributor.
And while Tech Data/Synnex and Ingram Micro will dominate distribution from a revenue standpoint and their global reach, the current fourth-largest and soon-to-be third-largest broadline distributor D&H has an ace up its sleeve, according to its co-presidents: The $5 billion company’s focus on the North American market, and in particular the North American midmarket and SMB channel business, give it the ability to continue its growth even in the face of its huge competitors.
Here is what Dan and Michael Schwab had to say about how distribution is changing as private equity money comes in and how distributors are changing their business to better meet the needs of solution providers.