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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.
You talked about moving upstream product-wise. Tech Data and Synnex on the analyst conference call announcing the merger talked about a big focus on cloud, business analytics, security and IoT going forward. They have a lot more resources to invest in these areas than D&H does. How does that impact your investments in these areas?
Dan Schwab: All those areas are part and parcel of our business today, and those are the high-growth areas. When you think about [Tech Data and Synnex together] now being a $57 billion global company, they continue to move upmarket and upstream into the enterprise and help global companies from a services standpoint. From our standpoint, if anything, we’ve actually had a lot of midmarket resellers come to D&H because they’re looking to improve service. We used to just help SMB partners move upstream into the midmarket. Now those midmarket partners look at us as a destination for them. And it’s because, although they’re interested in those cloud and security and other solutions, there’s still a lot of day-in-day-out selling servers and notebooks and updating networks, getting them ready for 5G and Wi-Fi 6, and everything that distributors do.
And one of the other outcomes to be thinking about: There were four major distributors in North America. When you go to three, that also likely means there’s less inventory throughout the distribution centers. I think one benefit D&H has there is that we try and have a 45-plus-day supply. We try to have the deepest inventory of any distributor.
There’s no doubt that they’re going to put their efforts in some strategic areas. And those are the areas where they probably see growth within the Fortune 100 companies and the global 100 companies. So that’s not surprising at all. But from our standpoint, that’s not where we‘re concerned. Those are important solutions. But we care about solutions that are right for the SMB resellers, the midmarket resellers and the end users they support.