TD Synnex: Beyond Reselling - Cloud Solutions & Ecosystem

When TD SYNNEX, a top IT distributor with incredible $59Bn in annual revenue shifts from reselling to creating solutions 🛠️ that include cloud, it’s a telltale of the seismic shift in partnerships.

The company is echoing a broader trend in the industry - a pivot towards innovations and higher value offerings.

📈 Following the growth

Rich Hume, CEO of TD SYNNEX, shares, "At a company level, we continue to see solid momentum across the high-growth technology areas that we've chosen to focus on, which include cloud, security, data, AI, IoT, and hyperscale infrastructure."

The company’s deliberate strategy to explore these high-growth technologies is paying off.

"Collectively, these areas in TD Synnex grew in the low-teens on a year-over-year basis and represented greater than 20% of our gross billings in the last quarter," he notes.

“Our customers are prioritizing projects in these areas, given the critical nature of these IT investments and their strategic importance in minimizing cyberattacks, enabling digital transformation, and driving cost optimization.

Investing in these technologies is one of our four strategic pillars and foundational to our evolution from a traditional distribution partner to a solutions aggregation and orchestration partner.”

🎁 Moving into Solutions

TD Synnex gross margin this quarter was 7%. While still low, it’s noticeably better than 6% a year ago, as the company executes on its strategy to shift into solutions. It's a clear indication of a market responding positively to a solutions-oriented approach.

CEO explains: “We’re well into the solutions aggregation phase where we build, integrate, and facilitate edge-to-cloud IT solutions for our customers.

Our role is to help our customers solve complex market challenges by aggregating multi- vendor solutions and delivering easily deployed business outcomes.

We do this through our Solutions Factory methodology where we build comprehensive, repeatable solutions that include some combination of hardware, software, and cloud licenses.”

🤝 Continued Importance of Channel Partners

By the nature of being an IT distributor, TD Synnex is built on working with partners (reselling, VAR, retail, etc.). It’s essential for them to keep the pulse of the ecosystem.

They just surveyed its B2B channel partners from 60+ countries asking about their expectations in the next year and beyond.

Richard Hume:

“There were many interesting findings in this survey but most clear was the continued importance of the channel in helping partners to navigate the rapidly changing technology landscape, providing technical expertise and helping to fill gaps in the talent pipeline.”

💡 Partnerships are clearly shifting towards creating complete solutions, because customers demand it and margins are much better. But partners are not going away, they're evolving and getting stronger.

__________

📈 Accelerate your Growth in Cloud Marketplaces

Transform your marketplace strategy with first-hand insights from Cloud GTM leaders in our 5-week cohort course. Learn in a community of great alliance leaders. Join 100+ alums from companies like GitLab, Darktrace, IDC and others.

Join Cloud GTM Leader course