A revealing Insight

The VAR giant's recently appointed EMEA boss tells us about the firm's growth plans, possible partnerships, and why the company is over its profit problems

After a 25-year career in Vendorland, Wolfgang Ebermann crossed the channel divide at the start of this year to take the EMEA reins of reseller giant Insight. The German exec (pictured left) recently met with CRN to talk us through his first few months in the job, reveal some of his growth plans, and lift the lid on whether the VAR has seen an end to its well-publicised profitability woes as a result of changes to Microsoft rebate schemes.

What do you see as key growth opportunities?
The real growth opportunity is about making your bets on a few important vendors. We have always been a big Microsoft partner, but now it is also HP, Dell, Cisco, VMware [and others]. It is about driving that strategic alliance and growing our business with them. Earning the trusted adviser role is our mission statement, and we are in a good position. Pure hardware and pure transactional selling was a great business, but it's not enough. That is why in the UK we have built a services business that goes beyond licence management. The challenge in just selling licences is that you earn your profitability through the premium on the licence sale and the rebates the vendor provides.

Speaking of which - the impact on Insight's profitability caused by changes to Microsoft's reward scheme was well publicised last year. Have you moved past it?
Yes, we are over it. You have to accept vendors' decisions, and this was a strategic and important decision from Microsoft to give [partners] the right funding to help them be successful. It was put to partners in a very transparent way - some accepted it, and some did not. The good thing about Insight is that we are a company that has transformed a couple of times already. In its early stages the firm was purely a components reseller, then it transformed and became a licensing reseller on top of the hardware. Now we are building on those assets.

Profile: Wolfgang Ebermann
■ German native began career at HP in 1989
■ Moved to Microsoft in 1991, spending 22 years with the software giant, serving most recently as vice president of central and eastern Europe
■ Unveiled as Insight's new EMEA president in October 2013

Which markets are you going after?
We serve large enterprise, corporate accounts, and SMB, and we are asking ourselves where we can play that trusted adviser role. In large enterprise there are only a few opportunities but there is huge competition, because the vendors themselves and big consulting companies are trying to play that role. It is not the most appealing area. When we think about corporate accounts it is companies with 250 to 8,000 or 9,000 employees. The business challenges are the same but the budget is lower. We have a great engagement model in that corporate account world and we see that as the key area.

How can you differentiate yourself from other resellers in that market?
Our offering includes software, hardware and services, and we are trying to drive it in a more standardised, and less customised way. Many solutions offered to the mid-market are based on reinventing the wheel and are being built from the ground up, which results in a cost that is impossible for them to afford.

What do you see as your KPIs, and have you set yourself any specific financial goals?
We want to grow our wallet share in existing accounts. The important thing is for us to earn the right to be a trusted adviser to our customers, and earn more of their budget. Going forward that is strategy number one. Because the way we are going to build is not a pure transaction sell, it is about bundled customer solutions, and conversations about improving their productivity, and how they can work better and improve business performance.

Insight in EMEA
■ Present in 15 countries
■ Sales of $1.5bn (£0.9bn)
■ Biggest partner is Microsoft. Other top vendors include HP, Dell, VMware, and Cisco
■ UK business has annual revenue of more than £400m

What else does this year hold for Insight?
I am convinced that the industry is still in a big state of transformation. It is a good one, which will benefit our customers. Partners that are best able to understand customers' needs are the ones who are going to be successful. I think we will see the market consolidate further, and how you build strategic alliances [in certain areas] to fulfil customer demand will be important for partners.

In which areas are you looking for alliances - and can we expect to see more M&A activity from Insight in the EMEA region?
Stay tuned!