'We are over it' - Insight moves past Microsoft profit squeeze
New EMEA boss Wolfgang Ebermann says the VAR backs Microsoft's incentive shake-up, despite 2013 margin crunch
Insight's recently appointed EMEA boss has claimed the vendor has conquered the profitability setbacks it suffered last year as a result of changes to Microsoft's reward programmes.
In 2013 the reseller's financial results were invariably accompanied by allusions to a negative impact on the bottom line caused by changes to Microsoft's channel incentive schemes. The EMEA region - about two thirds of which is accounted for by software sales - suffered particularly badly.
Wolfgang Ebermann, who assumed the role of Insight's EMEA president at the start of this year, told CRN that the company has now moved past the margin headaches. He added that the VAR fully supports Microsoft and the changes made.
"Yes, we are over it," he added. "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 partners 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 it 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."
Ebermann said that the VAR was growing strongly across all regions and sectors, and UK and Ireland managing director Emma de Sousa (pictured right) claimed the British Isles business is performing strongly in areas outside its software stronghold.
"We are seeing growth in the corporate space and the public sector space as well," she said. "Our hardware and software businesses are both growing, and particular focus has been around the high-tech categories: servers, storage, and networking. Now we want to put more and more emphasis on the services business."
Look out in the next issue of CRN for a full write-up of our meeting with Insight's senior management, covering growth plans, M&A opportunities, and how it intends to differentiate itself from its channel rivals.