The UK's top 40 IT distributors generated nearly £13bn revenues in their latest years, CRN research has found. Here we count down those ranked 10th to 1st...
"A large and growing proportion of our business is transacted through our cloud marketplace"
4. Ingram Micro UK
Revenues: £1.51bn (+2%) (encompasses Ingram Micro (UK), Comms-Care Group, Ingram Micro Services and Ingram Micro CFS Fulfilment)
Of which UK: £1.406bn (+2%)
UK headcount: 2,000
Specialism: Broadliner
Key vendors: Cisco, Microsoft, HP, Lenovo, Apple
UK HQ: Milton Keynes, Buckinghamshire
Recent acquisitions: CCD (2009), Comms-Care (2016)
Ingram Micro is currently the world's largest IT distributor (at least until Tech Data completes its impending merger with Synnex), with 2020 revenues of $47.2bn.
The US-based broadliner is the clear number-four player in the UK, with calendar 2019 accounts for Ingram Micro (UK) Ltd showing revenue of £1.361bn. Its Comms-care channel services arm - which it acquired in 2016 - generated a further £38.6m revenue, with Ingram Micro Services Ltd and Ingram Micro CFS Fulfilment Ltd chipping in an additional £92m and £17.4m respectively, giving a grand total of £1.51bn (£1.406bn of which was generated in the UK).
Having been taken private in 2016 via its $6.1bn acquisition by Chinese conglomerate HNA, Ingram is in the process of concluding a $7.2bn sale to private equity firm Platinum Equity. Globally, its Q1 2021 revenues vaulted 23 per cent YoY to $13.4bn on the back of surging demand for hybrid working solutions.
Quickfire Q&A with UK&I MD Matt Sanderson
What specialism is your firm known for, and what sets you apart from your peers?
The ability to offer full technology lifecycle management, complemented by a complete array of vendor-agnostic services, whilst also giving our partners the opportunity to connect within the world's biggest cloud marketplace, and driving their digital transformation toward a next-generation subscription economy.
Largest warehouse?
700,000 sq. ft of warehousing across the country
Which emerging vendors are you betting big on this year?
It would be unfair of me to highlight anyone in particular. Regarding emerging technologies, AI/IoT and green energy all continue to grow at a rapid pace, and we are focused on bringing these to market in an innovative manner.
Have you made any significant vendor signings in the last 12 months?
Google, AWS and UiPath along with many other vendors across various categories.
What's the biggest misconception about distribution?
Product dominated rather than solution/services orientated. Distribution enables channel partners to be more successful through services such as pre-sales, solutions architects, cloud enablement, financing etc.
How would you summarise the health of the distribution sector in 2021?
Market data shows that product distribution has seen a strong start to the year overall, and with the increasing growth and significance of cloud and services being added into the mix, the health of the sector will only get stronger for those that can deliver such multifaceted solutions.
What's been your biggest disappointment of the last year?
Like everyone I suspect, I miss the face-to-face interaction with our partners and team.
Do you expect to grow in 2021?
Yes, we expect to see solid double-digit revenue growth.
At first glance, the rise of cloud must be pretty devastating for distributors if there is no physical product to ship. How have you adapted?
We already have a large and growing proportion of our business transacted through our cloud marketplace; therefore, the significant growth being witnessed continues to be a positive for us.
How do you see the role of distribution changing in the 2020s?
Distribution will continue to evolve on many fronts. It will play an ever-increasing role at the heart of the circular economy, delivering full lifecycle capability as sustainability becomes ever more important. And in the cloud, there will be continued transformation from solutions distribution to an ecosystem enabler. This means building one cloud fabric, which means more technology, more capabilities, and more services for our partners.
Tell us one thing most people won't know about your company?
We have the largest portfolio of inhouse services in IT distribution.
Which global broadliner claims over a third of its business is now software and cloud? See next page for the answer...
