With Insight Enterprises around, the end of a customer's technology woes could be in sight. The company distributes computer hardware and software and provides IT services for businesses, schools, and government agencies and departments. Insight offers thousands of products from major manufacturers (including Hewlett-Packard, IBM, and Cisco), and it provides networking and communications services through subsidiaries Insight Networking in the US and UK-based MINX. The company uses direct telesales, field sales agents, and an e-commerce site to reach its clients in North America and about 200 other countries across Europe, the Middle East, Africa, and the Asia/Pacific region.
Insight rings up more than two-thirds of its sales in North America. Second is Europe, the Middle East and Africa (EMEA), which contributes almost 30%. The Asia-Pacific (APAC) region accounts for the rest. The company has locations in the US, Canada, and the UK.
In North America and Western Europe, Insight sells hardware, software, and services. In the rest of the world, it sells just software and related services.
Hardware accounted for more than half of the company’s 2015 revenues; software, 41%.
In 2015 Insight purchased products and software from 3,600 partners.
Sales and Marketing
Microsoft accounted for 27% of Insight’s revenues in 2015; HP, 13%; and Cisco, 11%.
Its top five manufacturers/publishers as a group (including Lenovo and Dell) accounted to 64% of total sales in 2015.
Insight’s advertising expenses were $27.5 million, $31.2 million, and $29.4 million for the years 2015, 2014, and 2013, respectively.
The company's net revenues increased by 1% to $5.4 billion in 2013 due to higher North American sales (including a rise in the sales of hardware, software, and services by 7%, 5% and 20%, respectively). Revenues were also affected by the acquisition of BlueMetal in the fourth quarter of 2015.
Net income for 2015 grew slightly by 0.22% to $75 million due to higher net sales.
Operating cash flow for 2015 increased by 64% to $180 million compared to $110 million in 2014.
Insight is growing at home and abroad by upgrading its technology, expanding its product line, entering new markets, and making acquisitions.
To maintain a local market presence in select cities, the company has invested in sales, technical and service delivery resources (particularly in the large account client space).
The company is also focusing on growing its business with mid-sized and large clients in select vertical markets (including Federal government, state and local, K-12 education, healthcare and service providers).
In EMEA and APAC, the company is looking to increase its share in the mid-market and public sector, including leveraging strategic relationships with partners and service delivery vendors to bring additional software, Cloud, and collaboration solutions to clients.
In APAC the company is growing its sales in the mid-market and enterprise space and on the developing specialized software services, particularly in the areas of software license optimization and the Cloud.
Mergers and Acquisitions
In 2015 Insight acquired Boston-based BlueMetal (an interactive design and technology architecture firm, with offices in Chicago and New York) for $44 million. This acquisition helped the company to expand its service capabilities in the area of application design, mobility, and big data.
In 2014 the company announced plans to migrate its APAC operations to the same IT system platform it uses in North America.