About Insight Distribution Network, Inc.

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 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.

Operations

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 accounts for more than half of the company's revenue and software 40%. Services revenue accounts for the remainder.

Insight purchases products and software from over 5,100 partners. These include Cisco, HP, Lenovo, Dell, EMC, NetApp, Apple, and IBM. More than 65% were from manufacturers and software publishers; the remainder was bought through distributors.

Geographic Reach

Insight rings up more than 70% of its sales in the US and Canada. The EMEA region (Europe, the Middle East and Africa contributes almost 25%, of which the UK brings in 10%. The Asia-Pacific (APAC) region accounts for the rest. The company has locations in the US, Canada, and the UK.

Sales and Marketing

Microsoft accounts for over 25% of Insight's revenue; HP 10%; and Cisco 10%.

Its five biggest manufacturers/publishers combined (including Lenovo and Dell) account for 60% of total sales.

Financial Performance

Insight has struggled to add pep to its top line in recent years. In fiscal 2016, revenue grew 2% to $5.5 billion. The only region to record growth was North America, which grew 4% due to the BlueMetal acquisition and high demand for client devices, servers, and storage products. The EMEA and APAC regions both recorded 2% falls. Currency movements played a role: adjusting for FX fluctuations, EMEA grew 4% and APAC was flat.

Net income increased 12% to $84.7 million due to higher revenue and better margins. Cash from operating activities fell 47% to $95.8 million due to a large ($160 million) receivable collected by a client in Q4 2016, offset by higher sales.

Strategy

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.

Insight is putting more energy (and money) into its services offerings as hardware sales naturally ease amid market maturity. The company is advancing its Cloud-based solutions to help with the assessment, migration, integration of Cloud uptake.

Mergers and Acquisitions

In 2017, Insight acquired Datalink, a Minnesota-based IT service and enterprise data center solutions provider, for $257.5 million. The acquisition addresses market opportunities in hybrid cloud and other data center categories.

In 2016, it acquired Ignia, an Australian digital, mobile, and cloud company with a foot in application design, digital solutions, cloud, mobility, and business analytics. The acquisition will also further Insight's reach into the APAC market.

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.

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Insight Distribution Network, Inc.

6820 S Harl Ave
Tempe, AZ 85283-4318
Phone: 1 (480) 902-1001

Stats

  • Employer Type: Public
  • Employees: 200

Major Office Locations

  • Tempe, AZ