About Insight Distribution Network, Inc.
Insight Enterprises distributes computer hardware and software and provides IT services for businesses, schools, and government agencies and departments. The company offers thousands of products from hundreds of manufacturers (including Microsoft, HP Inc., IBM, and Cisco), as well as cloud services. Insight also provides integration services to knit hardware and software together for its customers. The company uses field sales agents, and an e-commerce site to reach its clients. Geographically, Insight gets about 75% of sales from customers in the US, and, in terms of customers, its large business clients provide about 75% of sales.
Insight sells technology in three areas: Hardware, software, and services.
In hardware, about 60% of sales, the company offer products from Cisco Systems, Dell Technologies, HP Inc., Lenovo, Hewlett Packard Enterprise Co., NetApp, Apple, Microsoft, IBM, and hundreds of others.
The software segment, over 25% of sales, carries products from Microsoft, VMware, Adobe, IBM Software, Symantec, Citrix, and more.
Insight's services business, about 15%of sales, combines the hardware and software aspects for its customers. Among the needs it addresses are supply chain, outfitting the workforce with appropriate equipment, helping companies move operations to cloud environments, and implementing digital technologies.
Insight's sales are concentrated in the US, which provides about 75% of revenue, with Canada contributing another few percentage points. Europe, Middle East and Africa region contributes about 20%, and Asia-Pacific, with less than 5%. The Tempe, Arizona-based company has operations in about 20 counties.
Sales and Marketing
Although the company sells software and hardware from hundreds of companies, Insight relies on five major vendors Microsoft, Dell, Cisco System, HP Inc., and Lenovo, for over 50% of its sales. Microsoft alone accounts for over 15% of Insight's sales.
Insight makes almost 75% of its sales to large corporate customers while government and small and medium business customers about split the other remainder.
Insight's advertising expense were $62.9 million, $57.4 million and $47.1 million for the years 2019, 2018 and 2017, respectively.
Insight has posted rising sales for the past five years (since 2015). Boosted by a 22% jump in 2017 from 2016 due to increased integration work and acquisitions, the company's total sales have an overall growth of 44%.
In 2019, revenue rose about 9% to $7.7 billion, up about $2.4 billion from 2018, on stronger hardware and services sales. Hardware revenue increased 10%, driven by sales of client devices, storage, and networking products to large customers. Service sales jumped 25% from cloud, maintenance, and enterprise agreement fees, as well as contributions from the Cardinal acquisition. Software sales also grew 14%.
Insight's net income declined 3% to $159.4 million in 2019 from 2018, due to increase in costs of goods sold and expenses.
The company's cash and equivalents dipped to $116.3 million in 2019, decrease of about $28 million from 2018. Operations generated $127.9 million in 2019 while investing activities activities used $733.3 million and financing activities generated $159 million.
Insight's business strategy consists of the following:
Digital Innovation – The company leverages emerging technologies to build innovative applications to improve clients' business performance, engage customers and uncover new revenue streams;
Cloud and Data Center Transformation – Insight helps businesses modernize and secure critical platforms to transform IT;
Connected Workforce – The company helps clients deliver a secure, modern experience to their workforce, driving productivity in the workplace and helping to attract and retain talent in this competitive marketplace;
Supply Chain Optimization – Through Insight's core business, it helps clients effectively and efficiently acquire all of their information technology needs leveraging the company's scale and supply chain expertise.
Mergers and Acquisitions
In 2020, Insight Enterprises announced the acquisition of consulting and services firm vNext. vNext is a market leader in digital consulting services and managed services and specializes in Microsoft Cloud solutions. "Acquiring vNext was an obvious move for us. The quality of our workforce, our common values, and our view of the market have enabled us to quickly forge a shared vision: to be the partner of choice for enterprise digital transformation initiatives in the French market," said Richard Ramos, general manager of Insight France.
In mid-2019, Insight Enterprises completed the acquisition of PCM, Inca provider of IT products and services. The addition of PCM expands Insight's footprint in the United States, Canada and the United Kingdom, allowing the company to further capitalize on driving digital transformation, modernizing and securing their data platforms, empowering their employees with tools that fuel productivity, and simplifying IT procurement and asset management.
Eric Crown worked for a small computer retail chain in the mid-1980s before leaving to market PCs. In 1986, he and his brother, Tim, pooled $2,000 from credit cards and $1,300 in savings and, anticipating a drop in hard drive prices, placed an ad for low-cost hard drives in a computer magazine. The ad pulled in $20,000 worth of sales and, since costs did indeed drop, the profit was enough to start a new company, Hard Drives International. In 1988, they changed the name to Insight Enterprises; by 1991 the Crowns also sold Insight-branded PCs, software, and peripherals (discontinued in 1995). The company passed the $100 million revenue mark in 1992.
Over the years, through organic growth and acquisitions, Insight expanded into new markets and exited others and growing to compete with top distributors and integrators such as CDW and Accenture.
6820 S Harl Ave
Tempe, AZ 85283-4318
Phone: 1 (480) 902-1001
Employer Type: Privately Owned
Employees (This Location): 150
Employees (All Locations): 200