D&H co-president says Synnex-Tech Data merger won’t hurt business

The proposed $7.2 billion Synnex-Tech Data mega-merger means the newly formed company boasts more than 150,000 customers and 1,500 vendor partners, but according to D&H’s co-president, the smaller $5 billion distributor has a hidden advantage.

“When you have two $50 billion-plus companies coming together, the tendency in that case is to focus on the enterprise,” Daniel Schwab in an interview with Channel Daily News. “That’s not where D&H plays.”

In case you missed it:

Synnex to combine with Tech Data to create $57B distribution giant [Full story]

D&H Canada extends 60-day terms through to December 2021 [Full story]

 

Where D&H does play, according to Schwab, is the North American midmarket and SMB channel business. Even in the face of its huge competitors, it’s in this space where the family-owned distributor will continue to thrive, he explained.

Schwab points out that the Canadian business has grown by approximately 20 per cent year-over-year, and it’s expecting double digital growth heading into next year. It’s also planning to hire about a dozen people targeting D&H’s sales, customer service and engineering teams.

The distributor is focused on taking advantage of a major upgrade cycle that is expected to happen across several verticals even as the pandemic forces company’s to maintain a largely remote workforce.

Schwab says the distributors not involved in the merger remain resilient and that they’re probably more relevant, especially in the Canadian market than ever before.

“Seventy per cent of our phone calls are still outbound,” he noted, emphasizing that direct connection with customers is at the core of the distributor’s identity. “I think we’re zigging where others are zagging.”

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Jim Love, Chief Content Officer, IT World Canada

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Alex Coop
Alex Coophttp://www.itwc.ca
Former Editorial Director for IT World Canada and its sister publications.

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