Distie Report: Tech Data’s shift to value has already happened

Solution providers may be looking at Tech Data Canada (Nasdaq: TECD)differently this year.

The broadline distributor based in Mississauga, Ont. this week formed a Technology Services division that makes it look very much like a value added distributor. The new division will be headed by Richard Toledo, manager, Technology Services. Toledo if you remember he ran Tech Data’s configuration lab.

The new division will combine pre-sales technical resources with Tech Data Canada’s Integration Services team to form a consulting, support and training unit.

Tech Data is calling this move a shift to value. Companies use the word shift way too often to explain changing in direction. But I have seen Tech Data over the years slowly progress out of being a pick-pack-and-ship operation into delivering more value for the money for its reseller partners. In this journey the distributor has struggled, but they never veered off the course.

If you look at some of its major announcements in the past decade they have all be about adding value to resellers. Take for example the Advanced Technology Solutions Centre (ATSC). This facility has been expanded twice since it opened.Tech Data has more than 30 technical resources ranging from A+ all the way to MCSE, CCNA/NP/IE/DA and VTSP. I did not know this but it does not surprise me. Couple that with its Advanced Infrastructure Solutions team and you can see that Tech Data can approach and in some cases even match what VAD can offer in the market.

Resellers should not be shocked by this announcement. It’s the same story for everyone in business today; add value or get out of the way. Tech Data has been committed to this path for close to 10 years. So has Ingram Micro by the way.

Now I think its time for VAD to step up. VAD can’t match the broadline distribution capabilities of Tech Data or Ingram.

Avnet makes a change at the top

Speaking of VADs, Avnet this week announced that Rick Hamada will be its new CEO replacing Roy Vallee. Vallee will stick around as Executive Chairman and this move is in step with Avnet’s multi-year CEO succession plan.

I have interviewed both and I’ve been impressed with Hamada for a long time. He’s been slugging away in this industry for more than 25 and has paid his dues.

He too realized long ago that Avnet still had to add value to its business model. Hamada, who served as president and COO, will take over the corner office in at the end of Avnet’s fiscal year end, which is July 4th. Yes that’s U.S. Independence Day, the statutory holiday, but I won’t be surprised if Hamada goes into work that day; nothing like making a good first impression on day one.

As for Vallee, he has been at the helm for 13 years and took the company into 69 countries and grew its employee base to 11,000 people worldwide. He also inked the Bell Micro acquisition last year. And, that was just one of his 35 acquisitions.

Hamada will be some big shoes to fill, but I think he is more than capable.

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Jim Love, Chief Content Officer, IT World Canada

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Paolo Del Nibletto
Paolo Del Nibletto
Former editor of Computer Dealer News, covering Canada's IT channel community.

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