Microsoft Corp. will be Tech Data’s first vendor offering in its recently announced TDCloud Academy.
TDCloud is a tiered cloud educational program that provides training for resellers. Microsoft Office 365 and Windows Intune will be the first offerings in TDCloud. The academy educates resellers on how to become profitable with cloud solutions, including identification of cloud opportunities, sales, marketing, deployment and billing. Stacy Nethercoat, vice president of Software Product Marketing at Tech Data (Nasdaq: TECD), said the company has recognized an opportunity in the market to step up and be the distributor of choice in expert cloud support. TDCloud Academy provides resellers with a structured cloud training program to help them take on this new business with confidence.
According to the Tech Data, the different levels within TDCloud academy make it attractive for resellers that are just getting started and need assistance on how to sell Office 365 or for experienced resellers to join for the partner to partner networking.
Eric Martorano, senior director of SMB Channels at Microsoft, said as channel partners look to transform their business to maximize their opportunity in the cloud, they continue to require a comprehensive cloud enablement engine, which Tech Data now provides. TDCloud Academy has been specifically designed to enable partners for success in the cloud with leading Microsoft solutions.
Tech Data also inked up-and-coming security vendor Webroot to its line card. Webroot provides endpoint and Web security services for businesses and anti-malware, privacy and identity protection for consumers. Security services from Webroot are now available to Tech Data’s resellers in North America as part of its Security Solutions offering.
Avnet goes shopping in Taiwan
Tech Data was not the only distributor to partner with Microsoft this week. Avnet, Inc. (NYSE: AVT), announced it has expanded its distribution agreement with Microsoft as well to focus on the virtualization market. Under this agreement, Avnet will help Microsoft develop and build a channel for virtualization solutions targeted to small- and medium-sized business (SMB) customers, including Microsoft’s System Center products.
The value added distributor also made a splash in Taiwan by acquiring J.C. Tally Trading Co., Ltd. and its affiliate Shanghai FR International Trading, an interconnect, passive and electromechanical components (IP&E) distributor in Asia with operations in Taiwan and China. J.C. Tally generated revenue of approximately $90 million in calendar 2010.
Harley Feldberg, president of Avnet Electronics Marketing global, said this acquisition supports the company’s stated strategy to expand its IP&E business globally. The IP&E market in Asia is highly fragmented and this acquisition provides another opportunity to accelerate growth in the region by adding new suppliers and customers.
Founded more than 30 years ago, J.C. Tally has approximately 140 employees serving a broad base of customers from eight locations across Taiwan and China. J.C. Tally’s line card includes complementary suppliers such as NCC, Kemet, Panasonic, Coiltronics and Bussman. J.C. Tally will be integrated into the operations of Avnet Asia. The transaction is expected to be immediately accretive to earnings and supports Avnet’s long-term return on capital goal of 12.5 per cent.
But Avnet did not stop there. It also acquired Prospect Technology Corp., an electronic components distributor with operations in Taiwan. Prospect Technology provides technical support, module solutions and circuit design support to help customers expedite product development. Prospect Technology generated revenue of approximately $157 million during the 2010 calendar year.
Feldberg said the combination of Prospect Technology’s technical expertise and Avnet’s scale and scope gives the distributor a strong competitive advantage and enhances growth and profitability in Asia. Founded in 1985, Prospect Technology has approximately 70 employees, serving a broad base of customers in Taiwan and China. Prospect Technology’s line card includes Texas Instruments, LSI and Nuvoton, among others. This acquisition is expected to be immediately accretive to earnings and achieve Avnet’s return on capital goal of 12.5 per cent.
Ingram Micro Inc. (NYSE: IM) second quarter results showed a seven per cent increase to $8.75 billion from the $8.16 billion reported in the second quarter of last year. The translation effect of foreign currencies had a positive impact of approximately six percentage points on the prior-year comparison.
Net income was $59.7 million, or $0.37 per diluted share, compared with $67.7 million or $0.41 per diluted share in the second quarter of 2010. The decline in net income is primarily related to business disruptions associated with transitioning to the new enterprise system in Australia, as the company previously disclosed. The system and process issues were largely resolved in the second quarter and the company is now focused on regaining Australian market share.
Greg Spierkel, CEO of Ingram said demand for commercial technology products has moderated but remains solid throughout the world. Stability in the small and medium business markets is offset by soft consumer demand in Europe and parts of Asia-Pacific, which we first began to notice late last year.
Meanwhile Arrow Electronics, Inc. (NYSE: ARW) reported second quarter net income of $156.2 million on sales of $5.54 billion, which was significantly higher than net income of $116.2 million on sales of $4.61 billion in the second quarter of last year.
Michael J. Long, chairman, president, and CEO of Arrow said that the second quarter was strong, as Arrow generated record sales and earnings per share. Consolidated sales for the second quarter increased by 20 per cent year over year. Excluding the impact of foreign currency and pro forma for acquisitions, the company’s consolidated sales increased by three per cent for the second quarter of 2011. On a pro forma basis, gross and operating margins increased 30 and 40 basis points year over year, respectively.
Lifeboat on Datawatch
Analytics software vendor Datawatch Corp. made Lifeboat Distribution a partner this week. Datawatch’s Monarch 11 product will now be part of LifeBoat’s Database Infrastructure World View portfolio of database software offerings.
