Tech Data has launched MIIMETIQ EDGE, an all-in-one Internet of Things (IoT) development platform that enables systems integrators and service providers to jumpstart their IoT projects. MIIMETIQ EDGE, which has been developed in collaboration with Dell and IoT technology partner NEXIONA, is available as an integrated solution with the Dell Edge Gateway 5000 Series for rapid IoT framework development—from proof of concept to enterprise deployment. The solutions are immediately available in Belgium, France, Germany, Italy, the Netherlands, Spain, the United Kingdom and the United States, with global deployment beginning in 2017. They are being presented in each country by the local teams, specifically hired to develop this business, such as Christophe Fortuné in France.
MIIMETIQ EDGE is part of the new SmartForce Internet of Things (IoT) lineup offered by Tech Data’s Smart IoT Solutions practice. The SmartForce offering comprises a portfolio of validated end-to-end solutions for partners to quickly realize the benefits of bringing new digital services like predictive maintenance, asset and fleet management, and intelligent shopping to market in segments such as smart manufacturing, smart transportation and logistics, smart retail, and smart spaces. Victor Paradell, vice president, Smart IoT Solutions at Tech Data, said: "Gartner Inc. forecasts that 5.5 million new things will get connected every day in 2016, with IoT supporting total services spending of €212B, up 22% from last year. In this context of rapid growth, our goal is to help partners targeting the mid-market, as millions of small and medium-sized enterprises begin to adopt these IoT solutions through smaller-scale sensor deployments. With SmartForce, solution providers can spark innovation by getting access to Tech Data's partner ecosystem across the technology stack."
Dermot O’Connell, vice president and general manager, OEM Solutions at Dell EMC EMEA, said: "we are delighted to work with Tech Data and NEXIONA on this innovative SmartForce IoT solution portfolio. We speak with customers across a range of sectors, and many organizations are currently at the proof of concept (POC) stage in their journey to transform their business—and keen to take advantage of megatrends like digitization and IoT. These validated end-to-end solutions from a trusted brand such as Tech Data will be a huge catalyst to accelerate this transformation.”"
The Dell Edge Gateway, powered by Intel processor technology, brings the power of analytics to the edge of the IoT network, reducing the time and cost associated with transferring non-essential data to the cloud or data center. The Dell Edge Gateway is flexible, connects both legacy and modern sensors and devices, and can be customized for various commercial use cases. NEXIONA MIIMETIQ LITE allows system integrators and service providers to rapidly and easily design, prototype, and commercialize their own industrial IoT applications by simplifying the secure connection to physical devices and the management of all sensor data. MIIMETIQ LITE supports more than 60 machine-to-machine (M2M) and IoT protocols and communication technologies, including MQTT, CoAP, Sigfox, HTTP, TCP, and UDP. MIIMETIG LITE is built on a flexible service-oriented architecture (SOA) that fully integrates with IBM Watson IoT and Microsoft Azure IoT Hub cloud services.
"We are very excited to launch MIIMETIQ EDGE in cooperation with Dell and Tech Data. This ground-breaking new product opens up the IoT opportunity for systems integrators, with a ready-made solution for creating a scalable and highly flexible connected environment", said Jaume Rey, chief executive officer of NEXIONA. "MIIMETIQ EDGE allows systems integrators and end users to own and operate their own platforms, enabling a hybrid mix of cloud and on-premise hosting, while removing the dependence on a single supplier. We see it as a game-changer, offering an adaptable and affordable solution which addresses the growing demand for multiple small-scale IoT implementations in the SMB segment", added Rey.
Broadliner Tech Data has unveiled enhancements to StreamOne, the company's platform that powers its award-winning Cloud Solutions Store. StreamOne, which enables partners to offer and scale cloud and subscription services, now features an analytics dashboard that displays real-time Microsoft Azure consumption and launches proactive notifications when usage charges exceed set thresholds. The enhancements will be available to solution providers and managed service providers (MSPs) in the United States and Europe.
"Tech Data is the first distributor to offer this kind of insight into Microsoft Azure", said John Tonnison, executive vice president, Cloud Computing and chief information officer at Tech Data. "These enhancements deliver on our commitment to enabling our solution providers to lead with, support and manage Azure subscriptions. With the new monitoring and budgeting capabilities, we are giving our solution providers better visibility to manage and monitor their clients' consumption and mitigate credit risk."
Tech Data's StreamOne platform is more deeply integrating with Microsoft Azure, offering solution providers and MSPs visibility into aggregate Azure consumption by customer tenant. The dashboard will provide details around Azure usage, monthly tracking and usage predictions, and overall budget and credit limits. In July, Tech Data announced enhancements to StreamOne that enable solution providers to launch a private label cloud store or integrate Tech Data Cloud services into an existing e-commerce environment. Tech Data Cloud has also recently delivered APIs to validate Microsoft Partner Network (MPN) identification and existing Cloud Service Provider (CSP) tenants, improving processes to migrate customers from Microsoft's Advisor and Open programs to Microsoft CSP. Tech Data Cloud offers solution providers and MSPs the capabilities needed to capitalize on cloud opportunities in the marketplace, including the tools to optimize and transform their businesses. The Tech Data Cloud team offers education, marketing, business planning, demand creation, sales training and services to enable partners to successfully sell cloud products and solutions.
American multispecialist Avnet has entered into an agreement to sell its Technology Solutions operating group to broadliner Tech Data in a stock and cash transaction valued at approximately €2.35b, in what is surely the IT distribution biggest merger to date. The sale of this business provides both Avnet and Tech Data with immediate opportunities to focus on core strategies and scale their respective businesses, ultimately delivering greater profitability to their shareholders.
"We believe the acquisition of Technology Solutions by Tech Data is the best decision for our employees, customers, suppliers and shareholders. This transaction presents us with the best strategic path for Avnet's future success and profitability, and puts Technology Solutions in position to achieve breakthrough business results with Tech Data", said William Amelio, CEO of Avnet. "Moving forward, Avnet will focus its resources and investments on becoming a leader in design chain and supply chain services not only for our current customers and suppliers, but also for new markets. We will drive targeted investments in embedded solutions, Internet of Things (IOT) and critical digital platforms. By investing in these high growth areas, we can expand the breadth of our portfolio and attract new customers worldwide who depend on us to deliver world-class solutions."
Avnet's Technology Solutions operating group is an IT solutions distributor focusing on the datacenter, network, storage and security markets in more than 80 countries (in Austria, Belgium, Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, Switzerland, Turkey and the United Kingdom for the EMEA region, which will all reinforce local TD Azlan teams, or ought to create new business, such as in Hungary, India, Romania or Turkey). It provides next generation solutions, marketing, training, resources and services that span the cloud to the data center and encompass the entire IT lifecycle. They work with value-added resellers to make it easier and more affordable to enter and excel in high-growth technology and vertical markets locally and around the world.
"We are excited to announce this transformative transaction, which creates a premier global IT distributor with the most diverse end-to-end solutions from the data center to the living room", said Bob Dutkowsky, CEO of Tech Data. "This combination complements our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data's presence in Asia-Pacific, which will be a new market for us. As a result of the enhanced value proposition created through this transaction, Tech Data will be even better positioned to capture opportunities in next-generation technologies, deliver differentiated value to our customers and vendor partners, support career development for our employees, and generate strong returns for our shareholders. We believe the strategic and financial benefits resulting from this transformative combination are compelling for both our company and our stakeholders. We look forward to welcoming the Technology Solutions team to the Tech Data family and are excited about the future opportunities ahead."
Patrick Zammit, president of the Technology Solutions business, said, "Industry standardisation, innovation and converging technologies have transformed our industry. The broader portfolio created through this combination will enable both businesses to better capitalise on these trends, while also providing new opportunities for Technology Solutions to optimise and expand its offering, as well as unlock value in ways we could not historically. Given the strength of our customer and vendor relationships, our common cultures and values, as well as the skilled and engaged teams at both businesses, I am confident that this is a winning combination."
Tech Data + Technology Solutions: strong platform for growth and value creation
Significantly broadens value-added distribution business: Technology Solutions is an established leader in value-added distribution, delivering superior technology solutions, services, software, and hardware across the data center, which is complementary to Tech Data's diversified portfolio of offerings and strategic areas targeted for growth. On a pro forma basis, Tech Data's revenues for the 12 months ended July 31, 2016 would have increased from €23.4b to approximately €31.6b, with revenue attributable to complex, higher-margin data center offerings increasing from approximately 29% to 45%. Pro-forma non-GAAP operating income for the 12 months ended July 31, 2016 would have more than doubled, after expected cost savings. Thanks to the sale, Avnet will be able to focus its investments on its semiconductor distribution arm, Avnet Electronic Components, especially on the IoT market, on which both distributors plans to build partnerships. Beside this, even if it will significantly grow its activities (up to €31.6m), Tech Data will not reach yet its nemesis, Ingram Micro, which generates a worldwide turnover of €45.1m. Also, most competitors will see this acquisition as an opportunity for capturing more business, especially in the EMEA region, as 1+1 seldom become 2 in M&As.
Increases Tech Data's ability to capitalise on key next-generation technologies: next-generation technologies, including converged and hyper-converged infrastructure, security, analytics and the cloud, represent a more than €405b market opportunity, which is expected to grow at a 13% compounded annual growth rate through 2019. The combination of Tech Data (€8.7b) and Technology Solutions will (€7.2b) create a premier IT distributor with unmatched skills, consultative expertise, and strong partner relationships to help its customers capture these next-generation technology opportunities.
Extends reach in new and existing regions, creating a more balanced geographic footprint: Tech Data's data center business is well-established in Europe and has a growing presence in North America. Overall, these regions represented approximately 61% and 39% of Tech Data's fiscal year 2016 revenues, respectively. With Technology Solutions, Tech Data will enhance its customer and product portfolios in the Americas and Europe, and establish an immediate presence in the fast-growing Asia-Pacific region, which will be a new market for Tech Data. Following the close of the transaction, Tech Data will expand its operations from 21 to 35 countries worldwide, with Europe comprising 53% of the Company's €31.6b pro forma revenues, the Americas 44% and Asia-Pacific 3%.
Expands go-to-market capabilities by adding complementary skills, vendor relationships and new customers: Technology Solutions partners with more than 40 of the world's top IT vendors to address the IT business needs of 20,000 customers in more than 80 countries. Tech Data has similarly strong and diversified relationships with more than 600 vendors and 105,000 customers. As a combined company, the Tech Data and Technology Solutions businesses can offer a broader and differentiated set of solutions to a larger and more diversified customer base, while enhancing relationships with channel partners.
Brings together teams with similar values and cultures: both Tech Data and Technology Solutions share a corporate culture centered on providing a world-class customer experience through teamwork, integrity, a passion for winning, and innovation. Tech Data expects that these shared values, as well as the expertise and talent from both organisations, will support a smooth integration following the close of the transaction.
Terms and Financing
Under the terms of the agreement, which was approved by the boards of directors of both companies, Avnet will receive €2.15b in cash and 2.785 million shares of Tech Data common stock, currently valued at approximately €180m and representing an approximate 7% ownership position in Tech Data. Tech Data intends to finance the cash portion of the consideration through a combination of cash on hand, drawings under its existing revolver, and proceeds from a new term loan facility and senior notes, which are backstopped by fully-committed debt financing from BofA Merrill Lynch. Following the close of the transaction, Tech Data will continue to benefit from strong cash flows to support debt reduction and organic growth initiatives. Tech Data expects to maintain an investment-grade profile and to reach a target leverage ratio of approximately 2.5x total debt-to-adjusted EBITDA within 18 to 24 months. The deal is of course subject to the approval of competition authorities throughout the world.
Broadliner Tech Data has unveiled enhancements to StreamOne, the company's platform that powers its award-winning Cloud Solutions Store. StreamOne, which enables partners to offer and scale cloud and subscription services, now gives solution providers the capability to customise their own online cloud store or integrate with the Tech Data Cloud Solutions Store. Additionally, the company announced an agreement with Global Knowledge, a leading provider of learning services and professional development solutions, to provide cloud business assessments through its Tech Data Cloud business unit. The announcements were made in conjunction with Tech Data's participation in Microsoft's 2016 Worldwide Partner Conference (WPC), held last week in Toronto.
"Our enhancements to the StreamOne platform enable solution providers to do what they do best—solve their clients' problems—while leaving the rest to us", said John Tonnison, executive vice president, Cloud Computing and chief information officer at Tech Data. "Tech Data's ability to offer the right mix of customised solutions, education, and programs for our customers uniquely positions us to propel them on their individual cloud journeys. Combining our competence and strength in the on-prem market with our strategic investments in the mobile, cloud, and IoT markets, Tech Data is well-equipped to empower our resellers in the hybrid world, where the business of IT will soon take place."
Tech Data's StreamOne platform now offers more flexibility and functionality for solution providers and managed service providers (MSPs), who can now launch a private label cloud store or integrate Tech Data Cloud’s services into an existing e-commerce environment. Tech Data Cloud has also developed APIs to validate Microsoft Partner Network (MPN) identification and existing Cloud Service Provider (CSP) tenants, improving processes to migrate customers from Microsoft's Advisor and Open programs to Microsoft CSPs. The enhancements to StreamOne include:
Tech Data Cloud's Private Label Marketplace, powered by StreamOne, enables solution providers and MSPs to implement a customizable e-commerce platform powered by the Tech Data Cloud Solutions Store. The Private Label Marketplace provides a complete purchasing experience for Microsoft CSP products, including automated provisioning and flexible billing cycles, as well as the ability to bundle Microsoft products with a partners' services or as add-ons.
StreamOne APIs enable partners to leverage their existing e-commerce and in-house systems while connecting to the Tech Data Cloud Solution Store for cloud service catalogues, ordering, subscription management, and billing management. Tech Data offers a complete set of StreamOne APIs, as well as partner support.
Microsoft Azure available via the Microsoft CSP program provides partners with instant access to pre-configured bundles, including backup, site recovery, file storage, SQL Server, and Virtual Machines. The fully automated process enables partners to purchase, provision, and manage cloud solutions in a true consumption-based model.
"As the amount of data businesses are generating increases, their capacity—both in terms of physical infrastructure and staff bandwidth—can't keep up, and the need for more hybrid and cloud environments will become increasingly necessary", said David Smith, vice president, Worldwide SMB at Microsoft. "Tech Data's StreamOne platform has evolved to help resellers meet the new demands of the market and we look forward to their continued partnership as our solution providers adopt the future of cloud."
Tech Data Cloud has also added Global Knowledge to its Cloud Mastery Journey, a program designed to help solution providers build fully-optimised cloud businesses. Through the agreement with Global Knowledge, Tech Data Cloud now offers the Cloud Mastery Assessment (CMA) tool, which assesses cloud practice capabilities and provides practical resources to help build successful cloud partner practices. Once the CMA tool has been used to identify areas for operational improvement, partners can then engage in consultant-led workshops to accelerate a personalised journey specifically tailored to fit their cloud business practice. The CMA tool is now available to solution providers through Tech Data Cloud in the United States and Europe, with availability in Canada coming this autumn.
Broadliner Tech Data has launched its new Internet of Things (IoT) business practice, Smart IoT Solutions by Tech Data. The new practice, designed to aggregate IoT solutions and provide a simplified route to the rapidly expanding IoT market for solution providers, will be led by company veteran Victor Paradell, vice president, IoT Solutions, Europe. The announcement was made in conjunction with Tech Data's participation in Microsoft's 2016 Worldwide Partner Conference (WPC), being held this week in Toronto.
According to Gartner in their "Forecast Analysis: Internet of Things - Endpoints, Worldwide, 2015 update" published in December 2015, endpoints of IoT are predicted to grow at a 32% compound annual growth rate (CAGR) from 2013 through 2020, reaching an installed base of 21 billion units, with almost two-thirds of them consumer applications. With such explosive growth expected, solution providers need clarity, education, and an effective route to market.
"If you were to ask 100 people in the IT channel what IoT means to them, you would get almost 100 different answers - and most would be correct", said Paradell. "As IoT continues to expand and surround us in our lives, much remains to be understood about the market. Tech Data is positioned at a very advantageous point in the IoT ecosystem - right in the middle - to provide our customers with all the pieces necessary to deploy complete IoT solutions. Through our new Smart IoT Solutions business practice, we are helping solution providers understand and enter the IoT market, as well as capitalise on the opportunities that currently exist within it."
Smart IoT Solutions by Tech Data enable system integrators, value-added resellers (VARs), and managed service providers (MSPs) to build their IoT businesses. As an IoT solutions aggregator, Tech Data leverages its trusted partnerships within its technology partner ecosystem, as well as its strength and expertise in the solution provider market, to help customers deploy IoT solutions to their end users - from fulfillment and security to data analytics and applications. Through Tech Data's smart service enablement framework, the Smart IoT Solutions team also offers the value-added services needed for solution providers to connect the dots from solution design to data-driven services. The Smart IoT Solutions practice will be primarily focused on four key verticals: manufacturing, transportation and logistics, retail, and smart spaces, which include building safety and security, smart parking, and energy optimisation. Paradell joined Tech Data in 1996 as a team leader in the company's IT department and has held positions of increasing responsibility and scope over the past 20 years. Prior to his current role, he served as vice president, Operational Effectiveness and Strategy for Tech Data Europe from March 2013 to March 2016. He holds a bachelor's degree in computer science engineering from The Autonomous University of Barcelona (UAB) and an MBA from the ESADE Business School in Barcelona, Spain.
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Value added services After-sale consulting, after-sale service, brand-dedicated sales staff, BTO, business plan help, cash-and-carry, co-marketing funds, configuration help, customer loyalty program, dedicated contacts, demo products, demos, direct shipping to final client, e-commerce site, e-mailing, field sales staff, help with specifications write-up, hot-line, information newsletter, IT operating, logistics, magazines, maintenance, manufacturer certifications, modeling, network management, newsletters, on-site quote, on-site training, online order status checking, online ordering, personalized help, personalized shipping, practice development, pre-sale consulting, product catalog, product loan, product search, project management help, project monitoring and control, project-dedicated sales staff, regular special offers, retail-dedicated sales staff, return-to-base warranty, sales help, shipments tracking, special offer lists, specific preparations, standard exchange, stock taking back, system integration, technical deployment, telemarketing, thematic catalogs, training centre, transfer of skills, trial products Financial services 30-day payment, advance payment, automatic transfer, bank garanty, bill of exchange, cash, cash on delivery, cash with order, cash with trade discount, cheque, company security, credit card, credit insurance, deferred transfer, delegation of payment, draft, financing solutions, joint account, personal outstanding, personalized terms of payment, promissory note, term of payment
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