New products at element14
Development specialist element14 has launched tinyTILE (an Intel Curie module based board specifically designed for use in wearable and IoT designs for consumer and industrial edge products) and BeagleBone Blue (the latest offering based on the popular opensource BeagleBone from the BeagleBoard.org Foundation, built specifically for use in the development of robotics and autonomous vehicles). Both products are available through element14 offices in Austria, Belgium, Denmark, Finland, France, Germany, India, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland and the United Kingdom.
Broadliner Ingram Micro has unveiled a change of leadership in its pan-EMEA division. Mark Chlebek replaces Robert Beck as executive director of this division, managing relationships with pan-EMEA vendor partners. Beck will "gradually withdraw from the day-to-day business", before ending his 25 year career with the distributor. A 20-year company veteran, having joined Ingram in 1997, Chlebek takes responsibility for "purchasing and business management" for regional vendor partners managed by the distributor on a centralised basis. As part of the EMEA senior management team he reports to global group president of EMEA Mark Snider. "I'm excited to have Mark Chlebek coming into this strategic role. Mark brings with him years of EMEA-wide experience driving innovation and growth for our business. I am looking forward to working with him in his new capacity", Snider says. "I'd like to take this opportunity to thank Robert Beck for his many years of service and dedication to Ingram Micro. I'd also like to thank him for volunteering to help with a smooth transition, ensuring Ingram Micro business will continue without interruption to our vendor and customer partners." Chlebek is but one recent promotion in Ingram management. In February the distributor appointed Jacek Murawski as VP of EMEA vender engagement, with Günter Schiessl and Jordi Muñoz reporting into him in roles overseeing the management of partnerships with volume and value vendors respectively.
Exclusive Group transforms leadership team
Combined revenues from storage products sold to enterprise customers through the distribution channel in Western Europe (WE) showed growth of +0.9% year-on-year in January 2017, according to data published by CONTEXT, the leading European IT market analysis company. This includes a further decline of -15.4% in sales of hard disk drive (HDD) products from original equipment manufacturers (OEMs) in dedicated storage environments. In contrast, sales of dedicated storage solid state disk (SSD) drives from OEMs to the same market grew by +56.9%. "This follows comparatively meager growth of only +6.2% year-on-year in December 2016 that was driven by lower demand and also influenced by increased average selling prices due to recent component shortages", said Mathias Knoefel, Corporate Benchmarking and Enterprise Analyst at CONTEXT.
Revenue from OEM HDD storage declined by -34.1% in the same month, affected by lack of demand. Looking at the WE January 2017 revenues for these two product segments suggests that SSDs could maintain the top position they reclaimed in December 2016. Average Selling Prices for one of the largest SSD revenue drivers – 3.84TB SSDs, which account for 21.8% of revenues – have dropped by -13.7%, from €4,661.38 in January 2016 to €4,021.01 in January 2017. However, there has been an increase in the shorter term with ASPs rising by +3.9% from December 2016 to January 2017.
Year-on-year growth for SSDs and HDDs
American broadliner Tech Data has completed its acquisition of the Technology Solutions business from its competitor Avnet. The combination creates a premier global end-to-end IT distributor with unmatched capabilities and the most diverse solutions from the data center to the living room. "This is a momentous day in our company's history and we are excited to welcome our talented colleagues at Technology Solutions to the Tech Data family", said Bob Dutkowsky, chief executive officer of Tech Data. "Our combined company is perfectly positioned at the epicenter of the IT ecosystem—with the scale and scope to serve dynamic markets throughout the world—giving our customers access to an end-to-end portfolio of IT solutions and efficiently bringing our vendors' products to new customers in more markets. Our organizations' common cultures, shared values and commitment to providing a world-class customer experience will serve as the foundation for the new Tech Data. Together, we will be an even stronger company, capable of doing more for our channel partners than ever before. We remain confident that the acquisition of Technology Solutions creates a winning combination for our customers, vendors, and shareholders, as well as the employees of both organizations."
The addition of Technology Solutions significantly broadens Tech Data's value-added distribution business (aka Azlan), increasing the company's ability to help its partners capitalize on next-generation technologies while enhancing its go-to-market capabilities with complementary skills, expanded vendor relationships, and new customer sets. The combined company has a larger and more balanced geographic footprint, including a presence in the Asia-Pacific region, a new market for Tech Data. The company has operations in 40 countries, with 14,000 employees serving approximately 115,000 customers in more than 100 countries. The company also announced its global executive leadership, as well as several new regional and global roles. Reporting to CEO Bob Dutkowsky are:
In Europe, Tech Data has also announced its European Executive Board, which will be led by Zammit:
The total purchase price at close was approximately €2.35 billion (subject to certain post-close adjustments), including €2.17 billion in cash, and 2,785,402 shares of Tech Data stock, representing approximately 7.3% of Tech Data's shares outstanding (after issuance of the new shares). Tech Data financed the cash portion of the purchase price through a combination of €900 million from its recent public debt offering and €900 million of bank term loans, and the remainder from drawings under other credit facilities and cash on hand. The transaction is expected to be significantly accretive to Tech Data's non-GAAP earnings per share in the first full year. The company expects to achieve annual cost savings of approximately €90 million within 24 months, with one-time costs to achieve these cost savings expected to be approximately €135 million.