Tag: CDW

CDW has a miserable quarter

CDW has had a miserable third quarter. Not only was it hacked by an aggressive ransomware outfit it also saw net sales for the period amounting to £4.61 billion globally.

This figure was a 9.4 per cent decrease compared to $6.2 billion in the third quarter of 2022.

The IT giant’s UK and Canadian operations reported combined net sales of $601 million, a 15.4 per cent decrease compared to 2022.

Most of the problems were poor sales in the corporate and small business segments as businesses faced economic uncertainties.

Gross profit in the third quarter of 2023 stood at $1.2 billion, representing a slight decrease of 0.4 per cent compared to the 1.2 per cent reported for the third quarter of 2022.

CDW staff fear layoffs

IT solution provider CDW appears to be laying off hundreds of employees after the company warned that its first fiscal quarter 2023 revenue would fall below expectations.

The Illinois-based group expects first-quarter net sales of about $5.1 billion, well below analyst consensus estimates of $5.28 billion and significantly lower than the $5.95 billion in revenue the company reported for its fiscal first quarter 2022.

The outfit has 15,100 employees and several of them have complained on social media that they have been let go. The firm is offering a severance package, but laid-off employees are signing non-disclosure agreements.

One area hit by the layoffs is the field services unit which had some redundancies after CDW’s blockbuster $2.5bn acquisition of Sirius, the employee said.

Posts suggest that about a 1,000 employees are being laid off across the company with more coming.

 

 

Lenovo launches three-tier DaaS model in the UK

Lenovo has launched its device as-a-service (DaaS) offering in the UK spanning its entire device portfolio. The news means that all its partners can now sell Lenovo’s device portfolio through a monthly as-a-service model.

Lenovo director of SMB and channel for the UK and Ireland Jane Ashworth said the DaaS offering is split into three tiers: Simplify, Accelerate and Transform accessible through the Lenovo Partner Hub or through Lenovo.com.

Its Simplify tier is intended as a “starting point” and is targeted at small businesses. Partners can use Lenovo’s online tool to add devices and services on behalf of the customer and calculate the total monthly cost of the service.

The Accelerate tier enables partners to add their own services to the quote, which could include configuration or consulting services.

Two IT frameworks seek resellers

Resellers are being sought for two IT frameworks.

The first, managed by KCS, is worth up to £400 million and caters for the procurement, refurbishment and disposal of hardware, including desktops, laptops, tablets, servers and storage.

Applications close on 18 September, with the four-year framework set to go live on 1 November 2020.

The framework will be split into four lots: IT Hardware; Remanufactured IT Hardware; Refurbished IT Hardware; and IT Hardware Repair, Disposal and Recycling.

The second framework is run by Crescent and is valued at £40 million.

The six lots are: Servers and Associated Equipment, Enterprise Storage, Back up and Archiving, Networking Equipment and Services, Security Hardware and Maintenance.

Contract notices are expected to be sent out in October, with the frameworks predecessor due to expire in January 2021, having gone live in 2017.

Suppliers on this iteration include CDW, CAE, Insight and Bechtle.

Resellers scoop NHS security deal

Resellers have been winning parts of a £500 million framework that will provide “end-to-end” IT to the NHS  including Computacenter, Softcat, Total and Dell.

The Digital Workplace Solutions framework is managed by NHS Shared Business Services (SBS) and replaces the predecessor “Link: IT Solutions”.

Total Computers sales director Kieran O’Connor said: “We’re already working with NHS Shared Business Services through ‘The Edge4Health’, so are thrilled to be a ‘Digital Workplace Solutions’ supplier and see it as further endorsement of our ability to provide the public sector with competitive pricing, technical excellence and great service.”

The framework will run for an initial two-year period, with an option to run for a further two years after. Since publication, NHS SBS has told CRNthat the framework is worth an estimated £500 million.

CDW doing well

CDW has reported a record third quarter as sales neared $5 billion.

For the quarter ending 30 September, the reseller giant saw revenue climb 12.2 percent, while net income rose 9.8 per cent to just over $200 million.

CDW winner on UK government’s G-cloud

CDW transacted the most sales of any reseller on the G-Cloud framework last year according to government released figures

The figures, published by Crown Commercial Service (CCS), reveal that CDW raked in sales of £29.3 million via G-Cloud, although the vast majority of this came from one huge £25.7 million deal.

CDW sees best ever second quarter

CDW has reported its best ever second quarter with the business unit holding its UK arm seeing revenue almost triple.

CDW saw global sales increase 7.6 percent to $4.9 billion and its net income rose 22.8 percent to $173 million.

Its UK division, which is part of its Canadan operation (presumably because it has the same Queen), saw revenue rocket 34 percent to $487 million.

CDW chief revenue officer Christine Leahy said: “Once again, UK results came in above expectations. UK had excellent results across both transactions and solutions.

“Despite looming Brexit decisions, the team continues to execute well in market.

“They are also doing a great job leveraging our international capabilities to grow outside the UK, both with UK-based customers and US-based customers. US referral to the UK increased over 30 percent in the quarter compared with the prior year.”

 

 

 

CDW makes loads of money

richSuper-VAR CDW is reporting full-year revenues of $15.19 billion with sales from the UK and Canada – which it brackets together – rising by a combined 15 percent to $1.56 billion.

In its last results filed on Companies House (for 2016), CDW UK saw revenues hit £648.6 million

The NASDAQ-listed parent saw total 2017 revenues increase by 8.7 percent to $15.19 billion and net profit soar by 23.2 percent to $523 million.

CDW CEO Thomas Richards said: “As we have throughout the year, we delivered strong top-line growth with solid profitability in the fourth quarter, once again highlighting the combined power of our nimble business model, broad product portfolio and balanced customer end-markets.

“Our 2017 results continue to prove out the success of investments we’ve made in our three-part strategy.”

National Desktop and Notebook Agreement goes live.

CNS-Solutions-CSWA-Exam-Student-Taking-Exam-2The National Desktop and Notebook Agreement (NDNA)  is now live with resellers awarded spots as indirect partners for a host of PC vendors.

Managed by London Universities Purchasing Consortium, the four year agreement  will see Academia, DTP and Misco provide desktops and mobile devices from Acer, Fujitsu, HP Inc, Lenovo and Toshiba. Dell will take all its business direct.

The 11 resellers on the framework are: Academia, Bechtle, CDW, DTP, European Electronique, Getech, Insight, Misco, SCC, Stone and XMA. Stone Computers will also supply its own devices direct to customers, while XMA will supply its Viglen brand.

The framework is broken up into three lots: Lot 1 is for desktops, Lot 2 is for notebooks and mobile devices, while Lot 3 is a “one-stop shop” for both categories.

The value of the NDNA is between £400 million and £440 million, which is much bigger than its predecessor’s £310 million.

One thing is noticeable. Samsung is no longer involved, while Fujitsu is brought in on Lot 2. Softcat is a notable reseller absentee, having previously been in all three Lots with Dell and Lenovo.