• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • Software And Storage Propel Avnet’s Q2

    February 24, 2014 Dan Burger

    The significance of IBM de-emphasizing hardware and investing more in software and services can be seen in the reseller channel. Just take a look at the most recent financial report from one of IBM’s largest channel partners: Avnet.

    Hardware sales, particularly servers, used to be a cash cow for the Technology Solutions group at Avnet. Back in the day, the master distributor sold AS/400s at a snow-shovels-in-Chicago pace. The revenue piled up like snow drifts. Avnet remains closely connected to a great number of AS/400, iSeries, and IBM i shops. But server revenues aren’t what they used to be. Meanwhile, software and services revenues continue their rise.

    Looking at Q2 2014, Avnet’s overall sales were $7.4 billion, up 10.8 percent, and net income was $163.9 million, up 12.6 percent. The Technology Solutions group is getting credit for much of the increase, and represented 44 percent of Avnet’s overall sales compared to 38 percent in Q1 2014. Demand for software and storage was especially strong.

    The definition of “especially strong” in this case is a revenue hop of 36 percent to $3.3 billion, with revenues in the Americas region rising 44 percent to $1.86 billion. The EMEA region, which has been anything but strong in recent quarters, was up 31 percent to $909.5 million, and Asia increased 11 percent to $470.9 million.

    Compared to Q1 2014, the combination of software, storage, and services exploded more than 30 percent, but it was the duo of software and storage that gets the credit for year-over-year growth.

    That kind of revenue boost is obviously significant, but it was also pointed out by Avnet’s Phil Gallagher, global president for Technology Solutions, that server revenue increased by a moderate amount in year-on-year comparisons and was a significant factor in quarter-on-quarter comparisons.

    Rick Hamada, chairman and chief executive officer at Avnet, said the company will continue to invest in higher growth markets that include converged solutions, software, and professional services. End users, he said, are focused on optimizing their data center investments, including the growing interest in hybrid cloud solutions.

    At the midpoint of fiscal 2014, revenues at the Technology Solutions group increased 9.5 percent year-over-year. The forecast for Technology Solutions for Q2 2014 is estimated to be between $2.6 billion and $2.9 billion, which, after just posting a quarter with $3.3 billion in revenues, will look like a red flag, but is actually closer to the normal range. Revenue in Q4 2013 was $2.41 billion.

    RELATED STORIES

    Avnet Makes Up Server Decline With Software, Storage, And Services

    Avnet’s Madden An IBM i Guy

    Avnet’s Solutions And Services Strategy Adjusts To IT Buying Changes

    Avnet Introduces Utility Pricing on Hardware

    X86 Servers Decline At Avnet, But Proprietary Servers Up A Bit

    Avnet Describes IBM i Server Market Trends

    Avnet Saw IT Budget Flush Spending As 2012 Came To A Close



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags:

    Sponsored by
    Focal Point Solutions Group

    CLOUD SOLUTIONS

    From Production, Test and Development, Disaster and Backup environments, as well as hosting customer-owned servers, we offer a variety of Cloud Solutions to accommodate all sizes of business and industry. FPSG is in a unique position to provide services for multinational corporations and SMBs with data centers located throughout North America and Europe.

    Does your IBM midrange, AIX, iSeries, Intel, or Linux environment need an improved Cloud strategy?

    EXPLORE OUR CUSTOM SOLUTIONS

    • Production Solutions
    • Disaster Recovery
    • Backup and Recovery Services
    • Data Centers
    • Security & Compliance Services
    • Application Hosting

    MANAGED SERVICES

    Focal Point offers a variety of custom-managed services from daily operations management and monitoring to high availability, backup, and disaster recovery support services. If your enterprise requirements reside in IBM midrange, AIX, iSeries, Intel, or Linux, FPSG can help support your team with our managed services experts. No User downtime for production backups.

    • System Monitoring
    • Server & SAN
    • High Availability/Disaster Recovery Monitoring
    • Managed Backup Services
    • Security Administration & Monitoring
    • Cloud Environment Monitoring

    Our experts combine decades of experience with industry-leading innovation to customize effective solutions for your organization, budget, and infrastructure.

    It’s not uncommon for organizations to miss important requirements when implementing and planning for new technologies. Our Managed Technical Services ensure total compliance, with no compromise or loss of data. Our skilled specialists will design and execute a non-disruptive and comprehensive solution, allowing your IT team to concentrate on the day-to-day activities – resulting in a more agile and cost-effective infrastructure.

    Watch our IntellaFLASH™ Video to learn more

    Let’s Discuss Your Custom Solution Needs

    Follow us on LinkedIn

    focalpointsg.com | 813.513.7402

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    ASCI Ramps Up Migration Effort for Job Scheduler The Case Of The IBM Systems Director And RBAC

    Leave a Reply Cancel reply

Volume 24, Number 7 -- February 24, 2014
THIS ISSUE SPONSORED BY:

BCD
ProData Computer Services
Shield Advanced Solutions
COMMON
RJS Software Systems

Table of Contents

  • Intel’s Xeon E7 Brings The Fight To IBM’s Power8
  • Fear Or Freedom: IBM i ERP Upgrades
  • Oracle To Make JDE More Agile, Less Painful To Upgrade
  • As I See It: Peeking Under the Hood
  • IBM Slashes On-Demand CPU And Memory Prices
  • IBM Cuts A PureFlex Deal With Service Providers
  • Software And Storage Propel Avnet’s Q2
  • Captains, Commanders, Controllers, And Chiefs
  • Nevermind About That Power, Mainframe Microcode Contract
  • Judge Gives Oracle Partial Victory in Rimini Case

Content archive

  • The Four Hundred
  • Four Hundred Stuff
  • Four Hundred Guru

Recent Posts

  • DRV Brings More Automation to IBM i Message Monitoring
  • Managed Cloud Saves Money By Cutting System And People Overprovisioning
  • Multiple Security Vulnerabilities Patched on IBM i
  • Four Hundred Monitor, June 22
  • IBM i PTF Guide, Volume 24, Number 25
  • Plotting A Middle Age Career Change To IBM i
  • What Is Code Transformation Even?
  • Guru: The CALL I’ve Been Waiting For
  • A Frank Solstice
  • The Inevitable Wave Of Power9 Withdrawals Begins

Subscribe

To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

Pages

  • About Us
  • Contact
  • Contributors
  • Four Hundred Monitor
  • IBM i PTF Guide
  • Media Kit
  • Subscribe

Search

Copyright © 2022 IT Jungle

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.