Westcon International divisional review

CORPORATE OVERVIEW

WESTCON

Westcon has expertise with vendors in the following technology solution segments:

• Cyber Security: Check Point, Crowdstrike, Efficient IP, F5 Networks, Infoblox, Netscout, Palo Alto Networks, Ivanti, Splunk, Broadcom, Tenable, TrendMicro and Zscaler
• Networking Infrastructure: Ciena, Extreme Networks, Juniper, Nokia, Ruckus
• Cloud Collaboration and mobility: 8x8, Avaya, Jabra, Microsoft, Mitel, Poly, RingCentral, Zebra, Audiocodes
• Data centre: NetApp, Pure Storage and VMware
• Business productivity: AWS and Microsoft

COMSTOR

The World’s only Cisco-dedicated distributor global provides the full line of Cisco technologies to a wide range of customers in over 100 countries. Comstor specialises on the following architectures/technologies:

• Cisco security: providing highly secure firewall, web and email threat detection and management services for network and mobile device protection
• Cisco collaboration: empowering people to engage and innovate through multiple endpoints and truly collaborative software; anywhere, any time, on any device
• Cisco software: flexible software licensing across the hardware estate combined with profitable annuity revenue
• Cisco data centre: allowing data to be analysed, simplified, automated and protected for operational efficiency through storage of digital information on missioncritical applications
• Cisco enterprise networking: covering SMB and enterprise solutions across core switching, wireless and routing technologies – without the enterprise costs
• Cisco services: providing customer support on Cisco solutions through its global support and solutions team of experts, serving over 180 countries and responding in 17 languages

WESTCON INTERNATIONAL

Westcon International also has capability practices and specialities, that it offers globally under its Westcon-Comstor brand:

• Cloud: AWS, Microsoft Azure and Microsoft Office 365
• Flex: Funding solutions that blend software billing and traditional distribution with flexible payment schemes to overcome budget constraints and accelerate the adoption of the latest technology
• Support and technical services: Education, network and security operating centres, technical support and professional services installation
• Global supply chain services: logistics, staging, strategic stocking, configuration, project co-ordination, VAT recoverability; global contracting and global credit management for international deployments and contracts

HOW WESTCON INTERNATIONAL CREATES VALUE

Westcon International’s people are dedicated to delivering outstanding performance, customer and vendor satisfaction. Westcon International provides a wealth of industry insight, industry-leading marketplace capability, innovative financing, marketing and business generation tools, technical expertise and decades of distribution experience for hybrid solutions.

Westcon International has established long-lasting and strategic vendor engagements and contracts. These relationships are leveraged to ensure its partners can access established and emerging technology solutions. With over 30 years’ distribution success as a strategic partner to the world’s leading IT brands, Westcon International combines global reach, digital capability, technology capability and scale with a personalised, local footprint to provide capabilities and services that vastly exceed the traditional distribution experience.

Westcon International selects market-leading vendor solutions and delivers outstanding propositions. It remains focused on process improvement, automation, both front office sales automation and back office efficiency with an emphasis on accuracy, quality and urgency in all functions.

Westcon International offers employees rewarding and challenging work in an inspiring, fast-moving environment. It has established an inclusive culture where people are valued and respected and where everyone can contribute, thrive, collaborate and reach their full potential.

IMPACTS OF WESTCON INTERNATIONAL’S EXTERNAL ENVIRONMENT ON ITS ABILITY TO CREATE VALUE

Numerous factors, such as global macroeconomic and political conditions, global supply chain disruptions, the recent surge in fuel and energy prices could all impact Westcon International’s ability to create value.

Ongoing global semiconductor shortages and increasing supply chain constraints have increased Westcon International’s product backlog. Headwinds from semiconductor shortages, compounded by various factors, including geopolitical issues like the war in Ukraine, the Covid-19 lockdowns in China and global inflationary pressures will continue to disrupt global supply chains for the foreseeable future

OPPORTUNITIES

The drive for the channel to have a digital engagement with suppliers (Gartner research) is creating opportunities for businesses like Westcon International to create value. The multi-year investments in advanced systems and business automation combined with the focus on portfolio expansion of software and subscription-based solutions provide opportunities for the business to continue improving operating leverage and overall profitability. The business has also determined that the introduction of a class-leading CRM platform will have a significant impact on digitally enabling the entire sales force. The business expects to conclude a pilot and roll out the first phase during FY23.

The underlying trends in the industry remain positive and the business is well positioned to benefit from continuing demand for software and services in networking, cyber security, and cloud infrastructure. This is further evidenced by increased order intake and backlog.

MARKETS

Strong growth was experienced during FY22 in Europe and Asia-Pacific, with modest growth in Middle East and Africa regions mainly due to market conditions. Westcon Europe performed strongly with 18% growth, from continued good growth in cyber security, networking technologies and new world class vendor additions. The Comstor Europe division achieved overall revenue growth of 7% resulting in strong market share gains across EMEA. Asia-Pacific revenue increased 15% with strong growth in Asia and New Zealand in particular.

OUTLOOK

The underlying trends in the industry remain positive and Westcon International is well positioned to benefit from continuing demand for software and services in networking, cyber security, and cloud infrastructure.

Current conditions are driving demand for all technologies in the Westcon International portfolio. The multi-year investments in advanced systems and business automation and focus on portfolio expansion with software and subscription-based solutions have enabled the business to record double-digit revenue growth despite the product supply constraints.

The global semiconductor shortage continues to impact all technology participants across multiple verticals and the additional geopolitical issues such as the war in Ukraine as well as energy costs are likely to compound this situation. Westcon International continues to monitor and mitigate the impact on availability and costs where possible.