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Westcon International’s business model
Westcon International enables vendors of high-tech enterprise solutions to increase their channel and market penetration by supporting and developing an extensive channel of IT systems integrators, service providers and resellers.
What makes Westcon International different?
- International presence – located in over 50 countries supported by skilled employees
- Strong relationships with industry-leading vendors
- Extensive network of global service providers, system integrators and enterprise resellers
- Global digital marketplace and systems capability for device, subscription, recurring offers and cloud solutions
- Wealth of industry insight, technical expertise and decades of distribution experience
Key resources
Financial capital
Net debt US$89 million
Investment in working capital US$199 million
Natural capital
- Energy management
- Recycling initiatives
Human capital
Employees Over 3 500
- 40% female
- Employees’ engagement, skills and knowledge
Social and relationship capital
- Vendor partner relationships
- Customer engagements
- Stakeholder relationships
Intellectual capital
- Technical expertise
- Sector partnerships
- Digital specialist solutions and platform
Manufactured capital
- Warehouses (distribution centres)
Key partners and relationships
Key partners
- AWS
- Broadcom
- Cisco
- Check Point
- CrowdStrike
- Extreme Networks
- Juniper Networks
- Palo Alto Networks
- Zscaler
Key relationships
- Customers
- Employees
- Vendors
Key revenue segments
Categories
- Cyber security
- Network infrastructure
- Cloud computing
- Data centre
Geographic
- Asia-Pacific
- Europe
- Middle East and Africa
Key revenue drivers
- Sales – volumes driven
- Enterprises need to constantly refresh and update their technology capability, their increased requirement for productivity, flexibility, governance and defence from the growing security threats
- Market share of vendors’ solutions and expansion into additional geographies
Activities
- Technology distribution
- Channel enablement
- Marketing, data and analytics for demand generation
- Digital distribution marketplace
- Advanced technical and channel services
- Financing and capital into the channel
- Training and development
Impact of activities on future availability of resources
- Improving working capital will reduce net debt over time
- Business activities have an impact on availability of natural resources, the impact of which is being managed through Responsible Business practices
Constraints on availability of resources
- Availability of financing facilities and any material changes thereto may affect Westcon International’s ability to fund its working capital requirements
How Westcon International creates value
Westcon International has extensive operations in over 50 countries. Westcon International has strong foundation vendor relationships with over 30 years’ distribution success as a strategic partner to the world’s leading IT brands. Westcon International has skilled employees who are dedicated to delivering outstanding performance and delivering customer satisfaction.
What impacts Westcon International’s ability to create value?
Key outcomes for stakeholders
Shareholders
- 7.7% revenue growth
- Increased operating profitability
- Working capital days improved by 2 days
- Net debt remains largely stable
- Normalisation of hardware and software backlog – US$446 million at year‑end (FY23: US$768 million)
- Increased finance charges due to high interest rates
Vendors (suppliers)
- Recognition by vendors through partner awards
- Strong vendor relationships and focused sales
Financial institutions and debt funders
- US$40.9 million interest paid to debt providers
- Primary borrowing facilities committed to 2026
Corporate social responsibility beneficiaries
- Improvements in the communities where its employees live and work
Employees
- Employee training initiatives
- Recognition of employees through performance evaluation programmes
- Focus on employee health and wellbeing
- Employee satisfaction and attrition
Environment
- Energy savings
- Reduced waste through recycling initiatives
- Carbon reduction targets were validated by the SBTi
- Measures taken to proactively minimise the environmental impact of business activities
Customers
- Customer satisfaction
- Supply chain constraints have eased
Governments and regulators
- Compliance with regulatory requirements
- US$14.8 million in taxes paid
- Value created
- Value preserved
- Value eroded