CDW 2014 Annual Report Download - page 10

Table of Contents
services offerings help our customers simplify cloud adoption, as well as the ongoing management of cloud solutions across the entire
IT lifecycle. Dedicated Cloud Client Executives work with our customers to architect cloud solutions that meet their organizational,
technology and financial objectives.
• Virtualization : We design and implement server, storage and desktop virtualization solutions. Virtualization enables our
customers to efficiently utilize hardware resources by running multiple, independent, virtual operating systems on a single computer
and multiple virtual servers simultaneously on a single server. Virtualization also can separate a desktop environment and associated
application software from the hardware device that is used to access it, and provides employees with remote desktop access. Our
specialists assist customers with the steps of implementing virtualization solutions, including evaluating network environments,
deploying shared storage options and licensing platform software.
• Collaboration : We provide our customers with communication tools that allow employees to share knowledge, ideas and
information among each other and with clients and partners effectively and quickly. Our collaboration solutions unite communications
and applications via the integration of products that facilitate the use of multiple enterprise communication methods including email,
instant messaging, presence, social media, voice, video, hardware, software and services. We also host cloud-based collaboration
solutions.
While we believe customers increasingly view technology purchases as solutions rather than discrete product and service categories, the
following table shows our net sales by major category, based upon our internal category classifications.
Our Customers
We provide integrated IT solutions to approximately 250,000 small, medium and large business, government, education and healthcare
customers throughout the U.S. and Canada. Sales to the U.S. federal government, which are diversified across multiple agencies and
departments, collectively accounted for approximately 7% , 7% and 10% of total net sales in 2014, 2013 and 2012, respectively. However, there
are several independent purchasing decision-makers across these agencies and departments. Excluding these sales to the federal government, we
are not reliant on any one customer, as our next five largest customers cumulatively comprised approximately 3% of our net sales in 2014 .
Inventory Management
We utilize our IT systems to manage our inventory in a cost-efficient manner, resulting in a rapid-turn inventory model. We generally
only stock items that have attained a minimum sales volume.
7
Year Ended December 31, 2014 Year Ended December 31, 2013
(1)
Year Ended December 31, 2012
(1)
Dollars in
Millions
Percentage
of Total Net Sales
Dollars in
Millions
Percentage
of Total Net Sales
Dollars in
Millions
Percentage
of Total Net Sales
Notebooks/Mobile Devices
$
2,352.3
19.5
%
$
1,698.4
15.8
%
$
1,462.8
14.4
%
NetComm Products
1,615.9
13.4
1,486.3
13.8
1,351.5
13.3
Enterprise and Data Storage
(Including Drives)
1,024.3
8.5
999.2
9.3
981.5
9.7
Other Hardware
4,549.2
37.6
4,178.5
38.8
4,075.7
40.3
Software
(2)
2,076.7
17.2
1,993.1
18.5
1,877.7
18.5
Services
371.4
3.1
332.7
3.1
285.0
2.8
Other
(3)
84.7
0.7
80.4
0.7
94.0
1.0
Total net sales
$
12,074.5
100.0
%
$
10,768.6
100.0
%
$
10,128.2
100.0
%
(1) Amounts have been reclassified for changes in individual product classifications to conform to the presentation for the year ended
December 31, 2014.
(2) The decline in software as a percentage of total net sales is primarily driven by a higher proportion of revenue recorded on a net basis,
including SaaS.
(3)
Includes items such as delivery charges to customers and certain commission revenue.