Ingram Micro 2010 Annual Report Download - page 9

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PART I
ITEM 1. BUSINESS
The following discussion includes forward-looking statements, including but not limited to, management’s
expectations of competition; revenues, margin, expenses and other operating results or ratios; operating efficien-
cies; economic conditions; cost savings; capital expenditures; liquidity; capital requirements; acquisitions and
integration costs; operating models; exchange rate fluctuations and rates of return. In evaluating our business,
readers should carefully consider the important factors discussed under “Risk Factors.” We disclaim any duty to
update any forward-looking statements. Unless otherwise stated, all currency amounts, other than per share
information, contained in this Part I are stated in thousands.
Introduction
Ingram Micro Inc., a Fortune 100 company, is the largest global information technology (“IT”) wholesale
distributor by net sales, providing sales, marketing, and logistics services for the IT industry worldwide. We provide
a vital link in the IT supply chain by generating demand and developing markets for our technology partners. We
create value in the market by extending the reach of our technology partners, capturing market share for resellers
and suppliers, creating innovative solutions comprised of both technology products and services, offering credit,
and providing efficient fulfillment of IT products and services.
We remain focused on continuing to build our IT distribution business by serving the demand for technology
and automation, expanding our market presence and broadening our product and services offerings. We will
continue to develop an increasing presence in adjacent segments, such as enterprise computing, automatic
identification and data capture (“AIDC”); point-of-sale (“POS”); managed, professional and warranty maintenance
services; mobility; physical security; and consumer electronics (“CE”). We also are committed to building our
business by leveraging the continuing evolution of technology delivery. Cloud computing, or software-, platform-
and infrastructure-as-a-service, is emerging as a way of supplying computer resources over the Internet or a private
wide area network. With new modes of delivery in mind, we have designed service offerings for resellers migrating
toward cloud computing environments, and marketing and channel programs for cloud vendors. Our capabilities
and offerings will continue to broaden and migrate to other regional operations as cloud computing gains traction. In
addition, our expertise in supply chain management enables us to extend our business beyond traditional
distribution and technology products. We offer fee-based supply chain services, encompassing the end-to-end
functions of the supply chain to vendors choosing to sell direct. Likewise, we offer fee-based services to retailers
and Internet resellers seeking fulfillment services, inventory management, reverse logistics, and other supply chain
services for both IT and non-IT products. As the world changes around us, our capabilities and adaptability to new
business models make us a valued business partner with opportunities for us to experience continued growth and
profitability.
History
We began business in 1979, operating as Micro D Inc., a California corporation. Through a series of
acquisitions, mergers and organic growth, Ingram Micro’s global footprint, product breadth and service capabilities
have expanded and strengthened in North America; Europe, Middle East and Africa (“EMEA”); Asia Pacific; and
Latin America. During 2010, we strengthened our position in enterprise computing distribution through the
acquisition of Albora Soluciones S.L. (Spain and Portugal), interAct BVBA (Belgium), and Asiasoft Hong Kong
Limited (Hong Kong).
Company Strengths
Two-tier distribution continues to be an integral element of the go-to-market strategy for IT suppliers. We
believe that the current technology industry generally favors large, financially-sound distributors that have broad
product portfolios, economies of scale, strong business partner relationships and wide geographic reach. Our value
is in enabling our business partners — both reseller customers and vendors — to become more efficient, knowl-
edgeable and profitable. Our strengths position us well to meet the needs of our reseller and vendor partners
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