Avnet 2000 Annual Report Download - page 15

$30 million to $65 million, and it successfully differentiated itself in the market. A
major point of differentiation, and the most identifiable core competency of the
business unit, is its ability to perform complex integration of high-end IA server
solutions – IBM Netfinity, HP Netserver and Compaq Proliant products – which translates
into a tremendous growth opportunity for Avnet CM in FY’01.
AVNET ENTERPRISE SOLUTIONS (FORMERLY AVNET COMPUTER)
Server consolidation, storage-area networking and business-to-business infrastructure
solutions continue to be an explosive growth market for Avnet Computer’s single tier
business model. This division is one of the few North American solutions integrators
of its size. With record sales performance of more than $400 million, representing 25
percent growth year to year, this business has become a major go-to player for key
vendors such as Compaq and IBM — suppliers actively seeking the e-infrastructure
capabilities it offers on a national level.
Affirming the Avnet Enterprise Solutions success, and validating its business model,
VARBusiness magazine (September 2000) ranked Avnet Computer No. 89 in its
annual VARBusiness 500 listing of the top 500 value-added resellers, integrators and
information technology consultants in North America. Avnet Computer was also named
Partner of the Year by Computer Associates International Inc. (CA), based on its
significant strides in support of Unicenter TNG, CA’s flagship e-business enterprise
management solution.
AVNET CONVERGENT TECHNOLOGIES
A leading distributor of integrated point-of-sale systems, including bar-code scanning,
automatic identification systems and wireless computing technologies integrated with
local area networks, Avnet Convergent Technologies markets to North American value-
added resellers. Fueled by explosive demand for these solutions, Avnet Convergent
Technologies projects continued strong growth.
EUROPE
Avnet Hall-Mark, Europe, continued rapid growth throughout FY’00, with $280 million in
top-line revenues. All warehouse and purchasing operations in the United Kingdom,
Germany, Austria and Switzerland were successfully consolidated into a new facility near
Waterloo, Belgium, and a pan-European enterprise resource planning (ERP) system was
implemented as well. The system provides the foundation for seamless financial and
operational support across all European operations. During FY’00, Avnet Hall-Mark
became IBM’s largest pan-European value-based distributor and was named IBM’s
Distributor of the Year in the United Kingdom. It was also named IBM’s Top Revenue
Performer in AS/ 400 and Best Performance Target Achiever in RS/ 6000 in Poland.
ASIA PACIFIC
Avnet Enterprise Solutions/ Australia (formerly Avnet Integrand) is Compaq’s No. 1
single-tier distributor in Australia with year over year revenue growth of 55 percent.
Meanwhile, Avnet Hall-Mark/ Australia’s, sales increased 25 percent over FY’99.
OPPORTUNITIES FOR RECORD GROWTH
As evidenced by C2K, the HP channel strategy for the future, the supplier and
customer base are requiring unprecedented levels of accountability among all
participants in the supply chain. This has led to the unbundling, or disaggregation,
of value propositions, which means that logistics, sales, marketing, finance and
technical support may be priced and sold á là carte. Avnet CM is embracing this
evolution in the role of service provider by charging for the value provided, not simply
the product sold. And, although much of its existing services will successfully mesh
into the new model, it must – and will – accelerate its offering of total solutions to
suppliers and customers.
Avnet CM views the Internet as a tool that will contribute to reduced expenses and
increased efficiencies. For example, all customer-critical information about products
and solutions is being made available through customized Web portals. All purchas-
ing and related activities must be available online, to free the sales force to focus on
value-added activities.
LOOKING FORWARD
Avnet CM will continue to develop its existing channels to market, focusing on
selling specific products and services to specific customers. It will also generate
incremental sales with those customers while expanding beyond its existing
base, delivering revenue to suppliers from new accounts. Avnet Hall-Mark and
Avnet Enterprise Solutions are viewed as leaders in their respective markets,
with the ability to adapt to and capitalize on the opportunities the information
technology industry presents. In FY’01, look for more innovation at Avnet CM
than ever before.
Avnet Computer Marketing’s
core competencies are
providing customer-focused,
solutions-based offerings
around enterprise servers,
software and storage products.
1999 Estimated Worldwide
Midrange Server Sales
$25 Billion
Distribution (DTAM) 51%
Direct 49%
Avnet CM’s Share of DTAM 10.5%
Avnet Computer Marketing
technicians assembling
build-to-order enterprise
computer workstations.
Sources:
Dataquest
Avnet CM
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