IT and Business Insights for SMB Solution Providers

D&H Ends Fiscal Year 2021 with 19% US Growth and Surpasses $5B in Revenue

I received this press release from D&H . . . after they had an amazing year!

HARRISBURG, PA – May 20, 2021 – D&H Distributing, a major provider of SMB, mid-market, and consumer technologies to the North American channel, announces it has finished its Fiscal Year 2021 on April 30th showing strong growth figures, with full fiscal year growth expected to exceed 19% in the US and 15% in Canada. The company also experienced 34% growth of business through its VAR customer base, and double-digit growth in its consumer sector. D&H Distributing’s combined US and Canadian revenue has now exceeded $5 billion USD. D&H’s proactive, demand-generation business model helped drive the strong growth, supported by the dedication of employee co-owners that own more than a third of the company. (D&H is an ESOP—employee stock ownership plan—organization).

As the company’s fiscal year closes out, D&H is positioned to become the third-largest broadline distributor in the channel since the pending merger of Tech Data and Synnex that was announced in March. Of those three remaining distribution companies, D&H is the only one to focus primarily on SMB and mid-market partners. D&H has seen double- and even triple-digit growth in key areas in its last fiscal quarter, including increases in cloud sales bookings (up 160% in fiscal Q4), and Professional Services (53% growth in fiscal Q4). This is in addition to strong growth from end-point devices and collaboration technology supporting work-from-anywhere and remote learning, and solid performances in still-emerging categories such as ProAV and esports. D&H also added a new team focused on PC gaming, esports, and components that add value for custom-built computers and integrations across-the-board.

D&H has seen double- and even triple-digit growth in key areas in its fiscal fourth quarter, including the above-mentioned gains in cloud and “XaaS” (everything-as-a-service). This has led the company to become known as “The XaaS Distributor,” helping business partners migrate to a cloud-provisioned services model where technology is consumed on a monthly subscription basis, delivered and managed over the internet by IT solution providers. 

The distributor is adding more than 100 personnel in the areas of sales, solution engineering, and sales support. This investment will help maintain the company’s commitment to delivering the highest and most personalized service levels in the distribution industry. 

“The impending merger of two of our largest competitors only demonstrates the distribution market’s inherent ability to evolve, cultivating new business practices in order to present new deliverables and opportunities for partners,” said D&H Co-President Dan Schwab. “D&H has consistently proven its unique agility over the decades, and the past fiscal year has been no exception. If anything, we’re exceedingly proud of the role our partners have played in maintaining stability in the business community throughout 2020, and we’re glad to have been able to facilitate their efforts.”

The distributor has made significant investments in the past several months to continue its momentum into fiscal year 2022, which began May 1, 2021. These include the formation of a new Components and Gaming Team, for which the company has appointed four new leaders dedicated to esports sales and deployment, especially in the K-12 space. D&H has also launched its Education Community engagement group, an exclusive peer engagement council that will work closely with D&H’s manufacturers to develop direction for programs and services. 

D&H is also preparing to grow its extension of $225 million in monthly downstream credit increases across the US and Canada, which will continue to expand to an additional $300 million per month, to support partners’ business needs. This will enhance purchasing power for key channel accounts over the course of this new fiscal year, so they can pursue higher-scale projects in the mid-market sector. The extensions can help D&H partners take advantage of an imminent infrastructure refresh, where companies will update technology for the many personnel who have adopted work-from-home schedules on a long-term basis. Upgrades will span high-performance computing devices, WiFi, security, printing and imaging, and software for use in remote and hybrid work environments.

“Through years of market highs and lows, D&H’s partner-centric model has been proven successful. There’s no better validation of our strategy and investments than the achievements of our partners,” said D&H Co-President Michael Schwab. “We’ll continue to develop credit offerings, educational opportunities, and enablement for the channel. As always, we’re here to support SMB and mid-market partners, delivering exceptional services, solutions, and resources that will help them add competencies and expand their practices.”

Investments for D&H’s Fiscal Year 2021 Include:

An Estimated $300 Million in Credit Extensions: D&H will extend the credit limits of between 1,500 and 2,000 of its partners starting in Q1 of its Fiscal Year 2022, offered to select partners on a rolled-out basis throughout the fiscal year. This level of additional credit in the channel will help to stimulate purchasing and prepare partners to take advantage of the technology refresh. 

D&H’s Education Community: This exclusive community represents one of the only solution provider engagement groups focused solely on the education vertical. The new “Education Community” is comprised of a maximum of 100 D&H partners, all of whom do a majority of their business in the K-12 and higher education space. There are no minimum sales thresholds or fees involved in joining the group. Membership is rather based on the quality and type of projects these partners are conducting in the field. The group convenes for quarterly virtual meetings to discuss trends and best practices, and provide real-world feedback to help shape D&H’s and its manufacturers’ programs and services. This member-led council will drive its own content, including subject matter experts on trends such as eRate, funding, and safety solutions. D&H’s field team will work closely with the group, including at regional events, creating promotions and programs that cater to the needs expressed by the membership.

A New, State-of-the-Art Harrisburg Distribution Center:  D&H will unveil a 750,000 square foot, cutting-edge distribution center in its home city of Harrisburg, Pennsylvania, in September 2021. The upgraded facility will feature expanded capabilities, increased warehousing capacity to support current and future business for the distributor’s growing partner base, and a fully modernized supply chain logistics program to support manufacturers.

Gaming and Components Business Unit: D&H has organized its resources around PC gaming, esports, and components, creating a new business unit to accommodate this growing space. The company has hired new leaders to spearhead innovative sales and marketing campaigns, including Senior Director of Components and Gaming Sales Chris Geiser; Sales Specialist Brandon Beyer; esports Consultant Bubba Gaeddert of the Varsity Esports League; and Program Manager Logan Hermes. D&H will proceed as a leader in this category, delivering the solutions, sales enablement, training, and professional services required to help partners add this area to their core competencies. 

“Fiscal 2022 is starting-off as a monumental year, not just for D&H, but for distribution overall. The market’s recent evolution could present new opportunities for partners to discover our value proposition,” said Peter DiMarco, vice president of VAR sales at D&H. “While our competitors are dealing with the shifts that accompany consolidation, D&H will be cultivating investments designed to help our partners move upstream and grow, generating new areas of opportunity and delivering an even greater range of services to augment their capabilities.”

D&H solution providers can visit www.dandh.com, or visit the distributor’s Facebook and Twitter feeds, https://www.facebook.com/DandHDistributing/ and @dandh. Call 800-877-1200 in the US or 800-340-1008 in Canada to speak to an account representative. 

About D&H Distributing 

D&H Distributing supports resellers and MSP partners in the corporate, small-to-midsize business, consumer, education, and government markets with endpoints and advanced technologies, as well as differentiated services. D&H is ready to fill new market needs created by the recent consolidation in the marketplace. As the company enters its 104th year, its vendors and partners can be confident in its ability to provide a wealth of enablement resources, multi-market expertise, credit options, and consultative services. D&H is agile in response to the needs of its VAR and MSP partners, demonstrating resilience through decades of industry mergers and market disruption, overcoming everything from wars and recessions to pandemics. 

The company works to expand the competencies of its partners in areas such as cloud services, ProAV, collaboration, UCC, mobility, esports, digital displays, smart home automation, video surveillance, digital imaging, and server networks across a range of markets. Its value proposition includes highly lauded training opportunities and partner engagement events, dedicated Solutions Specialists, certifications, professional marketing resources, and an expanding digital Cloud Marketplace. 

The distributor is headquartered in Harrisburg, PA, in the U.S. and Brampton, Ontario, in Canada with warehouses in Atlanta, GA; Chicago, IL; Fresno, CA; and Vancouver, BC, Canada. Call D&H at (800) 877-1200, visit www.dandh.com, or follow the distributor’s Facebook and Twitter feeds, https://www.facebook.com/DandHDistributing/ and @dandh.

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About the Author

Karl W. Palachuk, is a technology consultant, author, speaker, trainer, and coach. He is the author of fifteen books. He has built several successful businesses, including two managed services companies. His books include Managed Services in a Month and The Network Documentation Workbook. Karl is a frequent trainer and speaker in the SMB Community. His popular blog can be found at SmallBizThoughts.com. He has more than twenty years experience as an I.T. professional and serves on advisory panels for several hardware and software companies.

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