D&H Distributing has announced that this past calendar year has brought double-digit sales growth for the company in North America. The company’s rate of revenue expansion in the commercial IT sector has outpaced that of the general market as the company continues to invest in high-growth technologies.
These investments have seen D&H’s transacting customer base grow by 20% in several areas, including Modern Solutions, the small and medium-size businesses market, and among emerging managed services providers. The company plans to continue its investments in its team and channel through 2024, as well as its investments in the public sector.
The Launch of D&H South Sales & Training Center
One of D&H’s most recent investments is the launch of the company’s new D&H South sales and training facility in the Tampa, Florida, area. This new location officially opened in November and is serving as home base for more than 100 D&H co-owners. D&H will host regular vendor-led training engagements and events for the sales team at this new and modern facility. The distributor will expand and integrate its “SuccessPath” resource and training methodology at this location, providing greater access to enablement services to help partners evaluate new business models, launch new practice areas, and develop greater vendor-specific technical and sales competencies. Programs at D&H South for 2024 will focus on trends like transformative Modern Solutions, demystifying AI, cloud migration, security, hybrid work, and the MS Windows 10 device refresh.
“D&H’s expanded teams in the Tampa area adds to the wealth of distribution experience, industry knowledge, and exceptional service that D&H is known for. We support D&H in providing this new venue, developed to enhance engagement with D&H’s sales teams and partners, and to create opportunities for them to bring the latest technology offerings to the forefront,” said Rob Cato, vice president North American channel, ISO at Lenovo. “D&H’s differentiator is its continued investments in people and resources. Leveraging our Lenovo 360 framework, together we will pursue new ways to help MSPs and VARs enhance their agility, strengthen their competitive position, and broaden their areas of expertise.”
“The D&H South grand opening introduces expanded partner sales coverage and training, creating greater opportunities to further accelerate our HP Blueprint and D&H’s Built for Growth sales strategies,” said Gary Simms, head of U.S. distribution channel sales at HP. “The D&H and HP partnership is focused on driving best-in-class partner personal systems, print, poly collaboration and services experiences. The D&H South campus provides HP with that opportunity.”
The look-and-feel of the 22,600 square-foot space is consistent with D&H’s dynamic architecture at its Tech Drive headquarters in Harrisburg, PA, including the new location’s mini amphitheater and a “Vendor Dome” area for exhibitions and sales training. D&H is maintaining most of the innovative and customized features of this location, which was named one of Tampa Bay’s Coolest Office Spaces of 2019 by the Tampa Bay Business Journal.
What’s Coming in 2024
D&H predicts continued sales growth and channel investment for calendar year 2024 despite the fact that many IT companies have experienced reductions in staff in recent months, and partners will face variables such as inflation and election year uncertainty. The distributor still sees notable opportunities ahead in strategic areas for solution providers, due to factors like the ongoing need for cybersecurity to combat AI-powered threats, the forthcoming Windows 10 End of Service deadline, the growth of transformative Modern Solutions in the marketplace, and more. Here are some details on what D&H foresees for 2024:
- Increased managed security opportunities. SMB and mid-market customers will increasingly turn to MSPs and MSSPs to help them secure and protect their IT environments. Channel partners need to invest in managed security to achieve this on a multi-tenant scale. D&H-powered managed security services will support MSPs by:
- Working with vendors to add more MSSP licensing models, allowing partners to pay monthly for hardware/software-based solutions.
- Leveraging the D&H Cloud Marketplace to operationalize MSSP solutions.
- Utilizing the XaaS (Everything-as-a-Service) program to bundle products and services into a single monthly payment model that delivers cashflow acceleration.
- D&H predicts strong growth in areas including Modern Solutions, commercial IT sales, and categories like server, infrastructure, and networking. These areas have seen strong double-digit growth, reaching between 30% and 50% increases with key vendor partners.
- Modern Infrastructure/Data Center. D&H created a unified team in 2023 to help partners with data center solutions regardless of delivery model. A single team can help with on-premises, cloud, or hybrid solutions across vendor programs from HPE, Lenovo ISG, and MS Azure.
- Implementing New AI Vendor Strategies: D&H will help VARs and MSPs understand how different vendors are utilizing AI and how it fits into their individual clients’ business models, including through different verticals. For instance, Microsoft’s new Copilot product is leveraging AI to help users more easily create and refine content. New solutions such as these will be addressed at the 2024 THREAD Technology Conferences.
- D&H is preparing for an impending Microsoft Windows 10 End of Service refresh opportunity, building additional education, services, and support resources around helping MSPs migrate their customers to Windows 11 environments.
- The distributor will enhance its THREAD Technology Conferences and training opportunities, adding Partnerfi Road Shows and incorporating additional SuccessPath training content over the course of 2024.
- D&H foresees continued growth of its partner programs well beyond general growth in the channel. For example, D&H’s Partnerfi community has grown by close to 500% since its late 2021 launch. Attendance at its multi-day Fall Symposiums grew by 50% in 2023.
- D&H will reinvent its cloud offerings to prioritize sustainability, “green” computing, and the reduction of energy consumption. SaaS-based and mobile offerings will need to become part of the MSP/VAR’s solution set, and D&H is ready to help partners learn how to best accommodate that.
- D&H will continue to add proven talent to complement the most tenured team in distribution. The company now has more than 500 sales reps to support ongoing growth.
- D&H has also invested in new marketing and analytic tools for 2024, leveraging data science to help measure the success of its strategies in real time and identify new areas of opportunity.
“We’re bullish for the future, and have every intention of keeping our channel investments on a positive trajectory,” said Marty Bauerlein, chief commercial and consumer officer at D&H. “In 2024, we’ll continue to examine the market, extend our resources, and deliver those resources to prepare our partners for these next-generation opportunities. We’re committed to generating another year of growth for our company and the IT solution providers we serve.”
Visit www.dandh.com to see how D&H Distributing can increase business for partners, or call (800) 877-1200 to speak to a dedicated account representative.
