Avnet Consolidates Services Business, Acquisitions Under One Umbrella

Global IT distributor powerhouse Avnet Technology Solutions has combined existing services organizations within Avnet into one dedicated, global team with a unified strategy focused on software, lifecycle and education services. Avnet Services will complement existing solutions sales and suppliers’ services offerings.

The Avnet Services team will continue to work with channel partners, including value-added resellers (VARs), independent software vendors (ISVs), system integrators (SIs) and original equipment manufacturers (OEMs), to sell and deliver services.

Avnet’s channel partners and suppliers will benefit from expanded capabilities, extended reach and scale, faster time to market, variable cost models and increased revenue and margins from services offerings, the company said.

“The IT services market is estimated to be $674.9 billion, with a four-year CAGR of four percent;  however, this large, growing market is underserved by the channel,” said Phil Gallagher, president at Avnet Technology’s global division. “Avnet Services is designed to help partners successfully capitalize on this immense opportunity worldwide by leveraging our ecosystem and IT services portfolio in partnership with world-class technology providers. Our goal is to build a unified, globally-aligned services business with common processes and tools that will allow us to deliver multiple lines of services from multiple business units for channel partners efficiently and effectively.”

Avnet Services will create a consistent customer experience by combining several existing businesses within Avnet, including many services-focused companies that have been acquired over the past several years. It brings together the aftermarket and technology lifecycle services organizations within Avnet Integrated, and the services and software operations of recent acquisitions, such as Ascendant Technology, BrightStar Partners, Canvas Systems, Genilogix, Mattelli, Pepperweed Consulting, and TSSLink. Avnet Services also will support its partners through an integrated team of more than 2,000 service delivery specialists.

“We continue to see opportunities for significant growth in managed and cloud-based services as businesses plan for successful transitions to next-generation infrastructures and applications,” said Vince DeLuca, CEO, Logicalis U.S., an international IT solutions and managed services provider, and an Avnet partner. “IT services are increasingly being consumed in new and different ways so helping our customers to quickly and easily overcome business hurdles in these areas is critical, and partnering with Avnet Services provides the additional services capabilities we need to meet and exceed our customers’ expectations.”

Avnet Services will target high-growth opportunities and operate in parallel with Avnet Technology Solutions’ core product business model. Initially, services offerings will be developed and delivered in three main areas:

  • Software Services: includes infrastructure and application management; business, commerce and analytics; and cloud enablement
  • Lifecycle Services: includes integration, installation and implementation; call center; field/depot repair; spare parts logistics; and end-of-life options such as responsible recycling
  • Education Services: includes vendor-accredited training; multilingual, mixed modality education; and a scalable training infrastructure

“To win new business in today’s high-growth technology and vertical markets, the channel needs to add a full suite of hardware, software and services offerings to their portfolio,” said Ken Archer, Americas vice president for channels and alliances in the technology services division at HP. “Avnet Services will enable HP’s channel partners to offer comprehensive, integrated solutions that will allow them to deliver greater value to their customers and capitalize on new business opportunities related to analytics, big data, cloud computing and converged infrastructure.”

The global team will be led by Bill Wentworth, who has been named senior vice president of Avnet Services.

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