Monday Morning Impact – September 26

Tech Data Corporation to Acquire Technology Solutions Business from Avnet

Tech Data Corporation has announced an agreement to acquire the Technology Solutions business from Avnet, Inc. for approximately $2.6 billion.

Tech Data expects to achieve annual cost savings of approximately $100 million within two years after closing, primarily from efficiencies related to technology platforms, as well as duplicative functions and corporate expenses.

“We are excited to announce this transformative transaction, which creates a premier global IT distributor with the most diverse end-to-end solutions from the data center to the living room,” said Bob Dutkowsky, chief executive officer of Tech Data. “This combination complements our value-added distribution capabilities in Europe and the Americas, while establishing Tech Data’s presence in Asia-Pacific, which will be a new market for us.”

Under the terms of the agreement, which was approved by the boards of directors of both companies, Avnet will receive at closing $2.4 billion in cash and approximately 2.785 million shares of Tech Data common stock, representing an approximate 7 percent ownership position in Tech Data.

The transaction is expected to close in the first half of calendar 2017, subject to customary closing conditions and regulatory approvals.

Channel Impact^®
This move will extend Tech Data’s geographical and product reach while strengthening the value-added component of the business.

HP Streamlines Partner First Program

HP Inc. has unveiled updates to its HP Partner First Program aimed at helping partners drive sales while enhancing ease of doing business. Changes include a simplified program structure with streamlined membership levels and compensation, an upgraded co-marketing site, and a new social media center expected to help partners promote themselves via social networks.

“Our channel community is key to HP’s continued growth, and we want to empower them to take on more of our business going forward,” said Thomas Jensen, vice president and head of worldwide channel sales strategy at HP. “We reshaped the Partner First program based on partner feedback and now have a program that provides the insights and tools they need to grow and evolve with the market.”

The program now features three primary membership tiers – platinum, gold and silver, with scaling benefits and requirements. Distribution support is also being increased.

This new structure is expected to help partners increase sales success by selecting and working within the tracks that best tap their areas of expertise and customer needs. The volume track focuses on print supplies, printers and PCs. There is a track dedicated to global systems integrators, and specialization tracks enable partners to build competencies around select products, services and contractual solutions. Through specializations, partners gain an expertise in offerings aligned to market trends. New areas of focus – including A3, Device as a Service (DaaS) and mobility – are planned to roll out through the first half of 2017.

Channel Impact^®
Maintaining a streamlined and up-to-date program is always a key facet of effective partner recruitment and retention.

BeyondTrust Expands Cloud Offerings with MSP-enabled Privileged Access Management Solution

PHOENIX, September 14, 2016 – BeyondTrust, a Phoenix-based cyber security company dedicated to preventing privilege misuse and stopping unauthorized access, has expanded its cloud offerings with two new programs and capabilities.
The company announced the BeyondTrust Managed Service Provider (MSP) Program and an Amazon Machine Instance (AMI) of BeyondInsight available on the Amazon Marketplace.

Features available to MSPs include a password vaulting service, session management and recording, secure SSH key management, application password management, DaaS management, scan service and more.

“BeyondTrust is dedicated to providing our customers with the most full-bodied cloud solutions available by leveraging capabilities that are full-featured, mature, and market-leading,” said Brad Hibbert, CTO at BeyondTrust. “By now offering these new capabilities for managed services providers, as well as providing the first and only PAM solution in the Amazon Marketplace, we have not only reinforced our commitment to the cloud, but to our customers as well.”

Channel Impact^®
A growing variety of threats involve the hijacking of executive or administrative level credentials This move should help channel partners to more capably prevent those attacks.