Ingram Micro’s Kirk Robinson On Tech Data-Synnex Merger: ‘Game On’
‘We think we’re well-positioned. And we’re going to continue to deliver in the second half of the year. The pipeline that we’re hearing from our partners, even though there’s a global supply chain issue, there’s still so much opportunity,’ Kirk Robinson, Ingram Micro’s chief country executive for the U.S., tells CRN.
Ready To Face A Sea Of Change
Ingram Micro is at an interesting crossroads, both in terms of its own history and in terms of the historical changes sweeping distribution. Irvine, Calif.-based Ingram Micro was just sold by its former owner, China-based HNA, to a U.S.-based investment company, Platinum Equity. This happened as the IT industry went through the throes of the COVID-19 coronavirus pandemic and entered a period of severe supply chain constraints due in large part to a semiconductor shortage. Ingram Micro also faces a new stronger competitive environment as rivals Synnex and Tech Data complete their merger in the next few months.
Kirk Robinson, Ingram Micro’s chief country executive for the U.S., wants everyone close to Ingram Micro to remain as calm as he is in the face of the changes. Robinson told CRN that Platinum Equity, which already knows all of Ingram Micro’s upcoming strategies, is taking a hands-off approach to the distributor. “We’re just excited to have a parent that’s looking to help us advance in those areas,” he said.
Concerns about the pandemic are receding, giving Ingram Micro a bigger business boost even as in-person meetings and events return, Robinson said. And as for that big merger of rivals, Robinson said, “They‘re going to be focused behind closed doors looking at how they’re going to come together. So we’re looking to make sure we’re there to partner with our customers and deliver the experience that we feel only we can deliver.”
Here is what Robinson had to say about Platinum Equity, the merger of Synnex and Tech Data and more.
Now that Platinum Equity owns Ingram Micro, what are some new areas of investment planned for your U.S. business?
I don’t think it’s new. We’ve set a strategy for 2021 that we’ve been executing against. Platinum knows that strategy. They’ve gotten to know it very well. They agree with that strategy. So I wouldn’t say it’s new. It’s just the opportunity to work under Platinum, and go pour fuel on that. So you’ll see us continue to look to invest in the advanced solutions, technologies, services, professional services, public sector, security. So it’s not that it’s new. We’re just excited to have a parent that’s looking to help us advance in those areas.
What does it mean for Ingram Micro's U.S. channels that it is now owned by Platinum Equity and not HNA?
We’re super-excited. We had a great tenure under HNA, and now to be owned by Platinum, which has a great reputation and is U.S.-based, we’ve been spending a lot of time with them and think they’ll be a great owner. We’re excited about the opportunity to continue to deliver that value that we bring to our partners under Platinum.
Your role also covers the U.S. federal and SLED business. Does the fact that Platinum is based in the U.S impact the way you approach the public sector business?
Well, we hired a gentleman, Tony Celeste [public sector executive director and general manager], about a year and a half ago. Tony lives in the Beltway. He’s been in the public sector business 40 years. He has top security clearance. We brought him on to look at our strategy and how we can work with our partners even more deeply in all the areas that we just talked about. So we’re just excited right now to be owned by a U.S. company and continue to execute against that.
And, I would say our public sector business has been one of our growth business units for the past several years. So we’re expecting to see that continue to grow.
Do you see any potential for increased competition from the upcoming merger between Synnex and Tech Data?
I would just say I have a lot of respect for all of our competitors. I’ve been doing this a long time. I know a lot of the players. So I think it‘s a good move for them from a global standpoint. It certainly gives them a broader footprint.
From the U.S. standpoint, which is what I’m responsible for, I think there’s a lot of overlap [between Synnex and Tech Data], and they’re going to be focused behind closed doors looking at how they’re going to come together. So we’re looking to make sure we’re there to partner with our customers and deliver the experience that we feel only we can deliver. And just continue to focus on that customer experience.
Do you expect any positive impact to your North American business as Synnex and Tech Data come together?
Absolutely. We’re going all out. I have respect for the competition, but I wake up every morning looking to beat them. And we’re working very hard right now to make sure our customers know we’re here to support them. We’ve spent a lot of time with our customers and our vendors getting their takes. And in many situations, one plus one might not equal two. And we’re well-positioned to help our partners and our vendors out and continue to drive that value and continue to help them grow.
Do you plan any marketing blitzes or outreach to Synnex and Tech Data partners during their merger period?
Yes, but it’s not ‘marketing blitzes.’ It‘s more reaching out and communicating with our partners. As you know, most partners have multiple relationships with distributors for credit lines, etc. So we’re just reaching out to all our partners making sure that they understand that we’re here for them and we’re ready to support them with any of their needs.
Any new programs planned by Ingram Micro for the second half of 2021 because of the investment by Platinum?
We’re always looking at talking with our partners to understand their needs and then bringing in and developing new programs to support them. So there’s always going to be new programs. I’m not quite sure if any are tied to our now being owned by Platinum. This is what we’re always doing. We‘re always reaching out to our partners, listening to what their needs are, and then investing in those areas.
We look at Platinum as pouring fuel in the Ingram engine to let us go and drive more value to our partners.
What are some new programs that Ingram Micro is looking at for the second half of 2021?
I would say it falls into areas I talked about before: How do we continue to look at how to support our partners in the advanced solutions area, all the needs around data center, security, public sector, federal. It’s really just diving in deeper and looking at where we’re going to make investments, acquisitions, joint ventures, partnerships, to make sure that we can be there for our partners and help them grow profitably.
The IT industry appears to be recovering from the COVID-19 coronavirus pandemic, and business seems to be coming back. What does that mean for Ingram Micro and its U.S. channel partners?
It was an interesting year last year, obviously. But we thrived in it. We had one of our best years ever. And when I look at 2021, we’re exceeding that by a fair amount. So our business is booming right now. And I really think it’s because of the approach we take. We focus on the customer experience. We’re talking to them all the time. We’re trying to get to know their business better than they know themselves, and work with our vendor partners and our customers to bring the right solutions, make sure we deliver the right creative finance programs that they need to go win the deals.
Do you expect any changes in the way you work with your partners?
No. I think we have a golden opportunity in the U.S. with Tech Data and Synnex focusing on their merger. As I said before, ‘Game on.’ We’re excited. We think we’re well-positioned. And we’re going to continue to deliver in the second half of the year. The pipeline that we’re hearing from our partners, even though there’s a global supply chain issue, there’s still so much opportunity. And so much of it stems from the pandemic. We’re seeing the advanced solutions and the data center infrastructure business pick up. The notebook and laptop market is so hot. So we’re excited about the second half of the year and the opportunities out in front of us.
That leads to my next question. How have global supply chain issues, particularly the shortage of semiconductors so important to so many parts of the IT industry, impacted Ingram Micro’s business, and are you seeing any changes?
It’s an interesting question because our business is booming. You would hardly know there’s a global supply chain issue. Yet we know there is. In talking with our vendor partners, so many of them are being impacted by it. But you’d never be able to tell by the numbers we’re delivering. So we’re going to continue to work very closely with our vendor partners and understand where they’re at in the global supply chain. I don’t see things easing much in the second half of the year. The vendors that I’m talking to, same situation.
So once again, we‘re going to go back and look at how we can create value with our partners, and go deliver.
Are the supply chain issues a drag on the sales of Ingram Micro or anybody else in the IT industry?
It’s unavoidable. There are product constraints. But the good news is, the market is so hot, and so is our business now. Once again, I feel like we’re in a great competitive position. The Platinum acquisition is a change in ownership, not operations, not a merging of cultures. So we’re very focused on the game plan that we put in place prior to this year while our competitors are distracted at this time.
With the recovery from the pandemic, what plans does Ingram Micro have for live events in the second half of 2021?
We’re easing our way back into that as you would imagine with travel to customers. For live events, you might see us attempt something hybrid. But I would say we’re not ready to go 100 percent with the number of customers that we bring in for our events.