SHI is a global IT solutions provider celebrating its 20th anniversary in 2009. It generates $3.46 billion in annual sales with over 1,200 employees and the most experienced field sales force in the industry. SHI aims to become the #1 strategic IT partner for all organizations and continues expanding globally with 10% of sales outside the US. The company provides a full range of IT products, services, and solutions to customers while maintaining financial strength and consistent profitability.
11. Executive Summary – The SHI Advantage 4 #1 Enterprise VAR. 41/Fortune 50 Cos chose SHI as primary VAR. Scale. Best-In-Class. Lowest Overhead. Best Value. Ability to Invest. Gaining Mkt Share. LT Customer Loyalty. Best Customer Experience. Tenured, Strongest field team. 350 in the field. 400 inside. Strongest F/S & B/S. No debt. 100% Organic Growth. Profitable Every Quarter Since 1989.
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15. North American Office Locations Expansion in 2008 – 2009 25 Regional Offices Opened Bringing our sales and support teams closer to customers Supporting local training and partner events Streamlining customer service Headcount increased +300 Insight : (-510 jobs cut) CDW: (-190; first layoff ever) Dell: (-9,300; 11% of workforce)
-- Operating under the same private ownership since 1989, SHI is a global provider of IT products, services and solutions-- Originally a regional software-only reseller with one customer (IBM) – we’ve grown from $1 million to $3 billion a year in annual sales without ever experiencing a merger or acquisition of any kind. -- 100% Organic growth.-- We currently have over 250 account executives spread across North America, Europe and Asia and supports customers and our customers end-users in over 60 countries around the world.-- We are recognized by Business Week as the 6th largest Privately Held Technology Company in the US & rank167th in the Forbes 500 of Privately-owned companies-- Our commitment to establishing and supporting long-term partnerships with customers, vendors, colleagues and co-workers is the main reason we have emerged from the hundreds of resellers in 1989 to the handful that exist today.-- Since most IT companies and solution providers experience re-orgs and attrition on an annual basis, our field sales force is among the most experienced, stable and empowered in the industry-- The average tenure of an outbound SHI sales rep is six years while our senior account executives, vice presidents and extended management team is 12 years.-- Despite the literally thousands of years of accumulated industry experience, we remain a young, energetic and growing company. -- Could count on one hand how many people have left SHI for “retirement”
-- This slide is one designed to try and hit all sectors and business segments to whom you may be pitching SHI.-- In the late 90’s and into 2000, we experienced five consecutive years of 100% year-over-year growth. -- Although it has scaled back in very recent years, 10%+ annual growth has been a very consistent number for us and is expected again in 2010. -- Although we keep winning Enterprise customers, SMB, Public Sector and International have been the biggest growth areas in recent years.-- Defining Public Sector – Some companies define it differently, but SHI defines Public Sector to include Municipal, State, Federal Government, Academic and Higher Education organizations as being part of the Public Sector.-- Long-term goal is as it should be – Become the top complete solution provider to all organizations
-- Simple mathematics – Most of us are buying the same products at roughly the same prices (give or take a few percentage points) from the same people. On the volume licensing side, it’s usually EXACTLY the same price. -- Take a solution provider’s acquisition cost add gross margins and operating expenses, you get a good idea of the final price to the customer. -- When the playing field is level, SHI should always be competitive. -- The only times when are seriously higher in price than the competition occurs when the playing field is not level. Usually in hardware usually when the vendor or customer has not shared their eligibility to volume license programs such as “HP Big Deal,” etc.-- A line of demarcation – Random House Dictionary defines demarcation as “a separation by distinct boundaries.” -- When it comes to acquisition cost, only a few percentage points separate the companies listed above. SHI’s cost of acquiring product should be among the best and our gross margins added to operating expenses ensures it stays that way.-- The reason for going private? Renewed focus on the customer. -- CDW CEO John Edwardson said in the May 31, 2007 Edition of the Chicago Tribune –“To be frank, there is such a focus on meeting earnings that you make decisions differently in a public than in a private company. Frankly, I’m looking forward to being the CEO of a privately-owned company.
-- Any look back must include recognition of the customers who’s partnership helped us get to where we are today-- Here’s an example of 12 of the partners that have been with SHI for over 10 years -- Being 20 years old, that means Each of these have been partnering with SHI for more than half of our total existence -- There are hundreds more – but here are some of the household names-- They represent a Who’s Who of the Fortune 500 -- Our customers represent the best-in-class of every business vertical or sector-- It’s not as though they sit back on their laurels and enjoy our partnership -- We have proven ourselves time and time again when these companies have gone out for bid to evaluate what we provide to them -- Each time they made the decision to continue moving forward with SHI. -- With these clients – we are undefeated!-- SHI’s overall customer retention rate is at 99%, among the best in our industry. -- We have never lost a contracted enterprise customer-- Each solution we provide to each of these customers is customized, personalized globalized. -- Our solutions are scalable and has the ability to grow from our original product offering -- Most of these relationships started as software-only and have grown to include hardware and professional services.-- SHI’s offering to each continues to grow and change on a daily basis because it is designed to do so.
-- As a small regional reseller in 1991, we didn’t have the resources to physically “touch each item delivered by bringing it into a warehouse – so we didn’t. We just shipped it right to the customer.-- Our extensive partnerships and distribution networks allow us to continue to ship product directly to the customer-- SHI’s network of distribution partners give us immediate access to hundreds of thousands of products in over 30 North American warehouses-- Along with reduced cost and more efficient transit time…-- The shipment time for a 50-pound package sent ground anywhere in the lower 48 United States or Canada is a MAXIMUM of 3 days and often much improved due to local inventory.-- Multiple warehouses in Southern California, Texas, Chicago, Atlanta, the Pacific Northwest and all throughout the Northeast give SHI the option to find the most competitive price or and the most desirable ETA.-- We specialize late-hour overnights and have warehouses near local shipping hubs (Memphis, Louisville) that can fulfill these requests.
-- IT Product Fulfillment – Expert Software volume Licensing, Hardware, Peripherals, Accessories, Add-ons, “WeirdWare,” – hard to source third-party products-- License Agreement Services - Trained Licensing Department supports the volume license agreement of over 40 software publishers-- E-Commerce Solutions – YourHome@SHI.com, SHIPs, Integration with customer systems such as Ariba, , SAP, Oracle EDI, etc.-- Asset Management – Reporting, GAP Analysis, Barcoding and Asset-tagging, etc.-- Hardware Integration Services – Configuration, Rack and Stack, Imaging, On-site Deployment-- Comprehensive Lifecycle Management -
-- Hardware - Notebooks, Desktops, Servers, Workstations, Racks, Networking Products, etc…Unmatched Product AuthorizationsCustom ConfigurationsInventory ManagementImage Management ServicesAsset Tagging and Serial Number CaptureServer Rack and Stack-- Peripherals, Add-ons, Accessories -- Software – SHI’s volume Licensing Experts support over 20 publishers-- Weirdware – Legacy of Enterprise customers has caused our database to grow to ver 30,000 vendors. Chances are, if you need to buy something, we can either source it or tell you how to source it.Top 20 Vendors by Dollar Value in 2007Microsoft $804mHP/COMPAQ$140mADOBE / Macromedia$136mSYMANTEC / VERITAS$132mLOTUS PASSPORT Software $77m DELL $70m LENOVO $52mNOVELL $51mMCAFEE / NETWORK ASSOCIATES $44mORACLE$35mVMWARE$27mPANASONIC $25mCITRIX $23mATTACHMATEWRQ $19mQUEST SOFTWARE $16mBUSINESS OBJECTS (with Crystal Decisions) $15mCOMPUTER ASSOCIATES $13mTREND MICRO INC. $13mIBM $10mRED HAT $9m
-- No other LAR/ESA has more resources dedicated to supporting our Customer’s Microsoft Agreements. -- We support more EA desktops among the largest global enterprises than anyone else. -- Verbiage describing the value in optimizing the benefits for which customers are eligible.-- Chart represents the numberof benefits activated by SHI customers compared to number of overall benefits they are entitled to under the SA they have purchased-- SHI’s Product Champions and Benefit Administrator excel in helping customers realize the potential of their Software Assurance/EA-- See the Seattle Post Examiner’s number of 75% average renewal rate of EA customers.-- SHI’s is somewhere around 93%
-- The key - Flexibility and Choice-- Manufacturer agnostic – add as many or as few of the manufacturer choices/company standards your end-users should be buying-- Catalog designed to support agreement you negotiate. If your e-comemrce tool does not support the prices, products and terms and conditions you negotiated, then what’s the pointCustomer’s Home at SHI.COMStandard Features Include:Extensive Searching CapabilitiesQuotes – converted into ordersOrder TemplatesOrder Status w/TrackingPermissions at User LevelCustomer Specific information such as License Agreements, HotLinks back to Customer Internal URL’s, etc..Catalogue with only what Customer wants to include @ the Customer negotiated Pricing. -- SHI.com & SHIDirect.com customer Service tools - Order Status, Reporting, Asset Tools, etc..-- SHIPs is based on the same catalog structure of SHI.com and SHIDirect.com but allows for additional customization-- SHIPS supports - Ariba, SAP, Oracle, EDI, Asset Systems, etc..
-- Due to the lofty dollar-value of the software volume licensing deals, it is overlooked that supporting hardware means you are grinding out support on a daily basis-- Although 50% of our business is still software by dollar amount, the transaction volume of hardware orders grows for SHI year-over-year.