2. CDW Overview
• Founded in 1984
• IPO in 1993
• Privately acquired by Madison Dearborn Partners
LLC on 10.13.07
• $8.1 billion in annual sales
− Forbes: Number 39 America’s Largest Private
Companies
− 2008 America’s Most Admired Companies in the
quot;Wholesaler: Electronics“ : FORTUNE
− Ziff Davis, CIO/INSIGHT-Vendor Value Study rated
CDW #1 in industry (HP was #6)
− 2007: Ranked no. 343 on the FORTUNE 500
2 24 October 2008
3. CDW Net Sales & Net Income
(in millions)
$9,000
$8,145
$8,000
Fortune 500, No. 343
$7,000
$6,785 FORTUNE Magazine - 2007
$6,292
$5,738
$6,000
$4,664
Top 100 Best Companies to
$4,264
$5,000 $3,961 work for, No. 34
$4,000 $3,842 FORTUNE Magazine - 2006
$2,561
$3,000
Total Return To Shareholders -
$2,000 Last Ten Years, No. 28
$1,000 FORTUNE Magazine - 2005
$300
$0 $272 $266
1999 2000 2001 2002 2003 2004 2005 2006 2007
$250 $241
NASDAQ 100 $200 $185
$169 $175
$162
Most Bang For The Buck; Most Revenues $150
per Dollars of Assets, No. 15
FORTUNE Magazine - 2005 $100
$98
Most Bang For The Buck; Most Revenues
$50
per Employee, No. 45
FORTUNE Magazine - 2005
$0
1999 2000 2001 2002 2003 2004 2005 2006
3 24 October 2008
4. CDW Overview
• Over 450,000 Active Customers
• 7 US call centers spanning 5 states-Arizona
opening June 1st
• 11 Regional Field Offices - associated with
Berbee Acquisition
• 2,500 Account Managers-segmented by
geography & vertical, margin based comp
• 300 field representatives
• 400 field engineers
4 24 October 2008
5. Inside and Field Coverage
• Inside Account Manager Team
− Responsible for the day-to-day interaction on the account
• Order processing
• Allocation and delivery
• Customer satisfaction
• Field Account Executive
− Management of over-all relationship drivers
• Executive Introductions
• Execution of Advanced Technology Deliverables
− Resource facilitator
• Project Manager
• OEM vendor involvement
• Strategic CDW technology resources
− Dedicated field resources
• Field Solution Engineers
• Field Strategic Software Executive
5 24 October 2008
6. CDW Go-to-Market
• Complex solutions integration
− Unified communications*
− Web hosting & managed services*
CDW & Berbee*
Mission • On-site technical support required
critical
• Industry-standard • Attach core
solutions services
CDW & Berbee* Trusted • Servers, Blades, SANS, • 400 system
advisor racks, networking, engineers at
software and telephony
CDW
CDW Core • Operational excellence
• Cross-sell & Up-sell
• Speed, agility, ease of business
Transaction
• Great selection, strong price performance
* Berbee currently operating in MN, WI, IL, IN, MI, OH & KY
6 24 October 2008
7. Proven results with differentiation
• CDW and CDW Berbee’s Streamlined Effort: Large Procurement Arm with a Local
VAR Flavor
• Gaming Company
− Challenge: Local gaming company expanding facilities was challenged with wireless design,
consulting, and expertise needs.
− Solution: CDW Berbee was able to assess, plan, and design the wireless infrastructure with
expertise and professionalism.
− Results: CDW provided a single point for procurement, knowledge, and service expertise to
build-out the warehouse extension quickly and correctly to exceed the customer’s expectations.
• Laboratory Firm
− Challenge: A Midwest laboratory firm has stretched IT resources to carry-out integration of
immerging IT needs.
− Solution: CDW worked to align the right resources for blade installation, Exchange health
check, and a virtualization assessment.
− Results: CDW provided a single point for procurement, knowledge, and service to extend
our customer’s IT resources with proven and capable expertise.
• CDW Services Beyond the Box
− Account and technology management and simplification
− Enterprise configuration
− Full solution teams (services)
− Special operations
− Asset Disposition
− Training
7 24 October 2008
8. Consultative Engineering Expertise
More than 800 Technical Experts
• 125+ Cisco Engineers
− 40 Cisco CCIE’s
− 70 Voice Engineers
− 8 IP Telephony Application Developers
− 30 Security Engineers
− 20 Wireless Engineers
• 130 Microsoft-Certified Engineers
− 30 IW Consultants
− 20 Project Managers
− 50 Core Infrastructure and UC Consultants
• CDW Berbee has successfully conducted:
− Over 700 IP communications implementations
− Over 500 Security assessments
Over 2,000 Microsoft projects
− Over 5 Petabytes of storage sold/implemented
− Over 12,000 “Open System” servers sold/implemented
− Over $1 billion eCommerce transactions through our data center
8 24 October 2008
9. CDW Value Add: System Engineers
•800 technical experts to provide customized solutions in:
Network Infrastructure
− Network Management, Layer 2-7 switching, Routers
Corporate Security
− Firewalls, VPN, AV, Content filtering, QoS
Power
− UPS (Single Phase and Three Phase), Generators and Power Audits
Storage Architecture
− Powerful relationships with EMC, HP, IBM, LeftHand, Hitachi
Document Management
− Document storing and sharing
Voice & Data
− Master Agent for 21 telecommunications carriers
Telephony
− VoIP and Std PBX
9 24 October 2008
10. Operational Excellence
Single source supplier option to minimize product acquisition costs
Vernon Hills, IL Distribution Center Las Vegas, NV Distribution Center
450,000 Square Feet 513,000 Square Feet
• Expansive Physical Inventory Powerful Logistics
• $220 million in-house inventory • Accuracy – 99.7%
• 23-25 annualized inventory turns • Efficiency – 90% within 24 hours
• 100,000 products offered • Quality Assurance – 3 QC Checks
• Buy and Hold capabilities • ISO: 9001:2000
• $65-$75 million HP inventory daily
10 24 October 2008
11. Secrets to Success
• 49,000 sq ft configuration center (Two Locations)
• Buy and Hold
• Customer Specific Skus
• Asset Tagging & Online Management
• Custom On-site Imaging services
• Image maintenance and secure storage
• Hardware and Software Configuration
• Rack Configuration Services
• Multi-site system deployment
• 24 to 48 hour system burn in
• Ability to customize quality assurance
• Networking Configuration
• 2,400 systems configured per day
• ISO 9001:2000 Certified
• Level 1, 24x7 tech support
• Powerful extranet
• Customer specific pricing
• Purchase Authorization System (PAS)
• Quote to Order Conversion
• Enhanced Order Status Tracking
• Purchase History Reports (up to 3 years of past history)
• Advanced search and competitive compare
• Asset Tag/Serial Number Tracking
• Software License Tracking System
• Reporting by customer
• Cost plus pricing
11 24 October 2008
12. Why CDW is Growing
•Culture has always been built around a superior
customer experience
•Responsive Coverage Model
•Business Partnerships
•Operational Excellence
•Diverse Product Selection
•Business Value and Volume Leverage
•Technical Expertise
•Flexible E-Commerce Solutions
12 24 October 2008
13. HP
• CDW is HP’s largest partner in the world
• HP Revenue $2.1bil
• HP-IPG shipped over $510 million in 2007
• $65 million in HP inventory daily
• HP comprises nearly 30% of CDWs total revenue
• CDWG claims just under 35% of HPs total CDW revenue
• In 2007 CDW
− Processed over 6M invoices
− Sold over 495,000 HP Desktops
− Sold over 250,000 HP Flat Panels
− Sold over 192,000 HP Notebooks
− Sold over 650,000 HP Printers
13 24 October 2008
14. CDW- HP Resources
• 14 HP Dedicated Partner Business Managers
− IPG, PSG, ISS, SWD, Service, Procurve, etc
• 21 HP Certified CDW Presales Engineers
− IPG: 2 generalist, 2 MFP Specialist, 1 Smart Print Service Specialist,
1 ink/scanner specialist
− PSG: 3 generalist, 1 Workstation Specialist
− ISS: 3 generalist and 1 Blade Specialist
− SWD: 4 generalist
− Care Pack: 2 generalist
• 5 Marketing Brand Managers
• 32 HP Certified Enterprise Storage Engineers
• Partner@cdw.com
14 24 October 2008
15. HP and CDW Supply Chain
• EDI ordering for fast accurate sales credit
• CDW is optimized as an extension of HP Supply
Chain
− Weekly forecasting in place with HP and CDW
• Desktops, Notebooks, and Printers
− Receives Direct Shipments from HP manufacturing
15 24 October 2008
16. Why CDW and HP IPG?
• Leverage CDWs relationships (partner@cdw.com)
• CDW’s wide customer base in the Midwest region
• CDW logistics: extensive inventory and industry leading
shipping time
• Customized configuration on IPG products: setting IP
address to loading custom configuration for document
management software with MFPs/scanners
• Co-Sponsor HP-CDW customer facing event in Chicago
• CDW’s field alignment, inside and field coverage
• Resources: 6 IPG Specialist
−2 MFP and Solutions Experts
−1 Smart Printing Services Specialist
−2 Generalists
−1 Ink/Scanner Specialist
• 3 IPG Partner Business Managers
16 24 October 2008
17. Everything we do
is to make YOUR customers
experience the best possible!
17 24 October 2008
