executive overview shi
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Executive OverviewGlobal provider of IT products, services and solutions
20-Year Anniversary in 2009!• 1989 – regional software-only reseller
Financially strong, stable and consistently profitable
• Every quarter, every year
$3.46 billion in sales in 2009*• 1,200+ employees
Most experienced field sales force• Average tenure at SHI:
• Field rep: 6+ years• Management team: 12 years
*Sales and transaction volume supported
Executive Overview 2009 - $3.46 billion
Highest Growth Segments• Mid-Size Corporate
• Public Sector
• Canada, EMEA, Asia
Globalization Continues• 10% of Sales outside U.S.
Long-term Goal• Become the #1 strategic
IT partner for all organizations
50%
10%
40%
2009 Revenue Mix
Software
Integrated Services
Hardware
Executive Summary - SHI’s Value PropositionAgainst the competition
• SHI GM – avg. 7% lower
• SHI’s OpEx – avg. 7.3% lower
To whom do we answer?
Stock Performance in 2008• Dell (-57.31%)
• Insight (-67.50%)
• PC Connection (-63.61%)
• EnPointe/Allied Digital Services
(-53.57%)
• Softchoice - (-92.02%)
• CDW – private in May 2007
• Zones – private in 2008
SHI privately owned since 1989• The only rating that matters to us –
customer satisfaction
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
SHI vs. Competition
Gross Margin %
Operating Expenses %
SHI
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.
Executive Overview - SHI’s Long-Standing PartnersSHI customers for 10+ years
• Fortune 500 “Who’s Who?”
• Among the most complex IT environments in the world
Supporting more Microsoft EA seats in the enterprise space than any other reseller
SHI delivers each a dynamic, scalable, innovative and “unique” solution
• Each solution backed it with world-class support
• Each grew to integrate software and hardware
Executive Summary – Worldwide Support
Worldwide Distribution Centers
United KingdomGround floor Avebury House 201 - 249 Avebury Boulevard Milton Keynes, BuckinghamshireMK9 1AU +44 (0) 1908 300 370www.uk.shi.com
France 23 rue Balzac 75008, Paris France +33 (0) 1 53 53 67 67 www.europe.shi.com
SHI Headquarters33 Knightsbridge Road Piscataway, NJ 08854 888-764-8888 www.shi.com
SHI Canada, ULCMorneau Sobeco Centre 1895 Don Mills RoadSuite 200Toronto, OntarioM3C 1W3
Canadian Sales Offices*Calgary * Edmonton *Toronto * Vancouver
Asia/Pacific Suite 601, New World Tower16-18 Queen’s Road CentralCentral, HKHong Kong+852 2166 8295
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)
Executive Summary - North American Distribution Centers
Drop-shipping since 1991• 2008 – 90% of SHI order-
fulfillment done through local distribution centers
30 Distribution centers• Ground shipping anywhere in
U.S. or Canada: 3 days or less
• Increased efficiency
• Decreased freight costs
World class support• 11th hour, overnight and same-
day shipping
• SHI branded
SHI’s Core OfferingsIT Product Fulfillment
License Agreement
Services
E-Commerce Solutions
Asset Management
Hardware Integration
Services
Comprehensive Lifecycle
Management
Core Offerings - Product Fulfillment
Core Offerings - Software Agreement Services
SHI’s Licensing Department• Supporting the programs of 28+
major software publishers
• Primary relationship manager with publisher
• Facilitate local representation with publisher’s field reps
Contract Negotiation and Support• Program requirements and review
• Impact/cost analysis
• Price validation
• Best-practice recommendations
Core Capabilities - SHI and Microsoft
Microsoft: $1.7 billion in 2008• $532 million in June 2009• Biggest month ever• Net gain of +100 COCP for FY’08
EA’s represent 50% of SHI’s Microsoft business
Over 8,000 signed contracts• 1,300 EAs• 5,400 Select Agreements• Countless Open agreements
Authorized LAR/ESA in U.S., Canada and Europe
• Capable of supporting global agreements
The only eight-time winner of the Microsoft Operational Excellence Award
• Six Years Running 2004 -2009
SHI’s Microsoft Support ResourcesLicensing Executives
• MS volume license experts providing global sales support
• Renewal analysis, program and product usage consultation
Product Champions
• Specific product knowledge of MS products lines (VSTE, MSDN, etc.)
SA Benefits Administrators
• Helping customers optimize their entitlements under SA
• MS EA Renewals – 75%
• SHI Customers – 93%
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30%
40%
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60%
70%
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90%
100%
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SA Benefits Activation and EA Renewals
Benefits Activated
Avg. EA Renewal Rate
SHI Customers
SHI’s Goal (set by MS)
* - Seattle Post-Intelligencer http://blog.seattlepi.nwsource.com/microsoft/archives/117743.asp
SHI E-Commerce SolutionsDesigned to stand-alone or integrate with your procurement platform
SHI.com and SHIDirect.com• Standard shopping experience• Customer service tools
SHIPS – SHI Procurement Solution• Allows additional customization –
approval authorization, workflow, asset feeds, comparison shopping
• Integrated with B2B platforms• Supports both punch-out and CIF • XML & cXML
SHI Procurement SolutionIncreased Workflow
Customer “branded”• Your logos, your
language, your catalog
Consistent interface• Single catalog
• Multi-language support
• Configuration
• Deployment
• Asset Management
• Full lifecycle support
Internal System Integration• Ariba, SAP, Oracle, EDI, etc.
Software Asset ServicesLicense Agreement Database
• Tracks agreements and enrollments
• Pricing levels
• Terms and Conditions
• Expiration dates
• Renewal notification 60 – 90 days in advance
• Publisher contact information
Report Factory
• Through website or by request
• Subscription & Ad hoc reporting
• Organization-specific info
• Business unit
• Product
• Milestone
• Local currency
Core Offering Asset Services
Software Asset Management Proficiency Assessment
• Based on Industry Recognized ISO 19770 Standards for Software Asset Management
• A great tool to evaluate your current practices around SAM
• Recommendations based on findings
Core Offering – Hardware Resources
SHI Hardware and Advanced Solutions• Dedicated product champions
• High-level relationships
• Supporting 15 hardware vendors
• Manufacturer-neutral solution
Providing pre- and post-sales support and solutions
• Customer has choices in technology decisions
• Ability to compare/contract
• Bundle products of different manufacturers
Device and/or Warranty activation• Especially difficult for wireless and handheld solutions
• Renewal tracking
Access to evals/trade-ins
Timely buy-ins, smart procurement and inventory management
SHI’s Advanced Solutions Team
Integration and Lifecycle Services
