Reza Honarmand, Tech Data | AWS re:Invent 2021
>>Hey, welcome back everyone to the cubes coverage of Avis reinvent 2021 here in Las Vegas. Um, John, for your host, the Q with my coach, Dave Nicholson cloud analyst here with SiliconANGLE in the queue. We've got a great guest Rez, the honor, man, SVP cloud hyperscalers transformation TD. Synnex welcome to the cube. Thanks for coming on resident. Hey, >>Good morning. Good >>Morning to you guys. You guys just had this big acquisition with billions and billions of dollars in revenue. Take us through, what are you guys do for set the table for the, for the company? Right. >>Okay. Yeah, it is a pretty big one. Uh, we're now foot number 60 on the fortune 100, um, worldwide revenues around just under $60 billion. Uh, we represent somewhere in the region of, uh, 1500 vendors and OEMs and uh, in over a hundred countries. And, uh, we serve over a hundred thousand parts, 150,000 partners now worldwide. So you got everything from the, uh, end points, style products, uh, all the way up to, uh, data center cloud, serving from the retail to SMB, to VARs going go all the way to enterprise specialists, NSIs. So DD >>And X, big company, you won't global reach. You hit everybody. Basically you T you sell a lot of products, software, hardware, you name it. Cloud is here. What is the big trend that you guys are seeing with cloud? Because you you're innate. You're, you're talking to all the customers, you have a lot of services and you have products. You represent a lot of different brands. How are people rolling them together? Are they composing cloud what's? What are you seeing in the global landscape? >>Um, we specialize in cloud. They've been doing that for a number of years and actually depending on where partners are within the journey, uh, they will have different levels of specialization. And, um, the way we like to look at it is a matrix, um, in terms of where is the complexity of the product that they're trying to take to market, um, versus what is the size and their own maturity. So we, uh, tune our services and our support for those partners to help them better understand and onboard all of that technology and address it towards their partners. Um, so if you can imagine, um, you got many, many announcements that were made here, right? And our partners have to consume all of that information, all of that technology and learn how to use it. And that's where we come in. We, we, we effectively act as the bridge to help them get up there, running and lower the barrier of entry for them to execute >>On those products and they want to add services to it all. Good. Cloud's perfect for that. So what's the relationship with AWS? I'm sure they're obviously enabling a lot of value. What is the relationship with AWS partner network? How do you guys, what are you guys enabled? What are you guys enabled with Amazon? >>So, um, if I give you the, uh, picture of our cloud practice builder, that's a good place to start. Our cloud practice builder program starts with, um, looking at the partner, understanding what is their maturity in that path specifically related to the technologies that they want to work on with AWS. And, um, we look at them in terms of have they got the sales capability, have they got the operational capability, the financial setup, and, um, really helped them then on that journey. So, um, so yeah, we, um, can go very, very deep, uh, where we have our own cohorts who help those partners get up to speed with, >>Do a little, you gotta do a little vetting, you gotta make sure people have the right capabilities. And certain people have certain orientation to certain things, maybe levels of certification. Yep. Is there a swim lanes developing in the partner network that you guys are working with? Big trends, they specializing more in application modernization. Is it more infrastructure or what are you guys seeing in terms of the trends? >>There are multiple, uh, uh trend-setter. So as you say, we have one lane specifically for our ifs. Um, one lane for our, um, uh, people who host with infrastructure. We are, um, you know, obviously data centers, one of our biggest focus areas. Um, and, um, so each of our partners goes into a specific lane specifically related to where they want to focus on. So if you consider for instance, um, somewhere in the area of, uh, ISV ISBNs, um, the primary thing that many of the ISV is out there don't have is the ability to understand all of the AWS programs. So we help them understand that, understand how they can get the most optimal, uh, cost and program with AWS. And then you get into, you get into the next level, which is around, um, uh, their cloud operations, how they actually transact with us. Uh, and you can, you can build a stack, you get into security and then you get a well architected frameworks. So this is just one of the swim lanes that you could effectively go, and we can help, help build them, build that out for them. >>Yeah. So, so Raza draw a little map for me, a sort of a mental map from the perspective of an end user customer say, I'm a very large organization, I've got a large it footprint. I'm looking towards modernizing in the future. How am I engaging with what TD Synnex is actually delivering to the market? We've been talking about partners. So give us a hypothetical again, I'm the customer who is, who's the sales rep. Who's calling on me initially, how am I interacting with you versus the partner? And I know that there are a variety of ways, but give me, give us an example. I want to make sure that people watching this understand cause we use the term partner to me in a whole variety of different things. >>Yeah. Very, very good question. Cause, uh, he is index is one of the biggest companies that the vast majority of the consumers out there have inherited, right? Yeah. We are for number 600 fortune 100. Now most organization deal with a local. It trusted it partner that trusted it partner, um, then is who they would go to, whether it is their infrastructure, whether there is there, uh, um, security that we work with that partner, um, to help them manage it. Now, what we do is really support the partner to have the knowledge they need to have the expertise. They need to have the services that they need to have the solutions that they need to have to deploy those technologies. Um, with that customer. Now, in majority of the cases, the customer will never come in contact with us because we are behind the scenes supporting our partners. >>However, increasingly we are seeing three motions that we work with. One is with our partners, we do sell to right partner, knows what they want. They've worked with the customer, they've established a need. Um, they come to us and we help them deliver that technology. We do a cell width. So this is the part where you're talking about more of the newer technologies, where the partner may be lacking some of that expertise. So this is where are our experts and give you an idea. We have over 300 certifications just in the last year with AWS, um, where our experts would then help the partner actually land that technology with the customer. And then the ultimate level is a sell for you're talking about longer sales cycles, very complex, where they really need to get deep. So we have our own, um, experience centers, uh, customer immersion, uh, uh, programs where the customer actually comes to us with a partner where we then help them actually get through that process. >>So you're a multi-tiered distribution system. You provide service layer to the frontline partners before the end-users provide support and it software technology and, and executive services for them to serve their customer because they're probably not staffed up. They don't have the resources, they have a good business model and they want to make a lot of money. They >>Do, they do. And, um, they have good gross >>Profit margins. >>I hope so. I hope we, we, we help them actually deliver better profit margins and as they move to services and recurring revenues with cloud that becomes more predictable and sustainable for them as well. >>Well, just, I was kidding, but I'm, I'm serious. I want to get into this gross margin because think one of the things that you're bringing up with this question is if I'm a re a partner and I'm talking to an end-user, I might, I want to make a lot of profits. So services are naturally important. I make more gross profit on services. So if you have volume discounts on things that I might not have that volume discount, if I'm going direct to the manufacturer or a platform you provide that, is that right? Like getting that right, that you guys get, provide that discount pass through. >>We do. Um, we laid up, yes, we get a lot of support through their programs. They announced many programs this week, for instance, and as the partner gains more specializations and they gain access to more support through us, they also gain access to some preferred, um, uh, pricing. So to an extent it's about volume. It's also about how deep they go, how, how, how much they invest in their own expertise. So really is a, uh, not just a volume game, but it's a quality game as well. >>Operational value that you provide because you guys must have a lot of programs that pass through to the partner, uh, software systems. What kind of examples can you give if I'm the partner and I have an end-user and I have a boutique, let's just say I specialize in data analytics and whatever unique thing you're providing me services. Is there like certain software systems that you guys have? What operational support do you give to your customers? >>So in terms of the, um, technology that the consumer consumes, um, there is a whole range of technologies around data management and data analytics. Um, then if you're talking about, in terms of the support, operational support that we give to the partner, again, there's the bigger the partner, the more transactions, the more volume they do, they need to have that operational optimization as well. Again, that's where we come in and give them the tools and the technologies. They need to optimize that. >>It's going to ask you the re-invent now that we're in person again, been a year and two years since we've been to reinvent. What's the, what, what are you, what's your assessment of the show this year? What's the big takeaway, um, that you see this year, uh, that that's gonna be relevant for you? >>I, I love the way these guys, um, land some incredibly new technologies. Uh, and I love the theme of Pathfinders from yesterday. Um, so when I look at the, uh, 5g, I mean, that sounds like a game changer to me. And I think there should be a lot of partners out there thinking, hold on a minute, this is a massive opportunity for us. Um, yeah, I mean, so >>The serverless stuff is getting better and better. I mean, like >>It's, they do a good job on their announcements. There is a reason why their technologies so highly rated, uh, these guys know how to do technology. >>And I think if, if I'm, uh, I think of the services that you could roll on top of this, I mean, if you're in front of a customer big, medium or large, I mean, if I'm a developer, a service provider, I can make so much more profit by building more of these services because that pathfind opens up these net new things, 5g AI as a service, kind of the anything. >>Yeah. Um, I mean partners with they, they have their business models. They, the ones who have figured out how to wrap the services around the solutions that are out there. Um, typically we find that they are the most successful with the fastest growth rates and they kind of get themselves into very, uh, positive virtual cycle. Um, the more they can wrap around those services, the higher their value, the more margin they tend to make, the more profitable they are. And actually then they continue to invest and expand their footprint. So >>Quick advice pretend that I am about to become essentially a local trusted value added reseller partner for my end user customers. And I'm going to become a partner of your company. What would your counsel be to me about what I should focus, focus on? What's hot. What's the hottest tip of the spear right now. Yes, right now I need to go out and hire these people, >>Data, data, data, and analytics data. I would absolutely zoom in on that. Um, it is the new oil and every organization needs to have insights. And if businesses out there do not have those insights, they are at a disadvantage partners who can figure out how to build services around data. They're the guys who are really winning. >>Awesome. Great insight. Thanks for coming on the cube here at re-invent great conversation with gradients. I thanks for coming on. Appreciate it. Pleasure. Okay. Cube covers. You're watching the cube, the leader in worldwide tech coverage here in Raven. I'm Jeffrey with Dave Nicholson, host of the cube. Thanks for watching. We'll be right back.
SUMMARY :
We've got a great guest Rez, the honor, man, SVP cloud hyperscalers transformation TD. Good morning. Morning to you guys. serving from the retail to SMB, What are you seeing in the global landscape? the way we like to look at it is a matrix, um, in terms of where What is the relationship with AWS partner network? So, um, if I give you the, uh, picture of our cloud practice Is it more infrastructure or what are you guys seeing in terms of the trends? that many of the ISV is out there don't have is the ability to understand all of the how am I interacting with you versus the partner? they need to have the expertise. Um, they come to us and we help them deliver that They don't have the resources, they have a good business model and they want And, um, they have good gross and as they move to services and recurring revenues with cloud that becomes more predictable So if you have volume discounts on things that I the partner gains more specializations and they gain access to more support What kind of examples can you give if I'm the partner and So in terms of the, um, technology that the consumer consumes, What's the big takeaway, um, that you see this year, uh, that that's gonna be relevant that sounds like a game changer to me. I mean, like so highly rated, uh, these guys know how to do technology. And I think if, if I'm, uh, I think of the services that you could roll on top of this, I mean, Um, the more they can wrap around those And I'm going to become a partner of your company. Um, it is the new oil and every Thanks for coming on the cube here at re-invent great conversation with gradients.
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