Synnex Australia expects record quarter

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Synnex Australia expects record quarter
Synnex Australia managing director Kee Ong.

Synnex Australia boss Kee Ong said he was confident the distributor was strongly placed to weather the wave of financial contagion descending on global markets.

Although it reported double-digit revenue growth for the second quarter to June, this quarter will break records, he said. Synnex does around 65 percent of its business through retail.

Ong said the results were aided by retailers such as Harvey Norman and JB Hi Fi that reported better-than-expected full-year results this week.

But it’s the commercial side of the Australian business that was travelling the fastest, posting consistent triple-digit growth for the past few years, Ong said.

In June, Synnex was appointed a distributor for IBM's x86 cloud, virtualisation and storage systems Big Blue was aiming at SMBs in competition to companies such as HP. And Synnex was in discussions to distribute IBM’s high-end networking equipment.

It was the first time in 10 years that IBM had appointed a distributor, with Synnex joining its two biggest rivals in Avnet and Ingram Micro.

Ong declined to comment on whether he felt Synnex was picking up business at the expense of its rivals, especially Ingram which has reported falling sales for the past few quarters.

Rather he said Synnex was increasing its revenues from services with vendor partners turning from direct to the channel.

Ong said that on the back of the x86 agreement with IBM Synnex was in discussions to distribute IBM’s range of high-end networking equipment.

He admitted that networking was a new area that would present certain challenges for the company. “But you can’t always stay in your comfort zone.”

Ong said Synnex was yet to see where it would fit in the cloud space, especially how it would gain a share of transactions. But he saw the company playing an important role to bridge vendors and resellers: “The cloud still needs devices”.

Security is another area Synnex was moving into, with the company appointed as a national distributor for Trend Micro’s original-equipment maker hardware and software for consumers and businesses. They would be the first security products distributed by the company.

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