Solution provider SHI hits revenue goal ahead of schedule
Somerset, New Jersey-based SHI has capped off a year of successive quarterly growth by posting $10 billion in revenue for 2018 — an 18 percent year-over-year increase — and hitting its long-term growth target a year earlier than planned.
The Lowdown: SHI entered 2018 with accelerated momentum powered by new investments in infrastructure and staff, as well as expansion into new technologies and market opportunities. In 2015, SHI set of goal of becoming a $10 billion company by 2019 — coinciding with the 30th anniversary of its founding. SHI, which now has more than 4,000 employees worldwide, achieved its goal early through its aggressive expansion and support of vendor partners, the company said.
The Details: SHI started out as what many call either a direct market reseller or a large account reseller, dealing in volume over value. In recent years, SHI shifted its focus to solution selling and expanded into cloud and professional services. The company said its investments in
Throughout 2018, SHI boasted impressive growth. In August 2018, SHI announced it generated $4.8 billion in revenue for the first half of the year, shattering its previous half-year revenue record with 21 percent growth. At the end of the third quarter of 2018, SHI announced it had added another $2.5 billion in revenue — bringing the year-to-date total to more than $7 billion.
SHI continues to expand its capabilities and capacities. Plans include the development of new headquarters in Austin, the construction of a new integration center in New Jersey, and the addition of 150 field solution engineers and professional service executives.
Much of SHI’s growth comes from specific markets and vendor partnerships. SHI says its public-sector revenue grew 25 percent, while its commercial and strategic enterprise division grew 19 percent and its corporate and SMB segment increased 17 percent. Sales with its top 10 vendors — Microsoft, Cisco, Dell, HP Inc., Hewlett-Packard Enterprise, Apple, VMware, Lenovo, Adobe, and Symantec — increased 22 percent, on the average, beating the 13 percent average of 2017. Most notably, SHI’s partnerships with Amazon and Pure Storage jumped 33 percent and 26 percent, respectively, the company said.
The Buzz: “In early 2015, we mapped a five-year goal to reach $10 billion in revenue by the end of 2019. Through the hard work of our employees, the strength of our partnerships, and our ability to discern and solve our customers’ most pressing IT and business challenges, we reached that goal 12 months early,” said Thai Lee, president and CEO of SHI. “As we approach SHI’s 30th anniversary in November, we continue to build on that foundation, reinvesting in our teams, facilities, and technical capabilities in the service of our customers.”
Channelnomics Point of View: Solution providers often lament the difficulty of growing their businesses. SHI vividly demonstrates how strategic planning, investments in vendor relationships and staffing, and the development of service-delivery infrastructure lead to growth. According to 2112 research, the majority of partners don’t have a strategic plan for growth, don’t lay out sales goals or plans, and are investing minimally in new capabilities and capacities.