As customer choice increases, so

does the channels value add

Steve Brazier, 25 June 2014
Insight. Innovation. Impact.
Presentation download
www.canalys.com/download/dell
Username: worldcup
Password: dubai
Available until: 30 June 2014
Insight. Innovation. Impact.
Falling profits caused by low revenue growth
15%
10%
10%
9%
8%
5% 5% 5%
2%
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Net revenue growth
15%
21%
24%
17%
5%
2%
0%
10%
13%
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Market capitalization
Net income growth
29%
-9%
-27%
-11%
4%
18%
67%
30%
-4%
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Canalys IT Titans Index
Source: Latest reported financial results for Apple, Cisco, EMC,
Google, HP, IBM, Intel, Juniper Networks, Lenovo, Microsoft,
Oracle, Salesforce.com, Samsung and SAP
Insight. Innovation. Impact.
EMEA momentum builds; China affects APAC
Canalys IT Titans Index
Revenue growth by region
19%
16%
12%
11%
10%
0%
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
2%
3%
0%
2%
2%
4%
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
6%
4%
2%
1%
2%
3%
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Europe, Middle East & Africa
Americas
Asia Pacific
Source: Vendor financial reports and Canalys estimates, April 2014
Juniper Networks and Salesforce.com have replaced Dell in the Titans Index; all historical information has been updated
Insight. Innovation. Impact.
Robust organic growth for Ingram Micro
EMEA distributor titans performance Q1 2014
EMEA distributors Q1 2014
(revenue converted to
euro for comparison)
Euro revenue
(m)
Euro revenue
growth
Reported
revenue growth
AB Group 322 -1% -0.4%
ALSO 1,623 2% 2%
Arrow ECS 485 15% 20%
Avnet TS 565 -5% -1%
Esprinet 523 6% 6%
Ingram Micro 2,185 8% 12%
Redington* 554 3% 21%
Tech Data 3,091 5% 10%
Combined distributor titans 4.7%
Source: Latest EMEA fiscal results for the three months to 31 March or nearest quarter end; euro revenue converted from final
reported currency; reported revenue growth (including acquisitions) in final reported currency; *Redington non-Indian revenue
Insight. Innovation. Impact.
Tablet shipments drop to Q3 2013 levels
0
5
10
15
20
25
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Western Europe
Middle East
Central and Eastern Europe
Africa
EMEA notebook/tablet shipments
Tablets Notebooks
Units (million)
Source: Canalys estimates, Tablet PC Analysis, May 2014
Insight. Innovation. Impact.
0 1 2 3 4 5
Apple
Samsung
Lenovo
Asus
Google
EMEA mobility market Q1 2014
Android
78%
iOS
15%
Windows
Phone
6%
Others
1%
Android
69%
iOS
25%
Windows
6%
S
m
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t

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T
a
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t
s

0 20 40
Samsung
Apple
Sony
Nokia
LG
Q1 shipments:
60.5 million
Year-on-year
growth: 27.6%
Shipments as
percentage of
global total: 21.7%
Units (million)
Q1 shipments:
15.2 million
Year-on-year
growth: 22.5%
Shipments as
percentage of
global total: 29.9%
Top five vendors in
EMEA
Top five vendors in
EMEA
Units (million)
Source: Canalys estimates, Smart Phone Analysis and Tablet PC Analysis, May 2014
Insight. Innovation. Impact.
Insight. Innovation. Impact.
Share performance since April 2011
Cloud vendors have enjoyed a great ride
4.3%
4.3%
-50%
0%
50%
100%
150%
200%
250%
5/1/2011 5/1/2012 5/1/2013
Facebook
LinkedIn
NetSuite
Salesforce.com
Workday
MSFT, IBM, HP,
Cisco Aggregate
April 2011 April 2012 April 2013 April 2014
*
Major correction: 54% of partners
Source: Publicly reported share prices
*Note: Saleforce.com underwent a four-for-one (4:1) stock split in April 2013
Share price (US$)
Insight. Innovation. Impact.
And recent results may redefine cloud bursting
4.3%
4.3%
-40%
-20%
0%
20%
40%
1/1/1900 1/2/1900 1/3/1900 1/4/1900 1/5/1900 1/6/1900 1/7/1900 1/8/1900 1/9/1900 1/10/1900 1/11/1900 1/12/1900 1/13/1900 1/14/1900 1/15/1900 1/16/1900 1/17/1900 1/18/1900 1/19/1900 1/20/1900 1/21/1900 1/22/1900 1/23/1900 1/24/1900 1/25/1900 1/26/1900 1/27/1900 1/28/1900 1/29/1900 1/30/1900 1/31/1900
Facebook
LinkedIn
NetSuite
Salesforce.com
Workday
MSFT, IBM, HP,
Cisco Aggregate
Share performance 4 March to 15 April 2014
4 March 2014 17 March 2014 7 April 2014 15 April 2014
*
Source: Publicly reported share prices
*Note: Saleforce.com underwent a four-for-one (4:1) stock split in April 2013
Share price (US$)
Insight. Innovation. Impact.
AWS loses Amazon $2.1bn in last four quarters
-800
-600
-400
-200
0
200
400
600
800
1,000
Q1
2011
Q2
2011
Q3
2011
Q4
2011
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Traditional AWS Total
Net loss predicted for AWS operations
Last four quarters: US$2.1 billion Net margin
(US$ million)
Source: Amazon financial results and Canalys estimates, May 2014; assumes traditional business remains at 2010 margins
Insight. Innovation. Impact.
Which type of hybrid/cloud solutions are your
clients adopting most of in 2014?

Source: Candefero survey (210 channel partner responses), March 2014
Public cloud:
SAAS
16%
Public cloud:
IAAS
17%
Private cloud:
pay per use
13%
Co-location and
managed services
18%
Difficult to say,
we sell a mix
36%
Insight. Innovation. Impact.
privacy local
open source
Insight. Innovation. Impact.
Insight. Innovation. Impact.
Wearables to create next innovation wave
Appcessories and
augmented reality
will enable apps
to interact with
the real world
Insight. Innovation. Impact.
IoT opportunity is business transformation
Connected
people
Connected
industry
Connected
home
Connected
logistics
Connected
farming
Connected
utilities
Connected
healthcare
Connected
buildings
Connected
retail
Connected
vehicles
C
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d

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s

C
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s

Insight. Innovation. Impact.
Real-time data processing to drive growth
Data center


Connected things
Applications and
platforms
Infrastructure
Internet of Things platform
App App App App
Servers Storage Network
APIs APIs
APIs APIs APIs
Connectivity
Insight. Innovation. Impact.
Computing moving quickly into cars
Connected vehicle applications and services
Dynamic route
planning
Automated
driver assistance
Fuel analytics
and planning
Proactive
monitoring via OBD
Vehicle
tracking
Emergency
assistance
Wi-Fi hotspot
passenger services
Pay-as-you-go
insurance
On-demand
IVI content
Collaboration
(including social media)
Smart city services
(eg, parking)
Over-the-air
vehicle upgrades
Automated service
scheduling
Vehicle-to-vehicle and vehicle-
to-roadside infrastructure
Insight. Innovation. Impact.
Big data: challenges and opportunities
Source: British Airways

As customer choice increases, so
does the channels value add

Steve Brazier, 25 June 2014
Insight. Innovation. Impact.
Presentation download
www.canalys.com/download/dell
Username: worldcup
Password: dubai
Available until: 30 June 2014
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Insight. Innovation. Impact.