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TD SYNNEX (SNX) Rides on Tech Solution Demand and Deal Wins

TD SYNNEX SNX is gaining from solid demand for its technology solutions, driven by the pandemic-induced work- and learn-from-home trends. Acquisitions and partnerships are helping the company to expand its product portfolio and global footprint. A steady IT spending environment, determined by the emerging digitalization trend, is a positive for the company.

In third-quarter fiscal 2022, TD SYNNEX reported revenues of $15.36 billion, witnessing a whopping 194.9% rise year over year. The company is riding on strong growth in product areas, such as personal computers, networking and cloud plus software-related solutions, which is contributing to revenue acceleration of the Technology Solutions business.

In September, the company announced the launch of the IAconnects MobiusFlow Click-to-Run solution on Microsoft’s MSFT Azure platform. The advanced solution intends to simplify the complex process by which SNX partners configure an Internet of Things solution, which provides hardware, software and infrastructure to manage smart buildings.

TD SYNNEX’s Click-to-Run, a managed virtual desktop as a service solution, leverages Microsoft’s Azure Virtual Desktop to ensure a simple, secure and productive personal computing experience with flexibility, scalability and cost efficiency. The new release features air quality monitoring, preventive information technology maintenance, occupancy control, and energy-efficient operation while collecting secure data from sensors and intelligent controllers.

The latest forecast for worldwide IT spending by Gartner is a positive for TD SYNNEX. Gartner forecasts worldwide IT spending to reach $4.5 trillion in 2022, suggesting an increase of 3% from 2021. The research firm expects worldwide spending on IT services to grow 6.2% year over year to $1.28 trillion this year. This bodes well for TD SYNNEX’s performance.

TD SYNNEX anticipates adjusted net revenue growth between 6% and 8% for fiscal 2022. Over the next three to four years, the company expects revenues to increase at a compounded annual growth rate of 6-7%.

Growing Through Partnerships

TD SYNNEX’s sustained focus on partnerships with other tech companies is helping it to enhance its product portfolio and expand its global footprint. In August, TD SYNNEX partnered with California-based spatial data company, Matterport Inc. MTTR, to help boost its presence in the North America market.

A large network of 150,000 resellers of TD SYNNEX provides Matterport’s industry-leading technology to a huge customer base, including new enterprises, small & medium business customers and public agencies. This deal allows MTTR to gain a stronghold in the North American property market of approximately 1 billion spaces while enabling SNX clients to optimize operations through integration with Matterport’s platform.

In June, TD SYNNEX’s Tech Data entered a partnership with Salt Lake City-based Learning Management Systems ("LMS") developer, Instructure, to leverage enhanced learning solutions in India. The company intends to ensure ground-level support and assistance among its India-based partners through this partnership. Instructure will utilize Tech Data’s extensive network of partners and expertise in the local Indian market to offer Canvas solutions to the subcontinent’s education sector.

In May, the company entered into a cybersecurity aggregator partner agreement with California-based Broadcom Software. Per the agreement, SNX enables its channel partners to improve customer experiences and be financially rewarded in return.

In January, TD SYNNEX forged a partnership with the largest independent publicly-traded business intelligence company in the North America region, MicroStrategy MSTR. This contract aided SNX to enhance its portfolio of IoT, data and analytics solutions.

MicroStrategy’s comprehensive software platform, which includes features like self-service data discovery, enterprise reporting, mobile applications and embedded analytics, enables TD SYNNEX’s partners to offer end-to-end enterprise analytics, driving end-user adoption and meeting data-driven business culture demand.

In the same month, the company entered into a strategic collaboration agreement with Amazon’s subsidiary, Amazon Web Services (“AWS”), to invest in resources that will help in developing advanced cloud solutions for its partners.

This agreement enabled SNX’s partners, including small and medium-sized businesses, public sector organizations, and individual software vendors, to get improved international exposure to sell their newly developed offerings integrated with Amazon’s AWS advanced cloud technology.

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