Insight Enterprises Stock

Insight Enterprises, Inc. (Insight) provides end-to-end secure digital transformation solutions and services.

The company helps its clients accelerate their digital journey to modernize their businesses and maximize the value of technology. The company serves these clients in North America; Europe, the Middle East and Africa (EMEA); and the Asia-Pacific (APAC). The company enables secure, end-to-end digital transformation and meet the needs of its clients through a comprehensive portfolio of solutions, far-reaching partnerships and 35 years of broad IT expertise.

Strategy

The company intends to be the leading solutions integrator, setting the pace and defining a new category in its industry. Building upon the strong foundation of its traditional technology business, the company brings innovative and scalable solutions - a combination of services and product - that accelerate transformation and produce meaningful outcomes for its clients.

Solutions Expertise

The company adapts quickly to new innovative technology trends such as Generative Artificial Intelligence (GenAI). The company invests internally, as well as through acquisitions to advance its technical capabilities. The company has strong solutions expertise in six high growth areas of the IT market that allows it to drive digital transformation and business outcomes for its clients. The solutions areas are pivotal to the company's strategy of becoming the leading solutions integrator. The company's most recent acquisitions of Amdaris and SADA, enhance these areas of expertise and enhance the services that are most meaningful to its clients.

The company's six key areas of solutions expertise are critical to its clients' success and to its identity as a solutions integrator: modern platforms/infrastructure; cybersecurity; data & Artificial Intelligence (AI); modern workplace; modern apps; and intelligent edge.

Each of the six key areas of solutions expertise are described below:

Modern Platforms/Infrastructure - Architect and modernize multicloud and networking solutions.

The company's modern platforms solutions expertise is about adopting and building modern platforms from cloud (multicloud and hybrid) to data center to edge. The company architects and delivers modern infrastructure solutions, provides management and supports spanning cloud and data center platforms, modern networks, and edge technologies, to enable its clients' businesses digital transformation. Typical outcomes for the company's clients include scaling their infrastructure foundation for innovation, increasing workload agility, resiliency and flexibility, improving visibility and control of data assets, delivering better user and customer experiences, and enabling purposeful digital transformation.

Cybersecurity - Mitigate Risks and Secure Business Assets

The company's cybersecurity solutions expertise relates to automating and connecting modern platforms securely (network, security and automation). The company prioritizes security in its architecture design and deployment to cloud services and IT transformation. This way, clients can integrate security across platforms, business units and operations. The company also helps clients manage security initiatives that are required to protect their business. Typical outcomes for the company's clients include improving threat detection, containment and neutralization, minimizing large scale security teams through simplified security management, implementing governance and maintaining compliance, better management and mitigation of organizational risk and effective and thorough responses to security incidents.

Data and AI - Leverage analytics and AI to transform business operations and user experiences.

The company's data and AI solutions expertise pertains to innovating on top of modern platforms with strategic and secure solutions delivered through reference architectures, leveraging GenAI, and enhanced through its intellectual property. The company modernizes data platforms and architectures and build data analytics and AI solutions that transform its clients' business operations and user experiences. Typical outcomes for the company's clients include enabling scalability at high speed, preparing data estates and access to support the adoption of GenAI, increasing visibility and data-driven decision making, optimizing resources and costs via new operational efficiencies and providing opportunities to grow revenue with new offerings.

Modern Workplace - Create a Productive, Flexible and Secure Workplace

The company's modern workplace solutions expertise deals with helping clients navigate workplace changes along with employee needs for seamless work experiences. Great companies know their people are the key factor - improving attraction and retention, providing great collaborative experiences through technology, leading through change. Typical outcomes for its clients include elevating employee and user experiences, increasing return on workplace technology investments, enhancing protection for users and business data to reduce risk, boosting productivity and mobile capabilities, simplifying IT lifecycle management and enabling and securing work anywhere operations in the hybrid work environment.

Modern Apps - Create new product experiences and transform legacy applications to drive increased business value.

The company's modern apps solutions expertise is about helping clients migrate and modernize strategically. The number of applications in use is growing exponentially - and using them to differentiate business identities, unlock new revenue streams and create great user experiences is critical. Typical outcomes for the company's clients include future-proofing critical business applications, increasing innovation and organizational agility, accelerating business growth and product sales, and leveraging GenAI to optimize operations, increase productivity and deliver differentiated client experiences.

Intelligent Edge - Gather and utilize data in the most efficient way to enable real-time decision-making and affect pivotal outcomes.

The company's Intelligent edge solutions expertise is where all its capabilities come together. It is the combination of industry-based business outcomes, the company's intellectual property, its technology provider legacy, and the ability to deploy tens of thousands of devices and build secure platforms. The company's capabilities and portfolio allow for large-scale intelligent edge solutions. Typical outcomes for its clients include, improving decision making and business intelligence, increasing responsiveness to customer and market demands, optimizing operational processes and gaining predictive capabilities, creating new revenue streams, driving differentiation, and scaling and expanding business operations to new areas.

The company delivers its solutions expertise to its clients through consulting, managed and life-cycle services.

Solutions Mix

The company's solutions generally include hardware, software and services, including cloud solutions. On a consolidated basis, product (hardware and software) and services represented approximately 83% and 17%, respectively, of its consolidated net sales in 2023.

Partners

The company partners with market leaders offering the top technology brands, as well as emerging entrants in the marketplace. During 2023, the company purchased and resold products and software from over 8,000 partners. Approximately 69% (based on dollar volume) of these purchases were directly from manufacturers or software publishers, with the remaining balance purchased through distributors. Purchases from Microsoft and TD Synnex accounted for approximately 27% and 12%, respectively, of its aggregate purchases in 2023. The company's top five partners as a group for 2023 were Microsoft, TD Synnex (a distributor), Cisco Systems, Ingram Micro (a distributor), and Dell, and approximately 60% of its total purchases during 2023 came from this group of partners.

During 2023, sales of Microsoft and Cisco Systems products accounted for approximately 17% and 10% of the company's consolidated net sales, respectively. Sales of product from the company's top five manufacturers/publishers as a group (Microsoft, Cisco Systems, Dell, Lenovo, and HP Inc.) accounted for approximately 51% of its consolidated net sales during 2023.

The company obtains incentives from certain product manufacturers, software publishers and distribution partners based typically upon its volume of sales or purchases of their products and services. In other cases, such incentives may be in the form of participation in the company's partner programs, which may require specific services or activities with its clients, discounts, marketing funds, price protection or rebates. The company measures partner satisfaction regularly and hold quarterly business reviews with its largest partners to review business results, discuss plans for the future and obtain feedback. Additionally, the company hosts annual partner forums in North America, EMEA and APAC to articulate its plans for the upcoming year.

Acquisitions

In 2023, the company acquired Amdaris Group Limited (Amdaris), a service provider with core expertise in providing software application and development services for clients, which adds to Insight's global application and Data & AI practices. Amdaris also specializes in customized solutions for cloud, mobile, data analytics and web helping clients digitally transform faster.

In 2023, the company acquired SADA Systems, LLC (SADA), a Google cloud service provider with engineering capabilities across the entire Google Cloud stack specializing in Google Cloud priority workloads.

Seasonality

The company experiences some seasonal trends in its net sales. For example: software and certain cloud sales are typically higher in the company's second and fourth quarters; business clients, particularly larger enterprise businesses in the United States, tend to spend more in its fourth quarter and less in the first quarter; sales to the federal government in the United States are often stronger in its third quarter, while sales in the state and local government and education markets are stronger in its second quarter; and sales to public sector clients in the United Kingdom are often stronger in its first quarter (year ended December 31, 2023).

These trends create overall seasonality in the company's consolidated results such that sales and profitability are expected to be higher in the second and fourth quarters of the year. Historically the company has experienced higher net sales in its second quarter, however, with the addition of SADA, it anticipates its fourth quarter will be its highest quarter for net sales.

Competition

The company's competition primarily includes:

Systems integrators and digital consultants such as ePlus, Presidio, World Wide Technology, EPAM, Perficient, Accenture, Atos and Capgemini; and

Solution providers, value-added resellers and direct marketers such as CDW, Cognizant, Zones, Connection, SHI, Softchoice, Computacenter, Bechtle, SoftwareONE and Crayon.

History

Insight Enterprises, Inc. was founded in 1988. The company was incorporated in Delaware in 1991.