Tech Data CEO on why it's finally coming to Australia

Bob Dutkowsky always thought he'd bring Tech Data to Australia, he just didn't realise how long it would take.

The chief executive of the US$27.7 billion distributor, which this week announced plans to acquire Avnet Technology Solutions (TS), told CRN that when he joined Tech Data 10 years ago, he thought his first task would be to grow the Asia-Pacific footprint.

"I worked for IBM back in the '90s and ran the channel for APAC. I lived in Tokyo and have been to Australia 20 times," said Dutkowsky, who added that he was an IBM colleague of the future CEO of Telstra, David Thodey.

"I joined Tech Data 10 years ago on 2 October, so almost 10 years. When I joined, I was convinced the company was appointing me because I knew the channel in Asia-Pacific and my job was to come in and extend Tech Data into Asia. I thought that was one of the reasons they liked me."

Instead, Dutkowsky was tasked with steadying the ship in Europe and the Americas. "When I got into [Tech Data,] the company was way underperforming in the places we already were."

Over the years, the rumour that Tech Data would come to Australia has never disappeared. Speaking to CRN this morning from the company headquarters in Florida, Dutkowsky admitted to numerous merger-and-acquisition discussions with local distributors over the years.

"We have looked a couple of different times to acquire into Australia. We always viewed Australia as the base from which we would start our expansion then spread across the region. We have had dialogues with all of the smaller independent players – a beachhead we would establish. But when it came down to it, there was still room to improve in our existing operation."

Dutkowsky said that Tech Data is a "broadliner" – a mainstream distributor with a strong hold on the small to medium end of the channel. While the Avnet deal galvanises its position in the enterprise and data centre space, it means that here in Australia, the company will still lack firepower in the mainstream channel.

Asked if this would drive further acquisition activity in Australia, Dutkowsky said: "It is way too early to make that determination, but suffice it to say that we want to invest in Asia-Pacific and grow, and that footprint in Australia is that base to make that kind of expansion.

"We would not at this point cross off anything for what the future will hold," he added.

However, Dutkowsky stressed that the deal still must go through a number of regulatory hurdles. "Don't look for anything from us until early next year at the earliest."

One thing is clear: the Avnet name will not remain with the TS business unit. The brand will be retained by Avnet's larger Electronics Marketing division, which Tech Data is not acquiring.

"The remaining part of Avnet kept the Avnet brand, so we will rebrand the TS side somehow around Tech Data. We like the TS name, we like the Tech Data name. We haven't worked, out what we will be called but we won't be called Avnet - that stays with the old company."

Dutkowsky called out some of the advantages that Tech Data will bring to Australian resellers.

"Tech Data has always been known as a company that brings the kind of credit support that our partners need to the marketplace. It's too early to tell, but when we finally get to where we announce we have closed the deal, we will come to the market with clarity with things like credit - we know it is important."

He said the company hoped to help channel partner embrace the "third platform" and support the technology for cloud, security and hyperconvergence, and that Tech Data's significant financial clout would enable it to make the "big investments for a distributor to keep up with the rapid pace of the cloud."