Business model of Insight

Customer Segments

Insight Enterprises provides a range of integrated hardware, software and cloud-based solutions to commercial and public sector clients.

• Commercial Enterprises, including small, medium and large-sized companies worldwide, to which it provides networking, storage and server solutions;
• Government Agencies, including federal, state and local government bodies, to which it provides software licensing and public safety technology solutions;
• Healthcare Organisations, including hospitals, primary care facilities and clinics, to which it provides point-of-care and data management and patient experience solutions; and
• Educational Institutions, including a network of K-12 schooling institutions, to which it provides infrastructure, learning solutions and data storage services.

The Company’s home market of the US continues to be its largest, alongside Canada, which together accounted for more than 70% of the Company’s 2015 sales. Insight Enterprises also serves clients across Europe, Middle East and Africa, and Asia Pacific.

Value Propositions

Insight Enterprises provides value to its clients in the following ways:

• Its accessibility and global reach, serving clients across multiple regions and across multiple channels, including its collaboration with a network of partners;
• Its breadth of scalable solutions, including its ability to provide bespoke solutions to businesses of all sizes;
• Its software and operational expertise, including its knowledge of licensing and compliance requirements, and ability to provide expert consulting and optimisation services; and
• Its ability to function as a one-stop shop for IT solutions, relating to its multi-partner approach to its solutions, providing a range of services and products using integrations from a number of high-profile companies.

Channels

Insight Enterprises operates a website at www.insight.com, where customers can find information on the Company’s various products and services. Customers are also able to purchase a number of the Company’s products and services through the website’s e-commerce features.

Insight Enterprises operates a network of direct sales offices in the US, Canada, the UK, Germany, France and Australia. The Company also partners with a network of channel partners, including distributors and independent sales agents. The Company operates its own distribution centres in the US, Canada, the UK and Germany, and has “direct-ship” agreements in place with many of its partners, including manufacturers and distributors.

Insight Enterprises’s solutions can be delivered through a range of methods, including at the client location, remotely, or through a private, public or hybrid cloud service.

Customer Relationships

Many of Insight Enterprises’s services are available on a self-service basis through its website. Customers are able to purchase products and services, register user accounts and manage their profiles online with no interference from members of the Insight Enterprises sales teams.

Larger purchases and long-term contracts must be negotiated directly with Insight Enterprises sales representatives, enabling customers to ensure their requirements are met.

Sales to commercial clients are typically based on stated contractual terms, terms and conditions outlined on the Company’s website, or specific terms contained in purchase orders on a transaction by transaction basis. Sales to public sector clients are agreed through an open market sales process or through government contracts and programs, typically requiring significant interaction with the client and that certain compliance terms are met.

Customers are able to contact Insight Enterprises over the phone or via email, and can arrange to be contacted by a specialist by filling in an online contact form. The Company also operates social networking accounts with Facebook, Twitter, LinkedIn and YouTube, through which it is able to interact directly with customers.

Key Activities

Insight Enterprises is a provider of hardware, software, cloud and service technology solutions, primarily to commercial, government, healthcare and educational clients.

The Company develops, designs, implements and manages integrated information technology solutions, including services and products designed to support networking, collaboration, storage, security, cloud functionality, mobility, and converged infrastructure.

Insight Enterprises operates across three geographically segmented business divisions: North America; Europe, Middle East and Africa; and Asia Pacific.

The Company provides customers in North America and certain countries in Europe, Middle East and Africa a full suite of IT hardware, software and services solutions, while customers across the remainder of the Europe, Middle East and Africa segment and in Asia Pacific are offered just software solutions and certain software-related services.

Key Partners

Insight Enterprises partners with a range of companies during the development and distribution of its products and solutions. These partners principally comprise companies operating within the technology sector, including:

• Product Manufacturers, which provide assistance in the production of Insight Enterprises products;
• Software Publishers, which provide third-party software integrations for the Company’s IT solutions; and
• Distributors, which support the Company by extending its sales and distribution network, and by providing products from other suppliers.

In 2015 Insight Enterprises acquired products and software from around 3,600 partners. Approximately 66% of these purchases were made directly from manufacturers or software publishers, with the remainder purchased through distributors.

The Company’s top five partners for 2015 were high-profile companies Microsoft, Cisco, Ingram Micro, HP and Tech Data, which together accounted for approximately 65% of Insight Enterprises’s total purchases during 2015.

Insight Enterprises hosts annual partner forums in North America, Europe, Middle East and Africa and Asia Pacific.

Key Resources

Insight Enterprises’s key resources are its technology and products, its IT infrastructure, its network of technology partners, its sales and distribution networks and its personnel.

The Company does not operate a traditional research and development team; it does, however, protect a range of intellectual property, including trademarks, service marks, copyrights, domain name rights, and patents that it deems key to its commercial success. Insight Enterprises has registered a number of intellectual properties registered in the US and internationally.

Cost Structure

Insight Enterprises incurs costs in relation to the development of its IT solutions, the maintenance of its IT infrastructure, the sale and distribution of its products, the advertising and marketing of its services – amounting to more than $27 million in 2015, and the retention of its personnel.

As of 31^st December 2015 Insight Enterprises employed 5,761 members of staff, accruing costs in the form of salaries and benefits, and operated a network of sales offices, distribution centres and administrative offices across its various operational jurisdictions, amounting to costs in the form of rent and utilities. Total selling and administrative costs in 2015 were recorded at $584.9 million.

Revenue Streams

Insight Enterprises generates revenue through the sale of various software and hardware products and technology solutions. Its core revenue streams are as follows:

• Intelligent Applications and Endpoints, comprising the provision of custom or off-the-shelf software applications integrated with desktop, laptop, tablet, smartphone and kiosk endpoints.
• Customer Analytics, including the sale of data-based analytics solutions
• Modern Workplace, including the provision of cloud-based office solutions and device-as-a-service products;
• Modern Applications, comprising the sale of custom applications across multiple channels and devices.
• Workforce Analytics, including the sale of data-based analytics for the allocation of workforce resources.
• Hybrid Cloud, including the provision of on-premise private cloud and public cloud infrastructure-as-a-service solutions;
• Branch Infrastructure, including the sale of connectivity, computing, voice and wireless branch solutions.
• Intelligent Network, comprising the provision of WAN, LAN, wireless and security solutions.

In 2015 the Company recorded total net sales across all segments of $5.37 billion, up slightly from the $5.32 billion recorded in 2014. Sales of hardware, software and services represented approximately 54% of the Company’s total sales for the year, with sales in North America representing 71% of the Company’s business.