VAR 350 VAR 350 Welcome to VAR 350 The 350 firms featured in this report are the more rms than last year’s VAR 300, with 74 new guardians of nearly £22bn in B2B tech spend and entrants in total this time around. employ enough people to fill Murrayfield Stadium. In a new development, we have opted to examine From £1.6bn-revenue juggernaut Computacenter gross as well as net pro t, and a breakdown of the to the 20-employee niche consultancies that former can be found on p31. tail these rankings, they are together the prime Meanwhile, we re ect on some of the quotes and in uencers of B2B tech spending decisions in deals of last year on p28 and p35, respectively. this country. is ranking list is far from exhaustive, but Any vendor wanting to crack the UK market encompasses the VAR-type businesses on our radar must rst win over this hugely in uential army of which publicly disclose revenues and pro ts (in a few trusted advisers. cases, we have had to rely on estimates). As well as acting as the primary route to market Outside reselling and servicing B2B tech, the for vendors including Microsoft, Cisco, HP, HPE, companies featured often have little in common, with Dell, AWS, Canon, Check Point and Crestron, this all-purpose enterprise tech powerhouses such as elite squad are uniquely positioned to advise UK Computacenter, Softcat and CDW rubbing shoulders enterprises, SMEs and public sector organisations in the rankings with niche suppliers of computer- as they digitally transform and weigh up which aided design software, managed print, cybersecurity, workloads to move to the cloud, and when. audio visual kit and – in one interesting case – With demand for their services continuing to assistive technology. rise, the top 350 resellers, MSPs and other front-line Despite a slight bias towards London and the tech providers on our radar grew collective revenue M4 corridor, they are also a geographically diverse by 12.4 per cent year on year to £21.8bn in their bunch. Some 14 VAR 350 rms’ UK headquarters are latest nancial years on record, equivalent to the in Scotland, six are in Wales and three in Northern GDP of Latvia. Ireland (see p44). And picturesque Devon is called ankfully, margins are also on the rise, with home by four representatives. median net pro t margins across the 341 eligible Whatever their specialism or geographic rms rising from 2.3 to 2.7 per cent (see p7, 8, 38 and positioning, what is clear is that the role they play 52 for more), and just two of last year’s crop going continues to evolve, with the ongoing push into out of business last year (see p48). services very much evident in the commentary of Available exclusively to CRN Essential subscribers, numerous VAR 350 rms as we explore on p12. VAR 350 is – we believe – the most comprehensive As we head into a new decade, and technology attempt ever to map the front line of the UK IT continues to move to the heart of what all channel, and each year our data becomes more organisations do, few would bet against the potent. companies featured in this exclusive CRN Essential Having grown out of Top VARs, which we report becoming even more in uential. launched in 2011, this research encompasses 50 ■ Doug Woodburn is editor of CRN. With demand for their services Incisive Media, New London House, 172 Drury Lane, London WC2B 5QR Tel: (020) 7484 9000 continuing to rise, the top Editor Doug Woodburn 9817 Managing editor Tom Wright 9797 Reporter Marian McHugh 9883 350 resellers, MSPs and Content editor Josh Budd 9854 Multimedia editor Nima Green 9781 other front-line tech providers on Production editor Amy Micklewright Commercial director Matt Dalton 9896 Head of global sales Nina Patel our radar grew collective revenue by Global account director Jessica Feldman 9839 12.4 per cent year on year to £21.8bn Account manager Jessica Richards 9923 in their latest financial years Managing director, Technology Division Alan Loader on record, equivalent to the Managing director, Incisive Media Jonathon Whiteley “ GDP of Latvia © 2020 Incisive Media ”3 VAR 350 VAR 350 350. AVEX International Ltd units in Manchester and London, six per cent to £1.7m in its year customers, this London-based IT outfit began a search for a buyer support, hardware, managed print Revenue: £714,000 (-25%) Atlas partners with an array of to 31 March 2018. The Veeam support outfit posted a £140,000 amid concerns over its long-term and networking. Net profit: 2.3% Staff: 7 technology and telecoms vendors, and SonicWall partner specialises net profit on revenues of £1.6m ability to turn a profit. Despite Having incorporated its including HP, Cisco, Datto and in technology design and in its shortened nine-month efforts to reduce its cost base, 338. Communicate UK business in 2013, this Openreach. implementation for new builds financial period to 30 September it slipped to a £40,000 net loss Technology plc Netherlands-headquartered and refurbishments, with clients 2018. Since its year end it has sold on revenues of £3.5m in the 15 Revenue: £3.5m (+192%) Microsoft Surface Hub partner 348. Business Connexion including Hoxton Hotels and a controlling stake to Ridgewall, a months to 30 April 2019. Net profit: -47% Staff: 29 saw revenues on this side of the Revenue: £1.5m (+8%) Hotel Indigo Leicester Square. 100-employee reseller which itself Harbouring ambitions to list North Sea fall for the first time Net profit: 9.3% Staff: 10 was recently bought by private 341. Scotia on AIM, this fast-growing Tees in its year to 31 December 2018. Based in Stevenage, the UK 346. Datcom LLP equity house Inflexion. Revenue: £3m (+36%) Valley-based firm specialises in Counting Crestron, Samsung arm of this South African Revenue: £1.9m (+3%) Net profit: 7.9% Staff: 17 providing network infrastructure and Bose among its 39 vendor tech supplier specialises in Net profit: 10.8% Staff: 23 344. IC Technology This Edinburgh-based audio visual solutions to landlords and partners, Utrecht-based AVEX digital transformation for the Part of accountant and tax Revenue: £2.1m (+29%) reseller returned to profitability developers of business parks recently kitted out sports brand mining/energy, healthcare and adviser Duncan & Toplis, Datcom Net profit: 5.2% Staff: NA in its year to 30 April 2019 thanks and multi-tenant buildings. Its ASICS’ new EMEAR head office government sectors. It counts provides IT support, solutions Targeting schools and businesses, to a winning combination of belt revenues virtually trebled in with Samsung welcome screens Dell EMC among its vendors. and services to 150 SMEs in this Telford-based outfit claims to tightening and higher revenues. calendar 2018, although hefty and videowalls. Globally, Business Connexion the Midlands from offices in be one of the largest resellers of Founded in 1963, Scotia designs depreciation, amortisation and employs 6,000 staff in South Lincoln and Grantham. Calendar Dell client equipment in the UK, and installs a full range of AV goodwill write-off charges relating 349. Atlas Business Group Africa, Mozambique, Namibia, 2018 saw it treble net profits to and also partners with Lenovo, equipment including projectors, to its acquired cybersecurity of Companies Tanzania, Zambia and the UK. It £208,000 on roughly flat revenues Fujitsu, Acer, Zoostorm, HP and digital signage, whiteboards and business dragged it to a £1.6m loss Revenue: £1.1m (+4%) was acquired by South African of £1.9m. It recently renewed its Ruckus Wireless. Its top and videoconferencing systems. Its for the year. Net profit: 15.2% Staff: 12 carrier Telkom SA in 2015. Premier status with Cisco and also bottom lines both advanced in client base spans the UK, Europe, Operating its own datacentre partners with Veeam, Microsoft, calendar 2018, with net profits Middle East, North America and 337. Pinnacle from a former nuclear bunker, 347. Fluent2 VMware, Symantec, Citrix and nearly trebling to £110,000 and the Far East. Revenue: £3.7m (-3%) this Cheshire-based managed IT Revenue: £1.7m (-6%) Sage. revenues bouncing by more than Net profit: 21.3% Staff: 26 and infrastructure services outfit’s Net profit: 3.7% Staff: 9 a quarter to £2.1m. 340. Deans Computer Despite seeing revenues shrink year to 31 March 2018 went off London-based Fluent2 claims 345. Connecting London Services by three per cent in its year to 30 with a bang as net profits almost to manage the IT systems of Revenue: £2.1m (-1%) 343. Minttulip Revenue: £3.3m (+7%) September 2018, this London- trebled to £169,000. Revenue more than 50 hotels and other Net profit: 8.9% Staff: 16 Revenue: £2.6m (+35%) Net profit: 12.2% Staff: 48 based fixed and mobile comms topped £1.1m. With a second enterprises. It banked a £61,000 Aiming to be the sole supplier of Net profit: 15.7% Staff: 13 Bolstered by the contribution of specialist is one of this report’s office in Leeds and operating net profit on revenues that fell the IT needs of its small business Founded in 2011, this Microsoft 2017 acquisition Leckhampton most profitable firms. Having Gold partner’s impressive client Computers, this Wetherby- merged with Mac Consultants roster includes REED Recruitment, based IT support and accounting in 2013, Pinnacle counts Apple VAR 350 in numbers Sainsbury’s and HPE. Specialising software specialist grew seven per among its key vendors alongside in helping organisations grow cent in calendar 2018. Targeting Avaya, Vodafone and Microsoft. Between them they employ 69,166 staff, Revenue breakdown through investment in Microsoft owner-managed SMEs, the Sage It recently formally merged with enough to fill Murrayfield Stadium, and up 20 20 technology, Minttulip enjoyed and Pegasus partner said it is mobile arm, The Word Telecom.