D&H Financial Results Suggest Company’s Differentiated Strategy Is Working
… buying point solutions; instead, they wanted complete solutions delivered by trusted, third-party advisers.
Consider a local doctor’s office that needs full HIPAA compliance to keep its doors open. This customer may need to upgrade its security and document imaging capabilities to remain compliant. It may also need to increase its wireless and data backup capacities. Helping a vertical market customer weigh through these options invariably requires the expertise of a third-party tech professional, Schwab insists.
For the foreseeable future, he doesn’t believe that this dynamic will change, which is why his company invested heavily in new capabilities in fiscal 2019. During the period, it brought on 40 additional SMB salespeople. It also hired eight new cloud experts.
Looking ahead, D&H expects to offer greater capabilities around PSA and RMM platforms, and, of course, cloud. In fiscal 2020, D&H expects its cloud portfolio of products and services to grow by as much as 145%, year over year.
Whether its cloud, Pro AV or network security, D&H is getting big by narrowing its focus. And it’s doing so with what Schwab refers to “tenure-tested” channel partners that have prevailed despite the dot-com bust of the early 2000s, the economic recession of 2008-2009, and the disruptive business challenges that have resulted from the rise of cloud computing.
Despite worrisome trade wars, rising public debt and disruptive technology that threatens to upend many industries, Schwab expects good things from 2020.
“Every year we budget our business to be in the mid-, single-digits growth. We do that regardless of the macroeconomic events going on… We can only control what’s in within our four walls. So, whether the market grows or shrinks by 5%, we can still grow by offering a differentiated level of value,” he says.
It’s not a bad place to be.