About Ingram Micro
Ingram Micro Inc., headquartered in Santa Ana, California and ranking on the Fortune 100, is the world’s largest wholesale technology distributor. It serves hundreds of thousands of resellers in approximately 160 countries with a considerable portfolio of IT products and services. Ingram Micro represents some 1,700 IT manufacturers through its 119 distribution centers worldwide.
In 2009, Ingram Micro, the world’s largest wholesale technology distributor, needed to jumpstart its maintenance contract business with IBM. The distributor turned to Managed Maintenance, Inc. (MMI) and its unique ONEview asset management solution and consulting services to set up the proper systems, tools, processes, and support. Starting at zero, Ingram needed to build its IBM maintenance portfolio to become a major revenue driver.
Early on, MMI helped Ingram strategize and identify which Ingram Resellers qualified as good candidates to sell the higher-end products. MMI also helped Ingram position hardware and software services within Service Elite contracts, as well as train new resellers to the value of selling the high-end portfolio. Through their partnership with MMI, Ingram was able to quickly capitalize on the ability to sell higher-end products and as result win more lucrative maintenance contracts.
Ingram Micro’s expertise in IT supply-chain, logistics, marketing, mobile solutions, technical support, financial services, product aggregation, and distribution creates strong sales and profitability opportunities for vendors and resellers alike. Its channel partners sell their customers’ IT hardware and software products, most of which include warranties or software licenses as provided by the manufacturer or enhanced by the reseller.
In 2012, IBM lifted restrictions around distributor participation within the IT channel, creating a major opportunity for Ingram Micro to do increased business with the tech giant. With this change, Ingram Micro could manage not only transactional-based hardware sales, but could also leverage the sale of hardware and software maintenance contracts. To tackle the complicated landscape of maintenance portfolio management, Ingram turned to Managed Maintenance, Inc. and its team of experienced maintenance contract managers, best-in-breed processes, and state-of-the-art technology solution, ONEview.
Ingram selected MMI for its vendor process expertise and ability to simplify the management of large, complicated maintenance portfolios. In working with MMI, Ingram found a partner to guide them through new maintenance territory.
Capitalizing on a true understanding of vendors
Understanding the IBM contract model is no easy feat. From quoting to renewals to training and troubleshooting, it’s an incredible amount of information to manage. Based on deep experience and longtime connections with vendors, MMI was able to streamline processes, provide ongoing education, and help the channel grow its maintenance portfolio.
Maintaining a proactive outlook
In Ingram’s previous experience managing contracts through channel partners, the partner would simply let customers know that their contracts were up for review without any additional actions.
MMI’s technology enables Ingram to proactively reach out to customers about renewals at 90 days, 60 days, and 30 days, and recommend additional services that can enhance the contract. This feature helps generate additional revenue from existing contracts and sets Ingram apart for the value they’re able to provide end users.
When there’s an issue with the contract, MMI doesn’t just say, ‘Here’s your contract number. Good luck.’ They have the relationships to help with the contract troubleshooting. They also have an in-depth understanding of all the different tools that are available, from invoices to contracting to the ISAT portal and the COL portal.
Making hardware the foundation, but maintenance the future
Solely focusing on hardware transactions isn’t a sustainable method for building profits, meaning organizations must also focus on service revenues to increase bottom lines. Ingram had to shift into that mindset with the help of MMI.
Managing a collection of living, breathing maintenance contracts, all on variable renewal timelines, is a completely different model than pushing for as many hardware transactions as possible and stopping service with the sale. MMI’s help with the transition caused Ingram’s partners to cite maintenance as their biggest growth area.
MMI’s assistance in helping Ingram transition to a maintenance business model enabled the company to win new business and expand its revenue base. Going forward, Ingram anticipates additional growth in this area and will continue to rely on MMI as a valued partner.
We actually don’t see them as a separate partner. Customers think they’re working with Ingram and don’t even realize it’s a whole other company because it’s so smooth. They’re really just an extension of our team.
301% growth in IBM quote requests over the course of Ingram Micro’s partnership with MMI
850% IBM quote revenue growth over the course of the partnership
Over 100% IBM quote revenue growth year-over-year during select years
150% growth in IBM quotes entitled in working with MMI
See How You Can Benefit From MMI’s Solutions
Our team’s combined decades of experience in IT channel sales and maintenance revenue management has given us the ability to create solutions that alleviate technology organizations’ most pressing current and future business problems.
See how you can benefit. Contact MMI’s sales team today to learn how to get started.