Ingram Micro SMB 500 :: Location Is One Key to Success

Ingram Micro SMB 500 :: Location Is One Key to Success

Location Is One Key to Success    Solution providers on the SMB 500 reside in one of eight geographical areas across the United States.  Location Is...

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Location Is One Key to Success   

Solution providers on the SMB 500 reside in one of eight geographical areas across the United States. 

Location Is One Key to Success

Solution providers on the SMB 500 reside in one of   eight geographical areas across the United States.                      

By Michele P. Warren

  In Lakewood, N.J., a town once referred to as “peaceful and pleasure-loving” by Rudyard Kipling and frequented by presidents, literary figures, and other glitterati in the early 1900s, there’s a flourishing VAR called Friedom-Tech. About 3,000 miles west, on the other side of the country, in the bustling region known as Silicon Valley, there’s Kinetix Technology Services, yet another successful purveyor of technology solutions. Geographically, they may be night and day, but the companies have at least two things in common. First, they both grew at a compound annual growth rate (CAGR) of more than 600 percent between 2011 and 2013, putting them at the top of Ingram Micro’s 2014 SMB 500 list of top-performing solution providers. Second, each is located in an area considered to be a high-tech hotbed. Location, location, location. It’s a mantra firmly rooted in the collective conscious of real estate professionals everywhere. Whether we’re talking about aspiring home-owners or entrepreneurs, where we set up shop is a pivotal decision. Solution providers on the SMB 500 reside in one of eight geographical areas across the United States. Here are the top four by average CAGR: 1. South West (Average CAGR: 116 percent) These solution providers hail from Arizona, Hawaii, and Nevada. Among the 19 in the group, 11 (58 percent) are based in Arizona, and half of those are in the Southeast Valley and the surrounding region, one of the fastest-growing parts of Greater Phoenix—and home to

Location Is One Key to Success   

Solution providers on the SMB 500 reside in one of eight geographical areas across the United States. 

GoDaddy, Infusionsoft, and manufacturing facilities owned by technology bigwigs Apple and Intel. The highest performer in the South West states was American Technology Specialists (2014 SMB 500 No. 9, CAGR: 252 percent). 2. Metro East Coast (Average CAGR: 79 percent) Two of the top three SMB 500 solution providers are based in this region, which encompasses New Jersey, New York, and Pennsylvania. In New Jersey, where Friedom-Tech resides (2014 SMB 500 No. 1, CAGR: 624 percent), high-tech is a main driver of economic and commercial real estate growth, according to a 2014 report published by Jones Lang LaSalle (JLL), a professional services and investment management firm. Among those employed in high-tech fields, 60 percent are in computer systems design and related services. Managed Technology, No. 3 on the 2014 SMB 500 (CAGR: 594 percent), does business in Bohemia, N.Y., a Long Island suburb about 55 miles east of New York City. 3. South East Coast (Average CAGR: 78 percent) There are eight states in this category, with North Carolina, Florida, and Georgia most represented. The top performer here was OnsiteRIS (2014 SMB 500 No. 6, CAGR: 311 percent), a VAR with offices on both coasts—McDonough, Ga., and Irvine, Calif. One of the most promising regions in this area? Raleigh-Durham, N.C., one of the “major innovation hubs in the U.S.,” thanks largely to lower real estate prices, vacant land that’s affordable, and an impressive talent pool from three local universities, according to JLL. 4. Western (Average CAGR: 71 percent) This zone covers seven states in the western U.S., including California, Colorado, New Mexico, and Washington. California’s Silicon Valley is home to No. 2 on the 2014 SMB 500, Kinetix (CAGR: 610 percent), which offers help desk, network and server management, and cloud services from its base in San Mateo. Long heralded as the epicenter of high-tech innovation, Silicon Valley continues to thrive in this arena, although sources at JLL say the Valley faces a number of socioeconomic issues—namely, skyrocketing housing prices and a strained infrastructure due to the increasing population—that could slow the region’s growth in the not-too-distant future. The third annual SMB 500 shows the group growing at a compound rate of 43 percent. The annual ranking is based on the performance of more than 20,000 small-business solution providers operating under the Ingram Micro umbrella, and shows partners growing at rates three to four times the channel industry average and well above the channel average for SMB-focused resellers. The collective sales capacity of IM SMB 500 members through the distributor is $505 million, and, on its current trajectory, will approach $3 billion by 2018. Clearly, it’s not as if there’s a formula for the ideal location to launch a high-tech venture. For solution providers and other technology companies, whether just starting out or looking to

Location Is One Key to Success    Solution providers on the SMB 500 reside in one of eight geographical areas across the United States.

expand, multiple factors come into play when deciding where to lay down roots. One is the available talent pool; another is proximity to airports, public transit, and major roadways. Then there’s the question of whether the city, township, or state is “business-friendly” and what kinds of office space are on the market, at what price. In the end, location certainly isn’t the be-all and end-all when it comes to solution provider viability, but choosing office space wisely can go a long way toward getting a business on the right track toward success.

ABOUT the Ingram Micro SMB 500 Program Ingram Micro SMB 500 The Ingram Micro SMB 500, facilitated by The 2112 Group, tracks and studies the performance of the top U.S. solution providers in the Ingram Micro network servicing small and midsized businesses to provide actionable intelligence for improving sales, revenue, and profit of all companies in the go-tomarket value chain. For more information about the Ingram Micro SMB 500, visit www.IM-SMB.com/smb500.

Ingram Micro, Inc. Ingram Micro Inc. is the world’s largest wholesale technology distributor and a global leader in IT supply-chain and mobile device lifecycle services. As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics and mobile solutions, technical support, financial services, and product aggregation and distribution. The company is the only global broad-based IT distributor, serving approximately 160 countries on six continents with the world’s most comprehensive portfolio of IT products and services. For more information, visit www.IngramMicro.com.

The 2112 Group The 2112 Group is a business strategy firm focused on improving the performance of technology companies’ direct and indirect channels through our portfolio of market-leading products and services. We leverage proprietary intelligence with qualitative research, market analysis, tools, and enablement programs. By looking at the technology market from the viewpoint of vendors, partners, and end users, 2112 is uniquely positioned to develop go-to-market strategies that are beneficial to all parties from both a channel and enterprise perspective. For more information, visit www.The2112Group.com.