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SPRING | 2018
EXECUTION IS THE
KEY TO EXCELLENCE
Inside this issue
WESTCON-COMSTOR AMERICAS 11
JOINS SYNNEX
FIRESIDE CHAT 21
MITCHELL MARTIN & SIOBHAN BYRON
ABOUT
SYNNERGY
SYNNERGY is an internal publication,
designed to inform associates of newsworthy
developments at all SYNNEX divisions and
locations worldwide, and to share key strategies
and insights. Its contents should not be shared
outside SYNNEX.
SYNNERGY TEAM
Editorial and Creative Direction:
Janis Hodgins
5
Creative Production:
Tulip Graphics
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CORPORATE HEADQUARTERS JOINS SYNNEX
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11
©Copyright 2018 SYNNEX Corporation. All rights reserved.
1 SYNNERGY | ABOUT US
WHAT’S IN THIS ISSUE
3 DENNIS POLK -
SOLVING EXECUTION IS THE KEY TO EXCELLENCE
ONE PROBLEM
5 PETER LAROCQUE -
LEADERSHIP EXCELLENCE
AT A TIME 7
SYNNEX TECHNOLOGY SOLUTIONS
WESTCON-COMSTOR AMERICAS
11 WHY ATTENTION TO DETAIL MATTERS
13 JYLLENE MILLER - LEADERSHIP
16
EXCELLENCE AT CONCENTRIX
15 CUSTOMER ENGAGEMENT
IS KEY TO BUSINESS SUCCESS
16 SOLVING ONE PROBLEM AT A TIME
19 RISING TO THE CHALLENGE
21 FIRESIDE CHAT WITH MITCHELL
MARTIN AND SIOBHAN BYRON
23 PROFESSIONAL DEVELOPMENT
25 COMPANY FINANCIAL REVIEW
26 HUANG LEADERSHIP
A FIRESIDE DEVELOPMENT SCHOLARSHIP
29 CORPORATE SOCIAL RESPONSIBILITY
CHAT WITH 30 FAREWELL TO KEVIN
MITCHELL MARTIN &
21
SIOBHAN
BYRON
CONNECT WITH US
25 HTTP://SYNNEX.COM/GLOBAL/
SOCIALCOMMUNITIES/
You may have heard the theory that, when buying real
estate there are three important things to consider,
“Location, Location, and Location!” A similar theory
can easily be applied to running a successful business.
The three important things to focus on are
“Execution, Execution, and Execution!”
EXECUTION | SYNNERGY 4
BY PETER LAROCQUE, PRESIDENT, TECHNOLOGY SOLUTIONS, NORTH AMERICA
5
At SYNNEX, execution is part of our Our acquisition of Westcon-Comstor Americas creates
enormous opportunity. There is minimal overlap between
heritage. I remember an Intel meeting Technology Solutions and Westcon-Comstor on the
I attended with SYNNEX founder Bob product side and limited overlap on the customer side.
Westcon-Comstor Americas deepens our capabilities
Huang more than 20 years ago. Intel and line card in the attractive security, UCC and
was back then and is today a hugely networking markets.
successful company. The meeting’s Last quarter, Westcon-Comstor grew more than 10
keynote speaker was the late Andy percent. After the integration is complete and we are
operating under one system, we are confident we will
Grove, who led Intel during its grow even more.
transformation into the world’s largest
Integrating systems is nothing new for SYNNEX. The
manufacturer of semiconductors. Intel's acquisitions of PCW, New Age Electronics, and Supercom
strategy focused on speed to market, have made us incredibly efficient at it. Part of the
execution is mixing the best of SYNNEX and the acquired
customer satisfaction, and efficiency. company’s cultures. A key reason we’ve been successful
in previous integrations is we use best practices.
During a Q&A, Bob asked Andy how Intel
Nate Herz, Vice President Business Operations for
continued to execute when it already SYNNEX, is taking the lead on the integration of Westcon-
produced tremendous results, had a Comstor. But he’s not the only one working on it. It takes
tremendous effort, communication, and flat-out execution
high market share and delivered new by many to get the job done. We have every confidence in
markets. Andy looked around the room this team. They have never let us down.
for a minute before saying, We cannot forget, though, that during the integration,
we have got to continue to produce results. If you don’t
WESTCON-COMSTOR
AMERICAS
JOINS SYNNEX
With this issue of Synnergy we welcome the latest
and largest-ever addition to our enterprise: Westcon-
Comstor Americas. A strong network of specialty
resellers and approximately $2.5 billion in annual
revenues, Westcon-Comstor's acquisition sets the stage
to bring both organizations to a wider market, with more
comprehensive technology solutions.
7
The word most linked with this news has North America, drills down into specifics,
been "complementary." WCA's and SYNNEX below. And for an on-the-scenes look into
Technology Solutions' combined vendor the WCA's huge Latin American region,
relationships, geographies, and solution we asked Otavio Lazarini Barbosa, WCA's
sets fit together like puzzle pieces, forming Executive Vice President, Latin America, to
a picture rich with opportunities. Andrew report from the Connect reseller's conference
Warren, WCA's Executive Vice President, he hosted in Rio De Janeiro last October.
9
In his presentation, Frost & Sullivan's Faria
SMARTCARE AND UNIMED
described the adaptations that will make the A DIGITAL DISRUPTION SUCCESS STORY
difference between surviving and thriving in the
coming partner ecosystem. Among them: a switch THE PLAYERS:
from solo to multi-partner, collaborative proposals;
from generalized IT offerings to specialization; from
products to recurring-revenue services, and from NEXA, a Brazilian systems integrator and Comstor Partner
deals to relationships. Again, the good news for
COMSTOR, the Cisco-dedicated arm of Westcon-Comstor
partners is access to SYNNEX' expertise in a broader
Americas that provided and guided the design of the Cisco
range of IT solutions and their vertical applications,
video conferencing and telemedicine infrastructure
allowing them to serve their customers as trusted
advisors in turn. UNIMED, a Brazilian "medical work cooperative" and health
insurance operator, with more than 105,000 affiliated
Perhaps most important, these transformations
physicians, 386 branches and over 15 million beneficiaries.
must be informed by a thorough understanding of
customers' businesses and the priorities of their SMARTCARE, a new telehealth service provider formed
line-of-business executives, who have won IT through a Unimed-Nexa partnership
purchasing influence away from CIOs.
THE PROBLEM:
SECURITY A TOP CONCERN Providing vital, preventive health monitoring (glucose levels,
blood pressure, etc.) and follow-up to seniors with chronic,
AND A WESTCON-COMSTOR manageable conditions despite limited mobility, human resources
and transportation.
CONCENTRATION
As elsewhere, security dominates Latin American THE SOLUTION PIECES:
IT concerns, a trend that syncs up nicely with
our concentration at Westcon-Comstor. It also Cisco contact center / teleconferencing technology, digital
diagnostic telemonitoring equipment shipped to patients, in-home
speaks loudly to the vendor relationships we add to broadband, electronic health records, custom programming,
SYNNEX' mix. Unimed clinicians
But where there are threats, there are also THE (LAST) POINT:
opportunities. Companies that adopt transformation Nexa worked directly with Unimed doctors, who best understood
as a way of life, rather than a poison pill, can build their own pain points. Better yet, they formed SmartCare in
new strategies and even whole new businesses. partnership with them. Together they developed a business plan,
As a great proof case, we introduced a video and, purchased an IoT (Internet of Things) company for the remote
diagnostic elements, and developed and integrated their own
in a stand-up panel, some of the principals of platform, with Cisco hardware and design help from Comstor.
SmartCare, a new healthcare service formed out
of a partnership between Nexa, our customer, and
Unimed, a healthcare cooperative.
“I used to think of how many routers and switches
This success story (see sidebar) takes just the kind I could sell to serve my client,” said Dany Wendel,
of synergies we will see more of in our combined co-founder of Nexa/SmartCare. “This is where we
company, just as long as we keep our minds open began to think in a different way." In creating this new
to new ways of thinking, innovation and diligent service with Unimed's doctors, he improved his hit rate
execution. and avoided many mistakes, “because this company is
already living the business.”
SYNNEX TECHNOLOGY SOLUTIONS | SYNNERGY 10
WHY
ATTENTION
TO DETAIL
MATTERS
Tim Rush, Senior Vice President, Operations,
Technology Solutions
We (executive management) understand that we
have to continually improve processes in order to
have strong solutions for our partners and a positive
and fulfilling work environment for employees that
allow them to perform at their highest level.
DETAILS MATTER. any given day. With more than $1 billion in inventory,
critical monitoring is required to keep inventory moving.
Knowing spike times and product trends are crucial to
From maintaining an accurate inventory forecasting. The delicate balance between having the
and getting orders out quickly to improving right mix of inventory to keep customers from going
elsewhere and not having excessive inventory is an art.
the IT infrastructure that allows SYNNEX
Another part of those details includes knowing the selling
to deliver superior value to its customers, prices of products in each of the different geographies
attention to detail is critical in everything we serve. Labor costs vary from geography to geography
and we have to know how that affects the selling price of
we do and in each step of the process. products.
Pay attention to details and customers
Money tied up in product sitting on warehouse shelves
will notice. is money that SYNNEX could be using to invest in
operational improvements and innovative new processes
On the operations side of SYNNEX Technology Solutions’
that produce optimum customer experiences.
business, paying attention to detail saves time and
money, and creates a winning customer experience. To As with any business, good customer service is a
achieve this we must always be focused on improving requirement for growth. While sales plays an important
operational excellence at every point of the business, pre- role, execution on the after-sale support side is equally
and post-sales. critical to good customer service. SYNNEX’ returned
merchandise authorization department handles an
While we continue to fulfill our promise to ship all
average of 700 customer returns per day. Customers
orders received by 5 p.m. local time the same day, we
expect receiving credit on returned merchandise to be
push to innovate our warehouse operation and invest in
quick, easy and hassle-free. SYNNEX associates taking a
automation to increase productivity. An example is the
proactive approach and communicating with customers
custom machines that print and apply labels on boxes
throughout the process results in customer satisfaction
while they progress on a continuously moving conveyor
and loyal customers.
belt increases product throughput. A Rapid QC process
we have implemented allows us to push out large volumes SYNNEX’ Technology Services Group (TSG) plays
of product with the same SKUs. A general guideline is a mission-critical role as well. Without the group’s
50 identical orders per day from a warehouse. attention to detail on the back end, we could not do what
we do. They maintain business continuity to ensure we
Our dedicated and accountable warehouse teams
are fully operational around the clock through continuous
continue to perform at high levels and produce record
testing of server and carrier connectivity and data
results. We ship 99.99 percent of orders on time and
recovery protocols.
99.97 percent of orders accurately.
TSG manages external and internal cyber threats and
That’s important with the volume of orders SYNNEX
maintain operating systems and remote access. Every
handles. On Black Friday and through Cyber Monday
day brings a new set of issues and integration challenges.
alone, SYNNEX shipped more than 185,000 orders in the
Staying knowledgeable is critical to the outstanding
U.S.
performance of this team. It takes agility and execution.
In order to ship that number of products, SYNNEX
SYNNEX Technology Solutions’ Operations team
has to know what products are on the shelves of our
recognizes the importance of managing the details of the
warehouses. Our Product Management and Purchasing
business and make it a priority to continuously look for
Team’s attention to inventory detail allows us to pass
new ways to improve while taking care of the day-to-day
product availability to our resellers. In the U.S. and
details.
Canada, SYNNEX carries more than 30,000 SKUs on
13
Times are changing. Fast. In fact, in Our approach has led to Concentrix consistently being
recognized in the industry for accelerating better business
the Digital Age, the way we work, the outcomes for our clients.
way we live, the ways we interact with
other people and the brands we love are
evolving at an unbelievable pace. What “ IN 2017, WE RECEIVED
were once futuristic concepts are now 68 INDUSTRY AWARDS,
part of our everyday reality.
WITH THE MAJORITY
With 80% of consumers demanding
new consumption models, businesses
OF THEM DUE TO OUR
are now forced to rapidly evolve their STAFFS’ INNOVATION,
customer engagement strategies. It’s not CAPABILITY AND
enough for brands to just keep up with
others. The need to arrive at these new PROGRESSING THOUGHT
modes of interaction are a necessity LEADERSHIP. ”
for survival. It’s the businesses that
are making true investments in digital The awards highlight our ability to help our clients’
transformation and customer sentiment customers and improve business outcomes.
analysis that are leading the way and You may have heard the phrase, often imitated, seldom
thriving. It’s those businesses that are duplicated. That’s where we find ourselves today. Immersed
in the business of our clients, invested in our clients’
choosing to partner with Concentrix for successes, staying ahead of the trends and leading our
next generation customer experiences clients through the changes needed today to bring positive
improvements in customer engagement, revenue, and profits
and best business practice. tomorrow.
They choose Concentrix because of the collective expertise Other companies are taking notice of our approach. They’re
of our 100,000 staff worldwide. They continue to push for beginning to realize that one size fits all solutions are a
even higher levels of customer service and stay connected thing of the past. Clients and their customers want unique,
with the technologies that fuel our business. As one team, we personalized experiences. They want a company who is
power great experiences that create unbreakable customer thinking ahead. They want a company to provide value where
loyalty and exceptional revenue and profit growth. We have clients don’t expect to find it. Our success is a result of our
always been unique in terms of our approach. We work with ONE TEAM approach. As a result, we continue to disrupt the
fewer clients who appreciate the deeper, more meaningful industry and have positioned Concentrix as a thought leader
relationship with us and who understand the value we bring for years to come.
to their business. In fact, differentiation is one of our
greatest strengths.
15
SOLVING
ONE PROBLEM
AT A TIME
BY ALEX BURKE, CEO, TIGERSPIKE
“We start with the Tigerspike turned the paper-based process into a digital
one where site managers could enter the information
experience first. We prioritize into a mobile application that would be automatically
one thing and develop a generated and updated when information changed.
Reducing a two-hour daily task to mere minutes produced
minimal lovable product significant cost savings for the company. That’s positive
impact. That’s what we do.
that solves a problem.”
EXECUTION | SYNNERGY 16
In another case, Tigerspike helped one of Australia’s
largest rail freight businesses increase employee
engagement and deliver significant efficiency in costs.
Each of the company’s train had a In just seven weeks, Tigerspike delivered an iOS app
that addressed driving techniques and safety challenges,
350-page book for train drivers with and empowered and educated drivers. The tool engaged
safety and driving guidelines. The drivers and improved safety and cost-efficiencies. In fact,
the company saw a 7 percent fuel decrease, a savings of
problem was none of the drivers used $70,000 per day. Equally as important is that drivers were
it. Some had no idea where on the more engaged and empowered.
train the book was. “Drivers felt valued because
management involved them to build
efficiencies, creating a positive
impact on the bottom line.”
“It’s quite a different philosophy,” Burke said. “The
experience is really important, as is working fast.”
17
ATTENTION TO DETAILS
ATTRIBUTES TO
TO CONCENTRIX’
SUCCESS
Execution on complex projects can get The Concentrix support team would handle order
inquiries, product returns and replacements, and
complicated quickly. One example is when payment processing. Touchpoints would include live
a leading Asian consumer e-commerce chat, email, and inbound calls.
company called on Concentrix when it The customer support solution needed to be up and
running in the four countries, three of which were not
needed native customer support for their in Concentrix’ current country portfolio, in a mere
customers in Vietnam, Thailand, Malaysia, 14 weeks.
and Indonesia. The project was complex and offered many challenges
for Concentrix. Concentrix had to set up legal business
entities in the new countries, select sites, understand
workforce laws, and build IT infrastructures. It also
had to hire local talent, including leadership roles, and
training employees. Finally, Concentrix needed to conduct
research, due diligence, and design, develop and deploy
business processes aligned with the clients’ business
and brand experience expectations.
“Concentrix delivered.
Delivery of the project was 100%
on time. 288 resources were in
place on the go-live date.”
The execution and performance of Concentrix’ solution
exceeded the client’s expectations and, three months
after the project went live, positioned the client as
number one in the marketplace. We are delivering better
results for that client than any other partner and their
own internal customer service organization!
EXECUTION | SYNNERGY 18
RISING TO THE
CHALLENGE
STEVE ICHINAGA, PRESIDENT, HYVE SOLUTIONS
19
“ We (executive management) understand
that we have to continually improve
processes in order to have strong solutions
for our partners and a positive and fulfilling
work environment for employees that allow
them to perform at their highest level. ”
I’m very proud of all our innovators that work daily to make
our overall solution best in class. We’re very fortunate to
participate in a very high growth and innovative space. But
to remain a strong competitor, we need to continue to evolve
and improve within this dynamic space. Roy and Steve
represent just a few of our employees that embody this
spirit of continuous improvement.
21
QA
Q SYNNERGY: WHAT EXCITES YOU MOST ABOUT THE
WESTCON-COMSTOR AMERICAS (WCA) ACQUISITION?
The other idea that gets us excited in Canada is that we have
the opportunity to really define the way technology distributors
execute the best of both efficiency in volume and strong value
A Siobhan: Obviously, I'm excited by the opportunity. When we
capture and leverage the strengths that SYNNEX has today in
add. Our value becomes more focused on helping resellers
sell complex and emerging solutions. We are focused here, to
terms of their tools and, for example, their strength in the SMB
become strategic partners with our customers.
market in Canada, and we're able to bring the new collective
line card, the value-added focus, and the specialty expertise of Siobhan: We at WCA were obviously a much smaller organization
Westcon Comstor, the opportunity for us is tremendous. A lot of than SYNNEX in both the United States and Canada, but as
our competitors have not been able to acquire and successfully we grow together, I think there's opportunity for employees on
bring organizations together. SYNNEX has a great track record both sides of the table. For the WCA folks I would say that it's
at integrating businesses. important not to think that just because you were the one that's
acquired, that your role is less important. There's a reason why
Westcon-Comstor was acquired, the team is part of that as are
Q SYNNERGY: WHAT ARE THE KEY
INGREDIENTS TO THE INTEGRATION?
the vendors and customer base. The opportunity is for us to
come together and execute well, then we all benefit.
A Siobhan: It's about ensuring that the sum of the two parts is
greater than the whole; that the customer experience is better,
and the opportunity for growing both our customers and vendors
is more combined than we had individually.
Q SYNNERGY: CAN YOU TELL US ANYTHING
ABOUT THE CROSS-SELLING PROGRAM?
23
Learning should never stop. In fact, in today’s
quickly evolving business world, it can’t.
We kickstarted our fiscal We know that the market is competitive. We also know
2018 with solid execution you have demonstrated the ability to out-execute the
market. Our systems, which for North America will now be
as we achieved record one system, will allow us to take advantage of the lowest
first quarter revenue and operating costs in the industry. We need to leverage this to
operating profit dollars, further drive efficiencies and win more than our fair share
of the market we serve.
with revenue of $4.6
billion representing an Our Concentrix business is off to a strong start for 2018.
First quarter revenue of $508 million outpaced the market
increase of nearly 30% year
and grew 6% year on year. Concentrix has 10 key verticals
on year. The momentum that serving customers in over 24 countries. The acquisition
we created in 2017 continued into this year, and we of Tigerspike (August 2017) introduced digital mobility
successfully delivered $2.41 in diluted non-GAAP solutions that are being successfully sold across the
existing customer base. This is a similar example of how
earnings per share, or growth of 18% compared we will also cross-sell Westcon-Comstor across the existing
to the prior year quarter. Technology Solutions’ customer base.
Our Technology Solutions business, including Westcon- Now moving onto where we plan to invest our capital. With
Comstor, delivered strong results with revenue growing Dennis Polk, our President and CEO, leading our company
over 33% year on year. Our ability to deliver differentiated going forward, one key aspect that will remain the same is
products and services continued to create uniqueness in our focus on making the right investments and ensuring
the markets we serve, and generate broad-based expansion that we execute our strategies and value-added solutions.
across the portfolio. Hyve Solutions continues to grow and
“ Ourassociates
have strong and deep relationships with a number of large
customers. We expect our customer base to grow and are team of over 100,000
confident that some of the short-term pricing pressure we
are experiencing will abate as we scale the business. across the
Westcon-Comstor has hit the ground running. All the
enterprise are the best in
benefits we expected from this acquisition are playing out.
New product lines, services and solutions, combined with
the business because of the
a strong and talented team created excellent results for the value you deliver every day.
quarter. With the integration of the North America business
almost completed we expect the second half of fiscal year I want to take this opportunity
2018 will generate cross-selling opportunities that our
partners will be able to leverage to grow their business.
to say a sincere THANK YOU
to all of our associates.
”
25
DEBRA LATOURETTE, SR. VP, HUMAN RESOURCES - NORTH AMERICA, TW, UK, SYNNEX CORPORATION
Congratulations, Victoria!
Congratulations, Abigail!
27
Nathaniel is the son of Patrick is the son of
Angela Schmidt, Project Steven Link, Manager in
Manager II, CIS, in South the PMO in North Carolina
Carolina for Concentrix for Concentrix Corporation,
Corporation and wants to and a junior attending the
attend veterinary school University of Notre Dame
upon obtaining a degree du Lac with a double
from Clemson University major studying Physics-in-
in wildlife biology and Medicine, and Sociology.
NATHANIEL veterinary science. He
PATRICK He already has more than
SCHMIDT LINK
SCHOLARSHIP believes his purpose is to help others and SCHOLARSHIP a year of practical software engineering
RECIPIENT knows he must remember that the first RECIPIENT experience with an ultimate desire to
rule of helping others is self-preservation. attend medical school upon gaining his
He explains, “Self-preservation allows one to degree. “My goal is to one day integrate my
help the greatest number of people, in the greatest wide interests to help improve the health care system
means possible and the idea of self-sustainability for of our country and to provide inexpensive care to
the greater good of others, has led me to follow my those who cannot afford it in developing countries,”
own passions. I quickly discovered another calling said Patrick. He also has a strong dedication to his
with wildlife and natural resources.” software studies, explaining that, “For example, over
the course of the school year I developed a code
He has received several academic honors including, that accurately models a 3-dimensional system of
graduating high school with honors, an AP Scholar, electrical charges placed in a field. This long-term
the CAFLS Dean’s List for Clemson University (Fall project is now being used as a teaching tool for the
2016), and on the President’s List at Tri-county physics department.”
Technical College (Fall 2015, Spring 2016).
Because of Patrick’s work as the director of the
He completed his Eagle Project in 2015 and it was Love My Life Rally, the largest Catholic event in
during this 500 hours of work where he learned that the Diocese of Raleigh, NC, he has gained public
being a leader meant improving the life of those speaking and leadership skills in front of large groups
around you, helping others and believing in their – more than 1500 people attend this event. He also
abilities. “This was when I realized that a leader is volunteers for the Stop the Hunger Now Foundation,
someone whose vision arises to the challenges, and and Greenbrier County, WV relief efforts. As part of
looks to the guidance of others,” said Nathaniel. the Greenbrier County’s initiatives, he helped rebuild
a house that was nearly destroyed by devastating
Nathaniel is also interested in becoming more active
floods and taught the group construction project skill
in Clemson’s Pre-Vet Club and Wildlife Sanctuary and
sets. He plans on continuing his involvement in the
studying abroad through an externship in Thailand to
local community and informing other students about
experience working with a wildlife veterinarian in this
the hardships of homelessness. In addition to service
environment. In his free time, Nathaniel is involved
work, Patrick wants to help others learn more about
with Paws Animal Wildlife Sanctuary, has two jobs and
physics through his work at the school’s planetarium.
enjoys spending time with family and friends. The
“I want to become a practicing orthopedic surgeon as
Huang Leadership Development Scholarship will allow
well as involve myself in either research for improving
me to tackle greater experiences that will prepare
practices or developing new public policy concerning
me for veterinary school and my goals beyond,” said
health care.”
Nathaniel.
3 PILLARS
=
TO GUIDE OUR EFFORTS
Hundreds of
initiatives
that inspire our
corporate social
responsibility
To recognize SYNNEX’ collective corporate social LEARNING
responsibility (CSR) efforts around the world, we Career development
have established three pillars to guide us and give Internships
us direction as we continue to affect change both Scholarships
today and into the future. Training and workshops
Networking opportunities
Thanks to your incredible commitment and passion,
LIVING
we engage in hundreds of initiatives and programs that
Health and wellness
improve our local economies, enhance environmental Philanthropy
sustainability, and support a vast array of philanthropic Community causes
causes around the world. Celebrating diversity
www.synnexcorp.com/about-synnex/corporate-social-responsibility/
29
Farewell
to Kevin
Fun Facts on Kevin Murai
COMPANY
Joined SYNNEX in March 2008.
He served as Co-Chief Executive Officer until
Robert Huang’s retirement in December 2008
PERSONAL
Most recently listed as one of the
Top 100 Executives and among
the 25 Most Influential Executives
for 2017 by CRN, a part of
The Channel Company
Chair of FIRST Executive
Advisory Board, Canada