Dicker Data has been one of the best tech stocks on the ASX
\nThe company has produced returns over the years, and predict that it\u2019s just getting started
\nStockhead reached out to Dicker Data\u2019s executive and COO,\u00a0Vladimir Mitnovetski<\/p>\n
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If one of your New Year\u2019s resolutions is to worry less about your investments, Dicker Data (ASX:DDR)<\/a><\/strong> could be one of those stocks you can set and forget \u2013 based on its past performance.<\/p>\n Over the last decade, the DDR share price has risen by an astounding 1,200%. It\u2019s also up 300% in the last five. Not only that, Dicker has been paying dividends in each of the those last 10 years.<\/p>\n But there\u2019s more. The company now says that its best years are still ahead, and believes that it\u2019s about to ride the next big tech boom.<\/p>\n \u201cWe are in the midst of the digital age, an era defined by tech advancements transforming the way we live, work and interact,\u201d says Dicker\u00a0Data\u2019s executive and COO,\u00a0Vladimir Mitnovetski.<\/strong><\/p>\n \u201cTechnology has now become a very big thing everywhere. It used to be just tech companies doing technology, but now every single company is a tech company.\u201d<\/p>\n The wholesale distributor of computer hardware and software has its finger on the pulse of local and global tech demands, representing more than 80 of the world\u2019s Tier-1 tech vendors, and more than 10,000 IT resellers.<\/p>\n The company focuses on the commercial and enterprise segment of the market, targeting businesses in Australia and New Zealand.<\/p>\n Mitnovetski says Dicker Data\u2019s huge success is due to combining the company\u2019s execution capabilities with being at the right place at the right time.<\/p>\n \u201cA lot of big things happened in the last 15 years within the tech space. We had adoption of the cloud technologies globally, and a new wave of 5G enterprise networking,\u201d explained Mitnovetski.<\/p>\n \u201cAs a result, we had data centres built all around the world to accommodate for that incredible wave of cloud adoption.\u201d<\/p>\n \u201cBut all that complexity needs simplification, and that\u2019s why there\u2019s been such a huge demand for IT distributors like Dicker Data.\u201d<\/p>\n \u00a0<\/p>\n Mitnovetski says that in IT, the distributor is the only place where you can have everything under one roof \u2013 like data centre infrastructure, enterprise networking, and personal computing.<\/p>\n \u201cWe also do lots of cloud products and services, software, data backup, data analytics, and so forth. So we build and bundle them all together for our clients, we\u2019re a one-stop shop.\u201d<\/p>\n Another big factor driving the company\u2019s success, according to Mitnovetski, is the fact that all businesses these days aim to be more productive, ie; they all want to become more efficient and effective in what they do.<\/p>\n \u201cThe big thing now is digital transformation, every organisation wants to transform, and they\u2019re all trying to get ready and being as digitally ready as they possibly can,\u201d he said.<\/p>\n \u201cAnd to make sense of all that, you need a distributor, because this can\u2019t be done by a single vendor or a single partner.<\/p>\n \u201cYou need a centralised depository of all this technology, and that\u2019s why a distributor like us has become so in demand,\u201d said Mitnovetski.<\/p>\n \u00a0<\/p>\n Founded in 1978 by the charismatic founder David Dicker<\/strong>, Dicker Data has continued to grow its share of both the Australian and New Zealand IT market, commanding a dominant number one position in Australia.<\/p>\n The company also believes it now has the platform to become number one in New Zealand following the acquisition of Exeed<\/em>.<\/p>\n \u00a0<\/p>\n Source: Dicker Data<\/strong><\/em><\/p>\n \u00a0<\/p>\n Dicker Data\u2019s market focus is on the the small and medium sized resellers, which in turn are servicing small businesses.<\/p>\n \u201cThis year, we\u2019re going to do over $3 billion in revenue, and 80% of that is coming from small and medium type of businesses,\u201d said Mitnovetski.<\/p>\n The company\u2019s vendor partners are some of the biggest names in the industry, including Microsoft, Hewlett Packard, Cisco, Dell Technologies and Lenovo.<\/strong><\/p>\n \u201cThose are our top five vendors, and the top four would probably give us around 50% of our revenue.<\/p>\n \u201cBut our business is very diverse, and we\u2019ve become a one-stop shop for a lot of the small guys,\u201d Mitnovetski said.<\/p>\n \u201cSo no matter what they need, they can come to us and we will design the solution and work with the end user.<\/p>\n \u201cWe will then quote the solution, but we\u2019ll never transact with the end user, we will always do it with our partner. So that\u2019s our role.\u201d<\/p>\n \u00a0<\/p>\n Cybersecurity<\/strong> meanwhile is at the top of the agenda for every organisation in Australia and New Zealand.<\/p>\n Dicker Data has made several strategic vendor appointments to address this cybersecurity opportunity, with plans to further expand its product range in FY23.<\/p>\n The complexity of cybersecurity is creating a large opportunity for the company as its partners increase their reliance on Dicker Data to help them solve their end-customer challenges.<\/p>\n \u201cCybersecurity is a big thing, and is a huge growth area and opportunity for us as well, because while we have some really good cybersecurity vendors, there\u2019s still a couple that we\u2019re missing.<\/p>\n \u201cSo that would be my job to make sure that we bring them all under Dicker Data\u2019s roof in the next couple of years,\u201d said Mitnovetski, adding that artificial intelligence (AI)<\/strong> will also become one the hottest areas for the company in the future.<\/p>\n Mitnovetski says stability and predictability are the traits investors should have gotten used to when it comes to Dicker Data\u2019s stock.<\/p>\n \u201cWe know how to control our destiny, because we\u2019re not at the mercy of a large customer or a large vendor anymore.<\/p>\n \u201cThis is reflected in the way that we diversified our portfolio, and the way that we service our thousands of customers.<\/p>\n \u201cAnd by the way, we are signing hundreds of new customers every month. So that gives me a good strong feeling that predictability and consistency are going to continue driving our business for many, many years to come.\u201d<\/p>\n \u00a0<\/p>\n \ufeff<\/span><\/span> Data#3 (ASX:DTL)<\/a><\/strong><\/p>\n Data#3 Project Services\u00a0help customers align business and technology strategies by leveraging its strong relationships with world-leading vendors.<\/p>\n Listed on the ASX since 1997, Data#3 reported revenues of $2.5 billion in FY23, and has more than 1,400 employees<\/p>\n Headquartered in Brisbane, it has facilities across 12 locations in Australia and Fiji.<\/p>\n The company works within the healthcare, education and government industries.<\/p>\n Vendor partners include Adobe, Cisco, Dell and HP.<\/p>\n \u00a0<\/p>\n ActivePort (ASX:ATV)<\/a><\/strong><\/p>\n Activeport is a software-focused company delivering network management and orchestration solutions (MANO) for three broad markets: telecommunication, IT and Managed Service Providers, and enterprise.<\/p>\n In July, Activeport and Radian Arc expanded their relationship that will accelerate artificial intelligence (AI) deployment within the teleco industry.<\/p>\n The collaboration aims to leverage Radian Arc\u2019s AMD-based GPU platform, already installed in a rapidly expanding network of 50+ telco customers worldwide, to offer GPU-as-a-Service (GaaS) for AI.<\/p>\n This will enable telcos and their enterprise customers to easily deploy AI models within their networks, resulting in unique low-latency AI solutions.<\/p>\n \u00a0<\/p>\n Netlinkz (ASX:NET)<\/a><\/strong><\/p>\n Netlinkz is a networking vendor that provides cloud network solutions.<\/p>\n The Netlinkz VSN solution is a NaaS (Network-as-a-Service) proposition that is user-centric, creating a per-user private network that is optimised regardless of the client\u2019s location.<\/p>\n In October, Netlinkz said it has executed a convertible securities facility agreement to raise up to $10 million with US investor, Obsidian Global.<\/p>\n <\/span><\/p>\n The post \u2018Predictability and consistency\u2019: Dicker Data says the company is prepared to ride the next big tech boom<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"The IT distributor model<\/h2>\n
Dominant position<\/h2>\n
Cybersecurity, AI are the next big things<\/h2>\n
Dicker Data share price today:<\/h2>\n\n
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