Changes in Distribution

Geek Speak

With the merger of Synnex and Tech Data validating the value distribution plays in the channel many are asking what is next.    SMB Nation had the opportunity to speak with Jason Bystrak of D&H who  shared his excitement about the opportunity this creates for everyone.    With the ever changing market D&H “continues to make investments in our cloud services business,

as well as investing more into pro AV into eSports, gaming, remote work technology, and especially vertical markets like education.”    Watch as we speak with Jason about the ever changing market and what D&H is doing to serve its clients. 


Jason Bystrak



Video Transcription

Harry Brelsford  0:19 

 Hey Nation Nation, Harry here with  Jason Bystrak 1st degree connection track from D&H. In other places I've known you, I don't know, man, 15 years, I've known you for some time, but you're up at D&H, he had just crossed your second anniversary. Congratulations. And, first of all, what is your role? Because people in the SMB Nation community, dude, no, you and I'll do a little connecting with D&H? And then we'll get to the question of the day.

Jason Bystrak  0:46 

Absolutely. Well, first of all, thanks so much for having me here. I appreciate it always, always good to speak with you. And you're right, I joined D&H back in January of 2019, just over two years. And the purpose was really to build out the cloud and services practice at D&H. So we formed a formal business unit. And we've actually taken on an unknown number of different practice areas with the company within our team. So in addition to cloud, which is kind of software as a service and Infrastructure as a Service, were also responsible for the company's professional and managed services practice, our security practice, and our unified communications practice, you'll largely because those technologies are all really starting to be consumed more than as a service model, which fits right into our game plan.

Harry Brelsford  1:28 

Wow, that's, that sounds like a real work. I'll stick to bike riding. But hey, the question of the day, and folks, the reason I'm talking to Jason at D&H, is you will recall, we had a multi year community agreement with dnh. Back in the last recession, one way to frame it up. And that was all good. And so we haven't talked to D&H in a while and the industry is changing very rapidly in the month of March, Synnex and  Tech Data combined, I guess you'd call it a true merger. And that's big news. And I guess, let's just let's just throw it out there. What's that mean, for dnh? What's that mean, for the industry? Man?

Jason Bystrak  2:14 

Sure. I mean, it's exciting, right? I mean, I think, first of all, I think that merger validates the role of distribution and the value that distribution plays in the channel. Okay. And really, I think that creates opportunity for everybody. You know, when I look at what D&H is doing, you know, we're continue to make investments, like, as I mentioned, our cloud services business, but you know, where I work and have a great team. But in addition to that, as a company, we're investing more into pro AV into eSports, gaming, remote work technology, and especially vertical markets like education. So those are areas that we're spending a lot of time and we're looking forward to, you know, to see what comes out of this. But I also think that, you know, our vendor partners and our channel partners on both sides, they appreciate having choice. And I think the uniqueness that D&H brings to the high touch customer service models on both ends. And you know, really in the service that we provide, especially to the SMB and mid market, just a big focus area for us. Yeah.

Harry Brelsford  3:11 

Yeah, that makes you the only non private equity or investor backed distributor in our reindeer game, if I'm correct, right.

Jason Bystrak  3:21 

Yeah, we've been at it for over 100 years now at D&H. And we're an Aesop company. So the employees actually own 36% of the company. And that's kind of unique. So we're private company, again, owned by the employees, and that I think, really puts a certain amount of pride in, you know, in workmanship into the relationships that we have with our partners.

Harry Brelsford  3:41 

Well, I wouldn't just say pride, it also is a different vibe, right? I mean, the little I know when I kind of have my analyst hat on and my business hat on, but, boy, once once you take the money, honey from private equity, it can change your corporate culture, my friends.

Jason Bystrak  4:00 

Really Can mean, dnh has been a family run business, you know, for again, for over 100 years. We're big enough to be you know, a player, right, with $5 billion. And we focus exclusively on the North American market. So we have a significant play within that market as a problem distribution partner.

Harry Brelsford  4:18 

Yeah. Yeah. And I think I read this puts you in position number three, the way they measure revenue, right, this new company, and I believe it's going to be called Synnex. Is that what I read?

Jason Bystrak  4:31 

There's you I haven't seen where the final chips have landed with everything. Still working out. But you're right, we will be the number three distributor, you know, for all accounts that I've seen it when it comes to US and Canada. And you know, we look at that revenue again, that we're driving it's a significant amount because the numbers being thrown around with some of the others are also global numbers. Right? It's not just broken out for US and Canada.

Harry Brelsford  4:52 

Yeah. It's gonna be interesting in the community space, the ecosystem space and, dare I say integrated media space. And SMB Nation kind of fits in that IRS category. Because Jason, what, what you don't want when you're an integrated media company with events, what you don't want us all these consolidations, right? So there's two banks in town and they merge. And now they only need one ad in the Sunday paper, they don't need to ads, right? So that, that that's how it kind of plays out when you see consolidations. So be interesting to see how that plays out. The other thing would be is, a lot of times there'll be redundancy. And again, to be determined, but you know, a lot of times you don't need two accounting departments, right? When you combine the company, the idea was to get operational efficiencies. So what I'm getting at in and we'll circle back to a quarter or so and check in, but it's gonna be interesting to see what talent is out on the streets, right, is they start to get settled. There, they'll probably be some talent available. And that's not necessarily a bad thing. You, you might find some new teammates out of all this.

Jason Bystrak  6:05 

Well, you never know. I mean, I read the same as you that there's synergies are looking for and you know, I guess we can presume that some of that possibly could be headcount. But there is a lot of talent out in the channel right now. And D&H has been you know, really hiring a lot of talent as we build out new practice areas. So, you know, we'll be opportunistic where appropriate to continue to invest in our business.

Harry Brelsford  6:24 

All right, my friend. Well, you helped me kind of get my arms around and my community get our arms around again, pretty, pretty big news for the month of March March Madness. It's a merger. We'll see on the flip side, we'll check in next quarter. How's that sound?

Jason Bystrak  6:39 

That sounds great. Harry, it was good to speak with you.

Harry Brelsford  6:41 

All right. Thank you.

Thank you.