Category Archives: IT Pricing

Q&A with Keith Henry, SVP Sales and Marketing at CONTEXT

What is your role at CONTEXT?
Head of Sales & Marketing – to support structure and process development for CONTEXT sales and marketing to drive top-line growth and scale. After all, sales represent the engine of growth!

What attracted you to CONTEXT?
I  re-connected with Jeremy Davies, CEO, after 30 years which is exciting. The opportunity to join a rich data-asset driven firm that is on a growth path and developing added-value solutions represents a very attractive proposition. The selling environment has radically changed since 2009, so this is a wonderful challenge. In addition to that I had heard that Context has a special, warm, ethical, culture which has great appeal.

Where were you working before?
I have spent over 30 years with a number of great firms in the ICT space – Xerox, DataQuest/Gartner, IDC – and most recently Outsell. Outsell is a specialised agency that serves the intersection of Information and Technology domains. I was head of Global Sales and supported their CEO Leadership program: a problem-solving forum for leaders across the Information industry. Significantly – single biggest CEO headache? Sales optimisation and sustainability!

What do you think the main challenges are in the technology industry today? 
Well, to be certain, digital transformation will continue to re-shape the tech landscape creating opportunities for innovators and disrupters alike. That said, I strongly believe “millennials” are set to change many things about our industry, although old-fashioned values such as brand power, sensible profitable growth and customer-centric strategies will continue to be the foundation drivers of the industry.

What is the best business advice you have ever received?
Be hard on issues but soft on people!

What never fails to make you laugh?
Playing tennis in the rain in England– no one seems to notice!

What do you enjoy doing outside of work?
I’m a fan of horse-racing. There are 59 tracks in the UK and I have only been to 27, so the journey continues.

What are you reading at the moment?
“The Culture Map” by Erin Meyer. It provides insight into better understanding of protocols and behaviours of different cultures,- a never ending educational journey in my view.

If you had your time again, what would be your next choice of career?
I have always been intrigued by diplomatic services. I doubt I have the right attributes, probably the illusionary way it is portrayed in films is the appeal!

What do you think are the key ingredients to success in Business Development?
Three crucial ingredients:
Firstly, planning and organising a call
Then, managing an outcome, next steps
Finally, learning to talk the buyer’s language – after all, its all about them!

 

 

 

 

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Filed under IT Distribution, IT Pricing, Market Analysis, Uncategorized

Weak euro puts pressure on hardware pricing

by Marie-Christine Pygott, Senior Analyst

Towards the end of January, the euro hit a new low against the US dollar. Having lost 11% of its value between July and the end of December last year, the Eurozone currency was down by another 6.8% against the US dollar in January after the new year opened with a series of events that led to increased pressure on the currency.

For the large, non-European IT manufacturers, this has been bad news; where components are sourced in US dollars and revenues generated in euros, the devaluation has meant a significant increase in production costs and a strain on margins. Our distributor pricing data shows a 7% rise in the euro cost of components in the few months between July and December last year, despite a small decline in dollar terms. While prices did not go up to the same extent in real life, it is only a question of time before pricing shifts will show in our Channel data.

And show, it will. It is clear that IT Vendors cannot just simply absorb the recent rise in costs. In fact, we are beginning to see list prices in our February data go up vs. January for a number of Desktop, Notebook and Server SKUs. What we will also see, and to an even larger extent, are “hidden” price increases through the introduction of new systems at higher price levels, or through a reduction in the performance of existing SKUs that need to be kept at a specific, stable price point.

Consumers and new business customers will be the first to feel the change; unlike customers of business deals, which are already in place, they will not benefit from contractual obligations that keep prices stable for longer. And chances are that price increases in the consumer segment will have an impact on volume growth. Whether that’s ultimately a bad thing remains to be seen. If new technologies and form factors keep consumer demand at a high enough level to further spur refreshment cycles, the effect of lower volume sales on margins could be more than offset by a shift to the higher end of the pricing scale.

 

 

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Filed under IT Distribution, IT Pricing, PCs