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Vendor lineage

Westcon-Comstor

The layer between the vendor and the reseller, which decides what is practical to buy in your country.

Westcon was founded in 1985 and Comstor in 1986 in Chantilly, Virginia. They became one company in August 1999, when Westcon bought Comstor for $95M, and the combined business has spent the decades since doing something most engineers have never had to think about: standing between the companies that make networking and security equipment and the companies that install it.

Its Latin American presence was bought rather than built: in July 2012 it acquired Grupo Afina, a Madrid and Miami distributor that by the previous year was billing more in Latin America than in Europe. Afina has its own entry here.

In June 2017 Synnex acquired the North and Latin American operations of Westcon-Comstor from Datatec, together with a tenth of the remaining international business, for a reported $800 million - so the Brazilian operation changed owner without changing what it did. Synnex itself merged with Tech Data on 1 September 2021 to form TD Synnex, by which time the employment recorded on this site had ended. The name reappears later for a different reason: TD SYNNEX Brasil runs an authorised training academy, and the instructor years include Extreme Networks courses delivered for it on demand between 2021 and 2023. Same company, two unrelated relationships, a decade apart.

What a distributor actually does, since this is the first one on this timeline. A vendor like Cisco or F5 does not want a commercial relationship with every reseller in every country - the credit checks alone would be a business. A reseller does not want a separate contract, currency, logistics arrangement and support escalation with each of the forty vendors in its portfolio. The distributor sits between them and absorbs that: it holds stock, extends credit, handles import and customs, aggregates the paperwork, and trains the resellers on products they have just started carrying.

That last part is the reason distribution appears on a site about teaching at all. A vendor's certified training is expensive and aimed at the vendor's own priorities; a distributor's enablement is aimed at whatever its resellers are failing to sell. The two are not the same curriculum, and the second one tells you more about what the market is actually struggling with.

The strategic consequence is the interesting bit: a distributor decides what is practical to buy in a country. A product with no distribution in Brazil is not unavailable exactly, but every reseller quoting it must import it themselves, carry the currency risk, and explain a longer lead time to the customer - which in practice means they quote something else. Market share in a region often reflects distribution agreements more than it reflects the product.

The corporate history is a chain of ownership rather than a chain of invention. Datatec, a South African group, acquired Westcon in 1998. Westcon added RBR Group in the UK in September 1998 and then Comstor in August 1999 - Comstor having been founded in 1986, sold to GE Capital IT Solutions around 1996, and doing some $500M a year by the time it changed hands. Cisco distribution began in 1999 and Avaya in 2000. The combined company was doing about $1.5B, and $1.85B by 2004.

In 2017 SYNNEX bought the Americas business for $600M in cash, plus $30M for a tenth of the international operations, assuming around $190M of debt with up to $200M more contingent on targets. The Americas business had been turning about $2.2B of revenue. Westcon-Comstor's EMEA and Asia-Pacific operations stayed with Datatec, which is why the same brand can be a SYNNEX subsidiary in one hemisphere and a Datatec business in another.

And a connection worth following. Datatec ran three divisions: technology distribution as Westcon-Comstor, integration and managed services as Logicalis, and consulting as Analysys Mason. So the distributor and the integrator were siblings under one holding company - two layers of the same supply chain, owned by the same people, which is an arrangement worth noticing when you are trying to work out why a particular product kept appearing in a particular market.

Founding stories

1985

Westcon Associates

upstate New York · Founders: Thomas Dolan, Philip Raffiani, Roman Michalowski

Three people in a garage, which is the standard origin for a software company and an unusual one for a distributor - a business that normally requires a warehouse and a credit line before it requires anything else. What they were selling was not stock but access: knowing which resellers needed which products, in a market where nobody had yet organised that.

The timeline

  1. Depth, not breadth

    A trade headline of the period put the strategy in four words, and it is still the clearest statement of what separates this kind of distributor from the broadline houses. Carrying fewer vendors in more depth means the sales engineer can actually answer the question, and it means the distributor is betting its business on the vendors it chose.

  2. Above three billion

    Annual gross sales past $3B on the Datatec side alone, with the Americas business trading under different ownership since 2017 - a brand operating in two hemispheres under two owners, which is unusual enough to confuse people who work in one of them.

Flagship products and solutions

  • Networking and unified communications distributionThe original Westcon line: the vendors whose equipment resellers install rather than the ones whose products end users buy off a shelf.
  • Security distributionThe category that grew fastest and that suits specialist distribution best, because a firewall is not a purchase a reseller can fulfil without understanding it.
  • ComstorThe Cisco practice, kept as its own brand for a quarter of a century after acquisition. That is unusual and deliberate: to the channel, the name means one vendor, and collapsing it into the parent would have thrown away the only thing it was bought for.
  • Partner enablement and trainingCourses aimed at what resellers cannot yet sell, which is a different syllabus from the vendor's own - and, as the entry above notes, a better indicator of where the market is actually stuck.
  • Services and cloud marketplaceDeployment, support and subscription provisioning sold to resellers who cannot staff those functions themselves. This is where a distributor stops being logistics and starts being capability.

Key innovations

  • Specialising by vendor rather than by categoryThis timeline now has three distributor models side by side. The broadline house carries everything and competes on scale. ScanSource specialised by category, catching products on the way to commodity. This one specialised by vendor, building a deep practice around a small number of manufacturers - which is the model that suits complex products with long sales cycles, and the one most exposed if a chosen vendor falters.
  • Keeping the acquired brandComstor stayed Comstor. In a channel where a reseller's Cisco practice is a distinct part of its business with distinct staff and distinct certifications, a distributor brand that means Cisco is worth more than the parent's name. Most acquirers cannot resist consolidating a brand; the discipline here was in not doing it.
  • Being the reason a product is buyableThe point the entry above makes is worth stating as a business model rather than a consequence. A specialist distributor sells a vendor the ability to be quoted in a country - not sales, but presence in the set of things a local reseller can practically propose. Vendors pay for that because the alternative is being technically available and commercially invisible.

Main markets

Resellers, integrators and managed service providers, across Europe, the Middle East, Africa and Asia-Pacific on the Datatec side and the Americas under separate ownership. The customer is always the partner rather than the end user, which shapes everything about how the business is run.

It competes with the broadline distributors on availability and with other specialists on depth, and its structural risk is concentration: a portfolio built on a small number of vendors is exposed to any of them changing its channel strategy.

Analyst standing

  • Distribution is assessed on vendor authorisations, geographic coverage and partner programme depth rather than on the metrics that apply to product companies, and by those measures this is among the established specialists in networking and security.
  • The structural fact worth ending on is what this business actually owns. A specialist distributor's principal assets are authorisations - contracts granting the right to sell a manufacturer's products in defined territories - and those are held at the manufacturer's discretion and revocable on notice. No other business on this timeline has its core asset held by somebody else. That is why the relationship with a small number of vendors is managed as carefully as it is, and why the deep-specialist model is simultaneously the strongest position in distribution and the least owned.

Acquisitions

  1. 1998 RBR Group Limited

    A Cisco distributor in the United Kingdom, acquired in September 1998.

    The beginning of the Cisco specialisation that Comstor completed a year later.

  2. 1999 Comstor $95M

    A Cisco specialist distributor founded in Chantilly, Virginia in 1986, sold to GE Capital IT Solutions around 1996, and turning roughly $500M a year by 1999.

    founded 1986, Chantilly, Virginia

    The Comstor division, which is why the combined company carries both names to this day.

From the company