Technology product distributor Tech Data moved solidly into the data center market with its $2.6 billion acquisition of Avnet’s technology services unit in February. The deal helped boost revenue 40% in 2017 to a record $36.8 billion and move the company up the food chain from reselling items like phones, PCs, and servers to the more expensive data center equipment. That’s a smart move by CEO Robert Dutkowsky to follow his customers, as businesses increasingly move from running their own servers to relying on the huge centers run by Amazon, Google, and others. Still, hardware sales hit a road bump over the summer, sending Tech Data’s stock plunging, and Wall Street remains worried about the business. Change could be coming, however, as 30-year IBM veteran Rich Hume takes over for Dutkowsky as CEO in June.
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