Local ICT distributor Pinnacle has defied the challenges brought about by the COVID-19 pandemic to achieve record sales in its most recent calendar year.
This is according to Pinnacle CEO Tim Humphreys-Davies, outlining the business case at the opening of the company’s TechScape 2022 channel partner and customer conference in the Drakensberg this week.
A subsidiary of JSE-listed Alviva, Pinnacle notes that despite the market havoc caused by COVID-19, interest and investment in IT has not waned.
It notes that according to Gartner, overall IT spend between pre-COVID 2019 and 2021 was $10 trillion, with 15% growth in end-user devices (from $1.4 trillion to $1.6 trillion) and 16% growth in IT services. There was 38% growth in enterprise software (from $650 billion to $900 billion) fuelled by increased investment in IT security solutions.
“IT spend has shifted,” said Humphreys-Davies. “What is interesting about 2020…we were locked down end of March, we were pretty much dead as a doornail for a few months, economically wise, and yet 2020 was marginally bigger than 2019.
“That just shows how IT was a big focus area; funds were diverted or spend was diverted from travel or whatever into IT as people realised it was an important fabric of trying to do business.”
He added that software vendors within the cyber security space “are jumping up and down with joy” because that’s really where the spend is coming from.
The sale of end-user devices also contributed significantly to growth, he noted.
This was a major opportunity and will continue to represent an opportunity going forward, Humphreys-Davies stated.
Based on IDC figures, Pinnacle says, there was 1.5 million sales in the four quarters in 2019, which dipped to 1.3 million in 2020, then in 2021, totalled 2.1 million.
It adds there was massive selling in Q4, as supply gains normalised in certain sectors, mainly in retail with one or two vendors.
“So there’s a huge amount of devices in the South African market now that presents an enormous opportunity for all of us.”
Humphreys-Davies noted the 28% share price growth in the share price index during this period is an indication that the broader financial market is aware of the potential and importance of technology.
He added the distributor is focusing more intensely on cloud and the ongoing integration of artificial intelligence, and application within key verticals, including education and healthcare.
Humphreys-Davies also emphasised the opportunity that awaits channel operators in tapping into the so-called ‘green dollar’ − the realisation and development of green / environmentally-conscious technology systems.
While he acknowledged the company was a “little late” in pursuing opportunities within the cyber security realm, he pointed out that Pinnacle has now cemented its position and is generating solid business – together with vendor and reseller partners – within this space.