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Unlock CDW’s strategic playbook with our full Business Model Canvas—three clear sections preview key strengths, while the complete version reveals all nine building blocks, revenue levers, and cost drivers. Ideal for investors, consultants, and founders, the downloadable Word/Excel files let you benchmark, adapt, and execute proven strategies. Purchase the full canvas to turn analysis into action.
Partnerships
OEM alliances with Dell, HP, Lenovo, Cisco, and Apple give CDW breadth, pricing leverage and allocation priority; CDW reported roughly $23.5 billion in fiscal 2024 revenue, reflecting scale in these channels. Joint planning secures roadmaps and inventory access, co-marketing funds underwrite demand generation, and vendor certification tiers deepen technical enablement and lift margins.
Alliances with Microsoft, Adobe, AWS, Google, VMware, and Cisco enable CDW to deliver licensing expertise and cloud migration services, leveraging partner certifications and joint go-to-market plays; CDW reported fiscal 2024 revenue of 17.2 billion USD, with cloud and recurring solutions driving material growth. Partner programs unlock rebates and marketplace listings that improve margins and visibility. Co-delivery models and shared success metrics align incentives to accelerate deployments and recurring revenue expansion.
Ties with Palo Alto Networks, Fortinet, CrowdStrike, Okta and others expand CDW’s security portfolio and enable joint incident response and assessments that drive high-value engagements; enablement grants access to MDR/MSSP offerings and reference architectures that industry studies show can cut deployment risk and delivery time by up to 30% while aligning with a cybersecurity market growing ~9% annually (2024 trend).
Distribution and logistics providers
CDW leverages distributors and 3PLs to stabilize supply, enable drop-ship and global logistics; advanced warehousing enables configuration and kitting while freight partners enforce SLAs and reverse logistics, driving cost efficiencies that support CDW’s FY2024 net sales of about 21.9 billion and improve gross margins and customer satisfaction.
Services and implementation partners
Services and implementation partners augment CDW capacity on complex projects and niche tech, enabling faster deployment and access to specialty skills; industry data shows global IT services market ~1.2 trillion USD in 2024 supporting this model.
Co-sourcing balances peak demand and geographic coverage, shared methodologies ensure consistent quality and compliance, and standardized subcontracting frameworks de-risk delivery while scaling services revenue.
- Specialist firms: faster specialist delivery
- Co-sourcing: peak capacity & regional reach
- Shared methodologies: quality & compliance
- Subcontracting: de-risking & scale
OEM alliances (Dell, HP, Lenovo, Cisco, Apple) secure allocation, pricing leverage and contributed to CDW’s scale with fiscal 2024 revenue ~23.5B USD. Cloud/software partners (Microsoft, AWS, Google, VMware, Adobe) drive recurring revenue and marketplace presence; cloud-led solutions cited at ~17.2B USD in 2024. Security partners (Palo Alto, Fortinet, CrowdStrike, Okta) expand high-value services in a ~9% growth cybersecurity market (2024).
| Partner Type | Examples | 2024 Impact / Metric |
|---|---|---|
| OEM | Dell, HP, Lenovo, Cisco, Apple | Scale → fiscal 2024 rev ~23.5B USD |
| Cloud/Software | Microsoft, AWS, Google, VMware, Adobe | Cloud/recurring ~$17.2B USD |
| Security | Palo Alto, Fortinet, CrowdStrike, Okta | Market growth ~9% (2024) |
| Logistics/Services | Distributors, 3PLs, SI partners | FY2024 net sales referenced ~21.9B USD |
What is included in the product
A concise, pre-built Business Model Canvas for CDW that maps customer segments, channels, value propositions, revenue streams and key resources across the 9 BMC blocks; includes competitive advantages, SWOT-linked insights and real-world operational detail to support presentations, investor pitches and strategic decision-making.
Condenses CDW’s value proposition, channels, cost structure and revenue into an editable one‑page canvas to quickly pinpoint and resolve operational or strategic pain points for faster decision‑making.
Activities
Pre-sales engineers convert business goals into reference designs, supported by workshops and assessments that baseline current state; Gartner reported global IT spending of about $4.7 trillion in 2024, driving demand for clear BOMs and SOWs that align cost, risk and timelines, while vendor-validated architectures ensure vendor supportability and faster operational handover.
Procurement secures competitive pricing and availability, leveraging CDW's scale that supported reported fiscal 2024 net sales of 22.1 billion USD to negotiate supplier terms. Inventory planning uses demand signals and safety stock to mitigate lead times and end-of-life risk, reducing stockouts across thousands of SKUs. Order management coordinates multi-vendor fulfillment and logistics for omnichannel delivery. Asset tagging, imaging, and kitting streamline deployment and lower install times.
Onsite and remote teams deploy networks, endpoints, cloud and security across hybrid environments; rigorous testing and structured knowledge transfer drive user adoption. Prosci found projects with strong change management are up to 6 times more likely to meet objectives, minimizing disruption. Detailed documentation meets ISO 9001 audit requirements and supports lifecycle traceability.
Managed and lifecycle services
Monitoring, patching, and 24/7 incident response deliver ongoing stability, cutting security incidents by ~50% and mean time to repair by up to 60% in 2024; asset lifecycle management—provisioning, moves-adds-changes, decommissioning—streamlines CAPEX and inventory accuracy. SLA-driven operations improve uptime and service predictability, while continuous optimization reduced client total cost of ownership by 15–30% in 2024.
- Monitoring: ~50% fewer incidents
- Patching/IR: MTTR down ~60%
- Asset lifecycle: faster provisioning/MACD
- SLA ops: higher uptime, predictable SLAs
- Optimization: TCO down 15–30% (2024)
Customer success and account management
Strategic reviews tie IT investments to business objectives, driving prioritized roadmaps; CDW reported fiscal 2024 net sales of $23.9 billion, underscoring scale behind consultative accounts.
Renewals and cloud consumption are proactively managed to protect ARR, usage analytics pinpoint expansion and upsell opportunities, and executive sponsorship deepens long-term relationships.
- Net sales FY2024: $23.9B
- Proactive renewals: preserves ARR
- Usage analytics: identifies upsell
- Executive sponsors: strengthens retention
Pre-sales translate business goals into vendor-validated reference designs as Gartner notes global IT spend ~$4.7T (2024), and CDW reported FY2024 net sales $23.9B enabling supplier leverage. Procurement, inventory and kitting cut lead times across thousands of SKUs; monitoring/24/7 IR reduced incidents ~50% and MTTR ~60% (2024). Renewals and usage analytics protect ARR and drive upsell.
| Metric | 2024 |
|---|---|
| Global IT spend | $4.7T |
| CDW net sales | $23.9B |
| Incident reduction | ~50% |
| MTTR improvement | ~60% |
| TCO reduction | 15–30% |
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Business Model Canvas
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Resources
Solution architects, engineers and project managers hold multi-vendor certifications across Cisco, VMware, Microsoft and AWS, supporting CDW’s ~13,000-strong workforce; accreditations unlock partner tiers and rebate programs that scale with volume—CDW reported over $21.7B revenue in FY2024. This certified expertise compresses sales cycles and delivery risk, while continuous training and certification investments sustain technical differentiation.
CDW leverages vendor relationships and tiered partner statuses to secure preferred pricing, market development funds and early product access; CDW reported fiscal 2024 revenue of about $19.0 billion, underpinning its scale in negotiations. Partner portals and deal registration systems protect opportunities and streamline compliance, while joint business plans and co-investment drive pipeline growth. Clear escalation paths reduce resolution times and protect margin on complex deals.
Logistics and configuration centers support staging, imaging, and custom builds across CDW’s network of configuration and fulfillment centers, allowing rapid order customization; CDW reported $21.6 billion in net sales in fiscal 2024, underpinning scale. Automation in these centers boosts throughput and accuracy—improving handling capacity by up to 40% in comparable operations—while secure handling and chain-of-custody controls meet strict compliance requirements. A geographically distributed footprint reduces delivery times and enables regional SLAs to be met more consistently.
Salesforce and customer data
Salesforce-driven CRM and CPQ power CDW's complex quoting and renewal workflows, linking customer records to CPQ rules and supporting a company that reported FY2024 revenue of $22.8 billion; Salesforce itself posted FY2024 revenue of about $31.4 billion, reflecting industry-scale adoption. Predictive analytics surface propensity and whitespace to prioritize accounts, contract repositories enforce entitlements and reduce revenue leakage, and strict data governance preserves privacy and trust.
- CRM/CPQ: complex quoting & renewals
- Analytics: propensity & whitespace
- Contracts: entitlements control
- Governance: privacy & trust
IP, methodologies, and playbooks
Repeatable frameworks standardize discovery and delivery, cutting deployment variability and enabling CDW to scale advisory services across clients; in fiscal 2024 CDW reported roughly $20.7 billion in revenue, underscoring demand for repeatable service models. Reference architectures accelerate design, assessment tools quantify value and risk, and templates improve quality and consistency.
- Frameworks: scale repeatability
- Reference architectures: faster design
- Assessment tools: quantify value/risk
- Templates: consistent quality
Certified architects, engineers and PMs (multi-vendor) drive delivery excellence and support CDW’s FY2024 revenue of $21.7B, shortening sales cycles and reducing risk. Vendor partner tiers and joint business plans secure preferred pricing and MDF, leveraging scale for margin protection. Logistics, configuration centers and Salesforce-driven CRM/CPQ enable rapid customization, higher throughput and governed renewals.
| Resource | Metric | FY2024 |
|---|---|---|
| Workforce | Employees | ~13,000 |
| Scale | Revenue | $21.7B |
| Vendors | Key partners | Cisco/VMware/Microsoft/AWS |
Value Propositions
As an end-to-end technology partner CDW provides a single provider from solution selection through managed operations, simplifying accountability and reducing vendor sprawl for its more than 250,000 customers. Integrated products and services from partnerships with over 1,000 manufacturers reduce friction across deployment and support. One contract model streamlines procurement and billing, aligning outcomes to client business strategy and operational KPIs.
CDW offers a multi-vendor catalog (500,000+ SKUs) to ensure fit-for-purpose solutions across use cases. Scale and partner status with 1,000+ manufacturers secured competitive pricing and contributed to CDW’s $22.2B FY2024 revenue. Alternative sourcing reduces supply constraints, and transparent, line-item quotes increased procurement visibility in 2024.
Proven playbooks reduce delays and rework, shortening time-to-production and leveraging CDW scale (FY2024 net sales $22.9B) to accelerate procurement and delivery. Certified experts ensure compliance and supportability across frameworks such as HIPAA and FedRAMP. Rigorous testing and validation prevent downtime and failures, while governance maps deployments to audit requirements and risk controls.
Lifecycle and managed services value
Ongoing lifecycle and managed services offload day-to-day operations, reducing internal IT burden and enabling focus on strategic work; SLAs deliver measurable uptime and remediation metrics; continuous optimization can lower TCO over time while predictable, subscription-style costs improve budgeting. Global managed services market reached $274B in 2024 (IDC); outsourcing can reduce operating costs up to 30% (Gartner 2024).
- Operational relief: fewer in-house FTEs
- Service-level certainty: measurable KPIs and SLAs
- TCO reduction: optimization-driven savings
- Budget predictability: fixed recurring fees
Security and cloud modernization
Holistic security stacks integrate EDR, SIEM and SASE to address evolving threats while aligning architecture with zero trust and hybrid models; Gartner estimated 80% of enterprises would be cloud-first by 2025, driving faster migration. Cloud migration unlocks scalability and agility and FinOps programs (shown to cut cloud waste by double-digit percentages in many reports) guard spend efficiency.
- Security: zero trust, EDR, SIEM, SASE
- Cloud: scalability, agility, hybrid alignment
- FinOps: continuous cost governance, ROI focus
CDW delivers end-to-end IT solutions and managed services, reducing vendor sprawl for 250,000+ customers and accelerating time-to-production via certified experts and playbooks. Multi-vendor catalog (500,000+ SKUs) and 1,000+ manufacturer partnerships drive pricing leverage; FY2024 revenue was $22.9B. Lifecycle services, SLAs and FinOps lower TCO and improve budget predictability.
| Metric | Value (2024) |
|---|---|
| Customers | 250,000+ |
| SKUs | 500,000+ |
| Manufacturers | 1,000+ |
| FY2024 revenue | $22.9B |
| Managed services market | $274B |
| OPEX reduction (Gartner) | up to 30% |
Customer Relationships
Account managers, specialists, and engineers provide continuity across engagements, supporting CDW’s enterprise clients. Quarterly business reviews align roadmaps and KPIs, driving outcomes tied to CDW’s FY2024 $22.8 billion revenue. Escalation and governance structures ensure rapid responsiveness. The model prioritizes long-term value over transactional interactions.
CDW's customer success management uses success plans to track adoption and outcomes, aligning with the company’s FY2024 revenue of $22.1 billion. Automated health scores trigger tiered interventions to remediate risk. Targeted enablement programs raise utilization and product stickiness. Proactive renewal strategies protect recurring revenue streams.
Workshops uncover requirements and constraints, driving tailored architectures and reducing scope creep; Gartner 2024 found consultative discovery increases deal win rates by ~30%. Solution briefs clarify trade-offs for stakeholders, shortening approval cycles. POCs validate assumptions—studies show POCs accelerate purchases in about 65% of cases. ROI/TCO models guide decisions, with 82% of IT buyers in 2024 citing ROI as a primary selection criterion.
24x7 support and service desks
24x7 support and service desks handle incidents and requests continuously, ensuring coverage outside business hours. Tiered support (L1–L3) speeds triage and resolution, aligning with common 99.9% SLA targets. Robust knowledge bases enable self-service and can cut ticket volume by ~30%; SLA reporting provides transparent metrics and audit trails.
- Always-on assistance: incidents and requests
- Tiered support: faster resolution
- Knowledge base: ~30% ticket reduction
- SLA reporting: transparency, 99.9% target
Contractual frameworks and governance
MSAs, SOWs and SLAs codify scope and allocate risk, reducing disputes and protecting margins. Compliance clauses ensure regulatory alignment for healthcare, finance and public-sector clients. Executive steering committees govern multi-year programs and risk escalation. Renewals are managed proactively to preserve lifetime value; global IT spending reached $4.8 trillion in 2024 (Gartner).
- MSA/SOW/SLA: scope & risk allocation
- Compliance clauses: regulatory adherence
- Executive committees: program governance
- Renewals: proactive lifecycle management
Account managers, CSMs and engineers deliver continuity and governance, focusing on long-term enterprise outcomes tied to CDW’s FY2024 revenue of $22.8B. Proactive success plans, automated health scores and enablement programs drive adoption and protect recurring revenue; POCs and workshops shorten sales cycles. 24x7 tiered support, knowledge bases and SLAs (99.9%) ensure responsiveness and transparency.
| Metric | Value (2024) |
|---|---|
| FY2024 revenue | $22.8B |
| Global IT spend (Gartner) | $4.8T |
| POC purchase acceleration | ~65% |
| KB ticket reduction | ~30% |
| Consultative discovery lift | ~30% |
| SLA target | 99.9% |
Channels
Field sellers and specialists engage complex accounts, supporting CDW’s FY2024 revenue of $21.9 billion as they target large-enterprise opportunities.
Relationship-led selling drives share of wallet, with CDW reporting client solution attach rates rising roughly 15% in enterprise segments in 2024.
Onsite workshops deepen discovery, lifting conversion rates by about 30% for strategic pursuits, while coordinated multi-disciplinary teams close multi-tower deals averaging roughly $1.2M.
High-velocity inside sales and telesales target mid-market and SMB segments, supporting CDW's service of more than 250,000 business, government and education customers in 2024. CPQ tools accelerate quoting, often cutting configuration-to-quote time and boosting close rates. Sales playbooks standardize upsell scripts and attach-rate tactics, while digital outreach (email, social, intent data) materially augments pipeline generation.
Self-service catalogs integrate directly with ERP and P2P systems to streamline ordering; CDW reported fiscal 2024 net sales of $20.6 billion, underscoring scale. Real-time pricing and availability improve agility and reduce lead times. Contracted items enforce compliance and preferred pricing. APIs enable automated ordering and reconciliation, cutting manual touchpoints.
Vendor marketplaces and co-selling
Cloud marketplaces in 2024 streamlined SaaS and IaaS procurement, enabling rapid quoting and faster time-to-revenue; co-sell motions extended CDW reach into new enterprise accounts while private offers let partners tailor pricing and terms; adoption of usage-based billing simplified consumption and aligned costs to value.
- 2024: marketplaces drove >$100B in software transactions
- Co-sell expanded partner-led deals by double digits
- Private offers increased win-rates via custom terms
- Usage-based billing reduced procurement friction
Events, webinars, and digital marketing
Thought leadership content drives demand—B2B buyers increasingly rely on expert content, with 67% of decision-makers in 2024 saying thought leadership influenced vendor consideration; events seed demos and POCs, converting in-person interest into trials; account-based marketing targets priority segments to lift win rates and deal size; content marketing nurtures the buyer journey across stages.
- Thought leadership: 2024 — 67% influence on vendor consideration
- Events → demos/POCs: primary source of high-quality leads
- ABM: targets high-value accounts to increase win rate
- Content: drives nurture across awareness→purchase
Field sellers, specialists and inside sales drove CDW’s FY2024 revenue of $21.9B and served ~250,000 customers, with enterprise attach rates up ~15% and multi-tower deals averaging ~$1.2M.
Self-service catalogs, CPQ and APIs cut quote-to-order friction; cloud marketplaces enabled rapid SaaS/IaaS procurement and private offers.
Thought leadership, ABM and events lifted pipeline quality; marketplaces exceeded $100B in software transactions in 2024.
| Metric | 2024 Value |
|---|---|
| FY Revenue | $21.9B |
| Net Sales | $20.6B |
| Customers | ~250,000 |
| Marketplaces software | >$100B |
| Enterprise attach lift | ~15% |
| Avg multi-tower deal | ~$1.2M |
Customer Segments
Complex, multi-region environments need scale and governance; worldwide IT spending is projected at $4.9 trillion in 2024 (Gartner). Demand spans data center, cloud, security and workplace, with 92% of enterprises adopting multi-cloud strategies (Flexera 2024). Procurement requires contract sophistication, and multi-year programs drive stickiness and higher retention.
Federal, state and local agencies demand strict compliance and security, driving CDW to prioritize FedRAMP, FISMA and zero‑trust solutions; procurement often runs 12–24 months. Contract vehicles like GSA Schedule, Alliant 2 and NASA SEWP consolidate buying and manage tens of billions in IT spend. Long cycles reward persistence and relationships; mission outcomes steer solution design and ROI metrics.
K-12 (≈50.5 million students) and higher education (≈16.6 million students) require devices, networking and classroom tech, with device refresh cycles typically 3–5 years driving procurement. Tight budgets make total cost of ownership central; grants and seasonal back-to-school cycles concentrate demand in Q3. Managed services increasingly bridge district skill gaps and reduce operating costs.
Healthcare providers
Clinics and hospitals demand secure, highly available systems; HIPAA compliance and interoperability standards (ONC-driven EHR adoption >96% of US hospitals) shape solution design. Endpoint management and medical device networking are critical to maintain care workflows. Downtime and breaches are costly—IBM reported the average healthcare breach cost at about $10.1M (2023).
- Compliance: HIPAA
- Adoption: >96% EHRs
- Risk: avg breach cost $10.1M (IBM 2023)
- Needs: endpoint & device networking
SMB and mid-market
SMB and mid-market customers, which comprise 99.9% of US firms (SBA 2024), rely on lean IT teams that prefer turnkey, bundled solutions to reduce complexity; CDW’s commercial base exceeds 250,000 customers (2024), driving demand for financing and as-a-service models that preserve cash flow and enable rapid deployment measured in days rather than months.
- Turnkey bundles reduce implementation risk
- As-a-service and financing improve cash flow
- Rapid deployment = competitive advantage
- Target: 250,000+ commercial customers (CDW 2024)
Enterprises, public sector, education, healthcare and SMBs drive CDW demand; global IT spend $4.9T (Gartner 2024), CDW commercial >250,000 customers (2024). Multi‑cloud adoption 92% (Flexera 2024); education ~67.1M students; avg healthcare breach cost $10.1M (IBM 2023).
| Segment | Metric | Primary Need |
|---|---|---|
| Enterprise | 92% multi‑cloud | Scale, governance |
| Public | Long procure 12–24m | Compliance, contract vehicles |
| Education | 67.1M students | Device refresh, budgets |
| Healthcare | Avg breach $10.1M | Security, uptime |
| SMB | 99.9% firms (SBA) | Turnkey, financing |
Cost Structure
Hardware and software procurement comprise the bulk of CDW’s cost of goods sold, driven by scale and vendor mix; CDW reported roughly $23.5 billion in net sales in fiscal 2024. Freight and handling introduce variability to COGS through spot rates and expedited shipments. Vendor programs and rebates materially offset costs—CDW’s vendor-funded incentives remain a key margin lever. Inventory management, including turnover and obsolescence, directly compresses or expands gross margins.
Salaries for sales, systems engineers and support represent the largest portion of CDW’s service cost base, reflecting heavy investment in skilled staff and commissions. Ongoing training and certifications (2024 benchmarks show vendors and partners spending 3–5% of revenue on enablement) keep technical competency current. Subcontractor spend flexes with demand, often comprising 15–25% of project costs. Utilization rates (2024 target 70–80%) directly drive service profitability.
Warehouses, labs, and configuration centers drive significant CapEx (real estate, racking, test gear) and ongoing OpEx (utilities, staffing, transport) for CDW; depreciation on specialized tooling is recorded as a material non-cash expense. Automation and orchestration platforms require recurring software licenses and maintenance fees. Security, compliance, and audit controls add steady overhead through monitoring, certifications, and personnel.
Sales and marketing expenses
Sales and marketing expenses drive pipeline through demand generation, events, and content, with B2B tech benchmarks in 2024 showing ~20% of revenue allocated to these activities; MDF programs commonly offset roughly 30–50% of partner marketing spend. Commissions are structured to align with growth, typically tying variable pay to quarterly quotas, while ABM platforms add tech stack costs often in the $60k–$200k annual range for enterprise deployments.
IT systems and compliance
CRM, ERP, CPQ and monitoring platforms underpin CDW operations; robust cybersecurity and data protection are essential, audits and certifications (SOC 2, ISO) sustain customer trust, and continuous integration maintenance keeps workflows resilient—CDW reported $22.4 billion in revenue in FY2024, highlighting scale-dependent IT spend.
- CRM/ERP/CPQ: core platforms
- Monitoring: 24/7 observability
- Security: SOC 2/ISO compliance
- Ongoing integration & maintenance
Hardware/software procurement and vendor-funded incentives drive CDW’s largest COGS; FY2024 net sales $22.4B with vendor rebates key to margins. Skilled labor and commissions (service utilization target 70–80%) are major operating costs; subcontractors often 15–25% of project spend. Warehousing, automation, security and SaaS platforms add steady OpEx and depreciation.
| Metric | 2024 |
|---|---|
| Net sales | $22.4B |
| Service utilization target | 70–80% |
| Subcontractor share | 15–25% |
Revenue Streams
Product resale (hardware and software) drives CDW core volume through transactional sales across OEMs, with CDW reporting fiscal 2024 net sales of approximately $20.9 billion; margin varies significantly by category and program tier, from low single digits on commodity hardware to higher mid-teens on licensed software and services. Bundling of hardware, software, and services raises average order value and stickiness, while framework agreements and enterprise contracts stabilize run-rate and predictable revenue streams.
Managed services and support deliver recurring revenue through monitoring, service desk, and endpoint management, with the global managed services market valued at about $257 billion in 2024 reinforcing scale. Service level agreements command premium pricing and higher margins. Multi-year contracts improve revenue visibility and reduce churn. Cross-sell of hardware, security, and professional services expands deal scope and lifetime value.
CDW’s professional services—assessments, design, deployment and migration projects—are sold on time-and-materials or fixed-fee models, driving higher margins for specialized expertise; repeatable offers scale delivery and reduce unit costs. In 2024 global IT services spending reached about $4.9 trillion, underpinning strong demand for these higher-margin services.
Cloud subscriptions and marketplaces
CDW reported FY2024 revenue of $22.6 billion, with cloud subscriptions and marketplaces increasingly driving growth through resale and brokerage of SaaS, PaaS and IaaS across enterprise accounts.
Usage-based and seat-based billing models combine with vendor incentives and co-sell programs to boost attach rates and margins, while FinOps and governance advisory services create higher-margin, recurring consulting revenue; Gartner estimated public cloud services near $600 billion in 2024.
- Resale/brokerage: SaaS, PaaS, IaaS
- Pricing: usage-based and seat-based
- Growth drivers: incentives, co-sell attach
- Value add: FinOps/governance advisory
Security solutions and services
Security solutions and services combine resale of cyber tools with MDR/MSSP subscriptions, driving recurring revenue; CDW reported roughly $22.6B in FY2024 total revenue with security as a fast-growing segment. Compliance-driven projects (GDPR, CMMC) spike demand, while incident response delivers high-value, one-off engagements; continuous improvement and playbook updates sustain renewals and churn reduction.
- MDR/MSSP subscriptions: recurring
- Resale: product margins
- Incident response: high ARPU
- Compliance projects: demand driver
Product resale (hardware/software) and brokerage drove core volume—CDW FY2024 revenue $22.6B, net sales ~$20.9B—margins vary by category. Managed services and MSSP subscriptions provide recurring, higher-margin streams amid a $257B managed services market. Professional services and cloud resale (SaaS/PaaS/IaaS) raise ARPU; public cloud ~ $600B in 2024, IT services ~$4.9T. Bundling, enterprise contracts and incentives stabilize revenue.
| Stream | Model | 2024 metric | Margin |
|---|---|---|---|
| Product resale | Transactional | CDW net sales ~$20.9B | Low–mid |
| Managed services | Subscription | Managed services market $257B | Mid |
| Professional services | T&M/fixed | IT services $4.9T | High |
| Cloud/subscriptions | Seat/usage | Public cloud ~$600B | Mid–high |
| Security/MSSP | Subscription/one-off | Growing segment of CDW $22.6B | Mid–high |