Dive Brief:
- D&H Distributing added 3,200 managed service providers to its community in 2025 amid double-digit revenue growth in cloud and security, the company said in a March 16 announcement.
- The broadline distributor benefited from industrywide momentum in cloud and security, but it said its sales of endpoint devices such as PCs outpaced the market, growing 63% year over year. The firm and its resellers are enjoying a downstream boost from AI, as customers refresh their infrastructure and devices to accommodate AI workloads.
- “D&H is purpose-built for the partners who are driving the next decade of IT consumption,” said Marty Bauerlein, Chief Commercial and Consumer Officer at D&H.
Dive Insight:
D&H’s fortunes were tied to a broader surge across the IT distribution industry.
North American distis tallied a record $24.3 billion in the fourth quarter of 2025, increasing 6% year over year, according to IDC. A profitable 2025 followed a painful 2024 slump, when distribution revenues declined 1.1%.
Cloud was a big part of D&H’s growth. The company saw year-over-year increases of 70% in infrastructure-as-a-service and 35% in SaaS.
Cloud didn't come at the expense of equipment sales.
“I think the rumors of the death of hardware, as Mark Twain said, have been greatly exaggerated,” ScanSource President of Specialty Technologies Mark Morgan told Channel Dive.
At about $7 billion in annual revenue, D&H is the third largest North American distributor by some counts, trailing publicly traded giants Ingram Micro and TD Synnex, which both surpass $50 billion. The company has leaned into its challenger identity, embracing the SMB market and the MSPs that live there. The company added more than 1,000 MSPs in 2024. The annual counts exclude value-added resellers who were already working with D&H and added managed services.
MSPs are prized by a wide swath of hardware distributors, cloud distributors and marketplaces as resale becomes strategic for the partner model. MSPs drive the bulk of their revenue through managed service contracts but are still on the hook for sourcing hardware and software. Historically, many elected to buy through Amazon or other consumer marketplaces, missing out on distributor discounts and support.
D&H has seen a shift over the last couple of years.
"MSPs work with multiple distributors in the channel, and what we're seeing is strong momentum in the managed services community overall,” Jason Bystrak, SVP of Cloud and Advanced Solutions+ at D&H, told Channel Dive in an email.
Distributors are also positioning themselves as training resources for MSP partners. D&H trained more than 5,350 partners on AI readiness and PC refresh in 2025.
"As partners expand their capabilities around security, hybrid infrastructure, and AI readiness, they're looking for a distributor who can help them with that growth and provide ongoing expertise for navigating increasingly complex environments,” Bystrak said. “D&H is focused on helping MSPs build those scalable services practices through enablement, training, and alignment with leading vendor technologies.”
