Insight Enterprises, a solutions integrator, saw its managed services lead to profit in 2023 despite a decline in overall revenue. Services make up the fastest-growing parts of the business and helped increase profits, particularly in hardware sales. In 2023, net sales of $9.2 billion declined 12% year-over-year.
However, services net sales of $1.5 billion increased 4.4%. Services gross profit rose 12% to $897 million. Gross profit for cloud services grew 26% to $429 million, and Insight Core Services gross profit increased 8% to $273 million.
The growth in cloud services was significantly boosted by Insight’s $410 million acquisition last December. Although the SADA business contributed little in 2023, it is a key reason Insight expects its cloud gross profit to grow more than 35% year-over-year in 2024, along with more than 20% growth in Core Services. “Our strategy is to bring the best technology from our partners, and we also play in the systems integration world.
This involves forging ever tighter relationships with our clients to deliver high value,” said Stephen Moss, Insight’s SVP of Managed Services. Moss stated that Insight’s managed services have continued to grow rapidly, particularly in the security space.
Insight profits via managed services
The need is immense, and that trend is here to stay. With security, you also have to manage, patch, and handle other related tasks. Insight offers two major security services, leveraging the Taegis platform for MSSPs to provide clients with user-friendly solutions.
The company is also deeply involved in helping clients integrate AI into their operations. This includes handling large language models (LLM) and retrieval-augmented generation (RAG) for proof-of-concept phases, enabling real-world applications. Insight is collaborating with ISVs and OEMs to rapidly add value for clients.
Hybrid and multicloud are important facets of Insight’s strategy, enabling them to assist clients regardless of where their data is stored. Understanding edge importance, Insight is working to ensure they play a significant role in both cloud and on-premises environments. Moss sees hospitality, travel, and entertainment sectors investing heavily in AI to catch up post-COVID.
These sectors are expected to outperform other industries due to their well-ordered data and ongoing technology investments. “As a solution integrator, we’re committed to ensuring that every player wins in the hybrid and multicloud environments. We aim to provide incredible value through our partnerships and client relationships,” Moss concludes.
