What changed in this filing

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Item 1. Business

2023-02-16 compared with 2022-02-18 · 191 added, 207 removed, 156 unchanged (72% of the section changed)

Today, every business needs to be a technology business.

Insight Enterprises, Inc.

(“Insight” or the “Company”) empowers organizations with technology, solutions and services to help our clients maximize the value of their IT today and drive (digital) transformation for tomorrow in North America;

We help our clients accelerate their digital journey to modernize their business and maximize the value of technology.

We serve these clients in North America;

Europe, the Middle East and Africa (“EMEA”);

and Asia-Pacific (“APAC”).

As a Fortune 500-ranked global technology provider of end-to-end secure digital transformation solutions and services, we help clients innovate and optimize their operations to run smarter.

As a Fortune 500-ranked solutions integrator, we enable secure, end-to-end digital transformation and meet the needs of our clients through a comprehensive portfolio of solutions, far-reaching partnerships and 34 years of broad IT expertise.

We amplify our solutions and services with global scale, local expertise and our e-commerce experience, enabling our clients to realize their digital ambitions at every opportunity.

The Company is organized in the following three operating segments, which are primarily defined by their related geographies:

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Insight began operations in Arizona in 1988, incorporated in Delaware in 1991 and completed its initial public offering in 1995.

Our corporate headquarters are located in Tempe, Arizona.

Our corporate headquarters are located in Chandler, Arizona.

From our original location in the United States, we expanded nationwide and then entered Canada in 1997 and the United Kingdom in 1998.

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(2015) and Ignia, Pty Ltd (2016).

Our acquisitions from 2017 through today were as follows:

Our acquisitions from 2017 through today included:

• 2017 – Acquired Datalink Corporation (“Datalink”) and strengthened our position as a leading IT solutions provider with deep technical expertise delivering data center transformation solutions to clients on premise or in the cloud.

Additionally, we acquired Caase Group B.V.

(referred to herein as, “Caase.com”) and strengthened our ability to deliver cloud solutions to our clients in EMEA;

and strengthened our ability to deliver cloud solutions to our clients in EMEA;

• 2018 – Acquired Cardinal Solutions Group, Inc.

(“Cardinal”), a digital solutions provider and strengthened our digital innovations capabilities;

(“Cardinal”), a digital solutions provider and strengthened our digital innovation capabilities;

• 2019 – Acquired PCM, Inc.

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• 2022 - Acquired Hanu Software Solutions, Inc.

and Hanu Software Solutions (India) Private Ltd.

(collectively, "Hanu"), a global leading cloud technology services and solutions provider, which increased our capacity to provide cloud solutions to clients.

Hanu also has a recruiting and development academy which expanded our technical expertise in India.

Our Purpose and Values

We build meaningful connections to help businesses run smarter.

We live by our core values of hunger, heart and harmony, which set the tone for our business and define who we are.

We accelerate digital transformation by unlocking the power of people and technology.

We live by our core values of hunger, heart and harmony, which guide how we act as an organization and as a team, capturing who we are as a culture and reminding us of what we’ve promised to live up to every day.

Our core values are:

Hunger – We are change agents, united in our passion to improve every day and deliver outstanding results for our clients, partners and Insight.

Hunger – We are change agents, driven to improve every day.

Heart – We are teammates.

We take care of each other, our clients and our communities.

Harmony – We are a team of diverse individuals who value inclusivity and create meaningful connections so we can win together.

Harmony – We are a team of individuals who seek out unique perspectives and value differences and diversity.

We believe that these values strengthen the overall Insight experience for our clients, partners and teammates.

We refer to our customers as “clients,” our suppliers as “partners” and our employees as “teammates”.

The worldwide total addressable market for information technology is forecasted to be $4.1 trillion according to Gartner, a leading IT research and advisory company.

We believe our worldwide addressable market represents approximately $700 billion in annual sales and for the year ended December 31, 2021, our net sales of $9.4 billion represented approximately 1% of that highly diverse market.

Based on our analysis of Gartner market data, we believe the top 10 most comparable global solution providers represent less than 10% of our worldwide addressable market.

We believe that we are well positioned in this highly fragmented global market with locations in 19 countries and our deep experience delivering IT solutions across the globe.

Our Differentiated Strategy

Our clients are our number-one priority, so delivering client value, which helps us earn client loyalty, is our primary goal.

We expect our clients to achieve advantages by leveraging our unique capabilities to provide end-to-end secure digital transformation solutions and services.

From IT strategy and design to implementation and management, we meet clients wherever they are now, and work alongside them to get them to where they want to be.

Whether implementing public cloud or as-a-service workplace solutions, designing a next-generation or hybrid cloud data center or leveraging sophisticated Internet-of-Things ("IoT") and artificial intelligence solutions to improve our clients’ experiences, we provide technical expertise and advisory services to our clients as an industry-recognized solutions integrator.

Our go-to-market framework for our cloud and digital expertise is built on over 33 years of broad IT experience combined with strategic acquisitions, new cloud and digital expertise and deep partner relationships.

We are uniquely positioned to help our clients maximize the values of their technology today – and accelerate tomorrow.

Each of our areas of expertise represents a discrete area of growth for our business and when connected to each other, they provide a platform for our clients to leverage our breadth of expertise to solve their most relevant business challenges.

Our strategy is to increase our penetration with new and existing clients within the areas of expertise across our geographic footprint in North America, EMEA and APAC.

Powered by Insight’s legacy technology supply chain expertise, we are able to support our services offerings within the hardware, software and cloud solutions from market-leading and emerging manufacturer brands.

To execute our strategy, we employ centralized and field-based sales, engineering, and services resources to connect with our clients.

We also invested in technical engineers, architects and software developers who create and deliver integrated IT solutions to our clients globally, a capability we believe differentiates us in the marketplace.

The worldwide total addressable market for enterprise IT spend is forecasted to be $4 trillion by 2026 according to Gartner, a leading IT research and advisory company.

We believe our addressable market represents approximately $750 billion in annual sales and for the year ended December 31, 2022, our net sales of $10.4 billion represented approximately 1% of that highly diverse market.

Based on our peer analysis of market data, we believe the top 10 most comparable global solution providers represent less than 20% of the market.

We believe that we are well positioned in this highly fragmented global market with sales locations in 18 countries and our deep experience delivering IT solutions across the globe.

Our ambition is clear — we aspire to be the leading solutions integrator, setting the pace and defining a new category in our industry.

Building upon the strong foundation of our traditional technology business, we bring innovative and scalable solutions — a combination of hardware, software and services — that accelerate transformation and produce meaningful results for our clients.

To achieve our ambition, teammates are focused on our strategic objectives — to captivate clients, sell solutions, deliver differentiation, and champion our culture.

Captivate clients

Our primary goal is to captivate our clients, so they are our number-one priority.

We aim to become the partner our clients cannot live without, by delivering exceptional value for their digital transformation needs.

We help our clients make the complex simple and look beyond the problems they are facing today to drive outcomes that energize future success.

We help them modernize their business by offering them solutions that maximize the value of technology and enable secure, end-to-end transformation solutions and services.

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Our unique solution-focused go-to-market strategy is supported by a strong operational platform that includes scalable IT and e-commerce systems and processes, robust digital marketing capabilities and a culture of continuous business process transformation and automation.

Sell solutions

We are transforming our sales capabilities and aligning our incentives to focus on our solutions portfolio.

We will continue to streamline our account coverage to match skills with client needs and propensity to buy services.

We believe the key to our success is focusing on doing a finite number of things and doing them really well.

Deliver differentiation

We deliver differentiation through our unique solutions capabilities, exceptional technical talent and a compelling portfolio built on over 34 years of broad IT experience.

Combined with thoughtful strategic acquisitions, differentiated expertise and deep partner relationships, we deliver an excellent client experience driving faster outcomes.

Our simple and strong portfolio of offerings and our robust roster of technical experts and industry leaders help us deliver client value efficiently and with the accountability our clients expect.

Champion culture

We see our strong culture as a driver for growth.

We are purpose-driven and values-led and are focused on delivering an exceptional client experience.

We are building on this foundation, developing a culture of high performance, and continuing to push forward our culture of diversity and inclusion.

Solutions Expertise

We developed comprehensive areas of expertise solutions to meet the market demand and deliver meaningful client outcomes at scale.

We quickly adapt to new technology trends in innovation, investing internally to advance our technical capabilities.

Our areas of expertise include:

Modern Workplace – Create a more productive, flexible and secure workplace .

We help our clients modernize essential workplace products, platforms and workflows to create enhanced environments for secure productivity and flexibility.

We differentiate through comprehensive areas of solutions expertise to meet market demand and deliver meaningful client outcomes at scale.

We tend to quickly adapt to new technology trends in innovation, investing internally as well as through mergers and acquisitions, to advance our technical capabilities.

These areas of expertise, when combined and enhanced with our services, are how we drive digital transformation for our clients and are pivotal to our strategy of becoming the leading solutions integrator.

Of our six areas of solutions expertise, our clients are currently prioritizing business outcomes that combine one or more of the following areas to drive their transformation:

Modern platforms/infrastructure:

Adopting & building modern platforms from cloud (multicloud and hybrid) to data center to edge

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Cybersecurity:

Automating and connecting those platforms securely (network, security, automation)

Data & Artificial Intelligence ("AI"):

Innovating on top of platforms with strategic solutions delivered through reference architectures, and enhanced through our intellectual property

Insight drives significant impact across these foundational areas — which are part of our broader set of solutions expertise, that we believe are critical to our clients’ success and to our identity as a solutions integrator.

Modern Infrastructure – Architect and modernize multicloud and networking solutions to drive business transformation .

We architect and deliver modern infrastructure solutions, management, and support spanning cloud and data center platforms, modern networks, and edge technologies, to enable our clients’ businesses’ digital transformation.

Outcomes for our clients:

• A scalable infrastructure foundation for innovation.

• Increase workload agility, resiliency and flexibility.

• Improve visibility and control of data assets.

• Deliver better user and customer experiences.

• Enable purposeful digital transformation.

Cybersecurity – Mitigate risks and secure business assets .

We prioritize security in our architecture design and deployment to cloud services and IT transformation.

This way, clients can integrate security across platforms, business units and operations.

We also help clients manage security initiatives that are required to protect their business.

Outcomes for our clients:

• Improve threat detection, containment and neutralization.

• Enhance visibility and context with fewer manual inputs.

• Minimize large scale security teams through simplified security management.

• Implement governance and maintain compliance.

• Better manage and mitigate organizational risk.

Data and AI – Leverage analytics and AI to transform business operations and user experiences .

We modernize data platforms and architectures and build data analytics and AI solutions that transform our clients’ business operations and user experiences.

Outcomes for our clients:

• Enable scalability at high speed.

• Increase visibility and data-driven decision-making.

• Optimize resources and costs via new operational efficiencies.

• Grow revenue and delight customers with new offerings.

• Improve competitive stance.

Modern Workplace – Create a productive, flexible and secure workplace .

Workplaces are changing — along with people’s need for seamless work experiences.

Great companies know their people are the key factor — improving attraction and retention, providing great collaborative experiences through technology, leading through change and more.

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Outcomes for our clients:

• Elevate employee and user experiences.

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• Enable and secure "work anywhere" operations in the hybrid work environment.

Insight delivers:

• Assessment and strategy engagements.

• IT service architecture, deployment and management.

• Comprehensive device services (including DaaS, Managed Endpoint, warehousing and multimedia messaging service).

• Solutions proofs of concept ("POCs") and implementations.

• End-user adoption and training advisory.

• Security and identity access solutions.

• Enterprise and end-user support services.

Modern Apps – Create new product experiences and transform legacy application to drive increased business value .

We build modern business applications using repeatable methodologies and an agile, user-centric approach to help our clients’ businesses innovate, differentiate, and grow.

We future-proof our clients' critical business applications for increased innovation and organizational agility.

Modern Apps – Create new product experiences and transform legacy applications to drive increased business value .

The number of applications in use is growing exponentially — and using them to differentiate business identities, unlock new revenue streams and create great user experiences is critical.

Clients need an experienced partner to help them migrate and modernize strategically.

Outcomes for our clients:

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• Accelerate business growth and product sales.

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• Optimize operations and increase productivity.

• Deliver differentiated customer experiences.

Insight delivers:

• Assessments and business-led digital strategies.

• Microservice application architectures, integrations, and code refactoring.

• Multicloud and low-code/no-code applications.

• User experience/user interface testing and research.

• Conversational agents.

• Immersive technology (virtual reality/augmented reality/mixed reality) solutions.

• Cloud-native web, desktop, and mobile apps.

• Enterprise-grade secure applications.

Modern Infrastructure – Architect and modernize multicloud and networking solutions to drive business transformation .

We strive to exceed our clients' demands to accelerate faster in cloud, and our knowledgeable teams maintain important relationships with key cloud hyperscaler partners.

Outcomes for our clients:

• A scalable infrastructure foundation for innovation.

• Increase workload agility, resiliency and flexibility.

• Improve visibility and control of data assets.

• Deliver better user and customer experiences.

• Enable purposeful digital transformation.

Insight delivers:

• Architecture, deployment, and management of modern platforms.

• POCs and demonstrations.

• Cloud, storage, data protection, networks, automation, virtualization, converged/hyperconverged.

• Platform migration and workload consolidation.

• Cloud enablement, management, and cost analysis/optimization.

• Workload discovery and alignment.

• DevOps support.

Intelligent Edge – Gather and utilize data in the most efficient way possible to enable real-time decision-making and affect pivotal outcomes .

We architect and deliver edge solutions spanning network, compute, storage, and artificial intelligence ("AI") and machine learning ("ML") to drive business value and deliver ongoing support for the IoT.

Intelligent edge is where all of our capabilities come together.

It is the combination of industry-based business outcomes, our intellectual property, our technology provider legacy, the ability to deploy tens of thousands of devices and build secure platforms.

Our capabilities and portfolio allow for large-scale intelligent edge solutions.

Outcomes for our clients:

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• Scale and expand business operations to new areas.

Insight delivers:

• Use case development.

• Edge solution architecture and design.

• Modernization and environment preparation.

• Implementation and deployment of IT and operational technology.

• Testing and optimization of new and existing edge solutions.

• Monitoring and management.

• Cloud-to-edge integration.

• IoT evaluation, implementation, management, and support.

Managed services - Managed Services integrates with a client’s operations and provides services ranging from reactive technical support to comprehensive 24/7 monitoring, management, and reporting as well as services designed to cover infrastructure security.

We partner with clients to provide managed services that can increase service levels and IT efficiency, while simultaneously reducing costs.

Examples of our managed services include managed storage, backup and recovery, managed cloud, network and compute, managed security, managed support and Insight Cloud Care.

Consulting services - Our consulting services help clients navigate the complexities of their IT ecosystems with confidence.

Our technical experts and technology specialists are equipped with partner certifications, industry knowledge and deep expertise to guide clients along the way.

Examples of our consulting services include providing guidance on data center transformation, cloud and workload alignment, security and disaster recovery, and IT optimization, automation and orchestration.

Hardware, Software and Lifecycle services – Our supply chain optimization tools and services are a differentiator for Insight.

Clients face growing pressure on their IT budgets and increasing trends in outsourcing of non-core functions are changing the way clients approach procurement and management of core IT investments.

We provide end-to-end

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Data and AI – Leverage analytics and AI to transform business operations and user experiences .

We modernize data platforms and architectures and build data analytics and AI solutions that transform our clients’ business operations and user experiences.

Outcomes for our clients:

• Enable scalability at velocity.

• Increase visibility and data-driven decision-making.

• Optimize resources and costs via new operational efficiencies.

• Grow revenue and delight customers with new offerings.

• Improve competitive stance.

Insight delivers:

• Modern data platforms, cloud, and infrastructure.

• Data, AI and ML solution use case development, design, and implementation.

• Business intelligence and advanced data analytics.

• Natural language solutions.

• Data and analytics estate development/re-development and unification.

• Big data, data lakes and warehousing.

• Automation.

• Security and governance for data and AI solutions.

Cybersecurity – Mitigate risks and secure business assets .

We help our clients navigate security and compliance complexity associated with dispersed workforces, platforms, edge and IoT to mitigate risk and improve security posture.

Outcomes for our clients:

• Improve threat detection, containment and neutralization.

• Enhance visibility and context with fewer manual inputs.

• Alleviate large scale security teams through simplified security management.

• Implement governance and maintain compliance.

• Better manage and mitigate organizational risk.

Insight delivers:

• Security framework implementation (Secure Access Service Edge, Zero Trust, software-defined).

• Alignment with industry best practices and standards.

• Penetration testing.

• Ransomware readiness and response services.

• Network segmentation and access control.

• Governance, risk, and compliance.

• Cross-platform security.

• Managed Security.

Supply Chain Expertise – Our supply chain optimization tools and services are a differentiator for Insight.

Growing pressure on IT budgets and increasing trends in outsourcing of non-core functions are changing the way clients approach procurement and management of core IT investments.

We provide end-to-end lifecycle services around hardware and software that help our clients optimize their IT return on investments.

global lifecycle services around hardware and software that help our clients optimize their IT return on investments.

• Hardware Life Cycle:

Source, procure, stage, configure, integrate, test, deploy, refurbish and redeploy IT products spanning endpoints to infrastructure, regionally, or across the globe via the Insight footprint and our extensive engaged network of suppliers.

We s ource, procure, stage, configure, integrate, test, deploy, refurbish and redeploy IT products spanning endpoints to infrastructure, regionally, or across the globe via the Insight footprint and our extensive engaged network of suppliers.

• Software Life Cycle:

Portfolio management, compliance, integration and adoption, on-premise or in the cloud, regionally or across the globe.

We offer software portfolio management, compliance, integration and adoption, on-premise or in the cloud, regionally or across the globe.

• Hardware Warranty and Software Maintenance:

Warranty and maintenance services covering an array of products that can be purchased as a point solution or as a managed service delivered by Insight.

We offer warranty and maintenance services covering an array of products that can be purchased as a point solution or as a managed service delivered by Insight.

Our Offerings

Our offerings in North America and certain countries in EMEA and APAC include hardware, software and services, including cloud solutions.

Our offerings in the remainder of our EMEA and APAC segments consist of largely software and certain software-related services and cloud solutions.

On a consolidated basis, hardware, software and services represented approximately 62%, 24% and 14%, respectively, of our net sales in 2021.

This compares to 61%, 25% and 14%, respectively, of our net sales in 2020 and 60%, 27% and 13%, respectively, of our consolidated net sales in 2019.

Additional detailed sales mix information

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by operating segment can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 19 to the Consolidated Financial Statements in Part II, Item 8 of this report.

Our offerings in the remainder of our EMEA and APAC segments consist largely of software and certain software-related services and cloud solutions.

On a consolidated basis, product (hardware and software) and services represented approximately 86% and 14%, respectively, of our consolidated net sales in 2022.

This compares to 86% and 14%, respectively, of our consolidated net sales in 2021 and 86% and 14%, respectively, of our consolidated net sales in 2020.

On a consolidated basis, product (hardware and software) and services represented approximately 51% and 49%, respectively, of our gross profit in 2022.

This compares to 51% and 49%, respectively, of our gross profit in 2021 and 52% and 48%, respectively, of our gross profit, in 2020.

Additional detailed sales mix information by operating segment can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and in Note 19 to the Consolidated Financial Statements in Part II, Item 8 of this report.

Our Information Technology Systems

We have committed significant resources to the IT systems that we own and use to manage our business and believe that our success is dependent upon our ability to provide prompt and efficient service to our clients based on the accuracy, quality and utilization of the information generated by our IT systems.

Because these systems affect our ability to manage our sales, client service, partner relationships, distribution, inventories, accounting systems and internal networks, we have significantly improved our system security through investment in a highly skilled and tenured cybersecurity team as well as the implementation of the most up to date tools and processes to help harden and improve our cybersecurity defenses.

Because these systems affect our ability to manage our sales, client service, partner relationships, distribution, inventories, accounting systems and internal networks, we have significantly improved our system security through investment in a highly skilled and tenured cybersecurity team as well as implementation of some of the most up to date tools and processes available in the market to help harden and improve our cybersecurity defenses.

We are focused on driving improvements in sales productivity through increased innovation and enhancements to our e-commerce and IT systems with the goals of improved client satisfaction and attracting new clients, while increasing overall business efficiency.

In North America and APAC we use a common set of core IT applications to run our business.

In North America, EMEA and APAC we now use a common set of core IT applications to run our business.

In 2021, we began consolidating EMEA onto the same core systems beginning with the United Kingdom.

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For a discussion of risks associated with our IT systems, see “Risk Factors – Risks related to Our Technology, Data and Intellectual Property – Disruptions in our IT systems and voice and data networks could affect our ability to service our clients and cause us to incur additional expenses,” in Part I, Item 1A of this report.

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Our Competition

The IT hardware, software and services industry is very fragmented and highly competitive.

The IT industry is very fragmented and highly competitive.

Our competition includes:

• Solution providers, value-added resellers and direct marketers such as CDW, Zones, Connection, SHI, Softchoice, Systemax, Computacenter, Bechtle, SoftwareONE, and Crayon;

• Systems integrators such as ePlus, Presidio, World Wide Technology, Perficient and Accenture;

• Systems integrators and digital consultants such as ePlus, Presidio, World Wide Technology, EPAM, Perficient, Accenture, Atos and Capgemini;

• Solution providers, value-added resellers and direct marketers such as CDW, Zones, Connection, SHI, Softchoice, Computacenter, Bechtle, SoftwareONE and Crayon;

• Product manufacturers, such as Dell, HP Inc., IBM, Lenovo and HPE;

• Software publishers, such as Red Hat, VMware, Microsoft and Symantec;

• National and global service providers, such as IBM Global Services and HP Enterprise Services;

• Specialty retailers, aggregators, distributors and e-tailers, such as Amazon Web Services, Best Buy for Business, Newegg and e-Buyer (United Kingdom).

• Software and Cloud publishers and specialists, such as Red Hat, VMware, Crayon, Microsoft and Symantec;

• National and global service providers, such as IBM Global Services and HPE Services;

• Specialty retailers, aggregators, distributors and e-tailers, such as Amazon Web Services, Best Buy for Business, Newegg and Ebuyer (United Kingdom).

The competitive landscape in the industry is continually changing as various competitors expand their product and services offerings.

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As with other areas, we compete with solutions providers, systems integrators, value-added resellers, hyperscale vendors and directly with publishers, and manufacturer partners for many of these offerings.

Many of our manufacturer and publisher partners are also our competitors, as many sell directly to business customers, particularly larger corporate customers.

Many of our manufacturer and publisher partners are also our competitors, as many sell directly to business customers, particularly large enterprise and corporate customers.

For a discussion of risks associated with the actions of our competitors, see “Risk Factors – Risks related to Our Business, Operations and Industry – The IT hardware, software and services industry is intensely competitive, and actions of our competitors, including manufacturers and publishers of products we sell, can negatively affect our business,” in Part I, Item 1A of this report.

We partner with market leaders offering the top technology brands as well as emerging entrants in the marketplace.

During 2021, we purchased products and software from approximately 2,600 partners.

During 2022, we purchased and resold products and software from over 6,000 partners.

Approximately 55% (based on dollar volume) of these purchases were directly from manufacturers or software publishers, with the balance purchased through distributors.

Purchases from Microsoft, TD Synnex (a distributor) and Ingram Micro (a distributor) accounted for approximately 22%, 15% and 10%, respectively, of our aggregate purchases in 2021.

No other partner accounted for more than 10% of

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purchases in 2021.

Our top five partners as a group for 2021 were Microsoft, TD Synnex (a distributor), Ingram Micro (a distributor), Dell, and Cisco Systems, and approximately 60% of our total purchases during 2021 came from this group of partners.

Purchases from Microsoft and Techdata (a distributor)accounted for approximately 22% and 10%, respectively, of our aggregate purchases in 2022.

No other partner accounted for more than 10% of purchases in 2022.

Our top five partners as a group for 2022 were Microsoft, Techdata (a distributor), Ingram Micro (a distributor), Dell, and Cisco Systems, and approximately 55% of our total purchases during 2022 came from this group of partners.

Although brand names and individual products are important to our business, we believe that competitive sources of supply are available in substantially all of our product categories such that, with the exception of Microsoft, we are not dependent on any single partner for sourcing products.

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No other manufacturer’s or publisher’s products accounted for more than 10% of our consolidated net sales in 2022.

Sales of product from our top five manufacturers/publishers as a group (Microsoft, Dell, Cisco Systems, HP Inc.

and Lenovo) accounted for approximately 50% of our consolidated net sales during 2021.

We obtain incentives from certain product manufacturers, software publishers and distribution partners based typically upon the volume of sales or purchases of their products and services.

Sales of product from our top five manufacturers/publishers as a group (Microsoft, Dell, Lenovo, Cisco Systems, and HP Inc.) accounted for approximately 50% of our consolidated net sales during 2022.

We obtain incentives from certain product manufacturers, software publishers and distribution partners based typically upon our volume of sales or purchases of their products and services.

In other cases, such incentives may be in the form of participation in our partner programs, which may require specific services or activities with our clients, discounts, marketing funds, price protection or rebates.

Manufacturers and publishers may also provide mailing lists, contacts or leads to us.

We believe that these incentives (or partner funding) and other marketing assistance allow us to increase our marketing reach and strengthen our relationships with leading manufacturers and publishers.

We believe that these incentives (or partner funding) and other marketing

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assistance allow us to increase our marketing reach and strengthen our relationships with leading manufacturers and publishers.

We are focused on understanding our partners’ objectives and developing plans and programs to grow our mutual businesses.

We have invested in our digital marketing capabilities over the past five years.

These digital marketing investments increase the effectiveness of our marketing campaigns and client interactions.

We believe that we are emerging as a leader in our industry in digital marketing, striving to deliver an outstanding service experience to our clients.

We believe these digital marketing investments increase the effectiveness of our marketing campaigns and client interactions.

We consider that we are emerging as a leader in our industry in digital marketing, striving to deliver an outstanding service experience to our clients.

We implemented business intelligence tools that enable us to track performance in this area and demonstrate the return on our partners’ investments with us.

We measure partner satisfaction regularly and hold quarterly business reviews with our largest partners to review business results from the prior quarter, discuss plans for the future and obtain feedback.

We measure partner satisfaction regularly and hold quarterly business reviews with our largest partners to review business results, discuss plans for the future and obtain feedback.

Additionally, we host annual partner forums in North America, EMEA and APAC to articulate our plans for the upcoming year.

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Various ways that we attract, develop and retain qualified and motivated teammates include:

• Insight continues to make strides in its employer of choice journey and has received honors all around the globe.

Some examples include:

Forbes World’s Best Employers list (2021) - Insight ranked #95 overall, #12 for IT companies worldwide, #140 for Diversity (2021) and #62 for Veterans (2020);

• Insight has continued to receive recognition as an employer of choice including as Forbes World’s Best Employers list (2022) - Insight ranked #95 overall, #12 for IT companies worldwide, #59 for Diversity (2022) and #62 for Veterans (2020);

#22 for Europe Best Workplaces (2022);

#3 for UK Best Workplaces (2021);

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#2 on Phoenix Best Places to Work – Phoenix Business Journal (2022);

Human Rights Campaign Foundation’s Corporate Equality Index perfect score of 100 (2022);

the Company achieved a perfect score on the Human Rights Campaign Foundation’s Corporate Equality Index;

“Elite 8” on Achiever’s 50 Most Engaged Workplaces (2021);

#70 on the Fortune 100 Best Workplaces for Diversity list (2019);

and #7 in the information technology services industry on the list of the Fortune World’s Most Admired Companies list (2021).

• Insight offers robust leadership training for all teammate managers and aspiring leaders.

Our training is centered around our Leadership Commitments where we enhance our leader’s skills in the following areas:

(1) Create clarity;

(2) Inspire people;

(3) Demonstrate thought leadership;

and (4) Deliver results.

We believe leaders who excel in these commitments heighten teammate satisfaction and deliver superior business results.

• An important part of the Company’s culture is its commitment to diversity and inclusion, and we’ve been recognized for our dedication to this important area.

Insight supports 7 Teammate Resource Groups, which represent various diverse groups of teammates and boasts 1,300+

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active members.

These 7 groups, and our Diversity & Inclusion team, host 10+ events per month including (but not limited to) cultural celebrations, Allyship & Unconscious Bias training, guest speakers, and wellness events.

• Our Teammate Pulse Survey has ranked Diversity as our #1 scoring category for the past four years.

In the Fortune Best Workplaces process, we learned that “Justice” was rated as the highest category by our teammates – the extent to which employees perceive that management promotes inclusive behavior, avoids discrimination, and is committed to providing fair appeal.

• Insight offers robust leadership training for teammate managers and aspiring leaders.

Our training is centered around our Leadership Commitments where we enhance our leaders' skills:

(1) Creating clarity;

(2) Inspiring people;

(3) Demonstrating thought leadership;

and (4) Delivering results.

• An important part of the Company’s culture is its commitment to diversity and inclusion, which we’ve been recognized for.

Insight supports seven teammate resource groups, which represent various diverse groups of teammates and boast 1,450+ active members.

• Our leaders carefully review and monitor our Teammate Pulse Survey results year over year and create action plans to increase teammate engagement.

We have seen positive trending over the last five years and are proud of the culture at Insight.

• To support teammates and their families in crisis situations, the Company provides financial support through its charitable foundation, which has received millions in contributions over the last seven years from Insight, its teammates and its partners.

• Insight offers all teammates two paid Heart Days annually to volunteer their time to charitable organizations in the communities where they live and work.

• Insight also has trained Mental Health First Aid Certified teammates throughout the business globally in order to ensure our teammates have easy access points to the resources we have available to them and their family members.

• To support teammates and their families, a charitable foundation funded by the Company, its teammates and its partners provides financial support in crisis situations.

• Insight offers all teammates paid days off to either volunteer their time to charitable organizations in the communities where they live and work or to use for mental health days.

INSIGHT ENTERPRISES, INC.

As of December 31, 2022, we employed 13,448 teammates.

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Our Seasonality

We experience some seasonal trends in our sales of hardware, software and services.

We experience some seasonal trends in our net sales.

• software sales are typically higher in our second and fourth quarters, particularly the second quarter;

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These trends create overall seasonality in our consolidated results such that sales and profitability are expected to be higher in the second and fourth quarters of the year.

INSIGHT ENTERPRISES, INC.

The majority of our backlog historically has been and continues to be open cancelable purchase orders;

Our backlog has grown significantly in the past year, primarily as a result of our client's responses to supply chain constraints.

We expect the supply chain constraints may not be fully alleviated in 2022 but our elevated backlog exiting the fourth quarter of 2021 will benefit the first half of 2022.

however, we have not experienced significant cancellations historically.

Our backlog has fluctuated significantly in the past year, primarily due to the mix of products available and our client's responses to supply chain constraints.

Continuing supply chain constraints were not fully alleviated in 2022 and we expect our elevated backlog in certain categories, particularly data center and infrastructure, exiting the fourth quarter of 2022 may benefit the Company's financial results in the first half of 2023.

We do not believe that backlog as of any particular date is predictive of future results.

INSIGHT ENTERPRISES, INC.

Our Intellectual Property

We do not maintain a traditional research and development group, but we recognize the importance of intellectual property and its ability to differentiate us from our competitors.

As part of our business, we provide value to clients based, in part, on our proprietary innovations, methodologies, reusable know-how and other intellectual property assets, that we protect through different forms of intellectual property protection, including trademarks, patents, copyrights, trade secrets and other protections in the United States and select foreign countries where we believe it is appropriate to seek such protection, under applicable laws.

We also seek to maintain our trade secrets and confidential information by non-disclosure policies and agreements, as applicable, with teammates, clients, partners and others to protect our intellectual property rights.

As part of our business, we provide value to clients based, in part, on our technical innovations, methodologies, know-how, and other reusable proprietary assets that we protect through different forms of intellectual property protection, including trademarks, patents, copyrights, and trade secrets in the United States and select foreign jurisdictions where we believe it is appropriate to seek such legal protection.

We also seek to maintain our trade secrets and confidential information by non-disclosure policies and agreements, with teammates, clients, partners, and other third parties.

There can be no assurance, however, that the rights obtained can be successfully enforced against infringers in every jurisdiction.

Although we believe the protection afforded by our trademarks, patents, copyrights and trade secrets has value, the rapidly changing technology in our industry and uncertainties in the legal process makes our future success dependent primarily on the innovative skills, technological expertise and management abilities of our employees.

A valuable intellectual property asset is our Insight brand which is a registered trademark.

We also license certain of our proprietary intellectual property rights to third parties.

We have registered a number of domain names, applied for registration of other marks in the United States and in certain international jurisdictions, and, from time to time, filed patent applications.

We believe our trademarks, in particular, have significant value, and we continue to invest in their promotion and protection.

Although we believe the protection afforded by our trademarks, patents, copyrights and trade secrets has value, the rapidly changing technology in our industry and uncertainties in the legal process make our future success dependent primarily on the innovative skills, technological expertise, and management capabilities of our teammates.

Our Insight brand is a valuable intangible asset that is protected using common law and registered trademark rights.

We also license our intellectual property rights to third parties.

We have registered our key domain names and brands in the United States and in certain relevant foreign jurisdictions, and, from time to time, filed patent applications for our qualifying technical solutions.

Our intellectual property assets are important to us, and we continue to invest in their promotion and protection.

For a discussion of risks associated with our intellectual property, see “Risk Factors – We may not be able to protect our intellectual property adequately, and we may be subject to intellectual property infringement claims,” in Part I, Item 1A of this report.

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Bryan served as Chief Financial Officer at APL Logistics in Oakland, California and in various finance roles at Ryder System, Inc., including Chief Financial Officer of Ryder’s largest business unit, Ryder Transportation Services.

Bryan is a member of the board of directors and the audit committee of Pentair, Ltd., a diversified industrial manufacturing company and of Pinnacle West Capital Corporation.

Bryan is a member of the board of directors and the audit committee of Pentair, Ltd., a diversified industrial manufacturing company and of Pinnacle West Capital Corporation, a public utility holding company.

In January 2018, she was appointed to the Economic Advisory Council for the Federal Reserve Bank of San Francisco.

Dee Burger , President North America, Age 53

Burger joined Insight in May 2022 as President of the North America business.

Prior to joining Insight, Mr.

Burger worked at Capgemini, a global leader in consulting, technology services and digital transformation, for 29 years in a diverse range of roles.

His responsibilities encompassed leading integration of mergers and acquisitions, digital and cloud solutions, business applications, consulting, strategy, and transformation.

Most recently, he led Capgemini's global business lines in the North America market, with prior leadership roles spanning business services and engineering, U.S.

strategy and portfolio, consulting, and innovation and digital services.

Cowley , Senior Vice President, General Counsel and Secretary, Age 62

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He previously served as Executive Vice President, Business Development and General Counsel of Matrixx Initiatives, Inc.

and Executive Vice President and General Counsel of Swift Transportation Co., Inc.

INSIGHT ENTERPRISES, INC.

Executive Vice President and General Counsel of Swift Transportation Co., Inc.

Prior to that, he practiced law in the business and finance groups with the law firms of Snell & Wilmer and Reid & Priest.

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Prior to joining Insight, Ms.

Crump served as the Senior

INSIGHT ENTERPRISES, INC.

Director Controller, Global Accounting at Amkor Technology, Inc., a semiconductor product packaging and test services provider, from 2006 to 2016.

Crump served as the Senior Director Controller, Global Accounting at Amkor Technology, Inc., a semiconductor product packaging and test services provider, from 2006 to 2016.

Adrian Gregory, President – Insight EMEA, Age 49

Gregory joined Insight in January 2023 as EMEA President.

Prior to joining the Company, he served as CEO for North Europe and APAC at Atos, an IT services and consulting company from February 2022.

Gregory spent ten years in Executive positions at Atos, including serving as Senior Executive Vice President, Global Head of Financial Services & Insurance, where he led the integration of Atos Syntel in India and served as CEO of Atos UK and Ireland.

Prior to Atos, he held roles at HP and Fujitsu.

Morgado , Senior Vice President of Finance, Age 50

Morgado joined Insight in January 2022 as Senior Vice President of Finance.

For the past four years, he served as the Vice President of Finance for Synopsys, Inc., an enterprise software engineering company focused on electronic design automation, where he was responsible for Corporate Planning, FP&A, Treasury, Procurement and Supply Chain Finance.

For the previous four years, he served as the Vice President of Finance for Synopsys, Inc., an enterprise software engineering company focused on electronic design automation, where he was responsible for Corporate Planning, FP&A, Treasury, Procurement and Supply Chain Finance.

Prior to Synopsys, Mr.

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in positions of escalating responsibility within Finance.

Morgado completed both his undergraduate degree (Business Management) and master’s degree (MBA) at Santa Clara University.

Mullen , President, President and Chief Executive Officer, Age 59

Mullen , President and Chief Executive Officer, Age 60

Mullen was appointed President and Chief Executive Officer and a director of Insight effective January 1, 2022.

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Prior to joining Insight, Ms.

Mullen spent 21 years of her career at Dell Technologies in a variety of sales, service delivery, and IT solutions roles.

Mullen spent 21 years at Dell Technologies, a technology company, in a variety of sales, service delivery, and IT solutions roles.

Mullen also serves on the Board of The Toro Company (NYSE:

She completed her undergraduate studies at Brown University in International Relations, and she holds an MBA from Harvard University.

Jeffery Shumway , Chief Information Officer, Age 63

Shumway joined Insight September 2005 as a consulting information systems analyst.

Shumway held various positions of increasing responsibility at Insight including Vice President of Application Development from August 2010 to September 2017 and Senior Vice President of Global IT Operations from October 2017 until May 2019, when he was promoted to Global Chief Information Officer.

Prior to joining Insight, Mr.

Shumway held a variety of leadership positions at Belden Communications.

Prior to starting his career in the field of information technology, Mr.

Shumway served as a Phoenix, Arizona Police Officer, holding many roles including Sergeant of the Computer Services Bureau.

Emma de Sousa , President – Insight EMEA, Age 45

de Sousa joined Insight in 2003.

de Sousa has held various positions of increasing responsibility at Insight including Managing Director of the United Kingdom and Ireland from January 2009 to March 2017, and Senior Vice President of United Kingdom and EMEA Marketing from March 2017 until January 2021, when she was promoted to President of the EMEA business.

Prior to joining Insight, Ms.

de Sousa held various marketing and sales roles.

Sumana Nallapati , Chief Information Officer, Age 48

Nallapati joined Insight in April 2022 as Chief Information Officer.

Prior to joining Insight, from January 2019 to May 2021 Ms.

Nallapati served as chief digital officer at Dish Network, a satellite television company, and from June 2021 to April 2022 as Senior Vice President and chief digital officer at Everbridge, a software company.

Nallapati was secretary of technology and chief information officer for the State of Colorado from 2014 to 2018.

Jennifer Vasin, Chief Human Resources Officer, Age 48

Vasin joined Insight in March 2002.

She was named Chief Human Resources Officer in February 2022.

Prior to that, Ms.

Vasin was Senior Vice President, Human Resources from 2019 to 2022.

Before joining Insight, Ms.

Vasin led the HR team at Calence, a professional services

INSIGHT ENTERPRISES, INC.

consulting firm.

She also worked in the airline industry in a variety of roles, including human resources leadership positions.

Available Information

Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the reports filed pursuant to Section 16(a) of the Exchange Act are available free of charge on our web site at www.insight.com, as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC.

Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports filed pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), proxy statements and the reports filed pursuant to Section 16(a) of the Exchange Act are available free of charge on our web site at www.insight.com, as soon as reasonably practicable after we electronically file them with, or furnish them to, the SEC.

The information contained on our web site is not included as a part of, or incorporated by reference into, this Annual Report on Form 10-K.

INSIGHT ENTERPRISES, INC.

The SEC also maintains an internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business