I have been in the IT industry for some time. This tender would only have been won on price. There are only a few players who have Large Account Reseller status could have bid -Data#3, HP, Datacom, Dimension Data, Insight, SoftwareOne, Rhipe, Staples and Dell.
I heard that they won the Department of Defence tender for MS Licencing at less than 1% margin a few years ago. That is for every $100 of Microsoft licence revenue, Data#3 got less than $1. These types of deals only work in a couple of ways:
Rebates from Microsoft, assuming they have not already been priced into the tender
Operating outside Microsoft licencing in government departments to get higher margin software licences from other vendors e.g. Adobe, ORACLE etc
Pushing new workloads onto Microsoft's Public Cloud - Azure, that Data#3 do not already licence
This is a great win, but the profitability will 100% based on their execution.
DTL Price at posting:
$1.81 Sentiment: Buy Disclosure: Held
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