CDW Corporation (CDW): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how CDW Corporation, a leading IT solutions provider, operates and generates revenue? With a strong presence in the US, UK, and Canada, serving over 250,000 customers, CDW has become a key player in the technology landscape. Dive in to explore CDW's history, ownership structure, mission, and the unique strategies it employs to thrive in the competitive IT market.

But how exactly does CDW navigate the complexities of the IT world to deliver exceptional customer value? How does it manage to provide integrated technology solutions to more than 250,000 business, government, education, and healthcare customers across the United States, the United Kingdom, and Canada? Read on to discover the answers!

CDW Corporation (CDW) History

CDW's Founding Timeline

Year established

The company was founded in 1984.

Original location

The company's initial operations were based in Buffalo Grove, Illinois.

Founding team members

The company was founded by Michael Krasny.

Initial capital/funding

Michael Krasny started the company with $3000, using his savings and credit cards.

CDW's Evolution Milestones

CDW's Transformative Moments

The company has undergone several transformative moments that have shaped its growth and strategic direction:

• Shift to IT Products: The pivotal decision to transition from selling advertisements to computer hardware and software in the early years set the stage for its future as a major IT solutions provider.
• Embracing the Direct Sales Model: Focusing on direct marketing and sales allowed the company to efficiently reach a broad customer base, bypassing traditional retail channels.
• Strategic Acquisitions: Acquisitions, such as the purchase of Insight Direct, Inc., and Amplified IT, LLC have expanded the company's market presence and service capabilities.
• Private Equity Ownership: The period under private equity ownership (2006-2013) enabled significant operational and strategic improvements, preparing the company for a successful return to the public market.

For additional insights into the financial stability and performance of the company, consider exploring this resource: Breaking Down CDW Corporation (CDW) Financial Health: Key Insights for Investors

CDW Corporation (CDW) Ownership Structure

As a publicly traded company, CDW's ownership is distributed among a mix of institutional investors, individual shareholders, and company insiders. The company's decisions are influenced by this diverse ownership structure.

CDW Corporation's Current Status

CDW is a public company, meaning its shares are traded on the stock exchange. It is listed on the Nasdaq under the ticker symbol CDW. As a public entity, it is subject to regulatory oversight and reporting requirements, providing a level of transparency to investors and the public. For more in-depth insights into CDW's investor profile, consider exploring this resource: Exploring CDW Corporation (CDW) Investor Profile: Who’s Buying and Why?

CDW Corporation's Ownership Breakdown

CDW Corporation's Leadership

CDW is guided by a team of experienced leaders. As of April 2025, key figures at the helm include:

• Christine A. Leahy: President and Chief Executive Officer
• Andrew W. Bryant: Chief Financial Officer

CDW Corporation (CDW) Mission and Values

CDW Corporation aims to deliver comprehensive IT solutions and services, focusing on being a trusted advisor to their customers. Their core values emphasize integrity, commitment, and teamwork.

CDW's Core Purpose

Official mission statement

CDW doesn't have a formal, published mission statement in the traditional sense. Instead, they focus on a customer-centric approach, aiming to be a trusted IT solutions provider. This is reflected in how they articulate their goals and values.

• To deliver best in class IT solutions
• To provide excellent customer service
• To deliver innovative solutions

Vision statement

CDW's vision is centered on being the premier IT solutions partner for businesses, government, education, and healthcare organizations. They strive to achieve this through:

• Market Leadership: Maintaining a leading position in the IT solutions and services market.
• Customer Loyalty: Building long-term relationships by providing exceptional value and service.
• Innovation: Continuously adapting and offering innovative solutions to meet evolving customer needs.
• Operational Excellence: Ensuring efficient and effective operations to deliver superior results.

Company slogan/tagline

While CDW doesn't have a specific, consistently used tagline, they emphasize their role as a trusted technology advisor. Common themes in their messaging include:

• 'People Who Get IT': This highlights their expertise and understanding of IT challenges.
• 'Your Trusted Technology Advisor': Reinforces their commitment to providing guidance and support.
• Focus on Solutions: Messaging often emphasizes delivering tailored IT solutions to meet specific customer needs.

To learn more about CDW Corporation, check out: Exploring CDW Corporation (CDW) Investor Profile: Who’s Buying and Why?

CDW Corporation (CDW) How It Works

CDW Corporation provides technology products and services to businesses, government, education, and healthcare organizations. They essentially act as a one-stop shop for IT solutions, helping their customers manage their technology needs from procurement to implementation and ongoing support.

CDW's Product/Service Portfolio

CDW's Operational Framework

CDW operates through a multi-brand strategy, serving various customer segments with tailored solutions. Their operations encompass:

• Sales and Marketing: CDW employs a large direct sales force, supplemented by online channels and strategic partnerships, to reach a broad customer base. Their marketing efforts focus on highlighting their expertise and comprehensive solutions.
• Procurement and Logistics: They maintain strong relationships with leading technology vendors, enabling them to offer a wide selection of products at competitive prices. Their efficient supply chain ensures timely delivery to customers.
• Solution Design and Implementation: CDW's team of experts works with customers to design and implement customized IT solutions that address their specific needs.
• Technical Support: They provide ongoing technical support to help customers maximize the value of their technology investments.
• Lifecycle Management: CDW assists customers with managing the entire lifecycle of their IT assets, from procurement to disposal.

For more in-depth insights into CDW's investor profile, consider exploring this resource: Exploring CDW Corporation (CDW) Investor Profile: Who’s Buying and Why?

CDW's Strategic Advantages

CDW's success is driven by several key competitive advantages:

• Broad Product Portfolio: CDW offers a comprehensive selection of hardware, software, and services from leading technology vendors, providing customers with a one-stop shop for their IT needs.
• Extensive Customer Base: They serve a diverse customer base across various industries, reducing their reliance on any single market segment.
• Strong Vendor Relationships: CDW's long-standing relationships with technology vendors enable them to offer competitive pricing and access to the latest products.
• Expertise and Service Capabilities: Their team of experienced professionals provides expert guidance and support to help customers design, implement, and manage their IT solutions.
• Scalable Business Model: CDW's business model is highly scalable, allowing them to efficiently serve customers of all sizes.

CDW's ability to combine a wide range of technology solutions with expert services and a strong customer focus positions them as a leading provider in the IT solutions market.

CDW Corporation (CDW) How It Makes Money

CDW primarily generates revenue by providing information technology (IT) products and services to businesses, government, education, and healthcare customers. They offer a wide range of hardware, software, and IT solutions, acting as a reseller for various technology vendors and providing value-added services.

CDW's Revenue Breakdown

CDW operates through three main segments: Corporate, Public, and Other (primarily Canada and the UK). Each segment contributes differently to the overall revenue.

CDW's Business Economics

CDW's business economics are influenced by several key factors:

• Pricing Strategies: CDW employs various pricing models, including competitive pricing, volume discounts, and customized solutions pricing, to cater to diverse customer needs and market conditions.
• Vendor Relationships: Strong relationships with leading technology vendors enable CDW to secure favorable pricing and access to a wide array of products, enhancing their competitive edge.
• Service Offerings: CDW's profitability is bolstered by its service offerings, such as cloud solutions, security services, and IT consulting, which often command higher margins compared to hardware and software reselling.
• Economic Factors: General economic conditions and IT spending trends significantly impact CDW's revenue. Economic upturns typically lead to increased IT investments, while downturns may result in spending cuts.

CDW's Financial Performance

CDW's financial performance can be assessed through the following key metrics:

• Revenue Growth: CDW has demonstrated consistent revenue growth over the years, driven by its diversified customer base and expanding service offerings. In 2024, CDW reported net sales of $23.7 billion, compared to $23.3 billion in 2023, representing an increase of 1.7%.
• Gross Profit Margin: CDW maintains a healthy gross profit margin, reflecting its ability to effectively manage procurement costs and pricing strategies. The gross profit for 2024 was $4.1 billion, with a gross profit margin of 17.3%, compared to $4.0 billion in 2023, with a gross profit margin of 17.2%.
• Operating Income: CDW's operating income reflects its profitability after accounting for operating expenses. For the year 2024, CDW's operating income was $1.3 billion, representing 5.7% of net sales.
• Net Income: Net income represents CDW's bottom-line profitability after all expenses and taxes. In 2024, CDW's net income was $821.5 million.
• Cash Flow: Strong cash flow generation enables CDW to invest in growth initiatives, acquisitions, and return capital to shareholders through dividends and share repurchases. In 2024, CDW's cash flow from operations was $1.6 billion.

To gain more insights into CDW's values and principles, you might find this resource helpful: Mission Statement, Vision, & Core Values of CDW Corporation (CDW).

CDW Corporation (CDW) Market Position & Future Outlook

As of April 2025, CDW Corporation stands as a leading provider of technology solutions to business, government, education and healthcare organizations in the United States, the United Kingdom, and Canada. With a broad array of products and services, CDW is well-positioned to capitalize on the growing demand for digital transformation solutions. For more insights, check out Exploring CDW Corporation (CDW) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

CDW maintains a strong position in the IT solutions market through several key strategies:

• Offering a wide range of hardware, software, and integrated IT solutions.
• Focusing on building long-term relationships with customers across various industries.
• Investing in technical expertise and certifications to provide high-value services.
• Expanding its presence in high-growth areas like cloud computing, cybersecurity, and data analytics.