CDW (CDW) UBS Global Technology and AI Conference summary

Macro environment and industry outlook

• Technology spending has faced two years of volatility, but hardware and data center refresh cycles are expected to drive growth starting mid-2025 and beyond.

• Clarity from the recent election and a pro-business administration are anticipated to improve the macro environment, especially once tax and tariff policies are defined.

• Technology remains essential for efficiency, innovation, and competitive advantage across all sectors, with no signs of budget cuts in IT.

• Catalysts such as data growth, AI adoption, security needs, and hybrid work are expected to sustain industry momentum.

• Optimism for 2025 is tempered by prudence, with ongoing catalysts supporting long-term growth.

Federal and corporate segment trends

• Federal IT spending is delayed due to late budget approvals, but funds remain available and are expected to flow more quickly with administrative clarity.

• Efficiency initiatives in government could initially slow approvals but ultimately drive increased technology investment.

• The federal segment is expected to remain a growth area over the long term, despite near-term air pockets and friction.

• Corporate and small business segments could benefit from lower taxes and targeted tariffs, with potential acceleration in business startups.

• Tariff impacts are expected to be passed through to customers without margin dilution due to a cost-plus model.

Hardware, networking, and product cycles

• The networking market is recovering, with inventory digestion issues largely resolved and a healthier outlook for 2025.

• Hardware Solutions have experienced eight consecutive down quarters, but signs of demand recovery are emerging, especially in storage.

• Growth in hardware, server, and networking is expected, though timing remains uncertain.