Hello, I'm Liz Morali, Head of Investor Relations. On behalf of the entire TD SYNNEX team, I'd like to welcome you to our first Investor Day. We have a great lineup of presentations for you, followed by a live Q&A session. Let me start with an overview of today's agenda. First, we'll hear from Rich Hume, our CEO, who will share our views on the changing IT landscape and TD SYNNEX's role within the evolving IT ecosystem. Sergio Farache, our Chief Strategy Officer, will follow with an overview of our strategic framework and vision to provide a solutions aggregation and orchestration platform. Next, Michael Urban, President of the Americas region, will discuss our business and go-to-market strategies in North America, Latin America, and the Caribbean. He will also provide an update on our merger integration, as well as a global view on operational excellence and core technologies.
After Michael, we will hear from Patrick Zammit, President of Europe and Asia-Pacific, Japan, who will discuss our businesses across those regions and provide a global view on high-growth technologies. Following Patrick, we will hear from Bonnie Smith, our CIO, who will share how our IT platforms enable everything that we do. After Bonnie's presentation, Simon Leung, our Chief Business Officer, will moderate a panel discussion with Rich and Beth Simonetti, Chief Human Resources Officer, Jill Kermes, Corporate Vice President of Communications, and Adam Rutstein, Head of Corporate Responsibility, focusing on our ESG initiatives and goals. Finally, we will hear from Marshall Witt, our CFO, regarding a financial model and path to enhanced shareholder returns. Rich will come back to wrap up the day's presentations prior to starting our Q&A session. After the presentations, we will post the accompanying slides to our investor relations website.
Before we start, let me remind you that during today's presentations, we will be making forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding strategies and objectives of TD SYNNEX for future operations, our business strategy, performance, and financial condition, global expansion plans, merger integration, market data and expectations, outlooks, projections, estimates, shareholder return potential, goals and targets, or other statements about future events, as well as any other statements which are not historical facts. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. For a full discussion of potential risks and uncertainties, please refer to the Risk Factors section of our Form 10-K and our other reports and filings with the SEC.
Copies of our filings are available on our investor relations website, ir.synnex.com. We do not intend to update any forward-looking statements. During these presentations, we will also be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP results are included in the appendix of today's slide presentations. In addition, this presentation contains information concerning the IT market and distribution industry, which is forward-looking in nature and is based on a variety of assumptions based on information currently available to us. Please refer to the slide on page two of the Investor Day presentation, which provides a detailed description of these forward-looking statements and the associated risks. With that, let's get started with a short video.
TD SYNNEX connects and empowers a vibrant, expansive ecosystem of innovative companies that create solutions for increasingly complex business challenges. We help more than 150,000 customers maximize the value of IT investments, achieve business outcomes, and unlock growth opportunities by simplifying complexity for our vendors and customers, allowing new technology to be effortlessly adopted. With 22,000 of the IT industry's best and brightest, we passionately deliver compelling technology that enhances the way we work, play, and live. As the intense pace of the IT marketplace continues to accelerate, we will remain at the center, orchestrating essential solutions, delivering vital high-growth technologies, and working to sustain the world around us. With 50 years of success at our back, we continue to evolve and improve the way we support our partners.
We believe anyone can achieve great outcomes with technology, and TD SYNNEX is proud to make that happen every day.
Hi, I'm Rich Hume, CEO of TD SYNNEX. It is a huge milestone to be standing in front of you today. On behalf of our 22,000 coworkers around the globe, I want to thank you for joining us for our first Investor Day. You know, one year ago, we had just announced our intent to merge two great companies, and here we are today, seven months post-close, having just reported two full quarters of our combined company. We had a strong fiscal first quarter and increased our fiscal 2022 EPS outlook from what we had provided in January based on positive market dynamics and solid execution from our teams.
As you've just heard in our opening video, TD SYNNEX serves an important role connecting and empowering our customers and our vendors to achieve great outcomes with technology. As the pace of change across the technology landscape continues to accelerate, it will bring both complexity and opportunity. That is what makes it exciting to be in IT at this time. We're really looking forward to telling you more about that today. The members of the leadership team joining me on stage today will share our strategy, our vision, our global footprint, and our global reach. We will also share how we will go after significant market opportunities in front of us and translate them into enhanced financial performance and shareholder returns. First, let me begin with a high-level overview of our company. TD SYNNEX plays a vital role at the center of a massive IT business partner ecosystem.
That role is underpinned by relationships with more than 1,500 vendors, from the most well-known names in the industry to new and emerging born-in-the-cloud companies. We partner with these vendors to help them bring their innovations to market and accelerate the pace of technology adoption around the world. This diverse set of vendors makes up an unparalleled end-to-end line card of products and services across the host of many technology areas. We combine this complementary portfolio with our specialized skills and global IT platforms to deliver compelling technology solutions in a dynamic marketplace. Our 22,000 coworkers make it possible to serve more than 150,000 customers that span a very wide array of sizes and sectors in more than 100 countries, so they can deliver the technology solutions to their end users.
Our vendor and customer relationships are long and enduring, and they're built on trust. We have a tremendous market opportunity in front of us. According to Canalys estimates, as of June 2021, TD SYNNEX accounts for just 16% of the total distribution addressable market, and that provides us with ample opportunity to grow and expand moving forward. Our long history of robust revenue and profit growth speaks for itself. Our revenue growth was 8.3% for the past fiscal year. In short, we have a strong, well-positioned business that is growing. We operate at the center of a critical market that is accelerating and changing, and we are uniquely situated to help drive the future growth for our customers and vendors.
With all of this at the core of who we are, it is clear the merger is already bearing fruit, and we've made significant progress on the commitments we had announced at the start of this transaction. We have outperformed our targets for revenue and adjusted EBITDA. In addition, we have raised our dividend by 50% and expect strong free cash flow in fiscal 2023. From a systems integration perspective, we are well underway and ahead of our schedule, and our CIO, Bonnie Smith, will share additional details on that during her presentation. We've received very positive feedback from our customers and our vendors. They are really excited by the enhanced breadth of products and services, as well as our global reach.
They also recognize that with the rapidly changing IT environment, they need a partner like us to help them navigate the realities of today and the expectations of the future. Which takes me to the IT industry. It's no secret that we're at an inflection point. Growth in IT spending is outpacing GDP growth globally, and it becomes an even stronger story when we look at some specific areas within our broad end-to-end portfolio. Today, we view the following technologies as high growth, cloud, augmented and virtual reality, hyperscale infrastructure, cybersecurity, data analytics, and the Internet of Things. Those current high-growth areas represent a market growth forecast of $827 billion to achieve a total market value of $2.7 trillion, according to IDC. We believe consumption fueled by as-a-service models are at the crux of this increased spend.
Collectively, these high-growth technologies already represented approximately $13 billion of gross revenue in 2021. Within these technology areas, we see the opportunity for TD SYNNEX to realize double-digit growth rates and operating margins that are higher than our corporate average. An important part of these high-growth technologies is hyperscale infrastructure, which we access via our Hyve Solutions business. This is a fully integrated original design manufacturer focused on hyperscale infrastructure solutions. Hyve's proven global capabilities allow us to rapidly deploy solutions anywhere in the world, so customers can be up and running the day their system arrives. With this level of agility and expertise, Hyve is well-positioned to continue to participate in the high-growth hyperscale infrastructure area. Another significant area of high growth technology is in the rapidly emerging everything as a service set of opportunities across the entire IT portfolio.
This includes everything from software to hardware to solutions, all offered as a service. The global infrastructure as a service market is expected to grow at a compounded annual growth rate of 30% by 2025, and the device as a service market will grow at 44% according to Research and Markets. This all comes at a time when we believe businesses are transitioning their technology spend from CapEx to OpEx. Against this backdrop, the technology distribution model will continue to change, and TD SYNNEX is at the forefront of this transformation. That legacy started with the traditional distribution model that has worked well for many decades in a hardware-centric spending environment.
This has been a linear process, something that I like to refer to as the pre-cloud era, in which vendors produce products, and distributors bring those products to their customers, who inevitably make those products available to their end users. However, as technology and business demands become more complex, those customers and their customers need a partner that can aggregate technology solutions by incorporating any combination of software, hardware, and services together in a single platform. Those demands have changed even more as technology continues to evolve. Now, many of the delivery models are transitioning from physical to virtual. Much of this evolution has been enabled by the cloud and has given rise to an increasingly diverse set of players in the IT ecosystem. While there continues to be a significant place for traditional linear distribution, customers are looking for a partner who provides more than technology.
They are looking for a partner who has the ability to play a big role in solving the challenges end users face. In the very near future, a new model will be needed to interconnect the increasingly diverse array of industry participants. The industry needs a robust solution orchestration platform that serves the IT ecosystem in a multidirectional motion. IDC thinks of it as a web of interdependent enterprises and relationships which create business value. In this new era of IT distribution, TD SYNNEX sits at the heart of this ecosystem, and we have been growing our capabilities to meet the emerging needs. The criticality of this new model is evident considering technology demands facing each and every business across the globe. It's a transformation or else mentality, and we have been helping to lead the way for this transformation for both our vendors and customers. Think about this.
A recent Forrester study found that more than three-quarters of CEOs think their business models will be unrecognizable within a few years. They may not know what the business model will look like, but they know that status quo will not get them there and is unacceptable, and that they must adopt the new technologies and services that are reimagining how we live, how we work, and how we transact business. Everyone in every company plays a role. No longer is IT spend coming solely from the IT department. 50% of tech spending now comes from other parts of the organization, according to IDC. As decision-makers are increasingly coming from functional areas within businesses, they require a greater level of support. Our customers are telling us they need partners to provide knowledge and skills transfer so they can focus on their own innovation.
We believe TD SYNNEX is perfectly positioned to meet those needs. Now let's turn to our 1,500+ vendors. Vendors need a global partner with significant reach to help them enter new markets, a partner with capability to help them understand buying patterns, and a partner with the capacity to make investments to support their new business models. They need a partner who enables sales and provides best-in-class IT platforms to seamlessly support new high-growing areas of their portfolio. For both our customers and vendors, the accelerating transformation they face, along with the foundational shifts in technology buying, creates an opportunity for TD SYNNEX to drive higher value for them and accelerate the adoption for new vendor technologies, providing a solutions-oriented approach that drives business results.
This new orchestration model and the increasingly broad number of ecosystem players it creates ultimately means a greater addressable market opportunity for TD SYNNEX as we execute our strategy and navigate this transition. We are exceptionally grateful to have some of our vendors and customers agree to share with you their perspectives on the current dynamics in the IT ecosystem and the role that TD SYNNEX plays in helping them to solve challenges and capitalize on opportunities.
If the last two years have taught us anything, it's how essential technology is to virtually every sector of the economy, to work, to live, to play, to do all the things that we do. In terms of the trends that we're seeing, currently it's around digital transformation, it's around security, it's around hybrid and cloud solutions. That's about strengthening their infrastructure and securing their infrastructure and their platforms and their endpoint devices.
The key mega trends we see today is, number one, is the acceleration of digital transformation. At the core of that digital transformation is the data.
Everyone is seeking deeper insights into what commercial advantages they can gain from turning that data into valuable information. There are high levels of complexity, choice, and considerable pace of change for our customers to deal with, and that is where we can help them with tailored advice and support.
Value-added resellers that TD SYNNEX and Lenovo service on a broad basis are more willing to sell services than ever before. Very similarly, managed service providers across the planet are much more willing to sell more hardware than ever before. We're seeing this convergence of business partners that are not bifurcated any longer, but are truly global IT solutions providers.
Customers are focused more on outcomes and experiences. They want to remove complexity in their business and want partners who can meet them where they are and provide choice and flexibility as their needs evolve. Small and medium-sized businesses, in particular, are accelerating the adoption of cloud and SaaS solutions, which gives them capabilities they could never have before. TD SYNNEX is a reliable, strategic, long-term partner for Cisco with a global scale. This is especially important during times of change, when partners are expanding routes to markets and transforming to deliver everything as a service.
Despite our wide and broad range of capabilities, we still need help, right? That's where we have found TD SYNNEX to be a very strong partner, to complement us in areas where we have either perhaps skill sets which have not been evolved yet in that specific area, or we have lack of capacity. We found TD SYNNEX to be able to help us, not just in proof of concepts, but also in the end when integration as well as in logistics as well.
We think of TD SYNNEX as part of the Lenovo family, and we really are channel first in our go-to-market approach. Lenovo is already a big company with massive scale, but we put gasoline on that scale by working with a major partner like TD SYNNEX, where we're able to multiply our sales resources, our coverage to the market to make sure that we service our customers and partners in the right way. Working with TD SYNNEX actually augments our time to market with our customers and partners because of their enormous reach and aptitudes in logistics all around the world.
Hewlett Packard Enterprise, and HP before that, was founded together with partners. We have been, are, and will continue to be a partner-led company. They play a super critical role, not only in reaching customers in the marketplace at scale that alone you can't, but to bring their own expertise and capabilities together with that innovation to solve customer problems in ways others can't.
TD SYNNEX provides the innovation, scale, and global reach to help our partners ultimately succeed and deliver the business outcomes that customers need today.
It was great hearing from our customers and vendors. Our coworkers are at the foundation of how we support their needs, including our strong team of highly experienced leaders. You will hear from many of them today, starting with Sergio Farache, our Chief Strategy Officer. Sergio will share with you the evolution of our platform as a solutions aggregator to ultimately become an orchestrator of the IT business partner ecosystem, including greater detail about the expanded addressable market that this evolution will present. In addition, he will highlight our global strategy that includes commitments to four elements. First, invest in high-growth technology areas. Second, further strengthen our end-to-end portfolio of products and services. Third, transform TD SYNNEX digitally. Fourth, expand our global footprint.
After Sergio, Michael Urban, President, Americas, and Patrick Zammit, President, Europe and Asia Pacific, Japan, will share go-to-market strategies for their respective regions, as well as selected global topics. Specifically, Michael will cover integration updates and provide a global update on our core growth strategies, as well as talk about operational excellence. While Patrick will share a global point of view on high growth and how we are leveraging digital to drive our strategy. After that, Bonnie Smith, our CIO, will talk more about our transformation and the investments we're making in our IT platforms to meet the needs of the industry's next chapter. Together, all of us at TD SYNNEX are committed to our stakeholders, our customers, our vendors, our shareholders, as well as the environment and the communities that we live in.
When we came together as a company on September 1st, we recognized not only the vital role that we play in helping to transform the technology landscape, but also equally important, our responsibility to have a positive impact on the world. I'm pleased that we have released our global responsibility commitments, including our environmental, social, and governance goals for the long term. Later today, we'll bring together a panel of leaders sharing the details of our ESG commitments. To close today, we'll hear from Marshall Witt, our CFO. Our financial performance is off to a very strong start as combined TD SYNNEX. Marshall will elaborate on the financial impact of the growth drivers that I've just discussed.
Within this context, we expect to deliver over the medium-term revenue growth of 6%-7% at a compound annual growth rate, total shareholder return of 15%-20%, and operating margin to grow over the medium term to reach approximately 3%. Marshall will speak more to these and other financial metrics today. Before I turn it over to Sergio, let me leave you with five key thoughts. First, TD SYNNEX is well-positioned in the center of a rapidly growing IT business partner ecosystem to deliver for today and deliver for tomorrow. Second, we have unparalleled end-to-end offerings across core and high-growth technologies that are made available across the entire ecosystem. Third, we have strong global operations supported by an industry-leading management team with proven capabilities. Fourth, we have the right strategy to build for the future.
We are generating strong returns in the present, and we are simultaneously investing in our business transformation to deliver on opportunities like solution aggregation and orchestration. Fifth, we are already demonstrating strong financial performance with a healthy balance sheet, and we are poised to drive enhanced shareholder returns moving forward as we continue to deliver value to our customers and vendors. To close, I'd like to talk about our vision. Our vision is to connect the global IT ecosystem and unlock its potential for all. Today, we look forward to showing you precisely how we plan to do that. Now, I'll turn it over to Sergio.
Thank you, Rich. Hello, I am Sergio Farache, Chief Strategy Officer. Over four decades, TD SYNNEX has grown a vibrant business that has successfully evolved in a dynamic marketplace. In this presentation, I will share details on how our strategy capitalizes on a track record of growth and transformation to deliver high value, starting with our business model, the four components that support execution, and how this strategy unlocks potential for the partner technology ecosystem. In the IT distribution business, TD SYNNEX sit at the center. Our business continue expanding with new lines of business, new type of partners, and new geographies. We have an in-depth understanding of the two-tier model, where we support our vendors and resellers to bring their portfolio to market, adding value in the process.
At TD SYNNEX, we have a strong position in the technology distribution market, and we continue to evolve our business model, helping to lead the transformation of our industry. At the center of our strategy is an aggregation and orchestration platform model. There are two important definitions to provide here. First is solution aggregator. We define the role of the solution aggregator as a producer and a facilitator of solutions for the technology partner ecosystem. As a solution aggregator, TD SYNNEX develops and integrates components and delivers them to customers. Some examples include hyperconverged, like a FlexPod, which is a combination of servers, storage, and software. Click to Run solutions like backup with infrastructure or software as a service, and run-to-deploy like IoT parking solutions. These examples leverage our as-a-service capabilities for device and infrastructure.
At the same time, we bring tools, processes, and platforms together that help the partner technology ecosystem create, deliver, and manage their own offerings. This reduces costs, accelerates time to market, and minimizes technology skill gaps. The second definition is solution orchestration. We're transforming our role from solution producer to solution enabler. In this role, TD SYNNEX connects the IT ecosystem, and that ecosystem is expanding. We serve the companies represented on the bottom half of the slide. Our solution aggregation and orchestration strategy are additive and expand the ecosystem to include companies represented by the top- half of the slide. Orchestration empowers partners to become producers who create solutions. In turn, we connect a dynamic marketplace where these solutions are available to more consumers in all geographies. In short, our vision and strategy are totally aligned.
We simplify the ability to build unique technology solutions and amplify the access to producers across a dynamic global marketplace. Our IT ecosystem partners are looking at the same horizon and see a value in moving toward this orchestration model.
The new world of digital transformation, where customers are focusing on outcomes and simplicity, the role of the distributors is moving to a completely new play. They are more important than ever. Distributors must bring together different pieces of a solution, support partners with technical expertise, and deliver the right experience for the customer. This is even more important for small and medium-sized businesses who rely fully on partners and distributors for everything from technology selections to managed and subscription-based offers. Distributors today have become adoption experts with insights into renewals and lifetime value focused on ensuring real customer success.
The world and how we work is rapidly changing, and the opportunities for Microsoft and our partners in this new world is extremely significant. We really see more than $6.8 trillion in digital transformation opportunity by 2023, and that's according to IDC. With that as a backdrop, we have this massive need, this urgent need for a set of capability in the ecosystem that aggregates all of our solutions, aggregates all of our ecosystem and partners together, taking what's best of an ISV or an IHV, connecting that to what's best of an MSP and pulling it together. A great example of this is how TD SYNNEX launched the solution factories to simplify this multi-vendor opportunity, leveraging the Microsoft cloud.
We're really looking at developing true outcome-based solutions that we can bring to our customers. These are outcome-based solutions around retail, around smart manufacturing, around smart healthcare. One of the beautiful things about TD SYNNEX in working under our global-c hannel 360 framework is they can help us bring these repeatable solutions to market in massive scale. That's something that Lenovo couldn't otherwise do unless we had technically capable partners like TD SYNNEX to blast something like that all across the planet. They're not just a PC distributor, but they really can talk about PC needs, infrastructure needs, storage, solutions, cloud. Think about device as a service, infrastructure as a service. All of these takes enormous amount of weight and work off of our customers so that they can focus on driving their business, and we focus on the complicated aspects of IT.
I think solution aggregation is a critical need and a competitive differentiator as it provides the capabilities to expand value for customers to solve today's business challenges. The currency is now differentiation. It really is. In other words, how you align with these skills and capabilities is what will set you apart from the competition. In the era of cloud transformation, collaboration amplifies innovation and accelerates time to market. In today's environment, time, as we all know, is of the essence. TD SYNNEX excels in that capacity by helping partners build the right capabilities to discover their differentiated value, along with developing the right skills to support customers today. This is one of the many reasons why we see significant value in our partnership with TD SYNNEX.
For technology vendors, our customers, and our own business, this is an evolution. This strategic evolution is happening in two phases. First, build and facilitate solutions. Today, we simplify access to different use cases and offerings with our combined portfolio. We make a wide range of digital platform tools and processes available that enable our partners to access, build, deploy, and deliver solutions. For example, an independent software vendor creates a remote healthcare diagnosis solution that include a mobile device, like a tablet, cloud services, like a software and applications, and delivering services through a single digital platform hosted by TD SYNNEX. The second phase is true solution orchestration. Extending on the previous example on TD SYNNEX orchestration platform, the remote healthcare solution gains exposure to multiple partners and geographies.
We make it possible for our partners to deliver their products and services to end customers, expanding their reach, their value, and influence. This is possible because our extensive reach and central position in the technology ecosystem, as well as our deep knowledge and experience in this broad and expanding industry. We believe TD SYNNEX is the best position to lead a solution aggregation and orchestration business model for several key reasons. First, we have a solid balance sheet with the ability to invest. With more than 1,500 technology vendors and 150,000 partners, we have the necessary critical mass to implement an orchestration platform. More than 70% of our end-to-end customer journey transact digitally. TD SYNNEX has wealth of data to identify trends and relationships between partners across the technology ecosystem. We even offer market intelligence as a service to help partners.
Our as-a-service experience and capabilities support the transition from transactional engagements to life cycle management. Our service orchestration model continues growing and expanding, and TD SYNNEX has expert resources with proven execution. The traditional technology distribution market of the last 30 years has been a robust and sustainable foundation. Now, our end-to-end portfolio, especially the high-growth technology areas, requires an aggregation and orchestration business model to deliver the full potential of digital transformation. Solutions are a combination of physical and virtual elements offered in an assortment of transactional, subscription, and consumption models. This requires a platform that connects producers and consumers, automates the interactions, and reduces the operational complexity.
As we look toward the future with our combined global capabilities as TD SYNNEX, we believe the solution orchestration business model can expand our addressable market, and we anticipate future monetization opportunities on the platform by capitalizing on interaction between producers and consumers. In summary, each step in this journey expand our ability to orchestrate more interactions in the technology ecosystem and monetize a larger addressable market. We will continue to invest in and support our aggregation and orchestration strategy in four ways. First, invest in high-growth areas. In addition to our solid core business, we are accelerating investments around high-growth technologies that our partners are pioneering, including augmented and virtual reality, data analytics, artificial intelligence, and IoT, hybrid cloud, hyperscale infrastructure, mobility, intelligent edge, security, and services. Together, these areas represent a combined $827 billion growth market opportunity according to IDC.
This number includes geographic markets where TD SYNNEX is not present. However, our fiscal year 2021 business in these technologies represents $13 billion in gross revenue. We believe these areas can grow at low- to mid-double-digit compound annual growth rate in the medium term. This is based on existing market growth data and internal estimates. We have achieved great outcomes over the last few years and intend to capitalize on that momentum. Recurrent revenue is an important factor for guiding high-growth areas. That already represents multibillion dollars in global revenue. Today, TD SYNNEX serves more than 31,000 active partners in these technology areas with 1,800 dedicated resources, more than 2,500 coworker certifications, and a go-to-market model that spans the globe. The second is our end-to-end portfolio. That is a unique differentiator and a critical enabler for TD SYNNEX as a leader in the solution aggregation and orchestration model.
Let's take a look at our portfolio. Our edge and endpoint solutions consist of PCs, mobile, print, consumer electronics, AR/VR, endpoint security, wearables, and endpoint software. Edge and endpoint make up 45%-50% of sales. Advanced Solutions represent infrastructure, hybrid cloud, data, security, networking, and software. Advanced Solutions make up 35%-40% of sales. The specialized areas and services represent components, lifecycle, CAD, implementation consultancy, professional services, audio visual, education, and hyperscaler infrastructure. Specialized areas and services make up 15%-20% of sales. Across our portfolio, we are creating, operating, and delivering solutions that provide more value than individual products and services. Our investment in certification and industry specialization enables horizontal and vertical solutions. In the upcoming presentation from our regional presidents, you will hear more from Michael Urban and Patrick Zammit about our global capabilities and local execution for core and high-growth technologies.
The third component of our strategy is transforming TD SYNNEX digital. Digital transformation is an imperative for every business. This fact creates opportunities for the entire technology ecosystem to enable transformation success at the speed of business. We are expanding omni-channel capabilities and enhancing every step of the customer journey, increasing engagement all along the way. Building digital journeys means leveraging quality data to make quality experience. The compliant and effective use of data increases our ability to identify trends, maximize cross and up-sell opportunities, and drive more effective persona marketing engagements. We have invested in global platforms to host end-to-end digital journeys for technology partners to find, create, operate, deliver, and manage technology products, solutions, and services. Bonnie Smith will share more about our approach to digital transformation within TD SYNNEX later in today's agenda.
The fourth component of our strategy is to expand our global footprint and enhance our capabilities across all geographies. Today, we create value across the globe with our solutions and operational excellence that Michael Urban, President of TD SYNNEX Americas, will address in his presentation. Our expansion strategy focus on global coverage, solidifying our position in high-growth technology areas, and accelerating our solutions and services capabilities. Expanding our partner ecosystem and geographic capabilities represent notable growth opportunities. This is especially true for APJ and Latin America, where our distribution technology addressable market, DTAM, has the greatest space for growth. The upcoming regional presentations will offer perspective on how we go to market and position our business region by region. Our strategy is aligned to the TD SYNNEX purpose and vision.
We exist to enable global partners to achieve great outcomes with technology by simplifying the ability to build unique solutions, connecting and amplifying access to producers across a dynamic global marketplace. What does this strategy add up to? Let me leave you with some simple takeaways. TD SYNNEX vibrant business create opportunities to capitalize on additional growth. We believe TD SYNNEX will increase revenue in high-growth technology areas in the medium term at a compound annual growth rate in the low to mid-double digits, evolving to a solution orchestration business model, expand the partner ecosystem, and we believe it can expand our addressable market. TD SYNNEX has the digital advantage to simplify the IT ecosystem. We are committed to the continued expansion of our global capabilities and reach.
Thank you for the opportunity to share our vision for the future of TD SYNNEX, and to share how we are positioned to unlock the technology ecosystem. Now you will hear from Michael Urban, President of TD SYNNEX Americas region, on our mission, the progress of our integration efforts, and how operational excellence is fueling our core growth initiatives. Thank you.
Hello, I'm Michael Urban, President of TD SYNNEX Americas. In this presentation, I will share details about our Americas business and how we execute in alignment with our global strategy and vision. I will also provide updates on our integration work, global core growth, and operational excellence initiatives. I'd like to begin with excellence. At TD SYNNEX, excellence is a part of our DNA. The experience we deliver and the outcomes we achieve come down to one thing, our coworkers. When we say our coworkers are the biggest assets, we mean it. The entrepreneurial spirit, focus on execution, and commitment to building relationships throughout IT ecosystems makes us stand out everywhere we do business. We know building and retaining a strong, engaged team is critical for continued business success and transformation. TD SYNNEX has global educational programs for leadership, DEI, career development, and training and recognition.
Our teams perform to a standard of excellence, operating with responsiveness, flexibility, and integrity, and it's on the foundation we'll grow. The foundation of our Americas business is simplifying complexity for customers and vendors. We are delivering value through an end-to-end portfolio of technology solutions and global capabilities tailored to local go-to markets. The Americas has two distinct sub-regions, North America, Latin America, and the Caribbean. I will call it LAC in this presentation. The sub-regions have important differences and implications for how we run the business. Our North American business is focused on the U.S. and Canada. We are the number one North American IT distributor according to IDC. TD SYNNEX offers a complete portfolio of end-to-end technology solutions and services, but we have room to grow as our technology vendor partnerships expand. We serve more than 40 countries and territories in the LAC sub-region.
We focus on delivering Advanced Solutions like hybrid cloud, networking, security, and software. The LAC management team is experienced in delivering these solutions to the marketplace. We are responsive to customer needs and effective at driving adoption. This approach has earned us a leading position in the LAC region in advanced technology solutions. The differences between North America and LAC play to our strength as a global company with local expertise and delivery. Across the Americas region and beyond, TD SYNNEX is dedicated to the success of our IT ecosystem partners. We have been especially focused on their success since day one of the integration. As Rich mentioned, a significant part of this work is happening in the Americas, and we have made progress in several key areas. First, our Americas leadership team is in place and collaborating well to support vendors and customers.
Second, together, we made decisions on core systems. The most important is the digital IT platform of choice for the Americas, CIS, a legacy SYNNEX platform. This decision was a high priority because it put us on the path to standardize critical business process and focus investment on a single platform. Our IT business partners are committed to quick, achievable, minimal disruption steps in this work. You will hear more about integration projects from Bonnie Smith, CIO, later in the agenda. We have many post-merger successes to report, and I'm proud of positive feedback from customers and vendors in the Americas about their experience with TD SYNNEX to date. Our customer and vendor partners form the very center of solution aggregation and orchestration strategy.
To deliver even more positive experiences for our IT ecosystem partners, our Americas growth strategy is focused in two areas: our portfolio and our customer success, both of which fuel a business today and for the future. First, our portfolio in the Americas, we deliver the complete portfolio to customers. Edge to endpoint solutions, Advanced Solutions, services, and specialized areas. To capture growth, we are focused on vendor retention and portfolio expansion. Our portfolio includes exclusive and non-exclusive distribution relationships with established and emerging vendors. The breadth of our vendor line card and the pace we are adding new high-growth vendors makes TD SYNNEX a preferred IT ecosystem partner in the Americas. Localized growth initiatives. We are well established in the region and have identified opportunities for targeted country-by-country growth, notably in LAC, where our footprint varies. Positive revenue synergies.
Data insights help us activate cross-sell and upsell motions and maintain a mindful business mix to help customers and vendor growth. Services. We add value to our end-to-end portfolio with TD SYNNEX services for our customers. To support portfolio growth initiatives, we continue to invest in ongoing technology education. In the Americas today, we have more than 1,000 specialty resources, and our coworkers have earned 1,400 technology certifications. The expert knowledge and the capabilities add higher value to the compelling technology solutions and services we offer now. We continue to invest in developing coworkers and their skills for the IT ecosystems of the future. Our vendors invest in TD SYNNEX too. Established and emerging vendors are deeply engaged in our bespoke customer communities through participation and sponsorship. Vendor sponsorship for our communities programs increased 20% year-over-year.
This is exciting because it allows us to drive even more value for all our partners. Next is customer success. The IT partner ecosystem gives TD SYNNEX an opportunity to serve four distinct types of technology resellers. In the Americas, we define the segment as SMB, corporate, public sector, and retail. Our SMB customers provide an IT solution for local and regional users. For example, a Phoenix-based reseller specializing in endpoint, print management, and managed services for commercial end users. SMB customers are a big opportunity for us in the Americas. In the U.S. alone, SMB partners have the opportunity to serve more than 30 million commercial end users, according to Small Business Administration. Serving SMB customers and the commercial end customer markets requires transformation and investment across the entire digital journey. Transforming TD SYNNEX digitally is central to our strategy, as you heard from Sergio. Corporate.
Our corporate partners support a broad range of IT solutions and services at a regional, national, and global level. For example, a corporate customer providing networking and security solutions to end users in the healthcare space. We offer specialized programs for the healthcare industry. Take HealthPath, participate in customer-developed vertical practices with our Practice Builder program. HealthPath accelerates customers' ability to deliver healthcare offerings. We provide education on regulation and technology for specialized environments. HealthPath helps customers differentiate their business and serve a growing industry. Public sector customers support a broad range of IT solutions and services for federal, state, and local government agencies, K-12 schools, colleges, and universities. In the U.S., our public sector business has been awarded over 80 government technology procurement contracts. Our customers have dedicated channel services in six technology domains specific to the public sector. Retail.
Our retail customers provide IT and consumer electronic products to the business to consumer and business to business markets through physical stores, omni-channel, and e-commerce. We collaborate with customers to aggregate technology solutions that advance digital and data-driven business models to meet today's consumer expectations. Two examples are retail supply chain. Our retail technology solutions give customers improved insights by integrating back-end and transactional systems to reduce operational costs, monitor for compliance, manage inventory, and prevent loss. Retail consumer engagement. TD SYNNEX retail customers want to enrich consumer experiences with personalization, location, and way finding. Our offerings bring together Wi-Fi, visual edge displays, content management systems, and cloud services to accomplish this. There's growth happening in all these segments. In addition to industry programs and specialized solutions, we leverage global data to build solutions that fuel core growth.
For our partners and their end customers to achieve great outcomes with technology, a lot of knowledge needs to be shared. The TD SYNNEX community program serves this purpose. Over decades, we have built strong partnerships with our customers. These relationships evolved into business to business focus programs that enrich connections across the IT partner ecosystem. We have three active customer communities, Varnex, TechSelect, and Stellr. Across all three Americas communities, we have more than 1,000 customer members and growing. Community membership also means long-term partnership. For example, with our SMB community, many of our members have been customers 15 years and longer. Because of our breadth of capabilities, TD SYNNEX can offer many resources to community members. The result is even smaller customers can deliver complex end-to-end solutions.
Community members give us meaningful insights to shape the future of our business and the value we add as we become a global solution orchestrator. Long-term relationships with customers trace their roots to the strengths of our core business. These core technologies are commercial audio visual, data center, networking, mobility and telecommunications, PC configuration, power, print, security, and storage. There is opportunity for TD SYNNEX to connect customers with even more from the lines we carry today. A great example of data-driven core growth efforts is our coworkers in Europe who created a specialty for hybrid work and learning. Our team used data insights to build differentiated solutions for end users. With our IT ecosystem partners, TD SYNNEX designed product and service combinations for high-end data consumers like engineers and young classroom learners.
We saw a 27% increase in multi-ecosystem solution sales and positive revenue synergy growth on the back of our campaigns. In addition to core growth opportunities like these, we are well-positioned to introduce customers to solutions and consumption models of tomorrow. We also bring a unique set of skills to the market through our engagement with hyperscale data center operators via Hyve. On top of these differentiated offerings, we deliver high-value services to help customers unlock the potential in their own businesses. Closing the technology skills gap is critical. Our technology enrichment offerings give customer access to a large relevant portfolio of training and vendor certifications. Consulting and market insights give IT ecosystem partners knowledge and subject matter expertise to unlock potential growth.
As a service to vendors and customers, we leverage extensive amounts of data to develop personalized resources for account planning, marketing, and cross-sell, up-sell opportunities within our database of customers and end users. The solution integration capabilities we offer absorb complexity for customers with programs and services that reduce time to markets, lower cost, and increase profitability. Our business services go beyond technology. From demand generation and engineering to financial services and transaction platforms. We help customers grow, scale, and achieve operational excellence in their own businesses. Operational excellence is a core attribute of the TD SYNNEX value proposition. Globally, we drive growth in our business as we centralize, standardize, automate, and digitize. Integration of our global projects are combining best practices to increase our efficiencies. For example, Shared Service Centers of Excellence centralize back office operations and support functions to increase efficiency, help retain knowledge, and standardize practices.
These Centers of Excellence are placed to take advantage of the time zones in locations like Mexico, India, Spain, Malaysia, and China. Additionally, we are realizing return on investments on robotic process automation investments. We have more than 1,000 bots handling repetitive workflows with greater efficiency. This frees up coworkers to focus on more strategic, high-value projects. There's a lot of exciting work underway at TD SYNNEX, from bringing together two great companies and expanding opportunities in our core business, to growing our footprint and capabilities across the Americas. What I hope you remember about TD SYNNEX Americas is, first, we have a track record of exceptional performance and successful transformation. Second, we have deep, highly- engaged relationships with our customer and vendor partners across the IT ecosystem. Third, our portfolio is broad and still expanding.
We continue to invest in new partnerships, technology skills, solutions, and services from endpoint to the data center. We have a solid growth strategy and execution. Fourth, operational excellence is in our DNA. We continue to invest in digital transformation. Five, we invest in talent and technology in parallel. Our core business and high-growth technology strategy rests on the foundation of a strong team and culture. For all these reasons, we have room to grow and outpace the market across the entire Americas region. Now, I'd like to turn it over to the leader of our strong team in Europe and Asia-Pacific Japan, Patrick Zammit.
Hello, everyone. My name is Patrick Zammit, and I'm President of the Europe and the Asia-Pacific, Japan regions at TD SYNNEX. As Michael has done for the Americas, in the next few minutes, I will take you through a brief overview of our businesses in these two regions. This will include comments on how we are executing our global strategy and on some of the attributes that help us stand out in the marketplace. Following the regional overviews, I will subsequently give you some insight into the ways we are executing on our high-growth technology strategy at a global level. Starting with the two regions I'm responsible for. Both Europe and Asia-Pacific and Japan, which we refer to as APJ, cover a broad and diverse range of geographies, cultures, and markets. Also, both regions are under my responsibility.
They are managed through dedicated regional leadership teams who bring proximity, focus, and most important, deep market knowledge in both regions. Before I go on, a quick comment on branding. As you may be aware, while the corporation and its Americas and Japan businesses are known as TD SYNNEX, in Europe and the rest of APJ, we are currently still known as Tech Data with the suffix "A TD SYNNEX Company." We plan to transition to the TD SYNNEX naming and brand identity later this calendar year. This is reflective of the fact that the former SYNNEX did not have a geographic presence in Europe, while in APJ they were only present in Japan. Consequently, in Europe and APJ, we are not directly- impacted by the integration process mentioned just now by Michael.
While our ultimate goal is to unify our brand identity, we decided to take an interim approach in order to gradually build market awareness of the TD SYNNEX brand before we fully transition later this year. Now, looking specifically at Europe, our pan-regional presence is comprised of 24 countries, including the major markets of Western Europe, Nordics, Southern, and Eastern Europe. The markets are relatively- separate in nature, and our business is driven by strong local leadership teams in each country. Our team of approximately 7,000 coworkers serves more than 65,000 customers, from large international corporates through to an ever-growing base of small and medium-sized customers. Our business in the region has grown organically and through several acquisitions over the past 30 years to create a leading end-to-end IT distributor and solutions aggregator in Europe.
In most of our countries, we are a leader in terms of distribution, with revenues for 2021 of $25 billion. In Asia, Pacific, and Japan, we are present in 12 countries, and our business is supported by more than 2,100 coworkers in the region. As with Europe, our footprint covers a somewhat fragmented and highly diverse set of cultures and markets, including Australia, New Zealand, India, Singapore, Hong Kong, Malaysia, Indonesia, to name a few. As Sergio has mentioned, APJ offers a fertile ground for business growth. We serve around 23,000 customers with revenue for 2021 of $2.9 billion.
While our footprint in the region will most likely remain stable, we do expect to significantly grow our capabilities, customer base, and our vendor portfolio while applying some of the core differentiating attributes that make our businesses successful in both Europe and Americas. When we look to the ways we differentiate and execute our strategy in the market, it's important to note our focus on customer experience. We want to create the best possible experience for our partners, simplifying the complex, connecting them with opportunities in core and growth technologies, and enabling them to grow their businesses profitably. These are some of the attributes that help us to do that. Firstly, depth of portfolio and geographic reach.
As you have seen, in Europe particularly, we have built substantial capabilities to serve across all key markets in the region, and we look to build on this approach as we grow our business in APJ. Geographic reach and portfolio depth is critical for a distributor and solutions aggregator like TD SYNNEX. In fact, it allows us to affordably bring the benefits of our investments and enhance capabilities to all customers and vendors across the region. By the way, something that can be more difficult for smaller, local, or niche players. We have a build once execute everywhere philosophy that we apply to investments in skills, tools, and platforms, while also localizing our go-to market in order to address specific country market needs with agility to optimize costs. One impact of this approach can be seen through the prism of our growth plans for the customer base.
In general, we have solid coverage of key customer types across corporate, large, and small and medium-sized segments. We do see a significant opportunity to expand our base of smaller B2B customers. Reaching these smaller customers is strategically very important for our vendors, as it's something that they cannot do alone. Furthermore, it is a source of profitable growth for TD SYNNEX as small and medium-sized partners usually bring higher margins. To grow this small and medium-sized customer base, we are leveraging a data-driven omni-channel approach with a high degree of automation to activate a large and fragmented SMB audience that we could not reach via conventional sales activities. Our breadth of capabilities has enabled us to develop and implement this approach across the European region, and we are now seeing great results with an average of more than 30% sales growth among target customers in all markets.
Like our business in Americas, we bring a deep and broad end-to-end offering of products, services, and solutions to the market. Our differentiating portfolio philosophy can be summarized as leading with the leaders from endpoint to the data center. With our key strategic vendors, we drive a pan-regional approach, creating consistency in relationship and execution. We are proud that the most innovative, recognized, and successful technology brands in the world continue to look to us to extend the reach of their solution and accelerate technology adoption in the broad market. We help them in addressing new markets, customer types, verticals, and we are active in driving end customer demand, both among businesses and consumers. Our aim is to build critical mass across all technology segments, both in core and growth areas. Of course, our approach to doing this can vary across the two regions under my leadership.
In Europe, we bring deep relationships in all key technologies, and where we see growth opportunities, we leverage the strength of our global business where it makes sense. For example, in the area of security solutions, where we see an opportunity to grow substantially in Europe. Meanwhile, in APJ, we have an established legacy of strength in Advanced Solutions, and now we are focused on accelerating our portfolio of endpoint solutions across the region. The mix of breadth of capabilities and end-to-end portfolio is further complemented by our focus on specialization, tools, platforms, and sales plays, and operational excellence. Our go-to market is built on the regionally consistent specialist business unit approach, with leaders empowered to entrepreneurially drive growth in their segments. Our platforms offer a method for partners to research, quote, and transact, whether on hardware, everything as a service or cloud, and software subscriptions and consumption.
Our streamlined operations covering the logistics network, IT environment, and shared service centers offer an excellent platform for us to execute on the global strategy of TD SYNNEX. To wrap up this view of the Europe and APJ regions. In Europe, we are market leader with the necessary breadth of capabilities across all key segments and with promising growth prospects thanks to our strong core business and growth technology presence. We see an opportunity to accelerate across all technologies, leveraging the global strength of TD SYNNEX, for example, in the key growth area of security. We will continue to focus on growing our partner base, particularly the small and medium-sized businesses, a key priority for our vendors and a source of profitable growth for our business. We will do this by leveraging our data-driven omnichannel approach.
In APJ, we bring a strong Advanced Solutions legacy, and we will drive further growth by expanding our portfolio to include endpoint solutions-focused vendors. As with Europe, we will work with our strategic vendor partners across the region, building a consistent approach to building market share growth, and we will do this within the framework of a stable geographic footprint with fertile ground to grow the business. As all our presenters and guests demonstrate, I believe that it is a very exciting time for our industry. Both our APJ and Europe businesses are well prepared to deliver on the growth opportunity for our customers, vendors, and you, our investors. Now we will widen the perspective once again to look at our global business, and I will take you on a deeper dive on how we are addressing the emerging growth technology areas globally.
First, let's look at what these technologies are. I'm sure that several of the categories are familiar. These are the headline-grabbing areas of technology innovation that are accelerators to the future, harnessing the potential of data and innovation to help industries, businesses, public services, and individuals make exponential advances in efficiency, connectivity, and safety while transforming the way we interact and consume. It's a very exciting and inspiring time. Why have we selected these technology segments specifically? As the market sizes and growth rates show, there is clearly a huge opportunity to take advantage of a significant growth trend across all the categories, including hyperscale infrastructure via our capabilities with Hyve. On top of that, while these technology segments are relatively new, they have reached a certain market maturity. This means that the time is right for vendors to look to accelerate their reach beyond the direct model.
We've seen this pattern repeat over the last 30 or 40 years when new technology innovations are introduced to the world. Distribution comes into its own when demand and adoption for new technologies reach a tipping point and vendors need an efficient and effective way to extend their reach beyond larger or direct customers that they initially work with. When that happens, distributors can enable exponential growth given our ability to expand across thousands of customers and potentially millions of end users. That provides a view on the reason for a specific strategic focus on these exciting high-growth technologies. As our vision statement puts it, we empower partners to achieve great outcomes with technology. I will now spend a few minutes describing just how we do that. Earlier, you heard me mention our omnichannel strategy. The approach can be defined as always-on intelligent customer engagement.
This refers to the way TD SYNNEX is harnessing data analytics and leveraging the combination of automation and digital platforms alongside traditional sales techniques to optimize our sales and digital marketing delivery and expand our customer base. This is all fueled and enabled by our own uniquely extensive data lake and advanced analytics capabilities that we leverage to realign the segmentation of our customer base more closely to the needs of the market. Second, to place our customers in a structured life cycle model reflecting their current engagement level with TD SYNNEX. Last, to drive increased personalization in terms of identifying the right stakeholders, messaging or communication vehicles for each customer.
When it comes to the channels through which we deliver on these insights and levers. We combine the more conventional or traditional engagement methods that are built on our status as a specialist trusted business advisor, face-to-face, written or verbal communication, along with digital engagement models, enabling us to map sales journeys and digital marketing activities that meet our customers where they are, and therefore offer an enhanced experience when compared with other players in the market. In the case of high-growth technologies, this approach can help us in a number of ways. It enables us to reach more end customers' decision-makers outside of conventional IT purchasing roles, who, as we have heard, are increasingly influential in the adoption of new technologies. It also helps us to engage with a new generation of partners, such as those born in the cloud or digital agencies.
Earlier, I mentioned the importance of specialization as a differentiating attribute for TD SYNNEX. This is especially critical for growth technologies where expertise can be in short supply. We support our chosen strategic segments by investing in the creation of Specialist Solutions practices staffed by industry experts and bolstered by our strategic relationships with leading vendors. We position ourselves as a trusted and credible support for our customers, particularly through the addition of a customized range of value-added services. These vary according to the specialist segment, but can include technology education and certification or specialist support for business challenges such as cloud migration. Our Specialist Solutions practices that are driven by focused and entrepreneurial leadership teams connect customers with the right products and solutions from our portfolio and help to bridge the knowledge gap with the technical and market insights they need to develop and deploy innovative high-growth technology solutions.
Another key part of our growth technology strategy relates to recruiting the right blend of leading vendors and also targeting the expansion of our customer base with a particular focus on new customer types. IDC predicts that by 2024, 1/3 of customers will need to come from outside a vendor's traditional base. As we have done in the past, we believe we will be positioned to bring those new customers into our ecosystem. We view our vendor and customer recruitment efforts in terms of a kind of virtuous cycle, where building the right lineup of leading growth technology vendors increases our ability to reach out to new partner types, who in turn act as an incentive for more vendors to work with us.
In terms of enablement for new and existing customers, our Practice Builder methodology provides a path for them to develop their own Specialist Solutions practices, helping them to assess their business readiness, reinforce specialist knowledge, and plan and execute on the steps needed to achieve rapid progress within high-growth segments. IDC has stated that by 2025, at least 30% of new business technology spending will be based on multi-vendor solutions enabled by digital aggregation platforms. TD SYNNEX StreamOne Ion and Stellr platforms and technology-as-a-service platforms provide a consolidated digital hub for customers to deliver consumption models and solution procurement to end- users. As of today, in our cloud platforms, there are more than 25,000 active cloud partners, while our tech-as-a-service platform that enables a subscription model for hardware currently has 2,000 customers active, a figure that we expect to grow quickly in the coming quarters.
These platforms complement our core e-commerce platforms that support thousands of product searches, transactions, and software subscriptions every day. Earlier on, Sergio outlined our approach to solutions aggregation. As he described, our customers and end users' businesses need support to connect products from across the technology continuum in order to address and deliver specific business outcomes across a range of verticals. The solutions factory methodology is our blueprint for leveraging our end-to-end portfolio to build comprehensive, repeatable solutions that combine hardware, software, and cloud licenses through the delivery platforms I have just described. Our in-house solutions architects, who sit in our specialist business units, work in close collaboration with our vendors and customers in order to build what has become a robust catalog of solutions, leveraging our capacity in high-growth technologies. The solutions in our catalog range from cloud-based Click to Run examples to fully- integrated and converged consumption-based solutions.
To quote a couple of examples, we have recently deployed a hybrid cloud disaster recovery solution for the U.K. National Health Service. We also supported a customer delivering Microsoft Modern Workplace Secure Score to an end user real estate business that was transitioning its focus to capital management. Of course, with 4,000 solutions sold, there are many more real-world examples we could share from a wide range of vertical industries. To conclude this global overview of our approach to high growth technologies, I hope you can sense the excitement, the focus, and the robust commitment to establishing a leading position in high growth technologies that we all share at TD SYNNEX. The potential prize is huge, and distribution has a huge role to play as these technologies reach maturity.
Our reinvigorated value proposition puts us in a great position to establish our business at the forefront of digital transformation and to truly deliver on our vision to empower partners to achieve great outcomes with technology. To summarize, I would like to leave you with some key takeaways. We provide an unsurpassed, broad and end-to-end portfolio of products and services across the Europe and APJ regions. We have a unique ability to make investments that will enable enhanced capabilities for our customers and vendors. Finally, our solutions aggregation approach provides the opportunity to accelerate our growth across multiple technologies like cloud, security, and data analytics. Thank you. Now I would like to introduce Bonnie Smith, Chief Information Officer at TD SYNNEX.
Hello, I'm Bonnie Smith, Chief Information Officer of TD SYNNEX. I lead our IT department that operates globally. You've heard about our prospects for growing TD SYNNEX from Rich, Sergio, Michael, and Patrick. I will share how IT enables that growth in the context of four primary topics, operational excellence, integration, core operations, and investments in high growth technology areas. First, allow me to highlight our operational excellence. In IT, we are hyper-focused on operational excellence and driving efficient operations on a global scale. We do so by investing in technology stacks that empower our coworkers around the world. Both legacy SYNNEX and legacy Tech Data had efficient IT operations, which has put us in the enviable position of bringing together two highly effective IT portfolios. We're a knowledgeable team focused on enabling each area of the business to work smarter and faster.
Every year, we process more than 20 million customer orders, followed by vendor purchase orders, delivery advices, and invoices. Our cloud business alone processes billions of meter transactions every month, and growing. We're supporting an enterprise at scale and doing so with great success. As the IT team within an IT distributor, our primary goal is to maximize the efficiency and therefore value that we offer to our customers and vendors, our business partners. We invest in technology enhancements and innovative solutions that increase our team's productivity. Through our optimization programs and regular system upgrades, we have touched and automated many key parts of our business end to end. While we take a rigorous approach to IT planning, implementation, and investment, we still understand the deep felt need for flexibility and agility.
We partner with an IT- savvy set of coworkers across the business to find IT solutions to their business problems and challenges. Our focus is to help our coworkers bring value to our business partners. Ultimately, the work that we do in IT drives operational excellence on a global scale and positions the company to generate excellent cash flow. Think of it this way: TD SYNNEX enables digital transformation for our partners. IT enables digital transformation for TD SYNNEX. Next, let's highlight our support of our core offering through our upcoming IT systems integration. First, let's address some questions that you may have about the bringing together of these two significant Americas enterprises and the required business and systems integration. Integrations are hard, and we all know that. In the end, it comes down to the team.
Let me assure you that we have a highly- experienced global IT leadership team steeped in integration experience. Personally, I bring over 30 years of IT experience across industries and geographies to this role. In fact, the team of top- 13 IT leaders have each successfully managed, on average, more than 10 major integrations during their own careers. As a group, we have an average of 20 years of experience, many of us closer to 30. Let's talk about the biggest component of our integration, the enterprise resource planning or ERP system. An ERP system is the nervous system of our IT infrastructure. That's why one of our first integration decisions was which ERP we'd use in each region. In the Americas, we had great options for the long-term ERP choice. We chose the purpose-built system designed by Legacy SYNNEX called CIS.
This system was tailor-made specifically for the distribution model and has been legacy SYNNEX's sole IT system through decades of mergers and acquisitions, and has been enhanced and iterated on for over 25 years. As a custom-built system, it does not carry with it the significant commercial off-the-shelf licensing costs which make it very financially attractive. It's very well- established, and we have already started migrating business to this platform in Canada. The platform positions us for significant growth. Where the merger had less operational impact in Europe, Asia Pacific, and Japan, the plan is slightly different. Europe and Asia Pacific will remain on SAP, an industry-leading platform that works well for our operations in these regions. Japan will continue on CIS. Additionally, around the world, there are a number of edge solutions from both legacy organizations that deliver IT-enabled best practices to our business operations.
We will evaluate and retain edge solutions that help us to deliver value in our integrated environment. What does that do for us? It assembles the strongest IT capabilities by leveraging the strengths that both companies brought to the table. We are ensuring that the integration of our systems is measured, transparent to impacted users, and that we partner with our customers and vendors to make this migration as smooth as we possibly can. We have an experienced team in place focused on securing our infrastructure and our applications as we understand the need for a strong cybersecurity posture. In addition to seasoned solutions, we're taking an innovative approach in our North America conversion in order to de-risk the overall process. We'll move forward with a segmented shift of the business onto the CIS platform, followed by the traditional migration approach.
This also gives us the advantage of agility as we move through the conversion. We are engineering this specifically so that we are not putting any significant portion of our business at risk at any one time. In addition to the senior leadership team's experience, the integration is supported by IT coworkers from both legacy companies, many of whom have been through prior ERP consolidation projects. Our IT project and leadership teams are thoughtful planners with a focus on de-risking critical aspects of the business during this integration. Many IT coworkers involved in this integration have spent decades in distribution IT and IT-enabled transformations, bringing breadth and depth in technical expertise. We know how to minimize disruption for our customers and vendors, and that is our guiding principle as we bring together these two effective IT portfolios.
I am confident in our ability to make this a smooth and efficient integration. Since 2000 alone, the former legacy companies integrated over a dozen substantial acquisitions. This experience gives us the learnings needed when it comes to successful integrations. Our focus is on a smooth transformation where great service continues to prevail. Now to our investment in high growth technologies, specifically around our next gen cloud offering and the aggregation and orchestration platform. Our operating systems not only empower sales, logistics, assembly, manufacturing, accounting, HR, and all of the other back office operations globally, they are also the platform upon which we are digitally transforming and building Advanced Solutions to accelerate our penetration of the high growth and higher margin next gen cloud offerings in the market. The IT team is building the engines behind TD SYNNEX's next generation strategic initiatives.
We are focused on creating scalable and capable solutions to position us well in the emerging orchestration market, where end customers, through their resellers, can access our product portfolio and the offerings of their preferred reseller. We are delivering innovative solutions to our business partners, enabling both their and our growth in the next generation markets. Expanding the learnings from both legacy companies enables us to evolve quickly in this space and to cement the new business models in a technology stack that positions us to be nimble and responsive to the market and the needs of our partners. We believe our cloud platform can lead the market and will evolve into the game changing orchestration model that you heard Rich and Sergio talk about. As you can see, we're building the foundation today for a bright and lucrative future full of opportunity.
We are expanding our capabilities and investing in high growth technology areas, creating an enterprise that is digitally enabled end to end. The same is true as we expand other high growth technology areas like big data, artificial intelligence, Internet of Things, data lakes, security, and last but not least, everything as a service. When all is said and done, the merger of SYNNEX and Tech Data has brought together more IT capabilities than either company had independently, allowing us to position TD SYNNEX with stronger IT solutions. The integration of our systems has been thoughtfully planned and our implementation efforts are on track, with changes being managed by a highly experienced IT leadership team. Because of our size and scale, TD SYNNEX is able to invest in technology advancements in a way that other distributors simply cannot.
Together, as TD SYNNEX, we differentiate ourselves from competitors by leveraging our scale to accelerate growth and further distance ourselves from the followers. Now it is my pleasure to introduce Simon Leung, TD SYNNEX's Chief Business Officer, who will lead a panel discussion around our ESG initiatives. Thank you for your time.
Hi, I'm Simon Leung, Chief Business Officer for TD SYNNEX. In this role, ESG falls under my purview, and I'm pleased to moderate this panel today. Before we get started, we'd like to share a video that highlights our company's philanthropic giving, community engagement, and commitment to corporate citizenship.
We all need to feel that we have a purpose, that the organization we work for has a purpose. I can't think of a better purpose than try to create a better world and try to be a responsible employer. That makes me immensely proud to work for this great company.
Inclusion is one of our corporate values.
We need to take care of our earth, not just for us, but also for our future generations.
For me personally, I'm a mom. You know, I'm almost 15 years into this company. I've had two children while working for TD SYNNEX. I wouldn't be here if the company didn't support that part of my life in addition to my career goals.
It's very important to work at a company that cares about environment and that deeply cares about this topic, contribution of our company to our country.
The first step is to engage your coworkers. They're the ones that are going to really lead this effort.
We decided at TD SYNNEX in Europe to give all our coworkers a special gift for the winter holidays, a tree that is planted somewhere in Africa.
Elevate is a TD SYNNEX business resource group, and it's really dedicated to attracting, retaining, and advancing women in the organization. Our goal is really to empower women to thrive in not just their professional lives, but their personal lives.
The Huang Leadership Development Scholarship, it is to give back to the many coworkers that brought us to where we are successfully today and their dependents and grandchildren.
We invested about $2.5 million to add 2,800 high-efficiency solar panels to our corporate headquarters roof.
We do have at TD SYNNEX in Costa Rica a very robust program to support the LGBTQI+ community.
We are building the digital blueprint as part of the government initiative that is supposed to empower residents, enable businesses, and connect communities digitally.
Share the Magic has raised more than $17 million for now 12 beneficiaries throughout North America, whether it's a ChildSavers, KidSenses, Children's Hospital Colorado, First Book Canada to name a few, even Make-A-Wish South Carolina, and the Bay Area have really come together to help families in need, especially now more than ever.
The TD SYNNEX Holiday Volunteer Drive was an opportunity for our coworkers to give back to their communities by volunteering the gift of time.
We're more productive. Our employees are happier.
I cannot see myself working for a company that doesn't have a purpose. When I found at TD SYNNEX that purpose, I decided this is like the company I wanna work for.
We are.
We are.
We are.
We are.
We are.
[Crosstalk] TD SYNNEX.
Rich, we recently announced our ESG framework and goals. We'll get to that in a moment, but I'd like to start off with threshold issue and your thoughts on TD SYNNEX as a corporate citizen, and how we got to where we are today.
Yeah, Simon, thanks for the question. You know, when I think about ESG, I come from the point of view of our stakeholders. If I first think about our coworkers, you know, they have a lot of passion and are very engaged as it relates to our ESG initiatives. We have many who are just passionate about the environment, for example, and want to know what we're doing to help make, you know, the whole environment and the Earth a more sustainable place to live.
In addition to that, they have a lot of passion around DEI, diversity, equity, and inclusion, and want to feel comfortable that we're moving in a great direction in being able to, you know, utilize all of the talents and temperaments and convictions of all of our workforce to be able to shape our future in a very, very productive way. There's the community. As you know, we just recently brought the two companies together, but one of the things that we had recognized from the very start was the passion and energy in serving the communities in which we're a part of. This is a ground up type activity within our organization, and they are looking for leadership to help support what they want to accomplish in the communities. Obviously, we heard a lot of great stories in the video.
Again, when we think about stakeholders and we think about our coworkers, they are completely bought in. Now, when you come at it from a investor or shareholder perspective, they want to be investing in companies who are great corporate citizens. I think that we have this crossover here with regards to our coworkers' interest and our investors' interest. It really is quite a powerful flywheel with a lot of momentum right now, and we're looking to do great things. Lastly, as you know, we just announced our particular metrics, and we look forward to reporting out on how we're doing against each of those metrics as we move into the future.
Thanks, Rich, for that overview. Let's dig a little bit deeper now, Adam. You've led our ESG efforts directly since you came on board with the company. Can you tell us a little bit more about our goals and targets?
Absolutely. ESG is very much a part of our culture here, and TD SYNNEX coworkers are very passionate about making an impact in both big and small ways. ESG is very important to our vendors, customers, and investors. We're also very fortunate to have a very engaged global responsibility steering committee in place. This cross-functional group of senior leaders, it really supports our ESG strategy and the work that we're doing. Recently, our global responsibility steering committee, in partnership with BSR, a third-party sustainability consultancy, worked together on TD SYNNEX's first materiality assessment. This materiality assessment allowed us to look internally and externally at what the material issues are that are important to our stakeholders. As a result of that materiality assessment, from an environmental standpoint, we found that greenhouse gas emissions and transportation and logistics efficiencies were top priorities.
From a social standpoint, we found that DE&I was a top priority. On the governance side, we saw that data protection, privacy, and cybersecurity were top priorities.
Yeah. Also, Adam, I was actually really surprised to see how important the future of the workplace is to our colleagues and every one of our stakeholders too. As you know, we did a lot of work on that. What's the future of our workplace gonna look like post-pandemic? We did that work, and now we're committed to really doing a lot more on that because we're now two years into this, a lot more things to take into consideration. We definitely have this goal to make the future of our workplace meet the needs of our coworkers.
Yeah, Beth, I couldn't agree with you more. You know, in my communications with coworkers, for these past two-plus years of COVID work from home, I've seen a can-do attitude, creativity, that really just pushed this company forward. In some of those conversations, they've looked beyond just what they've talked about themselves. They've talked about greater goals, in particular, climate change, and how it's affecting the world and what we can do to make it better. Adam, from your standpoint, what have some of our targets and goals done that affect climate change?
Absolutely. Last year, we committed to the Science Based Targets initiative Business Ambition pledge, which aims for net zero global emissions by 2050 or sooner. In support of that, TD SYNNEX has committed to being net zero in our global operations by 2045. This is inclusive of Scope 1, 2, and elements of Scope 3 emissions. We've also committed to embed circular economy principles in our product lifecycle management strategy, which aims to minimize waste through repair, refurbishment, and recycling. I will say that sustainability is very much a journey that companies embark on. We are committed to be transparent and reporting our progress along the way.
Thank you. These goals and targets that we have, they're not just in the area that you're working on. Beth, they also address some of the DEI issues that we have concerns and our pursuit there. Can you tell us a little bit about our DEI strategy and how we're using it as a differentiator for our company?
Yeah, absolutely. DEI has been a part of our culture for a long time, and it's also, you know, a critical element of ESG. We're really committed to making sure that we continue to bring awareness to the programs that we have to all of our stakeholders, and we do that through, like you mentioned, the strategy and a roadmap, and it's focused on three different pillars. We look at the company and having global programs that we can implement and measure the progress on locally. It's on the community, and that's where we engage with the community to support our employees and their social needs, the communities where we live and serve. It's the culture, and that's really about embedding this in our culture. It's through education, awareness, and our employee resource groups so that everybody gets a voice.
Can you give me some examples of the accomplishments we've done?
Yeah. I mean, we have, we've done a lot with our in what many would call an ERG, an employee resource group, but we call them business resource groups. That's where we have an affinity group come together, very grassroots. Like Rich said, some of these things are really from the bottom up. They are supporting the community. Most recently, they volunteered, they raised money, and they volunteered to provide books for schools and read to children. The response that we got from these schools, including parents and teachers alike, was incredible. There's a lot of stories like that. You know, we're on a journey and, you know, we're very bold with our words, and we really believe our differences make the difference. We hold ourselves accountable.
Yes, Simon, it's interesting, you know. Every year, we have many interns that join our business.
Mm-hmm.
We always have a report out as to what they felt about their internship, their experience, etc . In the recent years, it's just amazing how many insights they'll bring to us, especially around sustainability and environmental within our facilities. "Hey, I wanna work for a company who's really committed and focused to this, and think about changing, you know, this or this or this as we move forward." You know, that's very valuable feedback because sometimes we're caught in our own paradigm and really aren't having enough awareness as to what's going on around us. You know, now we've kind of moved to, okay, let's get together and just have a roundtable around sustainability or around DEI, and the insights that you get are just incredible. They're very, very valuable.
Most of the time, there are action-oriented items that come out of every one of those dialogues.
Yeah, Rich, I think that's indicative of the servant leadership that you've put in place here, where we're empowering all of our coworkers to do the right thing. What I've seen so far is that a lot of the coworkers are just really passionate about doing the right thing, being a good corporate citizen, giving back to the community. Jill, tell me a little bit about some of the things that you've seen on your side in terms of community relations.
Well, I mean, I think, first of all, everyone on the panel would agree that that video completely speaks for itself. We've said it time and time again on this panel already, we have a committed group of passionate coworkers. They wanna make a difference locally. They wanna make a difference globally. They wanna be good corporate citizens. Just from my perspective, thinking about the Tampa Bay area, Tech Data has been ingrained in this community for decades. This is not just charitable giving, it's not just philanthropic efforts, it's our coworkers giving their time, giving their talent. My first trip to Greenville, I saw completely the same thing. You can tell how ingrained, how much a part of that Greenville community SYNNEX was. It is incredible to bring these two companies together.
Now, I'm talking about just two places where we do business, but this kind of engagement is literally happening around the globe.
Can you give me some examples of the type of activities that we're doing?
I think, you know, most recently, just thinking about the environment we've been in from what the globe has experienced, this grassroots idea, our coworkers said we need to help our coworkers. We need to help people in India as the Delta variant surged. There was a lot of grassroots giving. We gave corporately, but so did our coworkers. The same thing happened even more recently as we saw the humanitarian crisis related to what's happening in Ukraine. This was a grassroots effort of people saying, "Hey, we wanna get involved. We wanna do something to make a difference.
Even with COVID, we ran into the opportunity to be able to donate PCs for all of the youth that might not have had access. You know, we teamed with other organizations to help in that regard, and the organization was totally behind it.
Yeah. I think the hardest thing because of all this passion is how do you put some structure around it? As we think about it moving forward, we have kind of three buckets or three pillars we're looking at. Rich, to your point, digital divide. We saw that really exacerbated the pandemic, and students were having to learn from home. How can we help to bridge that digital divide to children? We know how important it is to help create a pathway for children to see a successful future, to think about how they become part of the IT workforce. And then wellness. I mean, in this pandemic, post-pandemic phase, we know how important wellness, health, and wellness and wellbeing is to our coworkers. Those are how we think about our approach to community engagement.
Yeah. These pillars are new to us as a newly merged company, and the combination. How do you envision those pillars being actually implemented going forward with the new entity, with the new TD SYNNEX?
I mean, I think we leverage all of the great programs that we have as a combined company. Let me give a few examples, and we've talked a little bit about some of them already. SYNNEX Share the Magic, which is now TD SYNNEX Share the Magic, started in Greenville. It's a fundraising initiative, $14 million raised to support children's initiatives in Greenville in the past 10 years. We are now rolling that out across North America. The Huang scholarships, again, a legacy SYNNEX program. This supports the children of our coworkers that excel academically, that are committed to their communities, that wanna make a difference in the world.
Thirdly, Rich, to your point, with the Giving Back to School campaign and bridging the digital divide, we gave half a million dollars at the height of the pandemic to help bridge that gap, and that's something we're gonna continue to do moving forward. We can leverage those legacy opportunities, and I think really, you know, bring them to a much greater global reach as we come together.
You know, beyond the financial aspects of some of these things, the volunteerism is extraordinary. I came to the Clearwater area approximately six years ago, and when I were to tell people externally, I worked for Tech Data at the time, now TD SYNNEX, every one of them said, "Oh, they are a big force in the community." You know, we're really small but mighty, and it's because it's all the way from the bottom up, and you can feel it with everybody. You know, I have to say, through COVID, I miss being in the office a bit because the volunteerism, every day there's some type of donation that is happening to help people in need in just about every office.
I spoke with Peter from Greenville, and he as well has the same stories relative to their commitments, you know, when we were in the office. Visible and so important.
Jill, as you were talking, it brought an initiative that came to mind, a global initiative that our European coworkers worked on with Treedom, where 7,000 trees were planted as part of a dream forest, and that great initiative was thought of by one of our European coworkers.
Yeah. It's incredible. Whether it's, you know, sustainability and the environment as you talked about or working on STEM projects, scholarships to help, you know, bright young students, working on the digital divide, I think it gives us a pathway to really look at our future workforce and, you know, make sure that we are helping to do our part to bring the best and the brightest an opportunity for the future.
Beth, staying on this theme of coworker positivity and ESG efforts to pursue positivity, one of the downsides that we've seen recently is what we call the Great Resignation, right? Difficulty of recruiting and retaining great talent. That's a big part of our job, right? Retaining great talent. What are some of the things that your group in human resources have done to leverage ESG efforts to make that difference?
Yeah. I mean, you're right. The Great Resignation is a real thing, and we're feeling part of it as well. You know, ESG is just table stakes these days. When you are talking to Millennials and Gen Zs, they just expect you to have some ESG policies and practices and embrace those things. We have to talk about it. We need a story to tell. People need to see it and hear it and have an opportunity to participate in those things. More importantly, it's really that they see it embedded in our culture. Servant leadership is really an inclusive culture, which brings us back to the importance of DE&I, which is a key component of ESG. It's really developing this culture, embedding ESG and DE&I into this servant leadership culture.
That's what's gonna really retain our talent and attract new talent.
Thanks, Beth. Final question, and we're turning back to Rich on this one. With respect to the channel, what do you see as the positives of our ESG strategy with respect to our customers and vendors?
Yeah. I started with stakeholders, so we might as well end with stakeholders. In this instance, as you say, customers and vendors. First of all, I think that the world has a big expectation that business will be major contributors in helping around, you know, all of the environmental, social, and governance issues that exist. You know what? I think that as a group, we're all up for that challenge. You know, if you take a look at the historical paradigm of IT, primarily, you know, the physical part of IT, you know, PC servers, et c., there was a bit of a tarnished reputation.
I can tell you and you know, speaking with our vendors, they are committed, and not only they're committed internal to their own organization, but they are, you know, engaging with us to sign up to make sure that we're aligned with making a positive impact. I, as you well know, you're in the middle of this, those are really, really positive engagements. Whenever you're talking about, you know, making something better for the world, it's a pretty cool thing to be working on. Similarly, on the vendor side, we have the same sort of engagement. Sometimes it's us going to them, "Hey, where are you at? We're going to need your help. How do we think about realigning in order to make an impact?" You know, the channel itself has a pretty long reputation of celebrating women in the channel.
You know, that's just one aspect of DEI as far as I'm concerned, and we all come together and really, you know, help to contribute to make that initiative super successful. I think, you know, from vendor to distributor, all the way through to the customer ecosystem, there's a lot of energy and momentum right now, and I'm telling you that the IT segment of business is going to make a very big difference moving forward.
Thanks, Rich. Thanks, all, for that inspiring conversation. As Rich mentioned, this is a journey to embed the ESG culture in TD SYNNEX. We look forward to communicating with you all milestones that we meet along the way and hopefully successes. Thank you very much.
Hello, I'm Marshall Witt, CFO. As you heard from my coworkers today, this is a very exciting time to be in the IT distribution industry as it evolves from a hardware-centric beginnings of the eighties to a model that combines hardware, software, and services to enable our partners to provide complete solutions across the full range of the IT spectrum. You heard about the increasing pace of change in the IT industry and the opportunities it creates for us, and about our strategy and vision to evolve from a solutions aggregation model to a solutions orchestration model. Today, I'd like to share more with you about our financial model and cost structure, and how we believe the opportunities in front of us can translate into enhanced financial performance and shareholder returns over the next several years. Importantly, I'd like to emphasize three key messages.
First, we have a very attractive core business that is broad-based, comprehensive, and typically serves as the starting point for opportunities that eventually translate into high growth outcomes. Second, we have a robust cash flow engine that creates significant financial flexibility for us. Third, we believe we have a clear path to achieve shareholder returns that are very compelling. We've had generally strong and consistent top-line revenue growth that our investors can rely on, and we have largely been immune to industry-specific cycles and shocks in the macroeconomic environment. We believe our business is uniquely positioned to grow faster than the market, and to date, has also proven to be recession-resistant. Over the past fifteen-plus years, both organizations produced growing revenues and operating margins despite geopolitical risks, economic volatility, pandemics, and supply chain uncertainty.
It's a testament to the leadership teams who are able to grow market share while at the same time improving margins. Typically, there's a trade-off between revenue and margin growth, but that has not been our experience. Creating simplified solutions in an ever-changing and highly complex IT environment is one reason why our partners use us and why customers stay with us. Reinvesting in the core, expanding capabilities and coverage, and remaining the low-cost provider has allowed us to continue to deliver profitable solutions to our partners and customers. I now wanted to spend a little bit of time discussing our gross billings and why this is an important metric to understand. For fiscal 2021, our gross billings were approximately $76 billion. Fiscal 2021 reported revenue was approximately $61 billion, which represents a gross to net revenue adjustment of approximately 20%.
Our total book of business is substantially larger than the revenue reported in our public filings. Our gross billings provide a better context to just how large we are, and a little bit later, I will discuss the elements of our business that are netted down and provide more color on how they flow through our financials. Let me spend a moment to discuss how the basics of our business model work. On average, our gross margins are around 6%, ± a few basis points from quarter to quarter, depending on mix. Our long ten-year relationships with OEM vendor partners create stickiness. As we provide multiple ways to sell comprehensive products and solutions on a worldwide basis, we benefit from this.
As you can see from the simplified model, our gross margins are comprised of the price we pay for goods and services, and the fees and rebates we earn for selling to over 150,000 customers on a worldwide basis. Working capital represents another TD SYNNEX strength. As we, on average, fund our commitments in about 75 days, and we receive payment from our customers in about 48 days. We play an important role in credit capacity within the IT distribution supply chain. Adequate liquidity at low costs are important differentiators that I will speak to in a few minutes. You can appreciate that there are many nuances related to our business model, but I thought it was appropriate to ensure the fundamentals of our business model were understood.
Over the past few years, we have experienced an increase in the level of higher value-added solutions to our customers in the form of cloud, software, and security, just to mention a few examples. The good news is that gross billings in these areas are growing in the mid-teens. As these types of products and services feel the impact of being netted down, they do affect revenue growth comparisons. For these areas, we believe gross profit has become a more meaningful metric and, in many cases, serves as a proxy for revenue. I think an example will help articulate the impact. Imagine if we sell a bundled hardware, software product for $1,000, and $700 is related to hardware, and $300 is related to software.
In the traditional buy/sell model, we would recognize $1,000 as revenue, cost of goods sold of $940, gross profit of $60, and gross margin of 6%. Under ASC 606, that is the accounting standard for how companies recognize revenue, the hardware sale component would reflect $700 of revenue. Cost of goods sold would be about $660. Gross profit would be about $40, and gross margin would be approximately 6%. The software sale component would reflect $20 of revenue instead of $300. That, in this example, equals the gross profit earned for the services performed. In total, revenue now would be $720 instead of $1,000. Cost of goods sold would be $660 instead of $940. Gross profit would remain at $60.
Gross margin, because it would have a lower revenue base, would improve by about 200 basis points to around 8%. It's important to understand the accounting for these types of products because it's these types of products that are growing most quickly and will continue to grow in the mid-teens over the medium- term. Now, let's assume that the entire portfolio was high-growth technology revenue. Thinking about the example and accounting outcomes just discussed, adjusted EBITDA as a percentage of gross profit would be north of 40%, with gross profit growing over 8% compared to fiscal 2020. This is incredibly powerful, especially given the growth and margin profile expectation for these categories of technologies. A bit later, I will further highlight the value that these products and solutions deliver in terms of revenue, operating margin, and cash flow.
We also have a highly- variable cost structure with approximately 2/3 of our total cash operating expenses being variable. More than 90% of our overall cost structure is in cost of goods sold that is directly linked to revenue generation and is variable in nature. This gives us financial flexibility and scale, and it allows us to maintain margin due to our ability to quickly react to market conditions. As we realize merger synergies and move on to the CIS platform for the Americas, we expect to generate further efficiencies given the low cost delivery capabilities derived from the system. To expand further on CIS, that is the legacy SYNNEX ERP system, what we have experienced is that CIS provides tremendous drill-down capabilities, which will enable 13,000 coworkers to, in essence, become CEO for the businesses that they manage.
The system is extremely versatile and allows our teams to quickly assess the success and failures of their decisions. With drill-down capabilities, our coworkers are able to understand what went right and what went wrong, and can adjust on the fly and refine their next decision as CEO of their business. As I mentioned previously, it all starts with the core, where investments, partnerships, and opportunities present themselves. From this, we perceive those areas where we can deliver high value and receive high returns. Starting with 2021 as our baseline, we believe looking out over the medium term, our high-value technology revenues and adjusted operating profits will approximately double. The expected blended adjusted operating margin should also improve given this mix shift. We do anticipate making increased investments in cloud, security, and analytics and IoT over the medium term. That comes with higher SG&A costs.
However, these investments are expected to produce strong margins, returns, and cash flows while positioning us well for the future. Our hyperscale infrastructure solutions and the capabilities related to Hyve continue to expand with the objective of providing end-to-end solutions for our existing and future customers. Incremental investments will continue to be made to support our fully integrated strategy. We believe that further enhancement of engineering design capabilities, combined with rapid development of products deployed across a global manufacturing footprint, creates a unique offering that we believe allows us to grow and expand over the medium- term. Also as a reminder, the Hyve business remains lumpy. From quarter- to- quarter, it's very difficult to predict. However, on an annual basis, we consistently have grown our top line and bottom line and expect that to continue going forward. Let me now provide an update on our merger cost synergies.
Both legacy companies have a long history of over-performing against our synergy-related commitments, with over 15 acquisitions made in the past 20 years. For example, looking at a few of the larger deals we've made, such as Convergys, Avnet TS, and Westcon-Comstor, we consistently exceeded the cost synergy targets that we forecasted. These outcomes are not by accident. Our M&A playbook that features a comprehensive diligence process that allows us to understand the business model at a very- detailed level, provides us with the additional confidence related to investments required, expected returns, and value creation for the deal. In regard to the merger of Tech Data and SYNNEX, we are on track to realize $200 million of cost synergies, with $100 million realized in fiscal 2022, and another $100 million realized in fiscal 2023.
The business optimization programs that legacy Tech Data had initiated pre-merger have been very successful and are comprised of programs that span back office, logistics, automation, procurement, and sales and marketing. On the deal-related synergy side, we've already begun to realize benefits in taxes and interest. While SG&A impacts will be more weighted towards the back half of fiscal 2022 and into fiscal 2023 as we integrate our Americas ERP systems. Moving to our working capital. We have a stable cash conversion cycle that is countercyclical. During economic downturns, we historically generate positive cash flows. We have a significant opportunity to further enhance the efficiency of our working capital programs as we implement the best of our two companies' processes, the partner programs, and leverage our broader reach and capabilities.
As an example, if we look back at the last three recessions of 2000, 2008, and most recent in 2020, on average, during these periods, TD SYNNEX working capital as a percentage of revenue improved 4%. For example, if we apply this to our fiscal 2021 revenue, this would represent a release of over $2 billion of incremental cash flow generation. We believe that our model is highly free cash flow generative. This provides us with significant financial flexibility and helps us drive greater returns. Looking at the right-hand side of this graph, we start with 2021 and assume $200 million of synergies have already been realized. As you know, actual synergies will build through 2023. For illustrative purposes, we wanted to show the potential cash flow generation of the combined organizations.
We remain confident in achieving free cash flow of approximately $1 billion in fiscal 2023. Over the medium- term, we would expect to generate annual free cash flow that reaches nearly $1.5 billion. From a balance sheet perspective, we are in a very strong position. With investment-grade credit ratings and a long-dated, well-laddered capital structure, we have significant liquidity available to us through our cash balances, our large revolver, and securitization programs. As we just reported for Q1, our working capital requirements in Q1 did increase. Our cash flow was negative and our debt increased. We expect that the investments we made in inventory buys in Q1 will sell through in the coming months with appropriate margins and returns.
We expect total debt for fiscal 2022 year-end to be approximately $4 billion and net debt to be approximately $2.6 billion, resulting in an expected gross leverage of 2.5x and a net leverage of 1.6x. Having a strong balance sheet enables us to swiftly respond to investments and growth requirements, and we are fortunate to have a low cost of debt of around 1.8%. Taken together, our liquidity, financial flexibility, and expected cash flow generation puts TD SYNNEX in a position of financial strength. Let me now share with you how we are thinking about our capital allocation. Over the medium- term, we expect to return approximately 50% of our free cash flow to shareholders via dividends and share repurchases.
We have a $400 million approved share repurchase authorization in place through June 2023, with a plan to repurchase approximately $100 million in fiscal 2022. We are on track to meet that plan this year, having already purchased $25 million in our fiscal first quarter. Over the medium term, our goal is to move towards a 2% dividend yield target, and we expect to use the other half of our free cash flow for investments in our business and targeted M&A. Now, let me share with you a bit about our outlook for this year and over the medium term. For FY 2022, we expect revenue growth between 3%-4%.
When you adjust for currency and the impact of our revenue accounting policy alignment, revenue is expected to grow 6%-8%. As we mentioned in our Q1 earnings call, we are facing FX headwinds of approximately $1.2 billion in FY 2022, and that's related to the weakening of the euro, and an approximate $1.1 billion revenue headwind related to the alignment of revenue accounting policies. Looking a bit further over the medium term, we expect our revenue to grow 6%-7%. Given the numerous factors we've outlined today regarding increased importance of technology as an enabler transformation, we are bullish on IT spending and the enhanced opportunities it provides us. This outlook does not consider positive revenue synergies from the merger or future M&A opportunities or any shift in the channel spend.
Our adjusted operating margin outlook for fiscal 2022 is approximately 2.6% and is expected to expand over the medium term to around 3%, which is fueled by organic growth, reinvestment in the core, synergy attainment, and strength from high- growth technologies. Adjusted return on invested capital is expected to be approximately 11% for fiscal 2022, and over the medium term, expected to improve by 200-400 basis points with a goal to generate returns that exceed cost of capital by about 300 basis points. Taking all of this together provides potential for a 15%-20% total shareholder return over the medium term. In addition to our expected net income growth of 11%-15%, we also anticipate expected share repurchases and dividends to add approximately 2%-3% to total shareholder returns.
With our expected strong free cash flow generation and our commitment to utilize approximately half of those cash flows for reinvestment in the business and strategic acquisitions, this could further increase total shareholder returns by another 2% or more. As a reminder, and as previously stated, these estimates do not factor in any impact from positive revenue synergies that we have historically experienced in previous acquisitions. Now, I want to put into perspective just how unique TD SYNNEX is. Looking at the S&P 500, only 44 companies have the combination of revenue greater than $50 billion and five years of consecutive profitability. When you add to this those companies with an expected medium-term leverage at below 2x, this leaves only 23 companies. Let's take a step further.
When filtering for companies that have non-GAAP EPS growth of greater than 10% and a 25%+ dividend payout ratio, only three companies remain, and one of them is TD SYNNEX. We represent a highly- compelling investment opportunity. We have a proven track record, a seasoned management team, financial strength and flexibility, and a leading global position that our partners and customers will continue to lean on to expand their business and delight their customers. In closing, through the merger of two great companies to form TD SYNNEX, you can see that we are uniquely- positioned and qualified to transform our industry and provide unmatched capabilities to our partners, our customers, our shareholders, and our coworkers. We believe it is a great time to be a shareholder of TD SYNNEX.
We are currently trading at a significant discount to the market with a medium-term total shareholder return well above market expectations. We have an attractive core business where we continue to optimize and find new profitable solutions for our partners, and combined with further expansion of our high growth technologies, our business is well-positioned over the medium term. We have a robust cash flow engine that provides us with financial flexibility, and we see a clear path to enhance shareholder returns. I will now pass it back to Rich for final remarks.
Thank you to Marshall and all of our speakers who helped to share the inflection point facing the IT industry and why we believe TD SYNNEX is poised to capitalize on it. Today, you heard about our strategy, our vision, and our global footprint. More importantly, you heard about how we plan to translate the significant market opportunities in front of us into enhanced financial performance and higher shareholder returns. With that in mind, I'd like to wrap up the presentation portion of our Investor Day by reiterating a few key points. First, TD SYNNEX is privileged to sit at the center of the IT business partner ecosystem, helping our customers and our vendors to navigate an extraordinary amount of change and increased complexity. We are well-positioned to deliver for today and tomorrow.
Second, we have an incredibly strong financial profile with a robust balance sheet, which allows us to make the necessary investments to evolve our business in support of our vendors and our customers as we expand to the solutions aggregation and orchestration model. Third, we have the right strategy for now and for the future, along with an unrivaled end-to-end portfolio that will propel our business and the success of our vendors and customers with an emphasis on high growth technologies. Fourth, as you know, delivery models are shifting within the industry with the growth of cloud. Customers want to be able to consume technologies as they have historically or through as-a-service offerings. Looking ahead, we will provide the capability for customers to purchase technology in whichever delivery model they want. Made possible by our core platform and our solutions aggregation and orchestration platform.
Fifth, we are committed to being a responsible global citizen, setting a positive example in our industry through our environmental, social, and governance goals. Sixth, we have a long track record of growth across many markets and environments, across many challenging operating environments. We clearly differentiate ourselves from our competitors by leveraging the depth of our portfolio and the geographic reach, as well as our robust cash flow engine to accelerate growth. Finally, I want to offer a sincere thank you to all of our stakeholders, our vendors, our customers, our coworkers, and our investors. You make it possible for us to serve our vital role in the IT ecosystem, and we look forward to driving future growth in this space and helping others to deliver great outcomes with technologies. With that, we will take a short break as we transition to the Q&A portion of our event.
Thank you very much for your time.
Hello. Thank you for joining us. Before we begin the Q&A session of our event, I'd like to remind everyone the presentation materials we share today are available on our investor relations website if you'd like to download them. In addition to the presenters here with me today, we also have Patrick Zammit joining us remotely. We ask that each participant ask one question and follow up. With that, we're ready to get started. We'll take our first question [Audio distortion]. Go ahead, Ananda.
A lot of great detail. Yeah, great job. Really appreciate it. Really great. For my two, what I will start with is the 3% operating margin, intermediate term or medium-term timeframe. Marshall, can you talk a little bit about, you know, kind of what medium-term means? As it would be a really nice lift from where you guys are right now.
Sure, Ananda. Before I start, why don't Rich open it up?
Yeah. Ananda, before we get started, we're really excited about the Investor Day, and I just want to thank the more than 600 folks who have joined the broadcast. A lot of interest in TD SYNNEX, and we're very anxious to, you know, hear from all of you and answer any questions you might have. You've kicked it off well, so we'll turn it over to Marshall for that first question.
Ananda, when we talk about medium-term, we're speaking to three to four years out. Then just leaning into that, your question around margin profile. You saw in one of the slides that we have a 50 basis point increase over the medium-term, well-balanced between what we're gonna call core and also high-growth technology with a little bit of synergy thrown in.
That's super helpful. I guess one is more of an, it's just sort of a 2022 question. I wanted to just ask, it might even be a clarification to some extent from the earnings call last week, it's only because it's come up with clients and because of the way the stock reacted, you know, kinda off the earnings call. With regards to sort of current PC environment, since it's a meaningful part of the company, which I believe you talked about, I'm somewhat paraphrasing here, but the kinda like stronger first half, strong to moderate first half demand with moderating in the second half of the year. I heard that as stable, you know, kind of as you move through the year.
I got some feedback from clients that maybe it suggested some, you know, softening that might be meaningful. If you guys could just clarify sorta how you view the state of the PC environment. To some extent, this would dovetail with medium-term what do you think about the PC environment. Like, what are you seeing, hearing from the VARs from your customers as you even move out of this year kind of into the normal?
Yeah. Let me get started on that first, Ananda. I want you to think about our end-to-end portfolio for starters. When you look at our performance as separate companies and joint companies, currently, you have to remember that we're very, very versed and talented at moving to where the demands are in the market. In every category, be it within the PC ecosystem or Advanced Solutions or within the specialized businesses, there are always things that are growing and, you know, there are some things that are going through product cycles, et c. You know, that being said, to answer your question directly, you know, I see the market for the PC ecosystem as being a stable environment for the year.
You have to remember that we've come off extraordinary demand in that market in the prior years, you know, because of the COVID and work from home, you know, north of double-digit growth rates on a fairly continuous basis. Moderation is not a bad thing or a bad outcome, and stability is not a bad thing or a bad outcome. I'll briefly turn to Michael to give you his insight and then Patrick on your question.
Sure.
Thank you, Rich. I think if you have a look on the endpoint market, what you clearly see is that the PC ecosystem is in a very healthy condition. What we have seen in the last two years, as Rich was mentioning, is that the PC ecosystem was very strong. We have seen that the last two years, thanks to the pandemic, thanks to COVID. We have seen that the PC market was very healthy in the way that we had high growth rates in selling of PC systems. That, of course, combined with PC ecosystems, that means surrounding products around that as well.
Looking forward for this year, we're expecting, and I'm referring here also to the market insiders, that the market itself, the PC market itself, in units wise, will be stable year over year, there'll be low growth from that side. At the same time, we have seen price increases. Also what we see that there's a clear indication of customers buying more high-end products like notebooks because now we're coming already to the point of recycling or rebuild the systems there on the endpoint side. That means higher ASPs should result in higher sell-outs in revenues.
Patrick, maybe you just wanna comment on the commercial consumer dynamics as it relates to PCs as well as we see it.
Yeah, absolutely. We make a distinction between the demands coming from the consumers and the demands coming from the commercial sector. On the consumer side, it's true that the last two years have been extremely solid, and here we expect the demands to be down year-over-year. On the other hand, on the commercial side, in fact you have a few points driving growth. Michael already listed some of them. We have also the fact that we have Windows 11, which should have a positive impact. On average, PCs in companies age around four years. Again, there's a need to upgrade. The last point is that with all the cybersecurity threats, I mean, the need to upgrade the PC is even increasing.
On again, in summary, on the consumer side, yes, a little bit more muted. On the commercial side, more positive. Last point, TD SYNNEX is very well-positioned and focused on the commercial side.
Yeah. The overwhelming predominance of our overall PC ecosystem portfolio would lean more towards the commercial side, as opposed to the consumer side, Ananda. Hopefully that helps to clarify your question.
That's a lot of great context, guys. I really appreciate it. Thanks.
Thank you.
Great. We're gonna take our next question from Ruplu Bhattacharya with BofA Securities. Go ahead, Ruplu.
Questions, thanks for all the details you gave today. You talked a lot about as a service. I wanted to spend a little bit time to go into detail on that. My first question is actually a three-part question. First, as your suppliers are moving to an as a service model and your customers are also looking for supply chain as a service, how do you think your business model and your pricing models need to change? Second, you talked about needing to make investments in order to take advantage of this change. How should we think about the level of investment that you're going to make over the next couple of years to do this change in model?
Third, how should we think about the level of recurring revenue that TD SYNNEX can generate on an annual basis, as more and more suppliers and customers look to an as-a-service type of model?
Ruplu, thanks for the questions. Hopefully you're having a great day. I'd like to turn it to Sergio Farache to take on your questions, and then we'll go from there and perhaps have Michael and/or Patrick comment also.
Yeah. Thank you. It's in effect a transition of a significant part of the business as a service, as you described, mainly occurring in the high-growth areas. We have been implementing processes, technology, and a set of activities to support that transition. A big part of what we explained during the strategy session is our introduction of the solution aggregation aspect of the business. We have in fact attacked that business with a set of solutions that go from the physical aspect to the virtual aspect, including things like the click to run solution that is a combination of virtual assets like infrastructure as a service with software, the way to go or to deploy solutions that are more a combination of physical assets with virtual assets too.
In those elements, we have the ability to capitalize in this transition because we are adding value to not only the promotion from the vendor, but the combination of multi-vendor portfolio. At the same time, we are helping to the partners with the platforms that we are providing from the aspect of configure, transact, and build all those elements in terms to the market. As we explained already, our business in the high-growth areas is already $13 billion. An important part of that is already happening in those segments. All that infrastructure and big part of the software as a service that we already sell are in the as a service motion. That is something that we have been in fact doing for several years.
It sounds like something new, but for us it's a piece where we have a lot of experience, and we have in our model already integrate several of investments that are associated to the high-growth areas that are part of our investment model at this point. We don't see a major disruption. The fact that we have TD SYNNEX now as a bigger company with a stronger balance sheet give us a significant opportunity to continue doing investments in the platform and other critical assets in digital transformation that will be a significant component. I would emphasize again some key points that we resolved before. More than 25,000 partners are already transacting in the as a service aspect of the cloud and infrastructure. More than 2,000 already in our technology as a service platform and growing in a double-digit capability.
I think that the opportunity is massive, and we are prepared to take that.
Yeah, if you have to look at as a service, this has all started about 10 years ago. 10 years ago, everybody was starting to talk about cloud. There's a different speed in place here. It depends really on the area. We have on one side software as a service, infrastructure as a service, platform as a service. If you look at software as a service, this motion really last seven to eight years has increased rapidly. We have seen many vendor partners move their business model on the software side to as a service model. You can talk about Microsoft and IBM and others. It's clearly on the path that the classic way of selling software licenses is history. It goes all to fully as a service.
That means could be consumption-based or on a yearly or monthly subscription. If you look on the hardware side, there are two areas. One is the data center side. A good example here is what we have seen in the cloud environment with AWS or Azure or Google Cloud. Very clearly, they're taking some business away from the classic data center side, but still there is a data center business in place. We talk about this in the hybrid cloud environment in our company and with our customer partners about that. There's still a motion to go to a cloud environment for sure, also on the infrastructure side, on the data center, but also still a strong data center play. Then the third element is really on the endpoint side.
There's the motion also last couple of years, but that has started really three, four years ago. Moving away from the classic leasing models to more as a service also for hardware equipment. Phones are perfect example here. We have seen many companies move that direction already, but also on the PC ecosystem side, you see this more and more. That will all take time. As I started ten years ago, in the next couple of years, this will grow in total. For sure, it will be a bigger part of our business. As Sergio was saying, we are very prepared with our system we have there. Keep in mind, the systems are different if you talk about classic infrastructure as a service or software as a service.
We have made this investment already, but of course, we continue to invest in this space.
Thanks for all the details there.
Yeah.
Sorry, go ahead.
Patrick has a comment as well, Ruplu. I want to make a clarification too. Patrick, over to you first.
Yeah, just one more input. In fact, since many years, we have invested in a methodology we call Practice Builder to help our partners transform and move from a CapEx to a more OpEx model. Again, we've been extremely successful, and that has enabled us to attract many programs from our vendors as they start moving from a CapEx model to an OpEx model.
Yeah. The other comment, Ruplu, that I'd like to provide to you is Sergio talked about the $13 billion of revenue that we have within our high-growth areas. Let me first clarify that the $13 billion is gross revenue, not net revenue. It's really important for you to have that insight. The reason for us talking at gross revenue is, first of all, it would more represent the momentum of the organization and what's going on within what we do. We just think it's a better representation of the totality as opposed to just talking about the net revenue. The second piece that I want to maybe reiterate, you probably caught it in the broadcast.
The major areas of high-growth technologies are cloud, analytics, IoT, security, and then the hyperscale business that we have. Back when the charts come out, you'll see that all of these areas are growing much faster than the average of the IT industry, and we believe that they're critical for our business moving forward. Yes, over time, we're building an annuity business on all of those as a service elements, you know, as we move into the future.
Got it. Thanks for all the details there. Appreciate it. For my follow-up, if I can just ask, you know, you gave medium-term revenue CAGR target of 6%-7%. How should we think about that in two respects? One is revenue by region. How do you see the regional mix of the business changing over the next few years? About the mix of the business changing that way.
Okay. We think we got your full question. We're breaking up a little bit, but you're talking about the mix of the business, I think both regionally as well as the mix within the business from a major segment perspective. I'll ask Marshall to start with that question.
Sure. Just thinking about the overall 6%-7% growth rate, as Rich had mentioned earlier, that's really composed of two different aspects. One is the high-growth technology. As Sergio mentioned, on a gross revenue basis, that's $13 billion, but a lot of that gets netted down. Keep in mind, that's having a positive influence, but on revenue, that can also show as not growing as fast. On our core, that's growing mid-single-digit. When you combine those two together, that's what translates to the 6%-7%. One thing I just want to emphasize before I turn it back over to Rich to push out to the region conversation is that a lot of this high-growth technology, because it's netted down, we think that the overall gross profit serves as a proxy to revenue.
One of the metrics we'll call out going forward is that relationship of gross profit.
Year- over- year, if you look at 2020 to 2021, our gross profits, our gross profit grew 8%. If we look forward for 2022, the second half, gross profits are gonna be growing about 8%-9%.
From a regional perspective, what I would inform you, Ruplu, is that we don't anticipate a whole lot of deviation around the average. If I were to describe a deviation around the average, I would take you back to what's happening with GDPs in different markets because over the long term, there is a correlation between GDP and IT spend, usually IT spend outpacing GDP. You know, that would be sort of the ebbs and flows. As we all know, with what is happening within the world today, it's really tough to predict what's going to happen in specific economies around the world. You know, I would say that we wouldn't anticipate hyper growth in any one or the other, but you know, sort of a reasonable deviation around the median of 6%-7% overall.
Okay, thank you for all the details. Appreciate it.
Thank you, Ruplu.
Thanks, Ruplu. We'll take our next question from Adam Tindle with Raymond James. Go ahead, Adam.
Okay, thank you. Good afternoon. I just wanted to start and appreciate all the details. You gave a compelling financial outlook. One quick clarification up front, Marshall. If I'm looking at the growth and margin targets, I'm getting to an EPS number that's in the high- teens. I just wanna make sure I'm not missing any below-the-line items or something on the math. Then I have a real question on systems after that.
Sure. Adam, what I'll do is point you to the total shareholder return slide. I think that's very comprehensive. Just to recap that, net income growth is expected to be 11%-15%. Then when you look at our dividends and our share repurchases, that adds another 2%-3%. If you look at total shareholder return over the medium term, that is roughly around 13%-18%. Now, that's before M&A, acquisitions and reinvestments back in the business, which we think is another 2%-3%, which puts us at a 15%-20% total shareholder return. I think that's the right place to go to get a sense of your question in regards to your EPS growth in the model you're calculating.
Got it. Okay, that's helpful. Question on systems. You did a nice job of recapping CIS, which is a competitive advantage from a lower cost versus other players. In this industry, I would imagine that that's, you know, creating a real moat, given the margin profile. Maybe a question first for Michael, if you could talk about your experience with integration of that system in the Americas, key learning so far. If Patrick could comment on any challenges to using the system in EMEA and APJ. I think it's being used in Japan currently, so presumably could scale internationally, so why not do so? Thank you.
We are using, of course, the SYNNEX legacy system, CIS, for more than 40 years, right? This system was built up and created all about distribution. Over the years, this system has developed really to be the leading system in the market. That means to sell classic hardware products in a classic motion, but also earlier today, we talked about the as a service model. The system is really the leading system, and it's really a bespoke system for everyday needs. That's also from the endpoint side of the business to the advanced side of the business. That means also data center side of the business. If you talk to our customers and vendor partners, they love it because it's a fast system.
It's a system to adapt to their system quite quickly. We have many APIs in place. We have EDI in place. We have e-commerce tools in place on the classic hardware side, but also as a service. They are on the vendor side, what they love, big integration. Quite often vendors changing their business model, and we have to be fast and react on that. We can do really with the system. As I said, it's a bespoke system for many years, and that gives us a big advantage for future. That's why we decided for all Americas to go ahead with CIS.
Patrick, over to you.
I mean, obviously for the moment, the priority is to have the integration being completed in the Americas, and that's going to take another additional quarters. If I look at the two regions, let me start with APJ. In APJ, we have today three systems. We have CIS in Japan. We have JD Edwards with a company we bought called Innovix, and then we have the legacy Avnet system in order to support the infrastructure business. I mean, when IT will have some time, we are going to look at what's the best way forward, what's the best system to support us in APJ. I would say here we are still relatively open-minded. When it concerns Europe, I mean, our preference remains to stay on SAP.
We are doing a workshop as we speak to assess. I mean, we have today two SAP versions, so to bring it to a new 6.8 version. We are testing a series of scenarios, including planning to make it happen and including the cost of running the system going forward. We believe that, for the moment, unless the workshop is telling us differently, staying on SAP is a better option for us.
I think, Adam, I would just add to it by concluding on this where Patrick had started, and that is, we try to make sure that we keep the organization focused on, in terms of our priorities. You know, we have a very big integration going on in the Americas, and that's where we've asked Bonnie and her team, as well as Michael, to focus all of our change efforts. Then once that dust clears, we'll, you know, kind of think about things more broadly and, you know, what is the best outcome, as Patrick said, for Asia-Pacific, Japan. Then the workshop will inform relative to where we're going to head with Europe.
For now, the way the world should think about this is that we are steadfastly focused on coming through with our integration to CIS in the Americas. You know, for the moment, the platforms which exist in the other geographies will be potentially refreshed, but you know, that's what we'll be doing for the foreseeable future.
Makes sense. Thank you.
No, thank you, Adam.
Great. Thank you very much. We'll take our next question from Jim Suva with Citi Equity Research. Go ahead, Jim.
Thank you. It's Jim Suva here. I have one question, but it probably goes to both Rich and Marshall, and that is on your revenue outlook. You know, you mentioned in the mid- to near- term, 6%-7% growth. I wanted to ask, is that, like, on an adjusted basis, on a reported basis? Because this year, there's some complexities of accounting-related items. Then, I guess importantly for Rich as CEO, we're hearing of customers wanting to consider and use consignment a little bit more, which actually gets more glue with the relationships or things like that. So can you talk to us a little bit about consignment and that sales outlook of 6%-7%? 'Cause if it's as reported, then you'd actually see an acceleration in a couple years because this year it's lower.
If it's as adjusted, then it kind of fits right in that strike range. Thank you, gentlemen.
Yeah. I'll ask Marshall to start with that response.
Yeah, Jim, it's clean. It's as reported. Because this year, you're right, it was a little cluttered with ASC 606 and the FX impact. Looking forward beyond 2022, it's a clean reported number.
Yeah, we would presume it's at constant currency, consistent number going forward. Obviously, we can't predict the ebbs and flows of the euro or any other currencies, but I think as Marshall said, it's a clean reported number. I would comment on your second question. We do have some relationships in market where you know we're doing some things around consignment and core distribution. We also you know have another specialized business where we do a lot of logistics and supply chain capabilities for some large customers as well. We have a fully automated you know approach, a line- site stocking approach to some of those arrangements, Jim. It's things that currently exist within the industry.
You know, customers are looking to take us there. Obviously, it's situational, but you know, we're more than happy to determine how we can align with their needs and priorities to run and manage their businesses. You know, we're happy to jump in the those conversations. The one thing that I also want to address, I should have maybe talked about this back in Ruplu's question. We're frequently asked, okay, as you move through time and you're doing more as a service, you're moving from a transactional to an annuity. Does that have an impact on your revenue and your revenue growth?
You know, the beauty of the world as it has evolved, as you know, Jim, over the last decade around cloud, as an example, is that everyone does not flip the light switch at the same time. There's many different, you know, starts, if you will, and evolutions that take place. Actually, we've endured a lot of those changes in our model, and really, because of the breadth and depth of our company, haven't really had to focus on the fact that, hey, this vendor is moving more towards annuity or that vendor and have, you know, weathered those changes. I would anticipate the same going forward. When you take a look at our historical chart of our revenue growth over time, just realize that, you know, we've handled those activities as they have emerged through the years.
Thank you so much. It's appreciated.
Thank you, Jim.
Thank you. Our next question will be from Matt Sheerin with Stifel Equity Research. Go ahead, Matt.
Yes, thanks. And thank you everyone for the details so far. My first question, just following up on Ruplu's question regarding as a service and recurring revenue in cloud. Could you give us maybe more data on, you know, what is the recurring revenue number? What percentage of your revenue or perhaps gross billings comes from, you know, public cloud-based services?
Sure. I'll let Marshall start with that.
Sure. We're sticking to the high growth number of $13 billion in gross revenue as a percentage of, or as a total of revenue for fiscal 2021. I'll let Sergio probably speak a little bit more in regards to the recurring revenue themes and how he sees that developing.
Yeah. The good news in this topic is that we continue growing double-digit in this area, and it's an area of high growth for us. But at the same time, a big part of the high growth areas, as we mentioned before, is associated to this model of recurrent revenues and as a service. All our strategy is purposely designed not only to take. You know, significant participation in that space, but this obviously recurrent revenue give us more stability and long-term as the revenue get constructed and have two type of growth, vegetative growth and the what we call the evolutionary growth. We will remain with the conversation about the thirteen billion dollar in gross revenue, but it's a multi-billion-dollar business already.
Yeah, you should presume that, you know, under the covers, back to Michael's comments earlier, when we think about recurring revenue where it's becoming meaningful in sort of the cloud segment, as Sergio had talked about, and then the task segment. Let me take you to make sure we're in the same ballpark. The PC ecosystem play, Michael talked about that just being three to four years old and really becoming, you know, just operational now. Much less significant, but will be significant as we move into the future.
Yeah, maybe I give you one example about what was happening in the software industry in the last couple of years. As the first models came up, we had classic license side. That means we sold one time the product, and maybe four or five years after we sold an upgrade, right? Of course, for a much lower price. What you see now, of course, if a vendor partner decided to go more and more to the as a service, then you have normally a yearly subscription. The yearly subscription or a monthly subscription, of course, from the revenue side in the first year, much lower than the one-time sale in that year.
Normally it takes, and it depends really on the vendor side, 16 up to 18 months, sometimes 20 months time, that we have the same revenue as before with a one-time sale. By the way, this is the same thing for our partners, for our reseller partners. Over time, of course, the revenue is higher because if you sum that up over many years, and keeping in mind the upgrades in the past were cheaper, so we have more revenue in the system. That takes a while. This is really washing out over the time. Of course, drives revenue over long term in the future. The renewal, of course, of that is very important in that.
I want to add one more comment that is related to how this business has been evolving in distribution, right? What you see is a trend in distribution that as the technologies mature, our share of that market grows. What I want to represent here is that we have a double opportunity. One is for really the growth of the technology areas that we are describing here. Second is, as the technology matures, you will see more of these companies driving more of the revenue in the partner ecosystem and through us. Again, we are capitalizing on that.
Okay. Great. Thank you for those answers. Just a follow-up question, just regarding your M&A strategy. You haven't really talked about that a lot today, but you know, historically, both SYNNEX and Tech Data have been you know, very successful in doing lots of acquisitions, consolidating the markets. Yet you also pointed out you only have 16% market share. So could you talk about that strategy, both near term, you know, given your debt levels today versus long term, regionally, you know, size of acquisitions, areas, technology, that sort of thing?
Yeah. Jim, maybe I'll take that one on. Actually, Matt, I'm sorry. I called you Jim. Matt, I'll take that one on. When Marshall talked about our capital allocation strategy, he talked about 50% return to shareholders and 50% return into the business. You know, he talked about, you know, that return to the business being half and half between M&A and organic investment. You should think about that on the continuum. Obviously, in any given year, we aren't gonna precisely be, you know, exactly on that model, but through the continuum, we would be. You know, we, as you know, within this industry, M&A has always been a good opportunity.
When we think about M&A moving forward, we absolutely wanna make sure that any M&A considerations are aligned with our strategic priorities, which Sergio covered in detail today. To the extent opportunities arise that align with where we want to go, we certainly consider them, and if it's a good fit, then we'll pursue them. In addition to that, we also talked about building our platform, StreamOne Stellr, StreamOne Ion, and then actually having to make investments in that platform moving forward to make sure that we're meeting the customer need around solution aggregation and ultimately orchestration a couple of years out. There'll be, you know, investments required for us to do that as well.
Be assured that, you know, we are making the decisions and trade-offs between organic and M&A on based upon the priorities of our vendors and our customers. That's the voice that we'll listen to going forward. Yeah, I wanna be very clear that, you know, those lanes and avenues are open for us as we move into the future.
Okay, thank you.
Great. Thank you very much. We'll take our next question from Trevor Bowers with Northcoast Research. Go ahead, Trevor.
Trevor, we're having trouble hearing you. You might be on mute.
Okay. We're gonna move on to our next questioner, Ashley Ellis with Credit Suisse Securities Research. Go ahead, Ashley.
Hmm.
I think we may be having an audio difficulty.
While we're waiting, Liz, maybe you want to comment on when the presentation will be up on the investor.
Definitely. Yep. The presentations, all the materials that you saw today are available on our investor relations website, so you can definitely go there and download those. It looks like we may have a follow-up from Jim Suva at Citi. If you can hear us, Jim, please go ahead.
Yes. Hopefully you can hear me. It's Jim Suva with a follow-up, and I see a couple nods, so thank you. I have followed, you know, Tech Data as well as SYNNEX for, you know, well over a decade, and both of them have had pretty good sound ERP systems. Of course, the SYNNEX one of the CIS system is kinda, you know, home-brewed and a little bit different compared to the Tech Data one. You know, I understand in North America you're gonna then be rolling the CIS system, but Europe remains on SAP. I guess I just don't understand, why wouldn't you, after you get North America rolled over and Japan into CIS, why wouldn't you then take Europe away from SAP and go to the CIS system for the great savings?
Is that, let's do step by step before we assess that?
Jim, I'm gonna start, and then I'm gonna turn it over to Bonnie. I hope I'm not misleading everyone. The first and foremost is we wanna make sure that we meet our, you know, tactical commitments around getting our integration completed, which is predominantly within the Americas. There is a ton to learn as we come through that. You know, we feel very strongly that we're gonna have great success within the CIS system. There are complexities that exist around the world that, you know, we'll be learning and determining, you know, are we able to to think about, you know, in a phase down the road, an approach where there's consideration to that. Let me turn it over to Bonnie and let her respond to that.
Thank you, Rich. I would build upon Rich's comments by adding that when we think about Europe has a tremendous amount of complexity between our distribution and logistics centers into the customers, the tax codes, the regulations across country borders. SAP, quite frankly, just like CIS was built for purpose for distribution, SAP actually started with its roots in Europe, and therefore that is its strong suit. Just as Patrick said earlier, I echo that we are gonna focus on SAP. We're gonna focus on APJ after we get through the Americas. At that point, we can take a look at how the system's performing and what the point of view is from our coworkers around the world.
We keep our options open, but right now we're focused on SAP in Europe.
Thank you. I think people appreciate the methodical view of doing it rather than a light switch. Thank you so much for the details.
Oh, thank you, Jim.
Thank you very much. We have another follow-up from Ananda Baruah at Loop. Go ahead.
Hey, guys. Thanks a lot. Yeah, I'll throw it in there. On Hyve, is there anything, I guess really, a potential for Hyve normalized growth acceleration in the coming years? Really sort of in two ways, and if there's anything in addition, please throw it in, guys. You sort of as cloud customers, I guess as sort of more, you know, kind of advanced computer applications that require much more intensity becomes a larger part of what cloud guys are doing, you know, including tier twos, et c. Seemingly that would seem to be well-positioned for Hyve. Number one, could the Hyve revenue growth rate increase or accelerate?
The second part of that is there anything the combination that sort of lends itself to Hyve getting some revenue lift as well? Appreciate those two. Thanks.
Ananda, let me get started on.
To your question. First, it's important to know that we talked about high- growth technologies today and certain high- growth technology category. Once you get back to the charts, you'll see that when we look at IDC's industry prediction, that is anticipated to grow between now and 2025 at 15%. That's more than double the IT industry. We like our Hyve business. We like the growth opportunities which exist within that particular segment, and we will continue to invest to capture, you know, our fair share of that going forward. As you know, we've been in pursuit of expanding our customer portfolio. Within Hyve, we've got three major categories of offerings that we take to market.
We believe that that business is purpose-built to serve large hyperscalers as well as the, as you call them, the medium-sized hyperscalers. Yeah, we think, as you know, it's from a quarter- to- quarter basis, it's lumpy, but we think that on an annualized basis, it offers a great opportunity for TD SYNNEX, and we fully intend to continue to pursue it, as a focused area within our business.
Great, guys. Thanks.
Thank you, everyone. We very much appreciate you attending our Investor Day today. We appreciate your time and hope that you found our presentations informative and insightful regarding the investment opportunity at TD SYNNEX. We look forward to engaging with you in the coming quarters. Thank you very much.
Thanks, everyone.
[Crosstalk] Good day.
Thank you.