The curtain of B2B services is about to be peeled back in this post. But have no fear…you’re gonna learn some pretty cool things, about technology that you use every single day.

Let’s get the boring part out of the way: today, USAToday announced that one tech company, Tech Data, bought the IT business of another tech company, Avnet. The interesting this is what those two companies do.

First, let’s discuss what a B2B is. Most of us interact with B2C, businesses that sell to consumers. B2B companies, by contrast, provide a service or a product to the B2Cs in order to fulfill your request. Just as a school cannot function without an army of teachers, administrators, janitors, assistants, principals, neither can large B2C companies.

Tech Data: The ultimate B2B

Tech Data is one of those B2B companies, and here’s why they matter. Virtually everyone owns a cellphone, either one that we purchased, or that was given to us as a gift. Whether you by your apple product from Apple, Verizon, AT&T or some other reseller, you have to activate the phone. Tech Data provides that activation service. Resellers do what they do best – they sell you the stuff, and get someone else to service it.

Tech Data counts Hewlett Packard, HP, as one of its customers. It not only tests those products, but it is a wholesaler. The Best Buys of the world can buy from Tech Data, as well as smaller companies who want to compete with Best Buy.

Why Avnet Matters

Avnet provides a lot of electronic components to a multitude of companies. Unless you’re involved in manufacturing those products, you probably haven’t heard of those products. What they do have to offer are products that fit into a concept you probably have heard of: the Internet of Things, or IoT, for short.

Fitbit is an example of IoT product. It’s not a computer, a tablet, a smartphone. But it is an electronic product that you interact with, and uses technology of the internet to keep track of your fitness: how many steps you walked; how many calories your burned; your heart rate, and more.

This is why acquiring Avnet is a great strategic acquisition for Tech Data. Tech Data can continue to be the go-to wizard behind the curtain to service the needs of the name brands that you recognize.

Now that you’re in the know, share the knowledge!