New York-based Arrow Electronics Inc.’s (ARW) operating unit, Arrow Enterprise Computing Solutions, has recently announced the launch of its latest cloud service aggregation and brokerage portal, ArrowSphere. The newly introduced platform is particularly designed for aggregating, merchandizing and delivering cloud-related services to the system integrators, autonomous software dealers and IT service providers in Europe.
ArrowSphere through its improved business solutions will help its value-added European reseller partners to sell several aggregated cloud-related services which include infrastructure-, platform-, storage- and software-as-a-service solutions. Arrow via its platform would assist its clients to use 60 cloud-based services, white-label web stores, and centralized payment services. In addition, the new portals will also provide secured single-sign-on solutions to its customers.
Besides, there is huge scope for the company to earn additional revenue through this newly launched cloud-related portal. Management stated that ArrowSphere through its service channel would help ameliorating the demand of cloud-based services within the coming five years.
Arrow’s comprehensive range of products and services helped it become a leading global distributor of electronic components and computer products. Earlier, the company’s Global enterprise computing solutions reported revenues of $1.54 billion in the first quarter of fiscal 2012, surging 14.9% from the year ago quarter. The annual rise was attributable to strength in sales from the American and European regions.
Arrow pertains to an industry, where ominous competition is prevalent. Hence, the company should stay cautious of big players, such as Richardson Electronics Ltd. (RELL), Avnet Inc.(AVT) and Anixter International Inc. (AXE) in the industry.
The current Zacks Consensus Estimates for the second quarter of fiscal 2012 and for fiscal 2012 are $1.14 and $4.74, respectively. The company currently retains a Zacks #3 Rank, which translates into a short-term “Hold” rating. We are also maintaining a long-term “Neutral” recommendation on the stock.Read the Full Research Report on ARW
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