Leveraging Ingram’s strong channel partner network, Aruba will expand its networking business and market its new Cloud Wi-Fi solution and Aruba Central cloud management services.
Moreover, Aruba will provide all the technical support and the technology know-how to Ingram and its channel partners so that the marketing and selling of the products and services can be handled effectively.
Recently, another networking company, Cisco (CSCO), chose Ingram to market its technology products and solutions. Some of the other companies who have opted for Ingram’s services include Fusion-io (FIO) and QLogic.
Ingram’s reputation as a global distributor has prompted companies, such as Panasonic, Falconstor, Jabra and Whiptail, to choose its services.
To strengthen position in the market, Ingram recently acquired CloudBlue Technologies, Inc. The acquisition will help Ingram expand its supply-chain solutions portfolio. Moreover, the addition of CloudBlue services will help the company to simplify the management of IT assets and consumer electronics in accordance with environmental and data security regulations.
Moreover, Ingram has been gaining from increased orders from Small & Medium Business (SMB) organizations in Europe, particularly in Germany and the U.K. This sector continues to spend on IT amid macroeconomic headwinds affecting European businesses. Ingram is now targeting the SMB segment in a more comprehensive way, not just in Europe but across all regions.
We believe that the cost benefits of cloud computing are pushing different companies toward massive information technology restructuring and upgrades. This is one of the reasons that SMBs have been investing in the area despite the economic weakness that has led to a slump in overall IT spending. We expect this to continue working in favor of distributors like Ingram.
However, the company’s significant exposure to Europe and its high debt burden are concerns, going forward.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).