Ingram Micro and SAP Join Forces

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Recently, Ingram Micro (IM) has entered into a distribution agreement with enterprise application software provider, SAP AG (SAP). This agreement is intended to expand the market reach of SAP's enterprise mobility solutions. Ingram will use its value-added reseller (VAR) channel to increase the reach of SAP solutions into the Small and Medium Business (SMB) market.

From Apr 2013 onward, the VAR community of Ingram Micro Mobility will have access to the SAP mobile platform, inclusive of the SAP Afaria mobile device management solution. Ingram Micro VARs will be able to access complex transactions across 24 industries, which use mobile technologies such as iOS, Android, Windows and BlackBerry operating systems.

The use of Ingram’s widespread distribution infrastructure and technical knowhow will make the SAP apps available to a broader section of the VAR community as well as end customers.

The BrightPoint acquisition positioned the company as the world's largest technology distributor, in line with other leading mobile device lifecycle management service companies. SAP plans to capitalize on this opportunity to improve its position in the market.

Thus, the agreement has turned out to be beneficial for IM, resulting in more and more deal wins. Moreover, the company has also derived some more clients through this acquisition.

Further, rumors suggest that Ingram might collaborate with companies such as MetroPCS Communications Inc. (PCS) and Sprint Nextel Corp. (S), which might be beneficial for the company going forward.

The company integrated BrightPoint’s operation very fast and the contribution is encouraging. Further, expected cost synergies and sizable contributions in the near future could make BrightPoint a key driver of growth.

Ingram Micro carries a Zacks Rank #2 (Buy).

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