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Electronics distributor Arrow Electronics Inc. (ARW - Analyst Report) recently announced that its business segment – Arrow Enterprise Computing Solutions (ECS) has signed an agreement with Syncort to be among the first distributors of the NetApp Syncsort Integrated Backup solution in the United Kingdom. Last year, both the companies had signed a deal for North America.

Syncort provides data integration acceleration and data protection software solutions. Arrow provides enterprise computing solutions to value-added resellers (VARs) through its global ECS business segment.

The computing segment includes products like servers, workstations, storage products, microcomputer boards and systems, design systems, desktop computer systems, software, monitors, printers, flat panel displays, system chassis and enclosures, controllers and communication control equipment.

NetApp Syncsort Integrated Backup offers simple, integrated and proven data protection that resolves critical back-up and recovery challenges. The solution provides back-up windows and provides fast, simplified disaster recovery at 30% to 50% lower cost. In addition, the solution reduces the cost and complexity associated with traditional back-up architectures and is ideal for heterogeneous storage and virtual environments.

Management at Arrow stated that NetApp Syncsort Integrated Backup offers its channel resellers a superior data-protection solution which complements their existing NetApp portfolios and can be used strategically to create new markets and revenue streams.

Earlier, ECS reached a commercial agreement with EcoLogic Systems Ltd. to add virtual desktop infrastructure optimisation-as-a-service (OaaS) to its portfolio in the United Kingdom.

This agreement represents one of the first channel alliances addressing VDI deployments through managed services.The VDI OaaS solution is a fully integrated service providing network optimisation for improved performance for end-users.

In addition, the ECS segment signed a distribution agreement with Riverbed Technology in the Nordic region. Under the terms of the agreement, Arrow ECS will distribute Riverbed solutions in Sweden, Norway, Denmark, Finland, Estonia, Latvia and Lithuania. Management stated the addition of Riverbed will further enhance Arrow ECS’ solution-focused value-added distribution model in the Nordic region.

We expect overall demand and margins to improve as volumes ramp up. In the long-run, we maintain our Outperform recommendation. However, the stock carries a Zacks #3 Rank, which translates into a short-term rating of Hold. 

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