Technology distribution company, Ingram Micro recently announced the expansion of its mobility lifecycle services to Latin America (LATAM) through Ingram Micro Mobility. The expanded services will provide a complete solution to manufacturers, retailers, network operators, resellers and existing Ingram Micro customers.
Ingram Micro Mobility is a worldwide leader in mobile device lifecycle services. It offers an optimum product mix, brings new products to market and protects customer revenues. It also helps to improve efficiencies, lower costs and add value to the mobility supply chain. The offering will help Ingram to expand its supply-chain solutions portfolio.
Therefore, with this mobility solution and complete LATAM IT distribution and sales channel, Ingram’s customers will see greater market opportunities, which in turn will expand its customer base in the mobility market.
Apart from this, Ingram Micro recently added Aruba Networks to its client list, which provides wired and wireless access solutions to networks.
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 work in favor of distributors like Ingram.
Though the company’s significant European exposure and high debt burden are concerns, we are positive about Ingram Micro’s strategic relationship with networking giant Juniper Networks Inc. (JNPR - Free Report) , as well as other big technology companies, such as Hewlett-Packard Co. (HPQ - Free Report) , IBM Corp. (IBM - Free Report) and Microsoft Corp.
Currently, Ingram Micro has a Zacks Rank #3 (Hold).