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Ingram Micro Expands Cloud Services

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Ingram Micro has introduced its Cloud Marketplace on a global platform through which channel partners and professionals can avail the required cloud services. First launched in North America, the Cloud Marketplace generated a huge response which prompted the company to launch it globally.  

The Ingram Micro Cloud Marketplace has more than 200 cloud-based solutions from over 70 vendors, which include (CRM - Free Report) , VMware (VMW - Free Report) and AVG Technologies . The company has added several cloud service providers such as Charter, Logix and Softlayer to expand its cloud-based offerings.

Ingram Micro’s initiative comes at an opportune moment as cost benefits of cloud computing are compelling the companies to engage in massive information technology restructuring and upgrades.

According to the latest study by IHS Inc., spending on cloud-based services should surge almost three times and reach $235 billion in 2017 from $78.2 billion in 2011. We expect this to work in favor of distributors like Ingram.

Separately, Ingram Micro has been gaining from increased orders from small & medium business (SMB) organizations in Europe, particularly in Germany and the U.K. Ingram is now targeting the SMB segment in a more comprehensive way, not just in Europe but across all regions.

Ingram Micro has been striking distribution deals with a number of original equipment manufacturers thus expanding its product portfolio. Moreover, Ingram Micro’s exposure in cloud computing products is expected to remain its key growth driver.

Additionally, we believe that the improving IT spending trend will help Ingram to post better results going forward. Moreover, management’s focus on the high-margin market and strategic acquisitions to grow market share is encouraging.

However, the company’s significant exposure to Europe and its high debt burden are concerns, going forward.

Currently, Ingram has a Zacks Rank #2 (Buy).

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