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TD SYNNEX (SNX) Signs SCA With AWS, Boosts Digital Offerings

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TD SYNNEX (SNX - Free Report) recently inked a strategic collaboration agreement (“SCA”) with Amazon’s (AMZN - Free Report) subsidiary, Amazon Web Services (“AWS”), to invest in resources that will help in developing advanced cloud solutions for its partners.

Amazon’s AWS offers more than 200 fully-featured services from data centers globally. Its features range from infrastructure technologies like compute, storage, and databases to emerging technologies such as machine learning and artificial intelligence, data lakes and analytics, and the Internet of Things.

AWS is the world’s most comprehensive and widely adopted cloud platform, which is utilized by millions of customers. Per the SCA, TD SYNNEX partners, including small and medium-sized businesses, public sector organizations, and individual software vendors, will get enhanced international exposure to sell their newly developed offerings integrated with AWS’ advanced cloud technology.

TD SYNNEX will extend its presence across newer and larger markets with an improved customer base. Its partner businesses will be able to significantly expand their digital portfolio of solutions, either by transforming their existing applications or building something new, via Amazon’s fast and easily accessible cloud platform. This move will reduce costs while accelerating innovation to reach the targeted goals of its partners.

Consecutive Deal Wins

It is remarkable that TD SYNNEX has been benefiting from consecutive deal wins since its formation, following the merger of SYNNEX and Tech Data Corporation in the first week of September 2021.

Recently, in December, TD SYNNEX’s wholly-owned subsidiary, Tech Data India, announced a partnership with Zscaler to enable its partners to purchase security solutions and services as part of the Zscaler Zero Trust Exchange platform directly from Tech Data India.

Prior to that, in October, TD SYNNEX’s legacy company, Tech Data, collaborated with Hewlett Packard Enterprise in the Asia Pacific to grow its distribution of HPE GreenLake cloud services in the region, enabling partners to access a robust set of cloud services that help customers tackle their most challenging business outcomes.

Earlier in October, TD SYNNEX’s legacy company, Tech Data, signed a distributor agreement with Freshworks Inc. to make Freshworks’ suite of products for business solutions available in the India region.

In September, TD SYNNEX partnered with Zscaler, which enabled its partners to purchase security solutions and services as part of the Zscaler Zero Trust Exchange platform directly from the company. In the same month, SNX signed an agreement with a leading Israeli software provider, Indeni, to leverage automated network security solutions.

Earlier in September, TD SYNNEX had won its first distribution contract from Palo Alto Networks to distribute the latter’s cybersecurity solutions to the India & SAARC-based customers.

TD SYNNEX is committed to boosting its organic growth with more strategic acquisitions and deal wins that complement and expand its existing capabilities. The merger of TD SYNNEX with Tech Data is expected to be significantly accretive to TD SYNNEX’s bottom line. The deal is anticipated to contribute solid synergy benefits to the company’s top line in the near term.

Zacks Rank & Stocks to Consider

TD SYNNEX currently sports a Zacks Rank #1 (Strong Buy), while Amazon carries a Zacks Rank #3 (Hold).

Some other top-ranked stocks from the broader computer and technology sector include the largest global Customer Relationship Management vendor Salesforce (CRM - Free Report) and Hewlett Packard (HPE - Free Report) , each flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Salesforce’s fourth-quarter fiscal 2022 earnings has been revised downward by 7.6% to 73 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved upward by 0.43% to $4.68 per share in the last 60 days.

Salesforce’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 44.2%. CRM stock has appreciated 8.7% in the past year.

The Zacks Consensus Estimate for HPE’s first-quarter fiscal 2022 earnings has been revised downward by 6.1% to 46 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved north by 1.5% to $2.03 per share in the past 90 days.

HPE’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 14.4%. Shares of HPE have rallied 40% in the past year.