Arrow Electronics
(
ARW
) recently announced that its Enterprise Computing Solutions (ECS)
segment has signed a distribution agreement with Trend Micro. This
will introduce virtualized cloud security solutions to Arrow's
distribution channel database catering to the needs of its
comprehensive clientele database.
The venture undertaken is to directly serve Arrow's mid-market
and enterprise customers in order to ameliorate their
content-security and threat-management solutions. The company
understands that in a world of globalization, where online
networking and communication forms the base of all activities,
security in digital content transmission for its customers is
imperative.
Trend Micro is a leader in providing cloud-based security
solutions to its customers. The company enjoys the reputation of
being customer-centric with user-friendly products of the highest
technology standards.
We believe that this agreement contains two-fold benefits. Not
only would the innovative and improved security solutions cater to
the needs of Arrow's data center customers but would also enhance
the existing market share and goodwill of Trend Micro's products,
using the high promontory that Arrow currently sits upon with its
dominance in the economy.
Recently, during the first week of February, 2012, the company
reported its financial results for its final quarter of 2011,
whereby it attained a 5% year-over-year revenue increase in its
Enterprise Solutions segment, reaching around $2 billion on the
back of strong Europe sales. It is quite lucid that this contract
would further proliferate this segment for the company, ossifying
its command even more in the computing solutions industry.
It should, however, be noted that Arrow resides in quite an
ominous monopolistic market where its competitors also set
progressive trends.
Avnet, Inc.
(
AVT
) very recently signed a distribution agreement with SMART Storage
Systems with the intent of diversifying its product database and
also to enhance customer satisfaction.
Hence, Arrow should not become complacent of its strong
financial results but continue to make such crucial advancements in
order to retain its market position and industry standards.
We maintain our Neutral recommendation on the stock.
Arrowretains a Zacks #3 Rank, which translates into a short-term
Hold rating.
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ARW
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AVT
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