Technology distribution company,
) signed a deal last week with ESET, a provider of digital security
solutions, for the distribution of ESET's suite of security
products to channel partners in the U.S.
ESET offers a wide range of security solutions that protect the
business environment against cyber-attacks and malwares. The
company's product suite includes ESET Endpoint Security, ESET
Endpoint Antivirus, ESET NOD32 Antivirus, ESET Smart Security and
ESET Cyber Security (solution for Mac). Its network security
solutions thwart advanced threats and data breach attempts. We
believe that the distribution of these security products in the
U.S. will benefit Ingram Micro, thus helping it to expand its
market share and increase sales growth.
In today's technology driven world, cyber-crime has become an
area of major concern. Enterprises and government agencies are
looking for more stringent cybersecurity measures to plug the
loopholes in the system. Ingram Micro is likely to benefit from
this increasing demand for security solutions and the expansion in
its supply-chain solutions portfolio. On the other hand, ESET will
benefit from increased geographical reach through Ingram's vast
Furthermore, leveraging Ingram Micro's distribution channels,
both the companies will be able to market their products easily and
expand in newer markets as well.
Ingram Micro has been teaming up with emerging brands in the
mobility space to expand its product and service offerings. The
company continues to invest to improve its mobile capabilities in
all its operating markets, especially in Canada. It is also worth
noting that the strong performance of its mobility business helped
Ingram Micro's first-quarter revenues to improve on a
Ingram Micro has been striking distribution deals with a number
of original equipment manufacturers, thus expanding its product
portfolio. Moreover, the company's exposure in cloud computing
products is expected to drive growth.
We believe that an improving IT spending trend will help Ingram
to post better results, going forward. Moreover, the company's
focus on the high-margin market and strategic acquisitions to
increase market share are encouraging. The BrightPoint acquisition
is also expected to remain a key growth driver for the company.
Though Ingram Micro's significant European exposure and a high
debt burden are concerns, we remain fairly optimistic about the
company's strategic relationships with network giants such as
Juniper Networks Inc.
Currently, Ingram Micro carries a Zacks Rank #3 (Hold).
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