) 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
). The company has added several cloud service providers such as
Charter, Logix and Softlayer to expand its cloud-based
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
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
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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