To tap the ever increasing opportunities and cater to the growing demand for cloud computing, Ingram Micro Inc. IM recently extended its Cloud Marketplace to Portugal. Through this, its channel partners and professionals can avail the required cloud services.
Cloud Marketplace was first launched in North America and received a favorable response, which prompted the company to launch it globally. We note that just yesterday the company announced the availability of the same platform in Brazil. Currently, IngramMicro Cloud Marketplace is also available in Austria, Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland and the United Kingdom.
Featuring Microsoft’s MSFT Office 365 via the Microsoft Cloud Solution Provider (CSP) program, Ingram Micro Cloud Marketplace will be extremely beneficial for channel partners as it will enhance the customer’s overall support experience and accelerate the growth of cloud businesses.
Moreover, it will broaden Ingram Micro’s capabilities as a cloud solution provider, thereby helping it to capitalize on the increasing opportunities in the cloud computing market. It will also be a good source of monthly recurring revenues for Ingram Micro.
According to Juame Soler, executive director of Ingram Micro Portugal and Spain, “We are pleased to provide a flexible and customizable infrastructure to our channel partners in Portugal and empower them to focus on their core competencies rather than divert valuable resources to building a cloud platform infrastructure." He added "The Ingram Micro Cloud Marketplace presents a true competitive advantage for our partners by helping them reduce time-to-market and deliver streamlined cloud management solutions through a single online portal."
Ingram Micro's initiative comes at an opportune moment as cost benefits of cloud computing are compelling companies to engage in massive information technology restructuring and upgrades.
Further, according to IDC, Brazil is witnessing a huge demand for cloud services. Public cloud services in 2015 were valued at $645 million. Moreover, the same is projected to increase to $1531 million by 2018, with a compound annual growth rate (CAGR) of 33.4%. We expect this to work in favor of distributors like Ingram Micro.
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.
Though Ingram Micro’s high debt burden is a concern, we remain fairly optimistic about its strategic relationships with network giants such as Juniper Networks Inc., Cisco and International Business Machines Corp.
Ingram Micro carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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