Arrow Electronics Inks Distribution Deal with Violin Memory

Leading electronic parts distributor Arrow Electronics, Inc. ARW signed a distribution agreement with Violin Memory, Inc. VMEM. Per the deal, Arrow will provide marketing and technical support to Violin to bolster its growth in the Flash memory market in North America. Violin Memory is a provider of all-flash storage arrays. The financial terms of the agreement were not disclosed.

The dealwill introduce Violin’s wide range of Flash Storage Platform solutions to Arrow’s distribution channel database.Violin Memory will be able to leverage the strength of Arrow’s technical expertise and supply chain distribution networks in the region.

The Flash Storage Platform is the first all-flash storage system designed to run all primary storage and workloads in a cost effective manner. The Flash Storage Platform minimizes next generation data center workloads by combining the highest performance storage withthe lowest capex and opex possible.

The contract was specifically planned to augment the datacenter and fast growing flash storage market in North America. Arrow, through its enhanced program, will facilitate the creation of an advanced platform to categorize and develop converged datacenter solutions across vertical markets.

Management also stated that the company’s latest distribution program would surely meet the increasing demand for data-center convergence solutions as well as all-flash storage solutions.

Founded in 2005, Violin Memory is a pioneer of All Flash Arrays and transforms the speed of businesses with high performance on its leadership Flash Storage Platforms. This agreement would help Violin expand its market in North America.

The two companies entered into a similar distribution agreement for EMEA (Europe, the Middle East and Africa) earlier this year.

Recently, Arrow’s operating unit Arrow Enterprise Computing Solutions (ECS) also signed a distribution agreement with Splunk Inc. SPLK

Per the agreement, ECS will directly distribute Splunk’s real-time infrastructure optimization software to help customers reduce their time to market, lower their total cost of ownership, introduce innovative products through demand creation opportunities and enhance their overall competitiveness.

Management was also pleased with the collaboration as this venture would allow Arrow to provide best-in-class data center management after its integration with Splunk’s operational intelligence platform. These solutions would easily cater to the needs of Arrow’s clients.

Besides, incremental sales from strategic acquisitions such as Computerlinks are also expected to boost Arrow’s top line, going forward.

Currently, Arrow has a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Avago Technologies Ltd. AVGO, sporting a Zacks Rank #1 (Strong Buy).