Avnet Inc.’s (AVT) operating segment, Avnet Technology Solutions (TS), recently launched its latest product named Avnet VSPEX Cloud Accelerator Program at the IT conference, EMC World 2012. The program, controlled by Microsoft System Center 2012, will be engaged in providing cloud-related solutions to the value-added reseller partners in the U.S. and Canada.
Avnet will also offer its EMC partners and small-to-medium (SME) clients several of its expert services, such as private cloud networking solutions and virtual desktop infrastructure services through its Data Center Lifecycle Services platform.
The newly introduced program, particularly designed for Intel servers, will integrate EMC’s back-up solutions, Brocade and Cisco’s cloud-based solutions, Microsoft’s technological applications and RSA’s safety solutions. Additionally, other data center solutions in the field of computation, technology, storage and security shall also be rendered by Avnet under this program.
Avnet would facilitate its channel partners to use the cloud-related opportunity, which is an effective service offering, designed specially to take on cloud computing. Furthermore, they are likely to earn additional profit from Avnet’s superior services through improved sales.
The company’s comprehensive range of products and services helped it become a leading distributor of electronic components and computer products. Earlier, Avnet’s Technology Solutions reported revenues of $2.52 billion in the third quarter of fiscal 2012, down 8.1% from the year ago quarter. However, we can still be optimistic about a better segmental performance in Avnet’s upcoming quarter results.
The company pertains to an industry, where ominous competition is prevalent. Hence, Avnet should stay cautious of big players, such as Wesco International Inc. (WCC), Arrow Electronics Inc. (ARW) and Anixter International Inc. (AXE) in the industry.
The current Zacks Consensus Estimates for the fourth quarter of fiscal 2012 and for fiscal 2012 are $1.03 and $4.18, respectively. The company currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. However, we are maintaining a long-term Neutral recommendation on the stock.
ARROW ELECTRONI (ARW): Free Stock Analysis Report
AVNET (AVT): Free Stock Analysis Report
ANIXTER INTL (AXE): Free Stock Analysis Report
WESCO INTL INC (WCC): Free Stock Analysis Report
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