Electronic component distributor Arrow Electronics Inc. ARW recently announced the improvement of its cloud service aggregation and brokerage portal, ArrowSphere. This platform is particularly designed for aggregating, merchandizing and delivering cloud-related services to system integrators, autonomous software dealers and IT service providers all over the world.
ArrowSphere through its improved business solutions will help its value-added solution providers to sell several aggregated cloud-related services, which include infrastructure-, platform-, storage- and software-as-a-service solutions. Arrow via its platform would assist clients to use 90 cloud-based services and will also provide secured single sign-on solutions to its customers.
Besides, there is a huge scope for the company to earn additional revenues through this enhancement of the cloud-related portal. Management stated that ArrowSphere through its service channel would help increase the demand for cloud-based services in the coming years. Also, the portal will improve and enhance solution designs for customers and will help in accelerating their growth.
Arrow’s comprehensive range of products and services helped it to become a leading global distributor of electronic components and computer products. Its global enterprise computing solutions reported revenues of $2.81 billion in the fourth quarter of fiscal 2014, surging 3.3% from the year-ago quarter. The annual rise was primarily due to increased demand for storage, network and industry standard servers.
Moreover, incremental sales from strategic acquisitions such as Computerlinks are expected to boost Arrow’s top line, going forward. However, uncertain economic conditions, high debt burden and competition from Avnet AVT and Ingram Micro IM are concerns, going forward.
Currently, Arrow has a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is Avago Technologies Limited AVGO, sporting a Zacks Rank #1 (Strong Buy).
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