Ingram Micro (IM) Expands Its Cloud Marketplace To Brazil

Ingram Micro Inc. (NYSE:IM) is making significant progress in the fast growing cloud computing market. The company recently announced the availability of its Cloud Marketplace in Brazil through which its channel partners and professionals can avail the required cloud services. First launched in North America, Cloud Marketplace received favorable response and is now available in 19 countries globally.

Featuring Microsoft’s (NASDAQ: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 its 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.

The Ingram Micro Cloud Marketplace has more than 200 cloud-based solutions from over 70 vendors, which include salesforce.com (NYSE:CRM) , VMware (NYSE:VMW) and AVG Technologies.

According to Diego Utge, vice president & chief executive of Ingram Micro Brazil "Cloud adoption in Brazil continues to grow rapidly, with more SMBs shifting their current IT infrastructure to a cloud-based model to improve their time-to-market and overall competitive stance." He added "The availability of the Cloud Marketplace now provides our partners with greater capability to effectively sell cloud solutions while identifying and exploiting new business opportunities."

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.

Separately, the company recently announced that the users of its Cloud Marketplace in Mexico can now avail Dropbox, Cirius and BitTitan services as well. This takes the total number of cloud solutions accessible through Ingram Micro in Mexico to approximately a dozen.

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 (NYSE:JNPR)., Cisco and International Business Machines (NYSE:IBM) 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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