Avnet Launches Partner Program To Boost IoT Development

Avnet (NASDAQ:AVT) recently launched a Partner Program at the ongoing CES 2020, which will aid IoT efforts by providing system integrators and OEMs with space to create IoT solutions cost effectively. Hence, the developers will be able to continue with their developments on the company’s IoTConnect platform, which is powered by Microsoft’s (NASDAQ:MSFT) Azure IoT Suite.

Avnet also expanded its IoT solution offerings through the IoTConnect platform, enabling critical IoT devices to be connected securely by utilizing pre-built Smart Applications that feature a suite of AI services for specific industry verticals.

The success of the Partner Program lies in the testimonies of Avnet’s customers, who demonstrated their experience in the CES 2020. For instance, Capstone was able to build, deploy and manage its IntelliH2O smart meter solution in very little time with the help of Avnet’s Partner Program. This allowed Capstone to get to the market early and boost its recurring revenues.

Avnet further stated that it will expand its IoT offerings in spring this year to include a comprehensive marketplace to help developers offer their IoT applications for sale.

The IoT Furore

IoT has received a lot of attention in the past few years, mainly because of the growing demand for connectivity. A McKinsey report estimates that IoT could have an annual economic impact of $4-$11.1 trillion by 2025.

Per a Fortune Business Insights report, the global IoT market is expected to hit $1.1 trillion by 2026, at a CAGR of 24.7%, from 2018.

Rapid growth in IoT, big data, AI and blockchain is a major trend that is influencing IT spending. This bodes well for Avnet, given the nature of its offerings. Per Gartner, IT spending is expected to grow 3.7% year over year in 2020.

How Avnet Stands Amid Competition

The remarkable growth prediction of IoT is driving many companies to up their game in this space. For instance, Cisco Systems (NASDAQ:CSCO) allows its customers to extend connectivity in the toughest of environments and conditions, securely, from the enterprise to IoT Edge.

In 2019, Microsoft pledged to spend $5 billion over the next four years on IoT and is already partnering with smaller companies in the space.

Moreover, Avnet’s closest contender, Arrow Electronics (NYSE:ARW) , is giving tough competition with robust steps in this space. Notably, Arrow has secured a significant market share (12.81% in the third quarter of 2019, per CSIMarket.com) compared with Avnet (8.16%) through its broad portfolio of products and services. Further, the acquisition of eInfochips last year broadened Arrow’s IoT capabilities.

Nonetheless, Avnet has also been performing its share of hard work. It recently tied up with software company, Trusted Objects, to provide comprehensive industrial IoT solutions to customers with low-power IoT devices. Also, its impending acquisition of Witekio is aimed to expand and enhance its end-to-end IoT strategy. This encourages us about the company’s prospects in the space.

Avnet currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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