LAS VEGAS - Ingram Micro Inc. (NYSE: INGM), a prominent player in the Electronic Equipment industry with a market capitalization of $5.4 billion and annual revenue of $47.7 billion, has entered into a multi-year Strategic Collaboration Agreement (SCA) with Amazon (NASDAQ:AMZN) Web Services (AWS) to enhance its cloud service delivery and solutions for channel partners globally. InvestingPro analysis indicates the company maintains a FAIR financial health score, suggesting stable operational performance. This new agreement builds on Ingram Micro's existing relationship with AWS and integrates AWS Marketplace with Ingram Micro's digital platform Xvantage™, aiming to drive growth and service enablement for channel partners.
The SCA focuses on two main areas: scaling Ingram Micro’s professional services capabilities and enabling Independent (LON:IOG) Software (ETR:SOWGn) Vendors (ISVs) and channel partners to leverage AWS Marketplace and Ingram Micro Xvantage for expanded service offerings. Ingram Micro will utilize its AWS Migration Competency to improve cloud assessment and migration services globally. It will also enhance Advisory and Optimization services, including the AWS Well-Architected Framework, to guide partners in optimizing AWS environments.
Ingram Micro’s service offerings will now encompass generative AI, analytics, engineering, and architecture by leveraging AWS services like Amazon Bedrock, Amazon SageMaker, Amazon Redshift, and AWS Glue. The aim is to facilitate advanced AI model development, robust data warehousing, and efficient extract, transform, and load (ETL) processes.
Additionally, the SCA enables ISVs to list their offerings at scale through channel partners, who can also build and list their services, tailored to various industry sectors such as Retail, Manufacturing, Education, Healthcare, Finance, and Government. Ingram Micro will support the creation of AWS Marketplace listings to drive co-sell opportunities. According to InvestingPro data, the company's current valuation metrics suggest it may be undervalued, with multiple additional insights available to subscribers.
Jeremiah Jenson, Global Leader, Channel Resell at AWS, noted the agreement's potential to exceed channel expectations and empower them with necessary resources and technology. Victor Baez, Senior Vice President of Global Vendor Engagement at Ingram Micro, expressed excitement about the agreement and the business opportunities it presents for channel partners.
Ingram Micro has become the only AWS Distributor offering such services in North America, Latin America, EMEA, and APAC regions. The company is committed to enhancing the capabilities of channel partners, enabling them to support customer cloud migration and modernization.
Channel partners have praised Ingram Micro for its role in their growth and success with AWS. The company continues to accelerate partner success by streamlining AWS Marketplace transactions, optimizing billing operations, supporting business development, and providing migration and modernization expertise. With a P/E ratio of 15.8 and positive earnings yield of 7%, InvestingPro subscribers can access detailed analysis of the company's growth potential and 5+ additional ProTips to make informed investment decisions.
This news is based on a press release statement.
In other recent news, Ingram Micro has announced a restructuring strategy that will result in approximately 850 job cuts by the end of the first quarter of 2025. The company's goal is to improve organizational efficiency and enhance customer service. The restructuring is part of a broader strategy to position Ingram Micro for sustainable long-term growth. In terms of analyst coverage, JPMorgan has initiated coverage on the company with a neutral rating, citing cautious optimism about the company's prospects in the Enterprise IT market. Loop Capital initiated coverage with a Buy rating, highlighting the potential benefits of the company's Xvantage engagement platform and its focus on higher-value products and services. Evercore ISI began coverage with an "In Line" rating, noting both positive growth drivers and potential challenges for Ingram Micro. Lastly, Morgan Stanley (NYSE:MS) initiated coverage with an Equalweight rating, acknowledging the significant role Ingram Micro plays in the IT sector. These are recent developments in the company's operations and market analysis.
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