Managed services providers and non-traditional VARs are forging new relationships with Arrow Electronics to take advantage of the company’s holistic IoT practice and hybrid cloud capabilities.
The Centennial, Colo.-based distributor said its cloud business is on track to have a $1 billion run rate in 2017. That’s due, in part, to the robust onboarding of MSPs and other types of non-traditional channel partners that have recurring revenue business models, according to Sean Kerins, president of Arrow’s Enterprise Computing Solutions (ECS) business.
If the projections hold, Arrow will have quintupled the size of its cloud business since May 2016, when Chairman, President and CEO Mike Long said the distributor’s cloud business was operating at a $200 million annual run rate.
“We are in an unprecedented and very good position, one that we’ve never been in as a company before,” Long told Wall Street analysts Thursday. “There are four viable, very large markets [digital, cloud, sustainable technology, and IoT] that could produce years and years of operating income for Arrow.”