Global distributor says 'doing more with less' will help fuel technology spending in 2005
SANTA ANA, Calif., Jan. 4 /PRNewswire-FirstCall/ -- Ingram Micro Inc. (NYSE: IM), a global leader in technology sales, marketing and logistics, today highlighted several key technology, service and market trends that will help drive profitable growth for its solution provider customers and manufacturers in 2005.
"Whether you're in Asia-Pacific, Europe or the Americas, companies and consumers across the globe are embracing technology and looking for ways that it can help them do more with less," said Kevin Murai, president, Ingram Micro Inc. "From new technologies to added upgrades or services that help maximize the lifecycle of their existing technical investments, we believe this trend will help drive demand forward in 2005 and beyond."
Murai also states that although technology spending remains conservative, the day-to-day needs of the global marketplace for added efficiencies and conveniences will ultimately fuel the demand the industry began seeing in 2004. "In particular, we expect converged technologies, voice-over IP, all things mobile, and managed services to be category winners in 2005. We also believe the home market and other vertical business segments will bring new sales opportunity to the technology industry."
Ingram Micro also points to a pickup in demand in North America for mainstream technologies such as notebooks, monitors, and servers, as well as the components that comprise them. "During the second and third quarters of 2004, the systems and peripherals category within the U.S. and Canada gained traction in nearly all market segments including enterprise," said Paul Bay, vice president, product management, Ingram Micro U.S. "As design innovations such as integrated wireless, flat screens and compact form factors become standard and overall functionality, performance and pricing continue to improve, companies and consumers are seeing more reasons to refresh, upgrade or buy net new hardware."
From a general business perspective, Ingram Micro believes it will continue to see the strength of technology spending in North America stemming from the highly fragmented small and mid-size business segments. Further, the distributor views the small and mid-size enterprise (SME) as an under- serviced North America market segment with sales potential for both solution providers and manufacturers. "The SME, or Mid-market, is comprised of companies that have outgrown their SMB status, but still are not big enough to join the ranks of the Fortune 1000," said Brian Wiser, senior vice president, marketing, U.S. "In many cases, these fast-growth companies are reaching the limits of their existing infrastructure or may not have the bandwidth to evaluate and deploy technologies that meet their needs. In either case, opportunity knocks for our solution providers."
According to Ingram Micro, U.S. technology spending in 2005 will remain a bright spot for businesses and professionals within vertical markets such as the healthcare, legal and financial services industries. Overall demand will likely be placed on storage, networking, mobility and customized software integrations that will enable these organizations to become compliant with government regulations and mandates as well as improve their overall business efficiency. As early as Q105, the distributor plans to expand its North America reach, expertise and technology solutions offerings into the retail and manufacturing vertical markets.
"Industry regulations, government mandates and consumer demands will continue to drive technology spending within the U.S. healthcare, legal and finance industries. The manufacturing and retail markets in both the U.S. and Canada will be driven by the need to improve efficiency through the supply chain management and the product introduction processes. As such the industry is likely to see an increase in demand for point-of-sale equipment, automatic identification and data capture solutions, including RFID," said Sally Stanton, vice president, category management, Ingram Micro U.S. "There's also a sizable consumer interest and sales potential in technology advancements that help create a Digital Home and we expect to see this market gain more traction and visibility in North America throughout 2005."
Ingram Micro also sees a growing opportunity for service offerings such as manufacturer-branded SKU maintenance and warranty services as well as managed and professional services such as technology product content, network monitoring, and asset management services. "Demand for the Ingram Micro Help Desk, a 24-hour managed help desk, and the Ingram Micro Service Network, a unique, nation-wide service provider community, is up in North America as more of our solution providers look to either develop or expand their services practices," said Justin Crotty, channel marketing vice president, Ingram Micro North America. "Today, more and more businesses are realizing that having the right support in place to manage and maintain your technology investment has become equally important, if not more important, than the technology itself."
"We're encouraged about global technology spending in 2005 for the IT industry and are inspired by the continued innovations and efficiencies technology brings to people and businesses across the globe," said Murai.
About Ingram Micro Inc.
As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics services, technical support, financial services, and product aggregation and distribution. The company serves 100 countries and is the only global IT distributor with operations in Asia. Visit http://www.ingrammicro.com/corp.
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SOURCE Ingram Micro Inc.
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