Watch Arrow CFO Chris Stansbury give his take on Q2 in two minutes.Watch Video
There's no doubt that Cloud will be one of the biggest drivers of growth in our business, which is why we should pay close attention to Arrow's strategy behind this segment.
With that in mind, global ECS president Sean Kerins sat down with Steve Robinson (Vice President, Global Cloud Solutions) to discuss Arrow's progress in the Cloud, our current focus areas and the tools at your disposal to drive sales.
Following the release of the Q2 global earnings for Arrow the comms team sat down with Sean to run through his highlights from the quarter, plans for the 2nd half of the year and where he sees cloud going.
Hello Sean. We are officially through the first half of 2016. How did ECS perform in the second quarter?
I was generally pleased with our second quarter performance. Despite flat sales overall, our billings growth outpaced IT spending in most of the market segments where we compete. We also managed to deliver operating income growth of 10% year on year. I consider that the true measure of our ability to execute on our overall strategy.
So, what were some of the highlights?
Once again, our EMEA team led the way with solid top and bottom line growth. They are clearly outperforming their competition. Strategically, we successfully continued our pivot to software-based solutions with strong growth in security, analytics and virtualisation. Additionally, I was especially pleased with the success of our recent acquisitions: immixGroup, ECS Brazil, Observatory Crest and Distribution Central. All four exceeded their commitments and contributed nicely to our overall results in the quarter. Our M&A activity has clearly been additive to our growth and market share gains.
You mentioned investment areas. Cloud seems to be a big focus area. Can you share more on that strategy?
With more than 1,000 active MSP subscribers to ArrowSphere, our momentum in the Cloud continues to improve. The addition of Microsoft to our growing cloud linecard also enhances our ability to both expand our customer base and enable hybrid-cloud adoption. However, as this new IT consumption model evolves, we’re only scratching the surface of our true potential. I recently hosted a live webinar with our Cloud expert, Steve Robinson. I encourage everyone to take 30 minutes to hear more about where we are headed, and the sales tools available to help you drive growth in this critical area.
Thanks for your time today, Sean. One last question. What should we be focused on in the second half?
We’re seeing some fairly significant technology shifts in the marketplace. For example, the displacement of traditional storage for flash and hyper-converged technologies will continue to create hardware headwinds. Therefore, it’s imperative that we double-down on our efforts to land new suppliers and capture new customers – two of our strong suits over the years. As always, it’s our people that stand us apart from the competition. As such, I’m grateful for our team's continued commitment to our suppliers, customers and each other!