Arrow Electronics is betting big on ArrowSphere, its cloud commerce platform, to expand its digital footprint and power growth in enterprise technology distribution.
The company said Aug. 4 that ArrowSphere played a key role in driving strong Q2 results for its Enterprise Computing Solutions (ECS) business, helping it serve more customers and scale its cloud and software offerings — particularly in the mid-market.
The ArrowSphere platform allows customers and resellers to manage cloud subscriptions, cybersecurity tools, and infrastructure software from multiple vendors in one place. With built-in automation for provisioning, billing, and analytics, Arrow designed the platform to make it easier for businesses to operate in hybrid cloud environments.
“ArrowSphere positions us nicely for ongoing customer base expansion,” said CEO Sean Kerins during Arrow’s earnings call.
He noted that the company saw a more than 50% increase in its backlog of ECS orders compared to the same quarter last year, an indicator of growing demand for digital and cloud-based services.
About the ArrowSphere digital platform
Arrow does not report specific revenue from ArrowSphere. However, the ArrowSphere platform has become central to the company’s digital sales strategy in Europe. It is now also gaining traction in North America, executives said.
Arrow pointed to three key drivers of ECS growth:
- Growing adoption of hybrid cloud solutions
- Infrastructure software
- Early-stage AI applications in data centers
For its fiscal Q2 ending June 28, Arrow posted sales of $7.58 billion. That’s a 10% increase from $6.89 billion in Q2 2024. Net income was $188 million in the prior year.
Kerins said the business is benefiting from greater transaction volume and improved efficiency, and he expects that trend to continue.
“We’re comfortable with the margin profile of the business,” Kerins told analysts.
He added that as the ECS unit scales, it’s beginning to see more return on investment.
ArrowSphere is a central tool in that strategy, especially as more IT spending moves to subscription-based models and mid-sized companies look for easier ways to manage complex cloud environments.
Across the company, Arrow Q2 revenue got a boost from robust performance in both its global components and ECS businesses. Executives said they are seeing early signs of recovery in the electronics supply chain and broader technology markets.
In ECS, the company expects continued growth through the rest of the year, supported by demand for cloud infrastructure, cybersecurity, and software tools that help companies run hybrid environments. ArrowSphere, they said, will be a key part of capturing that opportunity.
“Momentum will continue to build across the full second half,” Kerins said, pointing to a strong pipeline of business and increasing interest from customers.
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