Arrow Electronics named VMware Cloud Commerce Manager for North America by Broadcom

Rhea-AI Summary

Arrow Electronics (ARW) has been appointed as a VMware Cloud Commerce Manager for the VMware Cloud Service Provider (VCSP) program in North America. This expansion allows VCSP partners in the U.S. and Canada to access VMware Cloud Foundation through Arrow's services.

Through this agreement, Arrow will manage orders and monthly billing for VCSP partners, while providing technical and go-to-market support for cloud migration. The company will deliver VMware Cloud Foundation via its ArrowSphere platform, offering partners immediate access to personalized assistance, training programs, and certified resources.

This appointment follows Arrow's November designation as a VMware solutions provider in North America. The company now supports VCSP partners across the U.S., Canada, and 19 European countries.

Positive

• Geographic expansion into North American VMware cloud services market
• Enhanced service offering through ArrowSphere platform
• Strategic partnership with Broadcom's VMware division

Negative

• None.

Insights

Enterprise Technology Analyst

Arrow Electronics' designation as VMware Cloud Commerce Manager for North America represents a strategic expansion of its distribution capabilities in the $200+ billion cloud infrastructure market. This appointment positions Arrow as a important intermediary in Broadcom's post-acquisition strategy for VMware's cloud services.

This agreement significantly expands Arrow's role beyond traditional distribution. As Cloud Commerce Manager, Arrow now handles the entire commercial lifecycle for VMware Cloud Foundation services - from order processing to billing management - creating a new recurring revenue stream with higher margins than traditional hardware distribution. For context, Arrow's enterprise computing solutions segment generated $13.1 billion in 2023 revenue, and this enhanced VMware relationship could meaningfully contribute to growth in this division.

The ArrowSphere platform is the technological differentiator here. This cloud management platform allows service providers to provision, manage, and bill for cloud services through a single interface - addressing a critical pain point for MSPs juggling multiple vendor relationships. Arrow's ability to leverage this existing platform for VMware services creates immediate operational synergies.

Broadcom's decision to expand Arrow's role from EMEA to North America signals confidence in Arrow's execution capabilities and validates its cloud strategy. This comes as Broadcom implements a more partner-centric approach for VMware following its controversial $61 billion acquisition, focusing on its highest-value products like Cloud Foundation.

For investors, this partnership offers three key benefits: 1) Enhanced recurring revenue potential through ongoing management fees; 2) Strengthened competitive positioning against rivals like TD SYNNEX and Ingram Micro in the cloud distribution space; and 3) Deeper entrenchment in the VMware ecosystem as cloud infrastructure continues its migration toward hybrid models.

The primary risk factor is Arrow's increased dependence on Broadcom/VMware's strategic decisions, particularly as Broadcom continues to reshape VMware's product portfolio and partner programs. However, Arrow's expanded geographical coverage across North America and 19 European countries provides some diversification against regional challenges.

This appointment reflects the broader evolution of technology distribution, where value increasingly comes from platform capabilities and services rather than traditional product fulfillment - a transition that aligns with Arrow's long-term strategic initiatives in cloud and AI services.

Arrow now serves as a trusted advisor handling everything from orders to billing for VMware Cloud Service Provider partners.

CENTENNIAL, Colo.--(BUSINESS WIRE)-- Global technology solutions provider Arrow Electronics, Inc. has been named a VMware Cloud Commerce Manager for the VMware Cloud Service Provider (VCSP) program in North America. The new agreement provides VCSP partners in the U.S. and Canada access to VMware Cloud Foundation via Arrow.

“We are honored to become a Cloud Commerce Manager provider and help further empower MSPs in the ever-changing landscape,” said Shannon McWilliams, vice president of cloud and AI services for Arrow’s enterprise computing solutions business in North America. “Between our strong knowledge of cloud management using our ArrowSphere platform and our strong technical and operations teams, we can provide a consistent and valuable hybrid cloud experience for VMware partners who work with us.”

The VCSP Program focuses on VMware Cloud Foundation, the company’s flagship private cloud platform. VMware Cloud Foundation is the industry’s first private cloud platform to deliver public cloud scale and agility with private cloud security, resilience and performance, and low overall total cost of ownership. VMware Cloud Foundation supports customers’ digital innovation with faster infrastructure modernization, a unified cloud experience, and better cyber resiliency and platform security.

“Cloud Commerce Managers such as Arrow play a pivotal role in enhancing the value and scalability of our VMware Cloud Service Provider ecosystem,” said Ahmar Mohammad, vice president, partners, managed services, and GTM, VMware Cloud Foundation Division at Broadcom. “With Arrow expanding its role as a Cloud Commerce Manager in EMEA to now support partners across North America, we’re providing our VCSP partners a proven resource that can help them drive greater efficiency and growth. Arrow's expertise will further empower our partners with the tools and resources they need to succeed in an increasingly competitive cloud marketplace.”

As a Cloud Commerce Manager solutions provider, Arrow can help streamline partner operations, handling everything from orders to monthly billing. Additionally, Arrow can enable VCSP partners to expand their services by offering technical and go-to-market support for cloud migration and transformation. Under the new agreement, Arrow will deliver VMware Cloud Foundation through its ArrowSphere platform. VCSP partners can benefit from immediate access to Arrow’s personalized assistance, training programs, and certified resources as part of its high-quality support services that span the commercial IT lifecycle.

Arrow also provides specialized services, sales engineering and technical support capabilities for VMware solutions as an extension of Broadcom support. The news comes just after a November announcement where Arrow was named a VMware solutions provider in North America.

Arrow now supports VCSP partners in the U.S., Canada and 19 European countries.

About Arrow Electronics

Arrow Electronics (NYSE:ARW) sources and engineers technology solutions for thousands of leading manufacturers and service providers. With global 2024 sales of $28 billion, Arrow’s portfolio enables technology across major industries and markets. Learn more at arrow.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225956310/en/

Media Contact

Arrow Electronics, Inc.

John Hourigan

jhourigan@arrow.com

303-824-4586

Source: Arrow Electronics

FAQ

What services will Arrow Electronics (ARW) provide as VMware Cloud Commerce Manager?

Arrow will handle orders, monthly billing, technical support, and go-to-market support for cloud migration, delivering VMware Cloud Foundation through its ArrowSphere platform.

How many countries does Arrow's VMware partnership now cover?

Arrow supports VCSP partners across 21 countries: the United States, Canada, and 19 European countries.

What platform will Arrow Electronics use to deliver VMware Cloud Foundation?

Arrow will deliver VMware Cloud Foundation through its ArrowSphere platform.

What benefits do VCSP partners get from Arrow's new role?

Partners receive immediate access to personalized assistance, training programs, certified resources, and specialized services including sales engineering and technical support.