Dell Ends Distribution Relationship with Arrow Electronics, Potential Revenue Over $1.4B
Dell Technologies (DELL) is ending its decade-long distribution relationship with Arrow Electronics's (ARW) ECS unit following a formal review and RFP process for its North American distribution business, creating a potential $1.4B+ revenue opportunity for competing distributors and forcing some channel partners to transition to new distribution providers, CRN's Joseph F. Kovar reports. Sources cited several reasons for Dell ending the relationship, including Arrow's narrower focus on enterprise and midmarket customers rather than carrying Dell's full portfolio, especially client devices and SMB offerings, along with more limited inventory and warehouse capabilities, while the departure of former Arrow ECS CEO Sean Kerins may also have weakened strategic alignment.