UK IT Channel News | IT Channel Oxygen
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • Sustainability
  • About Us
  • Partner with us
Members
Must-Know Distributors
Oxygen 250
No Result
View All Result
  • News
  • Topics
    • Vendor
    • Distributor
    • Partner
    • Indepth
    • Sustainability
    • M&A
    • People Moves
    • AI
    • Tech trends
  • Sustainability
  • About Us
  • Partner with us
No Result
View All Result
UK IT Channel News | IT Channel Oxygen
No Result
View All Result
Home Distributor

Ingram Micro CEO on $600m investment, tariffs and return to growth

Paul Bay suggests US tariffs could have positive impact on its financing business

Oxygen staff by Oxygen staff
5 March 2025
in Distributor, News
Paul Bay, Ingram Micro

Paul Bay, Ingram Micro

Share on LinkedinShare on Twitter

Ingram Micro has made a $600m investment in its cloud business over the past decade, its CEO Paul Bay claimed as he discussed how US tariffs may impact the distributor’s business.

The NYSE-listed broadliner – which moved back to public ownership in October – returned to growth in the final quarter of its year to 28 December 2024 (with net revenues rising 2.5% year on year to $13.3bn).

That wasn’t quite enough to tip it into growth for 2024 as a whole, as full-year net revenues slipped 0.1% to $48bn.

Tariff tussle

According to Canalys, US tariffs could accelerate major PC vendors’ efforts to diversify production outside of China (see bottom). HP expects that more than 90% of HP products sold in North America will be built outside of China by the end of its fiscal 2025, its CEO Enrique Lores said on an earnings call last week.

On an earnings call, Bay said that “some” of Ingram’s vendors “continue to focus on making their supply chain networks more resilient and creating mitigation plans”.

“And some that I was talking with in the middle of last year were already working for some time to diversify where their products are being manufactured to minimise the impacts,” Bay added.

“Specifically, I would say there’s some comments around that for the US and how some of our large manufacturers are moving around the world to try and offset that.”

Ingram Micro HQ

Ingram typically passes through tariffs, Bay said, adding that their potential introduction could actually boost its finance business.

“[One of our partner customers] believes that if the end businesses, if it becomes too much of a price increase… they have to look at how they can finance to really solve that business outcome,” Bay said.

“We’re a different company than we were”

The return to top-line growth Ingram achieved in Q4 “will sustain in 2025”, Bay predicted as the distributor forecast that Q1 revenues will hit between $11.43bn and $11.83bn (2.6% growth at the midpoint).

That will be partly thanks to a rebound in networking, which dropped double-digits for Ingram in both Q4 and full-year 2024, Bay said.

Full-year 2024 income from operations dropped from $944.3m to $817.9m as Ingram battled macro headwinds that “we believe are beginning to shift as we look to 2025”, CFO Mike Silas said.

While flat at $2.45bn, full-year 2024 operating expenses contained an “elevated level” of OpEx associated with Ingram’s investments in digital, Silas revealed.

The figure for 2024 stood at $114.9m, up from $69.8m in 2023, he said.

Bay said Ingram had invested “more than $600m” over “roughly a decade” in building the cloud capabilities that underpin Xvantage, which he billed as an “AI-driven digital experience platform”.

This had made the distributor a “different company” to when it went private in 2016, Bay said.

“Since that time, we have made strong progress on our cloud and digital strategy,” he said.

Tags: CanalysfeaturedHPIngram Micro
Previous Post

‘It’s getting big now’ – Okta breaks $1bn AWS Marketplace barrier

Next Post

Bytes Technology Group and Softcat dominate £3.7bn public sector VAR market

Related Posts

Phil Doye, boxxe
M&A

‘Rare opportunity’ – boxxe acquires £160m Cisco Gold partner CAE

4 July 2025
Hege Store, Advania
AI

Advania makes good on AI acquisition pledge, wants to become an ‘AI services provider’

3 July 2025
11 biggest UK VAR and MSP acquisitions of 2025 so far
News

11 biggest UK VAR and MSP acquisitions of 2025 so far

3 July 2025
Antonio Neri, HPE and Rami Rahim, Juniper
M&A

‘Every partner is super-excited’ – 6 sizzling soundbites as HPE closes Juniper acquisition

2 July 2025
5 talking points as Bytes issues FY24 and share storm updates
Partner

Bytes Technology Group eyes H2 bounce-back as profit warning buffets shares

2 July 2025
Patrick Zammit, TD Synnex
Big Interview

TD Synnex CEO pinpoints gap in European coverage, claims platform capabilities will become ‘table stakes’

2 July 2025
Safra Catz, Oracle
Deal Wins

WHO IS IT? Oracle strikes mystery $30bn-a-year cloud deal

1 July 2025
Nick Ross, Wiz
Cybersecurity

‘A whirlwind’ – Wiz ‘well on way’ to 100% channel

1 July 2025
Next Post
Bytes Technology Group and Softcat dominate £3.7bn public sector VAR market

Bytes Technology Group and Softcat dominate £3.7bn public sector VAR market

Follow Us

IT Channel Oxygen keeps you informed on the UK IT channel and its sustainable transformation. Learn more

  • About
  • Our Team
  • Partner with us
  • Privacy Policy
  • Terms & Conditions
  • News
  • Cookie Policy (UK)

© 2025 IT Channel Oxygen

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
No Result
View All Result
  • Oxygen 250
  • Must-Know Distributors
  • Member area
  • KOcycle Zone
  • Big Interview
  • News
  • Indepth
  • About
  • Partner with us

© 2025 IT Channel Oxygen