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Arrow and Cypress Join Forces to Support Internet of Things

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Leading electronic parts distributor, Arrow Electronics, Inc. (ARW - Free Report) , has teamed up with Cypress Semiconductor Corp. to deliver pioneering solutions that will facilitate new, inventive business models for the Internet of Things (IoT).

The collaboration will allow Arrow to leverage Cypress' IoT connectivity platform to help its customers in providing analytic platforms, cloud and security technologies. This will bring continuous and complete IoT solutions to market.

Cypress is a semiconductor company that offers high-performance, mixed signal and programmable solutions. Its important customers include Lucent Technologies Inc., Seagate Technology (STX - Free Report) , Cisco Systems, Inc. (CSCO - Free Report) and Sony Corporation.

About IoT

The “Internet of Things” is a concept seeking to connect devices used for everyday living to the Internet, so that they can share and exchange data and thereby operate more intelligently. It may also enable devices to communicate with each other wherever required (such as in connected homes).

Since it is still in a nascent stage, it is currently dominated by innovative startups. Larger companies like Intel and Alphabet’s Google are attempting to provide building blocks. But since the value of the technology might in some cases be a significant percentage of the device cost itself, some of these big companies will become device providers in the IoT world.

Despite many companies having come up with their versions of interconnected devices comprising doorbells, thermostats and light bulbs, none has emerged as an industry leader yet.

Scope of the IoT Market

The IoT concept foresees billions of connected devices and systems with applications ranging from sensors and mobile devices to home appliances and cars. According to research firm IDC, as reported by the Wall Street Journal, the IoT market could nearly triple in the coming years. In 2014, the global IoT market was worth $655.8 billion, but it could reach $1.7 trillion by 2020.

According to the news source, more than 90% of the world's data has been created over the last two years. We believe that that the chance to tap such an opportunity within the fast-growing IoT market is astounding. In its Jun 2015 report, the McKinsey Global Institute projected that IoT applications could reach as much as $11.1 trillion every year by 2025.  We believe that by adding IoT cloud into its existing solutions, Arrow will gain the most from the continued proliferation of IoT devices.

Advantage Arrow

The collaboration will help Arrow becoming a key player in the automotive and industrial IoT segments.

Going forward, Arrow will also benefit by gaining wireless technology prowess and bringing more intellect to their products while speeding up time to market.

Cypress’s WICED software development kit has been designed keeping hardware manufacturers in mind.  The collaboration will help Arrow to enable quick installation of WiFi and Bluetooth in their devices.

Per, Aiden Mitchell, global vice president of IoT sales at Arrow, "Wi-Fi is essential for IoT device connectivity, and Cypress' Wi-Fi and combo solutions will enable us to bring robust cloud connectivity to our customers around the world."

Bottom Line

Given the ever-increasing number of connected products making their way into our everyday lives, IoT is poised to grow strongly. This collaboration brings Arrow some key capabilities to cater to this huge opportunity.

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