Arrow Electronics (NYSE: ARW) has launched managed storage services built around NetApp Keystone, aiming to give channel partners and managed service providers a ready-made way to sell Storage-as-a-Service without building their own operational teams. The distributor says it is the first to offer this kind of managed layer on top of Keystone, NetApp's consumption-based storage platform.
What the service actually does
The offering sits on Arrow's existing Partner XaaS with NetApp Keystone program and adds lifecycle management that partners would otherwise have to staff themselves. That includes provisioning and ongoing administration of storage systems, proactive monitoring, and operational support handled by Arrow rather than the reselling partner. Continuous optimization is powered by NetApp's Data Infrastructure Insights telemetry tool, which tracks performance and capacity trends across deployed systems. Cyber resilience and data protection services are bundled in as well, alongside performance and capacity tuning and periodic advisory reviews meant to help partners demonstrate measurable outcomes to their own customers.
Why distributors are moving into managed services
Consumption-based IT - paying for storage capacity as it's used rather than buying hardware outright - has pushed many resellers toward recurring-revenue models, but running that infrastructure day-to-day requires expertise many smaller partners lack. By absorbing the lifecycle management work, Arrow positions itself as a layer between NetApp's technology and partners who want to offer Storage-as-a-Service without hiring dedicated operations staff. Mike Martin, general manager of global services at Arrow's enterprise computing solutions business, said channel partners are looking for ways to "expand recurring revenue, deepen customer relationships, and deliver measurable business outcomes." NetApp's Alvaro Celis, senior vice president and chief commercial, partner and ecosystem officer, framed the shift as an opportunity for the partner ecosystem to build "deeper, longer-lasting relationships" with customers.
Practical considerations for partners
The arrangement effectively lets partners outsource storage operations while retaining the customer relationship and billing. That can lower the barrier to entry for firms that want to sell infrastructure services but don't want to build monitoring and support capabilities from scratch. It also means partners depend on Arrow's operational performance for service quality, a trade-off worth weighing against building in-house expertise. Arrow, which reported $31 billion in 2025 sales, says interested partners should contact their Arrow representative for details on availability, pricing structure and onboarding for the Storage-as-a-Service capabilities.