Category: News

European distributors doing better than the US

noble_80Figures from the Global Technology Distribution Council show that the EMEA distributors have seen sales grow faster than their mates in the US.

The figures show that the European market IT market is growing faster than the US seeing sales surge in the first quarter which helped Europe have a strong start to the year.

Countries that had been in decline last year turning it around with Spain up 13 percent , Portugal 19 percent , France 4 percent , Belgium 12 percent , Germany 7 percent , Norway 16 percent  and the UK with an impressive 12 percent  growth to the end of March.

The UK saw distribution getting high levels of new business.

Tim Curran, CEO at GTDC, told its European summit that the year had started well across Europe, up by three percent  in January, but had been six percent  by the end of March.

He added that the role of distribution had changed and its position as a closer strategic asset for the vendor community was paying off.

“We come from an industry based on inventory, cost and fixed assets, but the amazing integration between distribution and the vendors has produced an industry with lower inventory, but much higher fulfilment rates. That makes it more efficient and profitable,” he said.

The GTDC’s position is that there is still plenty of extra services that distribution could provide vendors, but they have yet to engage with them in certain areas.

“Distribution can also help solution providers with skills shortages, particularly in the technology solutions around the cloud. Vendors often say they need help to enable their partners to take advantage of the new ways of working,” said Curran.


Dell EMC, Nutanix,and Hewlett-Packard rule converged infrastructure market

Q50883483_gDell EMC, Nutanix,and Hewlett-Packard are the key players in the global converged infrastructure market, according to a new report from Transparency Market Research (TMR).

TMR said that these companies are known to offer best on-premise data centres in a hybrid cloud world and are expected to look at geographical expansion through mergers and acquisitions and meaningful collaborations to increase their reach.

Business expansion through investment will also be an important strategy adopted by the players in the global market.

According to the research report, the global converged infrastructure market is expected to be worth $76.26 billion by the end of 2025 from $11.78 billion in 2016.

During the forecast years of 2017 and 2025, the global market is expected to surge at a CAGR of 22.4 percent. Amongst the various end users in the global market, the telecommunications and IT sector is estimated to show dominance over the forecast period.

By the end of 2025, this sector is likely to acquire a share of 34.2 percent in the global market. From a geographic point of view, North America is slated to account for a share of 39.5 percent in overall market by the end of 2025.

The global converged infrastructure market is expected to witness a healthy growth rate in the coming years as several organisations are investing in upgrading their IT infrastructure. Converged infrastructure includes servers, virtualization, networking, storage, and along with other resources that are holistically managed.

The demand for these systems is expected to remain consistent due to their single point of storage. The emerging trend of organisations to opt for solutions that provide better security, scale, agility, and simplicity is also expected to have a positive influence on the global market.

The report said that small and mid-sized organisations were taking a keen interest in adopting converged solutions cutting down IT operational costs has become imperative in the dynamic global economy.

UK PC prices up 40 percent

old-pcs-100565082-primary.idgeUK PC prices have shot up by over 40 percent in the last year due to the weakening pound, component shortages and a shift towards higher-value products.

The average selling price for PCs among UK distributors hit £475 in April and May, up from £335 a year earlier, according to analyst Context.

That represents a 42 percent hike – significantly more than any other country in western Europe, where PC ASPs only rose by an average of 19 percent.

Context senior analyst Marie-Christine Pygott said that European prices increases were driven by currency fluctuations, price increases by vendors to offset the effects of higher component costs, and a shift to higher-value products,

However, the UK increase was well above that of Germany, at 12 percent, and France, at seven percent. This was due to Brexit-fuelled price increases last year.

Spain and Italy saw ASPs price rise by 11 and 10 percent in the quarter. Other than the UK, the highest increase was seen in Sweden and Poland, at 18 percent.

UK prices would have been lower if it had not been for the currency fluctuations, Pygott said.

“We have seen vendors trying to de-spec products to offset the rising cost of components. The price increases may be less visible to consumers, but they will still be there in terms of an indirect increase.”

A shift to higher-value products, such as gaming systems in the consumer segment, and high-end notebooks in the commercial space, has also contributed to the rise, according to Context.

In  Q4 and Q1 in the UK volume sales did go down but actually revenues rose because of higher ASPs,” she said.

“Early Q2 has been weak in terms of both volume and revenue performance, but then April had fewer trading days due to Easter. We will wait to see how June pans out to see if it offsets this.”


Abolition of global roaming will not mean cheap calls

PhoneThe abolition of roaming charges within the EU does not automatically lead to lower calling charges or reduced expenses for companies, according to telecom consultancy A&B Groep.
The outfit said that calling abroad were no cheaper, and was sometimes even more expensive. The costs for out-of-bundle calls increased, new subscriptions were more expensive, and companies are charged higher fees due to complex contracts.
Roaming charges are still applied in other European countries, calling from Switzerland, for example, has even become more expensive than before.

Under the title ‘Roam Like at Home’, the EU has put an end to the high fees charged by mobile providers for voice, SMS and internet use abroad, also known as roaming.

However, A&B Groep said that while abolition of roaming charges is a step in the right direction, it is not enough. It says that companies will not be able to save as much in costs as previously thought.

It was implied in recent months that roaming would be free of charge, but practice proves this to be a false implication, the outfit said
Ron Rijkenberg, CEO of A&B Groep said: “Why did the European Commission avoid dealing with this ‘real abolition’ of telecom country boundaries?” He clarifies his question with a practical example: “There is a person in the Netherlands. His colleague in Belgium uses his or her mobile telephone to call that person’s mobile telephone. The call is charged a higher fee than when the Belgian colleague first crosses the border with the Netherlands and then calls from the Netherlands. That roaming call has a lower charge than the international call.”

As of today, people in another EU country can use their standard bundle to call and use the internet. The current EU packages – as options in business telecom contracts – are voided by these new regulations.

Jorg Wiedijk said: “The perception that everything is now cheaper will lead to increased usage of data. The use of such data will now also be charged on to the national allowance. The data package limits are reached sooner, because of which the out-of-bundle charges will be charged when those limits are exceeded. Those rates have been drastically increased over the past months.”

Companies with existing contracts always receive an adjusted fee plan, as a result of which people will likely have to pay much more.

Also, optimisation of telecom contracts is not always possible during the term of the contract. The outside calling fee package charges can, therefore, lead to an increase in costs.

Infosys president quits

infosysudacityOutsourcing giant Infosys has just lost its president, Sandeep Dadlani.

Dadlani says he has quit for what he characterised as an ‘out-of-the-world’ assignment, making it harder for CEO Vishal Sikka to monetise his moves into new software and platforms.

Dadlani was directly responsible for looking after the company’s revenue and margin from new software.

He announced his resignation on professional networking platform LinkedIn late in the night on Thursday.

“I am extremely optimistic about Infosys’ continued success and its strong leadership team. I have decided to pursue my interests elsewhere. Next up: An out-of-the-world assignment! Stay tuned,” Dadlani said.

Infosys later put out a press release announcing Dadlani’s departure and said Karmesh Vaswani and Nitesh Banga would be replacing him.

The Bengaluru-headquartered company appointed Vaswani as the Global Head – Retail, CPG & Logistics and Banga as the Global Head of Manufacturing, a while back.

Asite gets into government G-Cloud programme

lightning-cloudAsite has announced it has been signed up to the UK’s Crown Commercial Service’s G-Cloud Programme.

Asite helps outfits manage their projects and supply chains collaboratively; the company has gotten onto the G-Cloud programme with its Adoddle which is a collaborative content management system designed to handle a wide range of content.

The content includes intelligent forms, multimedia supplier catalogues, complex BIM and product models, videos, and other various file types. The government is interested in Adoddle because it allows clients to store all of their content in one central, secure repository while enabling them to fully customise the structure of their content with highly controlled access.

The UK government launched G-Cloud 9 in May of 2017 as a means of enabling public sector bodies to buy cloud-based digital services, directly off the shelf from smaller distributors. The open framework is refreshed every three to 12 months, consistently bringing on new suppliers and services.

Tony Ryan, CEO of Asite, remarked: “Our appointment to the G-Cloud framework builds on our long-standing relationships, which provide project collaboration services in the cloud to the UK government.  Together with our longstanding commitment to supporting the government’s Construction Strategy and in particular to the achievement of Level 2 BIM with our cBIM service, we are fully committed to the improvement of procurement in UK construction.”


NetApp on recruiting drive

P1010706NetApp is looking to recruit both partners and employees now that it has got its mojo back according to UK managing director Nick Thurlow.

NetApp hosted its Partner Executive Forum in Tallinn this week and told the assorted throngs that it has emerged from a difficult period with a refreshed product portfolio and a focus on the hybrid cloud.

Part of the transition saw Thurlow’s return from Arrow after a five-year exile.

The vendor, led by CEO George Kurian, had been carrying out a restructuring which was being given the thumbs up by its partners. Now it wants to say that after a few challenging years the company is back.

NetApp has changed dramatically and has got its mojo back, claimed Thurlow. This is all because George Kurian is “driving a wind of change through the company.”

NetApp had earlier in the week revealed that its channel business now accounts for 82 percent of all revenue in EMEA.

Despite NetApp talking up its new hyper-converged solution and hybrid cloud offering, Thurlow stressed that storage remains key to the vendor’s future and the outfit still wanted to flog lots of storage.

European distributors did better than the US

CLINTDEMPSEYvsgermanyThe European market IT market is growing faster than the US according to findings from the Global Technology Distribution Council (GTDC).

There was a sales surge in the first quarter that helped Europe to have a strong start to the year.

Countries that had been in decline last year turning it around with Spain up 13 percent, Portugal 19 percent, France four percent, Belgium 12 percent, Germany seven percent, Norway 16 percent and the UK with 12 percent growth to the end of March.

UK distribution had high levels of new business even if there was the ongoing impact on customer plans from Brexit.

Tim Curran, CEO at GTDC, told the assorted throngs at its European summit that the year had started well across Europe, up by three percent in January, but had been six percent by the end of March.

He added that the role of distribution had changed and its position as a closer strategic asset for the vendor community was paying off.

“We come from an industry based on inventory, cost and fixed assets, but the amazing integration between distribution and the vendors has produced an industry with lower inventory, but much higher fulfilment rates. That makes it more efficient and profitable,” he said.

GTDC revealed at the summit that the top three services now being offered by distribution were: demand generation, education, and training along with solutions development.

“Vendors and solution providers are not yet fully utilising the range of services on offer from distribution, however,” he added.

“Distribution can also help solution providers with skills shortages, particularly in the technology solutions around the cloud. Vendors often say they need help to enable their partners to take advantage of the innovative ways of working,” Curran said.

CEOs are confident amid uncertainty

brian-krzanich-trumpWhile you would expect with all the market turmoil of Brexit, hung governments, and Donald Trump, business leaders would be in a bit of a panic. But KPMG’s global survey found otherwise.

KPMG global survey finds 65 percent of CEOs remain confident amid heightened uncertainty in the global economy

KPMG International today released its 2017 Global CEO Outlook, based on in-depth interviews with nearly 1,300 CEOs of some of the world’s largest companies.

This year’s CEO Outlook reveals that 65 percent of CEOs see disruptive forces as an opportunity, not a threat, for their business. CEOs are still broadly confident about the prospects for the global economy, but their optimism is more modest than it was last year, with 65 percent expressing confidence compared with 80 percent last year.

KPMG Global Chairman John Veihmeyer said that disruption has become a fact of life for CEOs and their businesses as they respond to heightened uncertainty.

“But importantly, most see disruption as an opportunity to transform their business model, develop new products and services, and reshape their business so it is more successful than ever before. In the face of new challenges and uncertainties, CEOs are feeling urgency to ‘disrupt and grow’.”

KPMG’s 2017 Global CEO Outlook report provides insights of global CEOs’ expectations for business growth, the challenges they face and their strategies to chart organizational success over the next three years. Other key findings include:

More than six in 10 CEOs (65 percent) see disruption as an opportunity, not a threat, for their business. Three in four (74 percent) say their business is aiming to be the disruptor in its sector.

Within their own businesses, more than eight in 10 CEOs (83 percent) describe themselves as confident in their company’s growth prospects for the next three years, with around half (47 percent) saying they are very confident.

Almost seven in 10 (68 percent) say they are evolving their skills and personal qualities to better lead their business.

As they adopt cognitive technologies, businesses are expecting short-term headcount growth. Across 10 key roles, an average of 58 percent of CEOs are expecting a slight or significant growth in numbers.

Close to half (45 percent) say their customer insight is hindered by a lack of quality data. More than half (56 percent) are concerned about the data they are basing decisions on.

Veihmeyer said that CEOs understand that speed to market and innovation are strategic priorities for growth in uncertain conditions

“At the same time, they are being pragmatic about managing uncertainty – this includes strengthening their business in established markets so they can protect their bottom line while preparing to seize new opportunities.”

HP pours cash into UK channel

PF-loadsamoney_2177214kHP has budgeted £2.5 million to spruce up its UK and Irish channel this quarter.

This number is a 25 to 30 percent increase on what the PC and printer vendor normally invests in a given quarterly period.

HP’s UK&I channel director, Neil Sawyer said that the “strategic deal funding” cash was one of several channel initiatives HP is announcing this week.

The aim is to win new-logo business, which are customers that have not typically purchased HP-branded technology before.

One of the ways that HP is doing that is investing more money into its channel partners to go out and represent HP, over and above others.

HP is typically strong in the mid-market and it is going to be focusing a lot on that sector in the coming weeks and months.

HP for Education is entering its second year. This is open to HP’s strategic education resellers.  Last year HP gave a million quid to schools and colleges that purchased its technology.

The maker of expensive printer ink has launched a device-as-a-service (DaaS) initiative with distributors Westcoast and Ingram.


Fujitsu makes direct-to-channel Ju Jitsu

hqdefaultFujitsu is moving to a direct to channel move and says it is all about digital transformation.

The company claims that digital transformation will quell end users’ appetite to deal directly with big vendors.

Fujitsu’s UK product boss James Johnston has been  explaining why the vendor is shifting more business towards the channel.

He said that Fujitsu’s channel organisation is best placed to fulfil the kind of shadow IT purchases that accompany a digital transformation mindset.

Fujitsu has been making its  direct sales reps compensation scheme more channel-centric and handing over accounts from its direct team to partners.

At the same time it is moving resources from its direct to indirect teams.

The ultimate goal is to increase UK channel business from 50 to 90 percent of total sales.

Digital transformation means that more organisations are purchasing shadow IT. Business lines are investing in IT infrastructure to change their business models, he said.

The channel is better positioned to give that level of agility and to team up with software organisations.

Fujitsu’s PC business is tanking and deal with Lenovo is in the offering. But McLean seems optimistic about what is happening on his patch with more than 600 deals registered under a new distribution-led deal registration scheme launched in January, with 30 percent of those being new customers


Smart governments market to grow by 19.2 percent

Top-Technology-1Beancounters at Research and Markets are predicting that the smart government market size will grow from $11.73 Billion in 2017 to $ 28.24 Billion by 2022.

This is a compound Annual Growth Rate (CAGR) of 19.2 percent which is not to be sneezed at.

The major drivers of the market include growing data from multiple sources and increasing global demand for adoption of sophisticated and smart technologies.

Remote monitoring solutions segment is expected to grow at the highest CAGR during the forecast period owing to the declining cost of sensors which is boosting the deployment of smart solutions across government bodies.

The professional services segment is expected to have the largest market share during the forecast period owing to the need of technological consulting, and continuous support and maintenance activities for the deployment of smart technologies, the report said.

The cloud deployment segment is expected to grow during the forecast period owing to the increased adoption of cloud services by government agencies to achieve cost benefits, real-time access, and zero maintenance downtime.

North America is expected to witness a significant growth in the smart governments market during the forecast period due to increased penetration of smart technologies, such as big data, Internet of Things (IoT), analytics, and cloud computing. Moreover, there is an increased spending for the deployment of smart solutions across various government levels in the North American regions.

Samsung returns its IP PBX customer support back to Korea

samsung-hqIn a move designed to give better support for its UK channel, Samsung is returning its IP PBX product assistance back to Korea.

Providing support directly from the Korean HQ should make life for the firm’s UK distributors easier.

Warren Hampton, general manager of networks for Samsung UK, said that the old support model had too many steps which slowed down the high-quality support the company wanted to offer.

He said that Samsung looked at ways of streamlining its service and come up with a new initiative that delivers support direct from its Korean HQ team.

“We strongly believe this will give our UK distributors the control and autonomy needed to offer the best product support to our channel,” he added.

Recent market analysis from WinterGreen Research found that the SIP based IP PBX market was heading towards a value of $6.5 billion worldwide by 2023 and cloud based set-ups were enabling vendors to offer PBX products as part of their digital transformation sales pitch.

Chinese invest in British IP business

Beijing-cityguide-statue-xlargeChina’s Galaxy World Group  has announced a $30 million strategic investment in the British developer of intellectual property-based business, the IP Group.

The deal will be sorted out by 18 August 2017 but it will see Galaxy cooperate with the IP Group in various fields including potential co-investment in IP Group’s portfolio companies and continued exploration of further collaboration in both China and the UK.

Three other institutions are also joining this round as new investors – renowned Singaporean investment firm Temasek Holdings, British asset manager M&G and Australia’s Telstra in addition to support from IP Group’s existing shareholders.

IP Group is a listed British company that commercialises intellectual property from the world’s leading universities and research institutions.

The IP Group team has spent many years developing its approach to identifying attractive intellectual property (“IP”), nurturing and building businesses around such IP and then providing capital and support along the journey from “cradle to maturity”.

IP Group works in close cooperation with many top universities in countries including the UK, the US, Australia, and New Zealand.

According to IP Group’s announcement, the funds raised this time around will be used to support cooperation with elite universities around the world to commercialise outstanding intellectual property. Since its founding, IP Group has a proven track record of success with the gross internal rate of return (IRR) on its portfolio approximating 19 per cent and has created more than 2,000 new jobs.

Maodong Xu, the chairman of Galaxy Group, said: “The strategic investment into IP Group marks an important step for Galaxy to build a global entrepreneurial growth network. The cooperation with IP Group would enable us to quickly introduce cutting-edge technological projects in fields including the Internet, big data and AI from global top universities and will, in the form of co-funding, help these projects be in shape for a strong foothold in China.

In this way the world’s state-of-the-art research findings would be converted into technology products and applications so as to propel China’s industries to incorporate the Internet and smart technologies”.

Apart from its UK office, Galaxy Group has set up offices in countries including the US and Israel. The group’s global entrepreneurial growth network has already taken shape. By offering fundamental entrepreneurial services and playing the role of co-founder and industrial investor superpower, Galaxy Group’s network empowers start-ups with a highly friendly platform and helps them grow and compete in a better environment.


Global flow computer market to see slight growth

Forwarders-set-to-see-growthThe next five years will see the global flow computer market to grow at 5.84 percent even if the industry is suffering a bit from the move to the cloud.

For those who came in late, flow computers are used for volume, mass, and density based flow measurement according to real-time signals received by temperature transmitters, pressure transmitters, and flow meters.

With the help of these measurements, cumulative energy is calculated and used for custody transfer, proving, metering, and fiscal transfer.

According to beancounters at Research and Markets the growth is being driven by customers who need advanced and reliable flow computing.

Accurate and reliable data is the key to implement effective measures at the right time. Flow computers record the electrical signals from transmitters and flow meters, and convert them into useful volume or mass-based information that is used in custody transfer and flow measurement.

This has been pushed by companies increased integration with cloud. Technology like the industrial use of Internet of Things has changed the connectivity platform, resulting in down trend of connected devices.

However it is a matter of “the IoT taketh away but IoT giveth” as the capability of connecting real-time data from multiple devices to the end-user through the Internet is an upcoming trend. The report states that another market challenge are advanced computing devices which can do the same thing as flow computers and better.