Insight saw its EMEA operations slip into the red because of restructuring costs.
Restructuring costs of $3.2 million made Insight’s EMEA numbers look pretty rubbish. Costs shot up as the company tried to improve the efficiency of its EMEA operations. Apparently things are going to be pants there for some time.
Overall the numbers for the first quarter across EMEA showed that Insight delivered a 9per cent climb in sales to $330 million but a loss with income dipping by $1.1m compared to a positive position of $2.7 million in the same period last year.
Insight CEO Ken Lamneck said that EMEA was a blight on the balance sheet but otherwise the firm had enjoyed a fairly decent performance in the region.
“The sales growth obviously is pretty 20per cent constant currency growth, so really solid there. A few big deals are brought down the gross margin related to some large software enterprise agreements and some hardware deals, lower than margin there for — but certainly good growth on a top-line and obviously growth year-over-year on the earnings line as well,” he said.
“But we looked and we said, hey, there is a couple of markets where there is some inefficiency. So we’ve taken that very specific action,” he added.
The CFO Glynis Bryan said that when it took a charge in Europe it did not always see a recovery in the first year and it expected the benefit of the cost cutting to filter in about $2m a year with most of that starting to come through to the balance sheet in 2018.
Sales for the outfit were up 26 percent to $1.48 billion for the three months ended 31 March. Gross profit was $208 million for the first quarter, up 29 percent year-over-year.
Insight has won a key contract on the Isle of Anglesey in Wales as the cash strapped council looks to save up to £5.6m
The council wanted to use mobile working as a solution to promote a more agile and modern workforce while at the same time reducing the council’s property assets.
The council’s ICT budget has been low over the last few years because of general low funding from the Welsh Government and this year it was told that it would have to make service cuts of up to £5.6m.
However the council worked out that a smart investment in ICT would enable “smarter working” and could result in gains from both a financial and non-financial perspective in other areas.
The council will save £140,000 following an engagement with reseller Insight to streamline the council’s software licensing estate.
The project with Insight, which used Snow as a software management tool, has since led to an ongoing contract with Insight to manage the council’s Microsoft licensing estate saving the council money through the redeployment of unused licences.
The Insight contract, worth £33,600 over the next three years, will provide complete visibility of the council’s deployed software licences, while assuming responsibility for ensuring that Anglesey maintains licensing compliance. Insight will also implement a three-year Licence Consulting Desk Service to build and adapt solid, cost effective licensing strategies for the council to help it meet its current, but most importantly, future technology needs.
Discussing the engagement and the council’s broader ICT strategy, Neil Summers, the council’s technical services manager, said he had engaged Insight because he realised that keeping on top of licensing compliance can be a headache for cash-strapped councils who are wrestling with the demands of austerity.
“Software licensing is an area which is full of complicated, fast-changing rules,” said Summers. “Insight had proved itself a valuable partner, and we realised that to ensure we were compliant and cost-effective we needed an expert to help us – which is where Insight came in. Our work with them ensures we are compliant to our software providers and efficient as a local authority.”
While there are fears that the UK government might be turning over its security to evil Chinese companies, it seems that there is less stress when it comes to using security outfits from the US.
US security company Insight is hoping to win shedloads of British government contracts by partnering with a UK data encryption company called DESlock.
Insight has been around since 1988 and provides hardware, software and services solutions to business and public sector organisations across the pond.
According to Luke Ambrose, UK Product Manager – Security Software, at Insight, his company is working hard to increase its channel on this side of the Atlantic.
Working with companies like DESlock gives Insight inroads into the lucrative UK government contracts as well as home grown products.
DESlock’s flagship data encryption product is Deslock+ which was launched in 2006. Desklock+ allows secure collaboration across complex workgroups and teams.
Kevin Percy, UK Business Development Manager for DESlock said that Insight can be very selective about its vendors and does not tend to pick any old riff raff.
He said it mades sense for Insight to be able to offer encryption as part of its portfolio, and give customers a fully integrated service.
There are a lot of advantages for the smaller British companies too. Insight has a fairly complicated business model which includes more services, expert technical resources, and a long supply chain which can give them access to services and products they might not normally get their paws on.
Insight made $5.3 billion in revenue last year and operated in 23 countries, serving clients in 191 countries worldwide.