Author: Andrea Petrou

Ofcom finds Orange is a lemon

OrangeOrange and TalkTalk have once again found themselves in the bottom of a customer satisfaction survey.

The pair faced the most complaints in Ofcom’s latest research into the level of service for
major telecoms and pay TV providers between October and December 2012.

Despite the total volume of complaints made to Ofcom falling during the last quarter of 2012 – the sixth consecutive quarter of decline – Orange and TalkTalk still weren’t performing well enough to satisfy their paying customers.

TalkTalk scraped the bottom in the landline telephone market,  generating the most complaints during the final quarter of 2012, with 0.36 complaints per 1,000 customers.

Ofcom pointed out, however, that the company’s complaints continued to fall quarter on quarter, although they remained at almost double the industry average, with consumers mainly complaining about service faults and customer service problems.

BT complaints fell slightly from 0.21 complaints to 0.20 complaints per 1,000 customers in Q4 2012, however, it still remained above the average, while Sky and Virgin Media both generated complaints below the industry average.

Virgin Media had the fewest number of complaints, at 0.11 complaints per 1,000 customers, while Sky attracted 0.12 complaints per 1,000 customers.

When it came to broadband Orange usurped TalkTalk to gain the most complaints at 0.70 per 1,000 customers, increasing from 0.50 per 1,000 customers three months earlier.

The data found that complaints about Orange hit a peak in October, which Ofcom said  related to the company’s decision to withdraw its free broadband offer unless customers also purchased line rental from the firm.

TalkTalk was the second most complained about broadband provider. Its complaints continued to fall quarter on quarter – from 0.35 to 0.33 complaints per 1,000 customers – although they remained higher than the industry average. BT also generated above average complaint levels at 0.30 per 1,000 subscribers. Sky’s broadband service attracted the fewest complaints at 0.08 per 1,000 customers.

Orange again found itself at the top of the complaints pops when it came to paid mobile services with above average figures of 0.21 per 1,000 customers. This was, again, largely driven by the withdrawal of its free broadband offer.

T-Mobile also generated complaints in excess of the industry average, with consumers mainly complaining about billing and how their complaints were handled. Three’s complaints were equal to the industry average.

O2 was the least complained about mobile provider with 0.06 complaints per 1,000 customers. O2, Virgin Mobile and Vodafone all achieved fewer complaints than the industry average.

eBay gets ever so bullish

smartphone-shoppingeBay has driven up its share value after making bold forecasting claims.

In its forecast of annual earnings the net giant said it would push for an earnings growth  of 15 percent to 19 percent over the next three years.

Speaking to investors yesterday the company’s head honchos said this was mean a projected revenue of $21.5 billion to $23.5 billion in 2015, compared to $14 billion in 2012.

They said this would be made possible through the company’s global expansion as well as drilling down focus in local commerce areas.

They added that the company would also embrace the mobile trends more fully.

And there was a good news for the company’s marketplaces business, which hosts external merchants will bring in around $110 billion in sales in 2015, a huge jump from the $75 billion in 2012.

The bold claims have now seen its shares rise by more than four percent, a feat which is sure to impress shareholders and show that chief executive John Donahoe, who joined the company in 2009, has fulfilled part of his promise to get the company back on track after it fell on the wayside amidst strong competition from Amazon.

Workplace discrimination still rife

old schoolDespite more and more women finding themselves in top level jobs, workplace discrimination is still rife, research and legal experts have said.

Earlier this month research conducted by Microsoft in Ireland to mark International Women’s Day identified gender discrimination, demands from home, and a lack of support for working mothers as the main perceived barriers to workplace promotion. Microsoft UK in 2011 was itself accused of sexism and hush money to silence critics.

Over in the US, a 2011 survey suggested that nearly two-thirds of Americans reported sexual harassment was a problem with around a quarter of women reporting to having been harassed at work, while UK figures suggest that around 50 percent of women in employment are, or have been, subject to sexual harassment of some form or other.

A partner at Aspen Morris Solicitors also confirmed that there had been a rise in discrimination cases over the past few years.

“We have seen a number of women coming to us complaining of this practice in the workplace,” the partner told ChannelEye. “This has ranged from sexual harassment to trouble when they have tried to go back to work after taking maternity leave.”

The latter is something one mother experienced when she tried to return to her job in a high profile technology company after having her daughter.

“I asked to take on part time hours, a request which was rejected,” she told ChannelEye.

“I then asked if I could work from home one day a week, which the company also rejected.

“After realising I was tied to a full time post I agreed to go back under these terms. However, before I could resume my position I received a phone call telling me my post had suddenly been made redundant.”

She is still locked in a legal dispute with the company, a well known international brand.

For another woman working in a predominately male industry, it was a case of grin and bare it.

“I had comments about my boobs, if my hair or make-up wasn’t perfect I’d also be asked if I’d had a “late night” followed by nudges,” she said. “However, because I was the only girl there I had to take it as banter.”

One woman however who didn’t sit on her laurels was Adria Richards who was given the sack and subjected to online abuse when she tweeted about her experiences of sexual discrimination in the workplace.

The developer evangelist at Sendgrid, a tech company that manages emails, was an attendee at PyCon, a tech conference. However, she took to heart a conversation two male developers, employed by Play Haven, were having behind her during the conference.

She claimed within this they used the words “dongles” and “forking”, which although can be used legitimately in technology, could also be taken as offensive innuendo. Adria took them to be used in a sexual way – she snapped photos of the men and posted them on Twitter, along with their comments.

One of the developers was sacked as a result, leading to offensive comments being directed at Adria as well as a DDoS attack on SendGrid’s site.

Connections Recruitment increases IT job reach and apprenticeships

Hands across the waterConnections, a family owned recruitment company, is increasing its client and candidate reach.

It has also said it will broaden its offerings and recruitment for IT posts as well as make more moves into apprenticeships.

The company, which has survived tough economic times, running since 1985, employs 15 recruitment specialists and operates from offices in Manchester city centre, Sale and Stockport.

It currently rakes in a turn over of £5 million, but has said that it now wants to ramp this up by 20 percent .

It claims that over the the past 28 years it has placed in excess of 15,000 people in permanent jobs throughout the North West, while it’s also doing its bit for apprentices recently promoting its first apprentice and planning to take on a second to train them in all administrative aspects of the job.

The move is sure to please Prime Minister David Cameron who earlier this month claimed that apprenticeships should  become the “new norm” for school kids who choose not to get into debt by going to university.

Connections works with clients from sole traders to global PLCs and recruits for roles in administration, customer services, accounting, finance, HR, recruitment, logistics, buying, textiles, sales and marketing.

Jonathan Dobkin, co-owner of Connections, said the company’s plan had always been to grow the business organically and expand divisional offering.

Atlassian sees growth through partner expansion

lemmAtlassian has said that bookings from its channel partner network grew by 59 percent in 2012.

The enterprise software company says it has around 284 Expert Partner businesses covering 150 countries worldwide on its book.

iGUAZU  has a network of more than 600 trusted business partners in Japan, is Atlassian’s newest partner.

“While enterprise software is increasingly being bought and not sold, we know that many large-scale deployments require professional services and or customization for a successful rollout or expansion of our software,” said Jose Morales, Atlassian vice president.

He claimed that because the company’s software was a “platform” that partners could “leverage and extend” with their own plug-ins and customised integrations, its channel had seen great growth.

Atlassian’s expert partners are said to deploy and customise large-scale software implementations and extend the software platform through customised plug-ins and integrations with existing systems and appliances.

These custom solutions sit on top of Atlassian’s software platform and are sold through the Atlassian Marketplace, a business-to-business marketplace where customers can access 1500 available add-ons.  Partners also provide the professional services necessary for large customer deployments.

In 2012, revenue for Atlassian North American channel partners grew by more than 57 percent. Platinum expert partner Appfire, with offices in Boston, San Francisco, Toronto and Hyderbad, experienced record growth in 2012, doubling its staff and watching its five-year average annual growth rate soar to 57 percent.

In the U.K., Adaptavist, an exclusive Atlassian consultancy with offices in central London, achieved close to 100 percent revenue growth in 2012 and as a consequence, doubled its headcount.

Huawei expands into Pakistan, Afghanistan and Iraq

huawei-liveHuawei is moving to make money in war torn countries.

The Chinese behemoth has appointed  regional value added IT distie Optimus to distribute its enterprise product range for networking, unified communications and security.

Under the deal Optimus will aim to grow Huawei’s channel network across Pakistan, Afghanistan and Iraq where it will also undertake regular marketing and channel development activities to help increase the vendor’s market share and reach in the region.

Meera Kaul, managing director of Optimus Technology and Telecommunications said the partnership was “very important” and would help it offer customers a “omplete range of technology.”

She added that the company also planned to take Huawei’s enterprise products including  cloud computing, enterprise networking and wireless, as well as Unified Communication & Collaboration (UC&C), video conference and telepresence products, and partner them with
other vendors.

Optimus also claims it will promote this product range through focused channel development activities, which include training, certifications, skills development and consultancy services to help them sell the productsbetter.

“Over the last few years, our Enterprise Business division has been investing heavily in developing our Middle East customer base,” said Dong Wu, vice president, Huawei, Enterprise Business, Middle East.

He added Huawei would continue to invest in training, motivating and incentivising partners.

Tesco chucks cash at digital services

tescoTesco is continuing in its quest to become the all singing all dancing supermarket giant.

The company has now said it will be launching a new UK digital music and book service, while, like many companies, is moving to improve its presence in China, launching its Clubcard into the country.

Head honcho Philip Clarke said that the supermarket would be throwing $750 million at the technology market  this year, a mark up three times more than in 2010, in a bid to go head to head with the likes of Amazon and Play.com.

He said the company would be embracing digital retailing, eventually offering apps to help customers shop easier as well as confirming that it would launch blinkboxmusic and blinkboxbooks over the coming months.

It’s taking the moves seriously – hiring one of Facebook’s most senior European executives, Gavin Sathianathan, to lead the operation.

Mark Bennett, a former EMI and Warner Music executive, has been tasked with heading up blinkboxmusic.

This is one of many paths the company has been taking in its quest to become supermarket king.

Earlier this month it was reportedly in talks to buy family food chain Giraffe as well as entering into the price match war with its rivals.

Fortinet to purchase Coyote Point Systems

fortinet-logoFortinet has agreed to purchase Coyote Point Systems.

The network security company has entered into a definitive merger agreement to acquire the privately-held provider of enterprise-class application delivery (ADC), load balancing and acceleration services, which it claims will complement its offerings.

Fortinet also claims that the merger will help it and its channel partners to accelerate and further deliver on services to their clients.

Under the agreement no immediate changes will be made to Coyote Point products, customer support and channel programs or any existing ADC products that Fortinet markets, the company said.

However, as new products become available things could change.

According to industry forecasts, the annual end-user spending for Application Delivery Controllers will exceed $2 billion for 2013.

John Grady, research manager at IDC said as more enterprises turned to the cloud, data centres would require higher performance products coupled with strong security.

He said that, as a result, security and application delivery “must work hand-in-hand” to ensure quality of service while still preventing attacks.

“This acquisition places Fortinet in a unique position to deliver on both aspects in one [service].” he added.

 

 

 

TNT delivers job cuts to 4,000 staff

tntTNT Express has said it will be driving away around 4000 staff within the next three years as it struggles to get back on its feet.

In a strategic memo released today, the Dutch delivery group, which was the target of a failed $7 billion takeover by United Parcel Service, has said the cuts, which will affect around six percent of its workforce, will save it around $287 million (€220 million) by 2015.

The company added that it would also be restructuring the business, which it hoped would knock another $195 million  (€150 million) by 2015.

The plans fall under the company’s “Deliver” strategy, which aims to help it turn its business around and rake in profits by 2015. Currently the company is failing on the money front, as a result of “challenging trading conditions and continuing price pressure”.

As well as the cuts and restructuring, the company has also said it will focus around reshaping the TNT  portfolio through the sale of China and Brazil Domestic and reducing exposure to fixed intercontinental air capacity. It will also look at focusing on TNT Express’ distinctive service proposition and increasing growth in its most profitable segments and invest in infrastructure and in business supporting and customer IT.

Commenting on the Deliver programme, Bernard Bot, interim CEO said the business faced difficult market conditions and strategic challenges. However he pointed out it had a “unique competitive proposition” – an unrivalled European network, worldwide connections, an integrated range of services and recognised dedication to customers.

However, he warned the strategy had to be executed correctly to ensure results.

Shoppers shun brand snobbery for cheap prices

light blueShoppers are shunning “premium shops” as the place to buy premium brands, and instead are happy to buy them at the cheapest possible price, research has revealed.

In the latest survey of 1,000 consumers, ShopperCentric said just over three quarters cited ‘product quality’ as the key defining feature of a premium brand.

A measly 16 percent said that they felt that upmarket stores were the place to go to buy these brands, with half of those questioned saying that it was the pricing that attracted them into stores.

Snobbery around premium brands was also shunned, with six in ten shoppers claiming that they hated the status these products held, and just 28 percent stated that they wanted to feel ’special’ when they bought these.

In fact, it seems lower prices and promotions are the way to a consumer’s pocket, with 74 percent of shoppers claiming that they loved finding a premium brand with a price discount and 61 percent said they only bought premium brands when they were on offer.

Manufacturers could face a lose/lose situation. 59 percent of shoppers admitted that if they saw a premium brand on reduced price, it would make them question whether the full price was too high.

Despite that, 37 percent of shoppers agreed that the types of brands who don’t discount, don’t care about their shoppers.

Danielle Pinnington, Managing Director of ShopperCentric said that the findings showed that  that price alone clearly did not “denote superior quality for shoppers any more”.

Instead, “great (and proven) quality appeared to lie at the heart of an unequivocal premium brand definition.”

She pointed out there was a role for expressing this through price, packaging, image or even channel and in store.

“For many shoppers it appears, it isn’t about where you sell a premium brand, but how you sell it,” she added.

Consumer environment to remain subdued says Next chief

highstreetNext’s chief exec has warned that the consumer environment will “remain subdued”.

Lord Wolfson’s comments come as the retail giant, which has 541 stores nationwide, posted its financial figures for  the second quarter of 2013 where it announced a nine percent rise in profits.

Figures jumped to £621.6 million and revenues from its online business increased by 9.5 percent to £1.2 billion.

However, despite hoping to increase profits to £665 million this year, Lord Wolfson said the economy was still difficult and it would take time for the nation to work its way back to “affording the lifestyle it was already enjoying before the financial crisis”.

The Chief’s comments contrast to a recent report by the Office of National Statistics (ONS), which found that retail takings grew by 1.8 percent in February after a slow start to 2013, which was blamed on the bad weather.

Department stores  saw a 10.6 percent sales increase in February – the biggest monthly rise since last April driven by computer equipment and jewellery.

However, Next has yet to see the benefits with Wolfson claiming the company’s earnings were running below the rate of inflation. He said this decline in real earnings looked set to continue for at least one, if not several more years.

“Indeed the outlook for 2013 inflation has worsened since this time last year,” he said.
He also admitted that the company’s present sales were at the bottom of its target range, although it hoped for improvement once it gained a better understanding of the underlying consumer environment once temperatures returned to seasonal levels.

However, his tame words in the financial statement were in contrast to his comments in The Guardian, where he laid into “incompetent” local councils for the state of the high street.

He said some high streets had been neglected for 20 to 30 years as a result of councils  resistant to change, meaning there were many towns and cities where the stock of shops was inadequate.

Avnet and Microsoft shine a business light on China

surface-rtCompanies are looking further into China in a bid to boost business.

This week both Avnet and Microsoft have made railroads into the country. The gossip grapevine suggests that Microsoft has decided to extend its selling channels for its Surface RT tablets, which it previously sold through two distributors- its online store and chain store for electronics, Suning.

The giant had not been able to go through further channels as a result of an exclusive distie deal with Suning, but now sources have said that this deal expired in February, paving the way for Microsoft to pick up new channels. It is also claimed that Microsoft was unhappy about the way Suning had dealt with sales, failing to push Surface and get an advertising network around it.

In a bid to boost sales its now, according to the WPDang, turning to four new distribution partners aboard. These include PC Mall, Sundan, One Zero and 360buy.

And its not just Microsoft moving into Chinese circles. Today distie Avnet announced that it was buying Hong Kong’s RTI Holdings, RTI Technology China, Eastele Technology China, and DSP Solutions, value-added distributors of telecom equipment and related components in Hong Kong and China.

The company said that it wanted a piece of RTI as a result of its “focused technical expertise,” as well as its “strong presence” in the Chinese market.

It is hoped that the purchase will help the company break into the Chinese market, which it has so far struggled to do.

Resellers cautiously welcome the budget

gosborneResellers have cautiously welcomed some parts of the Budget, saying elements could help smaller businesses and the IT industry.

However, they have warned that by giving benefits and breaks to SMEs and start ups larger companies may find room for complaint.

The comments come as Chancellor George Osborne set out plans to drive the economy by offering SMEs reductions in National Insurance.

The latter was described as a “tax off jobs,” offering every company in the UK the option to take the first £2,000 pounds off their National Insurance bill.

Additionally, he said the Coalition will provide funding for any external advice companies needed.

According to Osborne, roughly 450,000 small businesses  could end up paying no jobs tax at all under the new outlines. He said that for those starting their own businesses and looking to employ staff, “a huge barrier would be removed” when the legislation passes next April.

Responding to the budget, a source at a large reseller told ChannelEye the £2,000 credit against employer’s NI contributions is “a great initiative” and “could also help start-ups too”.

“Not so good for bigger firms who may in the long run face competition from the up and coming businesses with smaller overheads offering cheaper IT services,” the source said.

Another added: “I suppose it’s good that the budget is proposing a cut in corporation tax and boosts for SMEs, however, whether that will pay off remains to be seen.”

Both resellers queried plans to hold off infrastructure plans until 2015, which the Chancellor hinted at when he claimed that, although the government planned to support the economy with the infrastructure it needs, he would only look at throwing £3 billion a year at broadband and mobile telephony investments from 2015 to 2016.

“The reduction in the growth outlook means there will be no new money for infrastructure until 2015/16,” this large reseller told us. “This means we are left in limbo as an economy. This will have a knock on effect on the IT sector, which thrives through new initiatives and businesses.”

The other added: “The Budget is more focused on helping smaller businesses, so surely delaying this could have a knock on effect on the economy”.

Unemployment rose during November 2012 to January

Jobcentre-plus-During the months of November 2012 to January 2013, unemployment rose, the Office of National Statistics (ONS) has said.

In its latest repor,t the organisation said the figures shot up by 7,000 to 2.52 million, compared to the previous three months.

The North East of England fared the worst with a top unemployment rate of 9.8 percent, while the East and South East of England saw the lowest figures with 6.6 percent.

Last month the organisation found that the number of people claiming Jobseeker’s Allowance fell by 1,500 to 1.54 million.

The number of unemployed women increased by 5000, while youths also suffered. Figures stood at 993000 unemployed 16 to 24-year-olds in the latest quarter, up by 48000 from the three months to October.

The ONS also revealed that average earnings for those in employment increased by 1.2 percent in the year to January.

Unison general secretary Dave Prentis said the latest figures showed that the government had “failed every single one of these [unemployed] people and it has failed our country.”

He said instead of the bedroom tax or cutting child benefit, the government could dramatically reduce the welfare bill by getting people back to work.

“The Government should use today’s Budget to take bold action to fuel growth. Taxing banking bonuses could provide vital funds to stop the jobs carnage in the public sector and provide the jobs and growth our economy so desperately needs,” he added.

Smartphones drive trend for app-connected cars

beetle App-Connected vehicles could reach 20 percent of consumer cars in Western Europe and North America by 2017, research has suggested.

In its latest report into this sector, Juniper Research said the trend will be driven by new standards, stereos, head units and high smartphone ownership, which could fuel around 90 million connected cars within the next five years.

It added that the success of new standards such as MirrorLink will be instrumental in creating the foundations for the connected car ecosystem to flourish.

Although traditional embedded telematic services will go some way to pushing this trend, Juniper said that smartphone tethering and  in-vehicle Apps would be the key drivers, and have a knock on effect on the price of vehicle manufacturers’ own embedded telematics infotainment services.

“Sky-high smartphone ownership and a standardised approach to integrating apps into the vehicle head-unit mean that the barriers to making the connected car a reality have all but gone,” said the report’s author Anthony Cox.

However he pointed out that there would be negative factors holding back the growth and that was slow development of the new vehicle market in developed economies.