Category: News

Nearly 90 percent of MSP customers held-up by ransomware

the-highwaymanThe latest state of the channel Ransomware report from Datto indicated that 89 percent of European MSP customers were victims of ransomeware attacks.

The attacks led to downtime, and for a small percentage the ransomware remained in the system and gave customers further grief down the line.

Antivirus software does not seem to be much good at protecting against ransomware and 94 percent of customers attacked said it had not prevented the attacks from happening.

The other problem area for users was around backup and restore. Those that had failed to invest in that technology left with severe headaches trying to get back up and running after a ransomware attack.

Datto thinks that first and foremost the channel education to the SME market had to continue.

Datto SVP Mark Banfield said: “Ransomware attacks are becoming so frequent that the term has recently been added to the Oxford English Dictionary. WannaCry and NotPetya made the headlines last year for their impact on larger firms, but this report highlights just how vulnerable SMBs are,” he said.

“There’s an existing perception that only bigger companies are targeted as they represent higher-value targets, but attacks are now so simple to initiate on a mass scale that cybercriminals no longer discriminate,” he added.

Most of the customers surveyed by Datto also shared their expectations that ransomware attacks would continue in the next couple of years.

“As the sophistication of ransomware variants continues to increase and they bypass traditional prevention measures, SMBs with limited in-house expertise and cyber security tools are struggling. The lack of understanding and capabilities are causing more to fall victim and here lies an opportunity for the channel. MSPs can become trusted partners, providing the ongoing tools, expertise and support required to mitigate ransomware and its impacts,” said Banfield.

Dell reverse merger should be a last resort

Michael DellBeancounters at Morgan Stanley are not that happy with Michael Dell’s plan to reverse merge his company into VMWare.

While the prospect of VMware merging with Dell Technologies has intrigued the broader market, Morgan Stanley analysts insist the “reverse merger” would be the worst option for VMware shareholders.

It is only one of the plans which have been mooted for Dell Technologies, including a Dell IPO or it acquiring the rest of VMware.

The VMware performing a reverse merger on its controlling firm idea has been questioned by Morgan Stanley analysts Keith Weiss and Sanjit Singh in a note issued to the market.

Weiss and Singh warned investors about the plan and stated that a merger is the “worst-case scenario” for VMware shareholders.

VMware is traded publicly, and a merger would take Dell public without putting the company through an initial public offering.

According to the report, the reverse merger would have tax benefits for Dell and give the company access to VMware’s cash, but it would have a negative impact on VMware’s shareholders.

Analysts at Morgan Stanley project that a combined company would devalue VMware by $28 billion — considerably more than the $500 million to $600 million annual taxes Dell will face if it continues to operate under its existing structure.

The analysts concluded that the reverse merger is the least likely of the strategic options Dell is pursuing, with an IPO or staying private considered better options.

Notebook sales increase

Multipurpose-NotebookThe global notebook market is improving with 164.7 million units shipped in 2017 according to TrendForce’s latest market report.

The figure represents a 2.1 percent year-on-year increase, massively surpassing all expectations and forecasts. The reason for the increase has been biddings for notebook contracts in North America and regional economic recovery

HP remains the market leader with more than 24 percent of the market share. Its annual shipments hit a new milestone of 40 million units, a substantial increase of 10.5 percent over 2016.

For 2018, the market share of the top six brands is expected to rise to 89.1 percent, squeezing the room for other brands to develop.

Xiaomi and Huawei recorded growth in the Chinese market, but the results of their overseas deployment are unclear.

Lenovo saw a year-on-year drop of 4.9 percent. It enhanced its sales in Asia and Europe but still cannot make up the shipment decrease in 1H17. This has an impact on the brand’s performance, making its market share down to 20.2 percent, ranking the second.

 

 

GNR buys QBS Software

Finding-Nemo-Shark-Wallpaper-HDGNR Technology has written a cheque for an undisclosed sum for  Wembley-based QBS Software.

For those who came in late, QBS Software distributes Intel, Jetbrains and Solarwinds products and  resells software from a host of vendors including Microsoft, Symantec and Oracle.

GNR managing director Dave Stevinson said: “The acquisition of QBS provides a major growth opportunity for both businesses.

“With a full range of high-profile publishers, the acquisition of QBS supports our shared plans to meet increasing demand across the business, as well as offering more services to new partners.

“Likewise, the services we bring to the relationship will enable us to deliver on our ambitions to create one of the most efficient and effective software delivery models in the channel.”

It looks like customers will not see much difference as both companies will continue to operate separately, with the QBS Software name and branding remaining in place.

QBS founders Skye Quin and Mark Spangenthal will also stay on as consultants for at least a year.

More than 90 percent of QBS’ turnover is generated by its distribution arm, with the remainder coming from the reseller business and a small software publishing unit.

In its last full accounts QBS reported revenue of £28.6 million for the year ending 31 March 2017, with an operating profit of £895,494.

£24.7 million of QBS’ revenue is generated in the UK, with £3.6 million coming from the EU and £249,099 from the rest of the world.

GNR is doing well. It has a deal to distribute Kaspersky in the UK and just got a UK exclusivity deal for Panda Security’s retail portfolio.

Infinigate announces new CEO

csm_klaus_schlichterle_8886a69bbeInfinigate has announced that Tech Data’s former head of German operations, Klaus Schlichtherle, has become its CEO.

Schlichtherle is replacing founder David Martinez who will be cleaning out his desk in April and become president of the board.

Martinez said that Schlichtherle was the right chap to drive Infinigate’s goal to grow from a €400 million to €1 billion company in the next five years.

“We are very happy to have won an internationally experienced manager such as Klaus Schlichtherle”, Martinez said.

“Infinigate will face another high-growth period with further international expansion and Klaus Schlichtherle brings along the required experience to manage this challenge”.

Infinigate obtained much of its growth through acquisitions. Last month it wrote a cheque for Dutch security outfit VAD Crypsys.

Klaus Schlichtherle added: “Infinigate is a strongly growing company in the IT Security sector and I am very much looking forward in taking over this exciting task of further expanding and developing the group.”

Infinigate claims to now cover “close to 80 percent of the western European IT security market’s potential”, having operations in 20 countries.

Microsoft creates the UK’s most powerful cloud service

PAY-Lion-King-cloud-MAINSoftware king of the world Microsoft thinks that it has created the UK’s most powerful cloud.

The M-Series virtual machines (VMs) in Azure can handle large workloads that involve a lot of data and Vole claims to be the only outfit offering this level of cloud computing power in this country.

The M-series supports up to 128 virtual central processing units (vCPU) and between one and 3.8 tebibytes of RAM – a tebibyte is equal to 1,024 gigabytes – on a single VM. It also offers up to 20 terabytes of memory which is huge for a public cloud.

Data can also be transferred between VMs at up to 30 gigabytes per second, making it easy for companies to back up files or replicate their databases.

The VMs are the only ones in the UK able to handle large workloads on the SAP HANA platform. Microsoft has also announced Dv3 VMs in UK data centres. These are built using new technology, so can perform better and more efficiently, enabling Microsoft to pass these savings on to customers who store data and run apps in the cloud for their businesses.

Microsoft Principle Programme Manager Jon Beck said that ny unlocking more power from the underlying hardware, Vole could harness better performance and efficiency, resulting in cost savings. They will cost up to 28 per cent less than the previous VMs – Dv2.

The Dv3 VMs use “hyper-threading technology” on Intel processors, which allows users to run several processes at once. Along with the new Ev3 VMs, they are some of the first to run on Windows Server 2016 hosts, and also boast nested virtualization – the ability to run a VM inside another VM.

The Dv3s offer up to 64 vCPUs and 256 gigabytes of RAM, while Ev3s offer 432GB of RAM, giving customers more computer memory to run larger workloads.

Vole has announced B-series VMs, a new low-cost range that offers customers flexibility in how much Azure computer power they use.

UK data centres will get a Notification Hub service which lets users send push notifications (information in a pop-up box) to their customers regardless of which platform they are using – Windows, iOS, Android, Kindle or Baidu.

Notification Hubs can send messages to millions of mobile devices with one single process, and can be tailored to specific customers or everyone in a group, in their language.

 

FireEye has its first quarterly profit

Sauron_eye_barad_durCybersecurity vendor FireEye has reported its first-ever quarterly profit since 2013.

For the three months ending 31 December 2017, FireEye saw a year-on-year revenue increase of 10 percent to $202.3 million with an operating loss of $65.8 million.

With the numbers adjusted, the vendor reported a non-GAAP operating profit of $2.9m.FireEye CEO Kevin Mandia said: “In February 2017 we said FireEye was committed to achieving non-GAAP operating profitability in the fourth quarter and a return to growth by the end of the year; I’m proud to tell you we accomplished what we said we would do.”

“To put this performance into context, from Q1 of 2014 through [to] the second quarter of 2016 we posted ten consecutive quarters of non-GAAP operating losses between $45m and $80m. We worked hard over the last six quarters to be much more efficient and to return to growth.”

Mandia said that FireEye’s end-point protection, threat intelligence and Mandiant services arms all had their best quarters, and singled out the channel as playing a pivotal role in the improved financial performance.

“We have also worked hard to improve our channel relationships, which is enabling us to reach new markets and achieve gains in our operating leverage… I am pleased to see our channel business increasing and believe we will see continued improvement in our channel.

“We continue to innovate to provide better products to the channel. We continue to price more appropriately for the channel, and we are also adhering to a consistent process with our channel and partners to provide better enablement and make doing business with FireEye simpler, more profitable, and consistent.”

Dell EMC wants $50 billion from partners

dellsigDell EMC says it wants more than $50 billion in sales from its channel this year.

In a partner update the firm revealed that as it stands at the end of its third quarter $43 billion  was generated worldwide through the channel. However Dell wants to see that number grow that further and rolled out a number of incentives and programme enhancements to encourage more activity.

Joyce Mullen, president global channels, OEM and IoT solutions at Dell EMC, said that it estimated the potential size of the addressable market as being worth $3trn and that left plenty of room for more channel revenue.

“We want to continue this phenomenal momentum we have seen in this past year and we know exactly what it takes to get to $50 billion,” she said.

Global channel revenues were up by 9 percent at the end of of the third quarter with partners bringing in an additional 33,000 customers and the contribution from distribution was also up by double digits.

Michael Dell, CEO of Dell EMC, told partners: “We have worked hard to develop a world class portfolio and partner programme but we have just begun to scratch the surface. We are fully committed to winning and growing and becoming number one in the channel.”

The plans for the firm’s fiscal 2018 will be around focusing on profitable growth and there is a push to encourage resellers to sell more of the vendor’s storage portfolio.

Mullen said that the growth for 2018 would come from “attacking the market and taking share” as well as selling servers, storage and services, which she described as a “pot of gold”.

At the end of next month Dell will add more firms to its top tier of partners – the Titanium Black level, which includes Computacenter, Insight, World Wide Technology, SHI, ATEA, Fusion Storm, Bechtle and CDW.

The combined Dell and EMC partner programme was only launched a year ago and the vendor is not planning any major overhauls but is hoping some refinements, often requested by resellers, will make life easier.

 

Sophos sees share price slide

panda-slideCybersecurity vendor Sophos saw its share price slide by 18 percent this morning, despite posting what its CEO described as “strong growth”.

For the last quarter, Sophos saw its revenue jump 23.4 percent year on year to $166.4 million, but operating profit swung from $1.7 million to a $2.8 million loss.

Sophos CEO Kris Hagerman said: “The strong demand for our industry-leading cybersecurity solutions continued in Q3.

“Customer reaction to XG Firewall v17 has been very positive, and we are delighted to have recently launched a significant new release of Intercept X, incorporating for the first time our neural network-based deep-learning technology into our leading end-point product.

“Consequently, as our business continues to post strong growth, the board is confident both in the outlook for the full year and the longer-term prospects of the group.”

The positive outlook from Hagerman was not enough to prevent the share price slump, with Hargreaves Lansdown claiming that the drop could be a result of weaker than expected billings, as well as weaker cash flows.

Sophos’ subscription billings were up 20 percent in Q3, while cash flow from operations declined 2.2 percent year on year to $17.5m.

“Unfortunately, despite remaining on track to hit expectations for the full year, the third quarter didn’t back up the strong first half”, Hargreaves Lansdown said.

“Billings were up, but not as much as had been expected, and the group’s cash flow also disappointed the market. The shares duly dropped sharply.

“However, those weaker cash flows were due in part to the investment being pulled forward from Q4 to Q3. With this in mind, we’re willing to give it the benefit of the doubt for now but will be looking for a notable uptick in the final quarter of the year.”

G-Cloud sales pass £2.8 billion

lightning-cloudData published by Crown Commercial Service (CCS) shows that Total G-Cloud sales passed £2.8  billion in 2017.

However, despite the fact that G-Cloud was supposed to give contracts to smaller suppliers more than half of the spending by government and public sector organisations is still going to large suppliers.

In fact since 2012 and 31 December 2017, G-Cloud has facilitated £2.85 billion of spending – with 52 percent of this going to what the government classifies as large suppliers.

SME suppliers have cashed in 48 percent of total sales through G-Cloud, but this has come from 71 percent of the deals put through the framework.

To be fair, the figures are a slight improvement for SMEs since the last time data was released, with numbers published for the period up to 31 July showing that just 47 percent of spending was going them.

Last week the government revealed that over £3.2 billion had been spent by the public sector on digital services through G-Cloud and two other frameworks – Digital Outcomes Specialists and Digital Services.

 

Flog our big fat servers – Dell’s plea to partners

Joyce-Mullen-VP-General-Manager-of-Dell%u2019s-Global-OEM-SolutionsDell EMC channel chief Joyce Mullen has urged partners to up sell more of its big fat configured servers.

She told a webcast for partners that that “significant investment” is being made to help boost storage sales and partners needed to be in to win.

“We need you to sell storage all day, every day and we’re making significant investments there in pricing improvements, spiffs and rebates. We want you to sell bigger, fatter, more originally configured servers. We killed it this year, and we can do even more in 2018.”

She also asked partners to sell services into new businesses, while “always” attaching more services to customers’ portfolios. “Services is a pot of gold”, she said.

Mullen said that Dell EMC needed partners’ help in acquiring more customers.

“Keep selling to those new logos and keep expanding the lines of business that you sell to your customers,” Mullen told partners. “Stay focused on these strategies and… we will continue to outpace the market”, she predicted.

“Deal registration and incumbency is your friend. Please register your deals. Dell EMC is updating its rules of engagement to provide further clarity to both partners and the Dell direct sales teams. We’re taking infringement super seriously”, she said.

“In Q4, rules of engagement infraction escalations were down by over 80 percent quarter on quarter. We are proud of protecting our partners and doing what’s right for you and all of our customers, and we are all in”, she claimed.

 

Arrow hits targets

Teen_Wolf_Season_2_Episode_11_Battlefield_Allison_Takes_AimArrow has just had the most successful year in its 83 year old history.

CEO Michael Long said that an 18 percent sales increase in the final quarter of the year propelled Arrow’s total 2017 revenue haul to $26.81 billion which is a 13 percent rise. Ignoring a $125 million hit from changes relating to US tax regulations, net income also rose from $182 million to $224 million.

Arrow’s Enterprise Computing Solutions (ECS) arm recorded a 10 percent revenues increase to $2.69 billion. Its components arm saw revenues rise 24 per cent to $4.94 billion.

Long told the assembled throngs on a conference call that this outfit delivered unprecedented growth in 2017.

“This growth validates our strategy and inspires us to push forward to 2018 and the years ahead,” he said.

Arrow thinks the storage market reached a “turning point” during Q4, with new form factors driving the growth of its storage revenues in both the Americas and EMEA.

“Last year, we thought that the storage piece would cross over in the third quarter,” Long said.

“It happened in the fourth quarter that we saw the growth… What’s exciting or what drove us down was there was a pretty good budget flush on hardware, and that changed our mix a bit. But I still read into that as good news.”

Cloud now a $1bn-a-quarter business for Arrow

The 10 percent sales rise at ECS was underpinned by “strong growth” in infrastructure software and cloud sales, Long said.

He added that the company is on target for its $1bn cloud services quarter run rate target.

“If we take out December, we exceeded the $1bn run rate,” he said. “It’s still growing at a strong rate. It’s going to be exciting. And since you asked about that, we might as well tell you that digital is well over the $1bn mark at this point, too. So both of those activities are ramping and going very strong.”

 

Hackers become more focused

wargames-hackerNetscout has released its 13th Annual Arbor Worldwide Infrastructure Security Report (WISR) and claims that hackers are becoming more focused and having more successful DDOS attacks.

The report covers a wide range of topics, from distributed denial-of-service (DDoS) attacks and major industry trends such as SDN/NFV and IPv6 adoption to key organisational issues such as incident response training, staffing and budgets. Its focus is on the operational challenges network operators face daily from cyberthreats and the strategies adopted to address and mitigate them.

Netscout Arbor chief technology officer Darren Anstee said that attackers focused on complexity this year, leveraging weaponisation of IoT devices while shifting away from reliance on massive attack volume to achieve their goals.

“They have been effective, and the proportion of enterprises experiencing revenue loss due to DDoS nearly doubled this year, emphasising the significance of the DDoS threat. The results of the WISR, together with our ATLAS data, demonstrate why an integrated multi-layer defence from the data centre to the cloud is required.”

More than 57 percent of enterprises and 45 percent of data centre operators saw their internet bandwidth saturated due to DDoS attacks.

There were 7.5 million DDoS attacks in 2017, according to data from NETSCOUT Arbor’s Active Threat Level Analysis System (ATLAS) infrastructure which covers approximately one-third of global internet traffic. Service provider respondents experienced more volumetric attacks while enterprises reported a 30 percent increase in stealthy application-layer attacks.

More than 59 percent of service providers and 48 percent of enterprises experienced multi-vector attacks, a 20 percent increase over last year. Multi-vector attacks combine high volume floods, application-layer attacks and TCP-state exhaustion attacks in a single sustained offensive, increasing mitigation complexity and attackers’ chances for success.

As a result, successful DDoS attacks had greater operational and financial impact. Fifty-seven percent cited reputation/brand damage as the main business impact and 48 percent with operational expenses second. Over half percent experienced a financial impact between $10,000 and $100,000, almost double the proportion from 2016 and percent of data centre operators said customer churn was a key concern following a successful attack.

 

CDW makes loads of money

richSuper-VAR CDW is reporting full-year revenues of $15.19 billion with sales from the UK and Canada – which it brackets together – rising by a combined 15 percent to $1.56 billion.

In its last results filed on Companies House (for 2016), CDW UK saw revenues hit £648.6 million

The NASDAQ-listed parent saw total 2017 revenues increase by 8.7 percent to $15.19 billion and net profit soar by 23.2 percent to $523 million.

CDW CEO Thomas Richards said: “As we have throughout the year, we delivered strong top-line growth with solid profitability in the fourth quarter, once again highlighting the combined power of our nimble business model, broad product portfolio and balanced customer end-markets.

“Our 2017 results continue to prove out the success of investments we’ve made in our three-part strategy.”

Channel businesses keep customers in the dark about partners

Kept_In_The_DarkNew research from OnePoll claims that two thirds of channel businesses are looking for new companies to partner with between now and 2020.

The research, commissioned by Agilitas found that only 27 percent inform their customers that some of their services are being delivered by partner and 39 percent occasionally disclose these partnerships, depending on the nature of the partnership and customer.

Agilitas CEO Shaun Lynn said: “It may seem unusual that only a quarter of IT channel companies disclose to their customers that some of their services are outsourced, especially in an era where collaboration is financially and strategically crucial. We understand that there may be some scepticism from a business that doesn’t want to disclose that it cannot provide a secondary service in-house.

“However, it’s always best for companies to focus on developing their core skills, as trying to develop in areas where its experience is limited can prove expensive and time-consuming. Ultimately, a strong channel partnership will always prove more beneficial for the end-user customer.”

The research also revealed that nearly half of partnerships are formed for all parties to remain increasingly cost-efficient, while nearly 30 percent of channel businesses surveyed enter into partnerships to plug a lack of internal skills.

“Forming technical and training partnerships with other channel companies can prove cost-effective, while helping to overcome various challenges, such as the skills gap”, said Lynn.

“I’m confident that in the next few years, the number of collaborative partnerships will only grow as the need to meet the exacting requirements of the end user, in an increasingly customer-centric environment, becomes ever more crucial.”

The research surveyed 100 senior-level executives at IT resellers, managed service providers and independent IT channel firms.