Category: News

Chinese tech exports fall as trade war predicted

eclipse-chinaThe place where most tech gadgets are made is suffering from a fall in exports for the second year in a row.

Shipments are falling in the face of persistently weak global demand and officials voicing fears of a trade war with the United States this year.

Next week China’s leaders will see if President Donald (Prince of Orange) Trump will make good on a campaign pledge to brand Beijing a currency manipulator on his first day in office, and starts to follow up on a threat to slap high tariffs on Chinese goods. This will of course hit technology goods hard with most of them being made in China and exported to the US.

The world’s largest trading nation posted gloomy data  with 2016 exports falling 7.7 percent and imports down 5.5 percent. The export drop was the second annual decline in a row and the worst since the depths of the global crisis in 2009.

China’s trade surplus with the United States was $366 billion in 2015, and Trump could seize on in a bid to bring Beijing to the negotiating table to press for concessions. A sustained trade surplus of more than $20 billion against the United States is one of three criteria used by the U.S. Treasury to designate another country as a currency manipulator.

China is likely to point out that its own data showed the surplus fell to $250.79 billion in 2016 from $260.91 billion in 2015.

Trump’s trade policy will likely motivate US businesses to move their manufacturing facilities away from China which China might counter by moving to high end manufacturing which will cut costs.

China has a few weapons of its own. Beijing announced even higher anti-dumping duties on imports of certain animal feed from the United States than it proposed last year. It is also likely to protest to the IMF

This war of words will weaken investor confidence not only in the US and China.

China’s December exports fell by a more-than-expected 6.1 percent on-year, while imports beat forecasts slightly, growing 3.1 percent on its strong demand for commodities which has helped buoy global resources prices.

 

Microsoft’s partner boss promoted

maxresdefault (4)Microsoft’s UK partner boss Clare Barclay has been promoted to the role of UK chief operating officer.

According to a company email Barclay announced that she is “transitioning” into the role of UK COO and would report to UK CEO Cindy Rose. The reporting is unchanged she already does that in her current job of small and mid-market Solutions and Partners general manager.

Chris Perkins taking on interim leadership of the SMS&P business from 1 February until they can find a successor. He has led Microsoft’s corporate accounts business for the last four years and is a “great supporter” of selling with partners, Barclay said.

She added that she will continue to fly the flag for partners in her new role.

“I have always been and continue to be a passionate advocate for our partner community and will continue to stay connected in my new capacity. During my tenure, I’ve been supported by an incredibly strong leadership team, who remain in place to help you grow your business alongside Microsoft and you should not see any changes day to day as a result of this announcement.”

Vole announced plans to rejig its partner business last week, merging SMS&P and its Enterprise Product Group. However there were not supposed to be any management reshuffles as a result of the move.

Barclay said that it was an incredible time in the industry and one that is full of opportunity but also change.

“New year is often a time to reflect and it has been incredible to see the impact we have had together with our partners over the last couple of years, as we have helped our customers transform their businesses and have seen rapid adoption of cloud services during this time. I have had the pleasure of leading the SMS&P and partner business over this period and I wanted to thank you for the impact you have had,” he said.

MSP market is growing

growA new survey on MSPs reveals that the market is growing

Bean counters at Kaseya have added up some numbers and devided by their shoe size and reached the conclusion that the number of managed service and players continues to expand with more of the channel increasing their monthly recurring revenues that come through services.

The survey found that 26 per centof respondents now gain more than 16 percent of their revenues from monthly recurring business and there are more close to reaching that level, with 18 percent enjoying 10-15 percent of MRR.

Those leading the market were providing more services to gain a greater share of the customer wallet as well as being in a position to be a trusted supplier of a complete solution, the report found.

MSPs are currently beavering away at delivering network operations centre (NOC) expertise, infrastructure monitoring, backup and DR plus security services.

Apparently those MSPs who can see off security worries from customers by providing two factor authentications are doing better.

The Kaseya survey found that the leading players in the market were offering on average around eight discrete security services. The same was true of those excelling in networking support, with a range of options being made available to users.

Customers placed security as the major challenge for 2017, followed by concerns about the cloud, making it crucial for MSPs to deal with those worries.

Miguel Lopez, svp and general manager for MSP Solutions at Kaseya said that the report’s aim was to help all MSPs unlock their potential, and to arm them with the knowledge they need to better succeed.

“Our annual MSP pricing survey is a critical tool that helps the MSP community keep a pulse on this thriving industry. It answers important questions of ‘how’ and ‘why’ certain MSPs are succeeding, and what others can do to achieve the same level of success,” he said.

 

ThinPrint names Northamber as UK distributor

history-of-print-16th-century-printing-companyPrint management software and services outfit ThinPrint has appointed Northamber as its UK distributor.

The distributor will raise ThinPrint’s market profile and drive sales of  its print management across education and small-to-medium sized businesses.

ThinPrint and adapt to print jobs of all sizes using Advanced Adaptive Compression technology to eliminate bandwidth congestion. Its Output Gateway software replaces printer drivers across printing servers or desktops and reduces pressure on IT departments.

Alex Phillips, director of strategy at Northamber, said: “Having been known as ‘The Printer People’ in our earlier years has helped Northamber develop a strong base of customers who have a key focus on print.

“As technologies evolve and these partners are becoming more reliant on infrastructure and networked devices, ThinPrint is the perfect value-add to bring infrastructure and imaging together helping the channel to mature with technology.”

Reg Bowdrey, UK and Ireland sales manager at ThinPrint  said:“We are very impressed by the enthusiasm and pro-activity shown by Northamber about bringing our product to their channel. With their customer base in both the print and infrastructure categories, we truly believe we have found a unique partner which we can work closely with, enjoying plenty of success in 2017 and beyond.”

VR is an opportunity for the Channel

glassesIntel’s CEO claims that VR is going to bring big bucks to the Channel.

Talking to the assembled throngs at the annual Consumer Electronics Show (CES) in Las Vegas, Brian Krzanich used his platform at CES to underline the firm’s belief that virtual reality is going to be an area that will deliver growth in the future.

He claimed that the technology will extend far beyond the classic consumer electronics and extending to every experience you have today.

“I know a lot of people are questioning ‘is virtual reality going to take off?’ ‘Is VR going anywhere? We have a lot more technologies coming over the next few years and we believe Intel is leading this unprecedented change and make this vision a reality.”

One of the places where VR would have an impact in the commercial world was in jobs that had an element of danger, like pipeline inspection, where a user could take a look using the combination of VR and cameras on a drone.

“All of this we believe is one example of how work can be transformed by virtual reality. Inspections, search and resuce, dangerous work it can save lives, it can save money and it can save time and those are the solutions we believe will bring value to the end user,” he said.

 

Overall there are 261 exhibitors in the augmented and virtual reality category at CES, which is the largest number that have turned out to promote the technology.

Government stuffs up G-Cloud figures

Epic_FailThere was a sharp intake of breath as the government announced that its  G-Cloud sales figures had fallen by half and the feeling was that Brexit was to blame.

Now government has since admitted it stuffed up the numbers and there is nothing to worry about.

The figures were important because they show the success of a scheme which was supposed to give IT contracts to smaller suppliers rather than a single large supplier which might have a powerful lobby group.

The government publishes G-Cloud figures periodically, and the most recent data up to October, published before Christmas, shows that in that month, spending through the framework was just £38 million  – down 22 per cent annually, down 45 per cent on a monthly basis, and far below the average monthly spend on the framework for 2016 (January to October) of £59.7 million.

In fact the framework’s spending has not been this low since May 2015. However it is expected that the shortfall to be made up in the coming months as departments use their budgets before they expire.

The Cabinet Office confirmed that the data for October does not reflect any Brexit-related slowdown, but was in fact an administrative error. The correct data is expected to be uploaded shortly.

Dell EMC names WWT as its black knight

BlackknightDell EMC has announced WWT was a partner who would be heading to its new exclusive titanium black status.

The vendor had already revealed in October that there would be would have three main levels: titanium, platinum and gold, with something called titanium black.

Those who were platinum partners would be eligible to go for the Titanium Black level and it appears that World Wide Technology (WWT) has been given the chance to be the first.

Dell said that WWT was one of a select number of companies to be awarded Titanium Black status in the updated DellEMC partner programme.

“This new, highly exclusive status is an extension of the Titanium Tier within the Dell EMC Partner Program and will apply globally to all entities under the CDW banner.”

Needless to say, Bob Olwig, vice president of business development and innovation at WWT was chuffed.

“We established this strategic partnership to provide enterprise customers with hands-on access to Dell EMC technology for private and hybrid cloud, storage, data protection and availability, converged infrastructure, big data analytics, security and the Internet of Things,” Olwig said.

John Byrne, president, Dell EMC global channels, is hoping that the Titanium Black level was the best of the best. Partners with Titanium Black status had to place a big bet on Dell EMC.

“They’re going above and beyond. They’re investing heavily in us and we are returning the investment in them so they can continue to achieve the extraordinary,” he wrote in a pre-Christmas blog post.

“Titanium Black provides a rare and distinctive opportunity far and above what partners have experienced anywhere in the industry Together, through the Dell EMC Partner Program, Dell EMC and our partners will attack the market—with our Titanium Black partners leading the way. We’ll deliver incredible transformation for our customers. We’ll be the channel to watch,” Byrne said.

Logicalis UK has operating loss

LossLogicalis is reporting that its UK operation took a hit.

For the 12 months ending 29 February 2016, the UK arm of the Cisco, HP and IBM partner saw revenue drop from £169.8 million in the previous year to £153.9 million, while operating profit swung from £6 million to a loss of £2.1 million.

For the year ending 29 February 2016 the Logicalis Group saw revenue drop from $1.51 billion to $1.4 billion while operating profit fell from $68.1 million to $52 million.
Logicalis parent company Datatec reported its half-year figures on the London Stock Exchange in October, showing a revenue decline of 7.6 per cent year on year to $3.13 billion for the six months ending 31 August 2016.

The company is vendor dependant on the likes of IBM, Cisco and HP and if any one of the principal vendors to the company terminates, fails to renew or materially adversely changes its agreement or arrangements with the company, it could materially reduce the company’s revenue and operating profit and thereby seriously harm the company’s financial condition and results of operations, the company said.

The Logicalis UK claimed that the IT industry continues to be a “rapidly changing environment“and management recognises the need for the company to continually adapt and grow.

“The directors remain optimistic about the company’s future prospects, and are executing a transformation programme which will ensure that it is best suited to deliver its customers in the long term.”

 

UK government ignores start-up tech outfits

are-we-afraid-noCES organiser Gary Shapiro, of the Consumer Technology Association, said that the UK government is pants when it comes to encouraging start-up technology firms.

Shapiro said that Blighty has been slow to the game and while he has some minister from the UK coming to the show there is not a lot of activity that we’ve seen at CES.

“I think it’s a source of embarrassment,” said Shapiro.

Other countries do things much better. The French give lots of support to tech firms but the UK’s attitude of the UK government was short-sighted.

About five times as many French companies are attending the year’s biggest consumer technology trade fair as compared to British firms. Canada, China, Taiwan and South Korea are well ahead of the UK.

The UK’s Department for International Trade (DIT) said that such a statement was jolly unfair as it was providing “targeted support” to such firms. In other words, rather than support a large number of start-ups it is providing only a small number of start-ups.  It saves money and you don’t have to give money to any riff-raff who asks you for it.

According to BBC, earlier a UK Trade and Investment stand used to be present at CES, but this year there will be no stand. While British electronics retailers will be at the show, but are less likely to find anything that is created in the UK.

Dell-EMC to slash distributors

emcDell EMC is planning on slashing its distie numbers any day now.

Michael Collins, senior vice president of EMEA channels at Dell EMC said that partners from EMC and Dell vendor programmes will be migrated onto the Dell EMC Partner Programme based on the status they obtain through the firm’s annual audit at the end of this year.

We already knew that Dell EMC was planning a  tier system dubbed the Dell EMC Partner Programme with the programme’s entry-level tier being be Gold, followed by Platinum, Titanium and an “invite only” tier named Titanium Black.

Collins said that Dell’s EMEA partners will shortly receive notification concerning their status in the new programme with regards to how they are performing against revenue and certification criteria.

He said that once thresholds were announced, partners from both sides of the business will have until the firm’s next annual audit – held at the end of next year – to meet programme criteria.  EMC partners will gain an extra month to meet criteria requirements.

Dell had made it clear as early as last year that it was feeling a bit over-distributed, and it will look to reduce its number of distributors by December this year. So far it has not made any changes but Collins said that cuts will be made “very early next year”. The channel boss said that he has issued a request for information with all of the firm’s distributors across the EMEA region, asking them to underline their “strategy going forward”, the extent of their geographical scope and details regarding their “business plan” and commitment to Dell.

He said that he will look at the disties based on their business portfolio. The important areas will be: where are they planning to grow, are they selling across the Dell EMC portfolio, and how much MDF will they be expecting from Dell.”

 

Redcentric is a mess but it claims to have a plan

cunning-planManaged services outfit Redcentric appears to be in a total mess but thinks it has a plan to get itself out of trouble.

Last month the outfit fessed up to multi-year accounting errors which meant it overstated net assets by at least £10 million and its net debt was nearer to £30 million. CFO Tim Coleman was “placed” on “garden leave with immediate effect.”

Redcentric delayed interim results for the half year ended 30 September until Deloitte and law firm Navarro could do a “forensic review” of its numbers. The results show that things were much worse than expected and the cumulative overstatement of net assets and profits after tax up to the half-way stage of this fiscal year was £20.8 million. To make matters worse more than a quarter of this arose in the six months of this financial year. The remaining £14.9m related to the years up to 31 March 2016.

Normally you could not lose that much money unless it was being taken by a bloke with a gun aided by a bloke outside with the motor running.  However, the report ruled out theft.

“The misstatements are attributable to profit overstatement over several years with revenues being overstated and costs understated in broadly equal proportions,” the firm told the London Stock Exchange.

Net debt turned out to be “materially higher than was originally reported” and was £37.8 million at the end of March and £34.4 million at the end of September.

Redcentric said the net debt in those periods was “not representative” because creditors had been “significantly stretched at those dates”. The average net debt position over the past eight months to the end of last month was £42 million.

Redcentric has recalculated historic banking covenants and has received waivers such that it remains compliant with the Ts&Cs. This will aid changes to billing and credit control management systems and processes, and the continued restructuring of the finance department.

The delayed half-year numbers to September will be reported before the end of the calendar year, and Redcentric forecast sales to be £53m and EBITDA £9.1m.

Redcentric’s share price almost halved last month when the news first broke of the financial errors; they recovered somewhat in the interim and were down nearly five per cent today.

Amazon was the Queen of Christmas

amazonOnline book seller Amazon said it shipped more than 1 billion items worldwide this holiday season, saying that it was its best ever.

The Amazon Echo home assistant and its smaller version, Echo Dot, topped the best-sellers list. Jeff Wilke, chief executive of Amazon’s worldwide consumer division said that it had difficulty keeping the shiny toys in stock.

Sales of voice-controlled Echo devices were nine times more than they were during last year’s holiday season, the company said. Amazon did not disclose comparable sales figures from a year earlier.

Jan Dawson of Jackdaw Research pointed it out it was easy to be positive when you don’t tell the world the actual figures. He said that that this year’s figures were all relative to numbers that they have never told anyone about.

Amazon likely sold between 4 million and 5 million devices this year to date with Alexa, the voice-controlled assistant on the Echo, estimated Morningstar analyst R.J. Hottovy in a research note. Shoppers can command the Echo to perform a host of tasks, from playing music to turning on Christmas lights.

“While Amazon’s device sales are still relatively small growth drivers currently, we believe the proliferation of these devices will drive more ubiquitous use of Amazon services over time,” said Baird Equity Research analyst Colin Sebastian in a note, pointing to customers ordering more items by speaking to the Echo.

More than 72 percent of Amazon’s customers worldwide shopped through mobile devices, the company added, and 19 December was the busiest shopping day this holiday season.

“Prime customers are spending twice as much as other consumers using Amazon and helping to fuel rapid revenue growth that few retailers with only a fraction of Amazon’s revenues are able to generate,” Retail Metrics President Ken Perkins wrote in a note last week.

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Ericsson to expand its doings with Cisco

Cisco Kid Ericsson has announced that it is expanding its partnership with Cisco to target new corporate clients and the public sector in 2017.

Rima Qureshi told hacks that Ericsson and Cisco think they can make an extra $1 billion each in revenues by 2018 through a partnership which was announced late in 2015 and cash like that is not to be sneezed at.

Qureshi says Ericsson’s Cisco partnership, which generated over 60 deals in the first year, has been mainly focused on telecom operators. Next year, the firms plan to target enterprises and public sector .

She said that the two  are looking much closer into how theycan work on the enterprise

“We are investigating what we can do together within Industry & Society, IoT, smart cities and we’re going to target specific public sector segments, specifically for example transportation, utilities … And then of course we’re looking at other segments such as security,” she added.

Qureshi says Ericsson’s forecast to generate up to 25 percent of revenue from business outside of telecom operators by 2020.

Swiss buy Clearswift to get into the UK

swissWhile Brexit might see EU companies departing the UK it seems the Swiss are going the other way.

Theale-based security specialist Clearswift has been acquired by a Swiss firm RUAG which wants to expand its reach in the UK

Apparently, the outfit was impressed with the strength of the firm’s channel network which aided the sale.

From the start of next year Clearswift’s products will fall under the RUAG Defence cyber security business unit, which will be headed by Dietmar Thelen.

The Clearswift acquisition gets a firm with around £23 million in revenues and 140 staff focused on data loss prevention and a well-developed UK channel.

CEO of the RUAG Defence division Markus Zoller said that Clearswift’s global partner network and customer base in conjunction with its analyst-recognised solutions will play a key role in the growth of the RUAG Defence cyber security business unit.

“We are aiming to become a principal solution and service provider for organisations of all sizes and across all verticals, including local and national government organisations, financial institutions and critical infrastructure providers,” he added “By combining our expertise in network defence with Clearswift’s data loss prevention and gateway solutions we will further boost our efforts to make RUAG Defence one of the leading cyber security specialists.”

RUAG has a core business in aerospace and defence, has offices across Switzerland, Germany, Austria, Hungary, Sweden and in the US and has been selling into the UK.
No one is saying how much the outfit paid for the British firm.

Dell details channel tiering plans

dellchannTin-box shifter Dell been telling its partners how the new tiering levels will work on its unified channel programme.

Dell EMC resellers and distributors will see the launch of the unified partner programme on the 1 February next year. It was announced in October will it started it would have three main levels: titanium, platinum and gold, with an exclusive titanium black status also available.

John Byrne, president, Dell EMC Global Channels has now outlined how partners can qualify for those different levels and what will be needed with.

Writing in his bog, Byrne said that the levels of the tiering will be determined by legacy programme rules and there will be revenue and training requirements for those that want to join the scheme.
Under the changes those that were Dell PartnerDirect Premier+/EMC BPP Platinum partners will be eligible for the titanium level; Dell PartnerDirect Premier/EMC BPP Gold will be platinum; and Dell PartnerDirect Preferred/EMC BPP Silver will be gold.

Those who were ‘registered’ under the old Dell programme or ‘authorised’ under the EMC scheme they will now be classed as authorised.

“Partners who are members of both legacy programs and meet the requirements of each will be awarded the higher status of the two. For example, if a partner is Preferred in Dell PartnerDirect and Gold in the

EMC Business Partner Program, that partner’s new Dell EMC Partner Program Tier will be Platinum. It’s just the right thing to do. It’s ‘Partner First’,” said Byrne.

The unified programme was simple, predictable and profitable and it would continue to be open to suggestions from the channel over further improvements.

“The Voice of the Partner has been absolutely critical, and we will continue to have “big ears” and listen closely and constantly to what they need and want from our program,” said Byrne.