Category: News

Oracle is still the “big bad wolf” of software audits

dore_ridinghoodThe Campaign for Clear Licensing (CCL) has lashed out at the “anti-competitive” tactics of software vendors and said that Oracle is the “big bad wolf” of software auditors.

CCL found licensing audits were taking an average of nearly 200 work-hours to resolve and Oracle was the worst offender.”

The research asked respondents to estimate how long an average software audit takes to resolve in work hours and total duration. The average estimate was 194.15 working hours over a duration of 7.13 months.

CCL feels that big vendors are using audits to block competition and restrict innovation. While customers are locked in a room talking with the big vendors about audits, they are not looking at alternatives.

The 194 hour figure has gone up over the last five years because software licensing, and therefore the audit process, has become more complex, CCL said.

Oracle was named and shamed by nearly a quarter as the least helpful vendor in terms of audits. IBM and Microfocus were second and third, ahead of Microsoft, Autodesk, SAP, Adobe, Dell Software and HP.

Although Microsoft was seen in CCL’s survey as the most helpful vendor in terms of audits it did catch a bit of criticism. CCL did not like how previous compliance misdemeanours might be overlooked as long as the customer adopts the software publisher’s strategic products.

“…While less aggressive, this approach is still anti-competitive and it assumes the vendor’s cloud solution is the most viable option.”

Vendors look to the channel for cloud offerings

cloudbustThe Global Technology Administration Council (GTDC) claims that vendors are increasingly relying on the channel when it comes to their cloud offerings.

The GTDC – whose associates cover Tech Data, Ingram, Avnet, Arrow, Westcon, Exclusive Networks and Scansource, claim that distributors will be dependant on the channel to bring cloud solutions to market and wrap services around cloud offerings.

“The emergence of cloud has transformed distribution along with the IT industry. Increasingly, vendors are relying on the channel to bring cloud solutions to market and that won’t change in 2017,” the report said.

Already Microsoft has indicated that it will use the channel more in 2017 to give it more opportunity as to expand its public cloud assets.

The role distribution will play in the cloud has often been questioned, with some in the industry warning distributors need to evolve or risk becoming irrelevant.

In the GTDC report Wayne Peters, senior director of Arrow Capital Solutions at Arrow highlighted financing as an important role that distributors will play in 2017.

“Cloud financing is becoming a critical component of selling cloud. In many cases, it takes what has traditionally been called non-traditional financing, but soon will become traditional financing as more solution providers get used to selling cloud and customer demand accelerates.

“We are also seeing a shift in the market with respect to the cloud ecosystem requirements and our partners selling and finance cloud.

“Some of the things we do around recurring revenue and bringing new partners into the ecosystem helps our base become broader and makes cloud easier for partners to sell,” the report said.

 

 

GameStop predicts bleak Christmas

gamestop-inside-930x618Bricks and mortar peddler of computer games, GameStop, is predicting a bigger than expected drop in sales for the crucial holidays.

The troubled company is the world’s largest retailer of video games, and has been struggling as more players switch to downloading games on their consoles from buying physical copies.

Chief Operating Officer Tony Bartel warned that revenue from the videogame category, which includes new hardware, software and accessories, is expected to decline in double digits in November and by single digits in December.

Bartel said the company expected revenue from the business to be flat to positive in January.

Hopes that Activision Blizzard’s “Call of Duty” game would pull GameStop’s nadgers out of the fire were also dashed as these are expected to be lower than a year earlier.

GameStop also forecast total sales to decline between 5-10 percent in the current quarter, translating into revenue of $3.17 billion-$3.35 billion.

Analysts on average were expecting revenue of $3.45 billion. The company expected things to be bad this year and it has maintained its full-year profit forecast.

Bartel said the company expects to expand its operating earnings by diversifying its portfolio.

Under Chief Executive Paul Raines, GameStop has been expanding its digital and mobile offerings and snapping up technology brand stores that sell mobile phones and other electronic devices.

Revenue in its technology brand business rose 54.4 percent in the third quarter from a year earlier.

GameStop’s net income fell to $50.8 million in the third quarter ended 29 October from $55.9 million last year.

Oracle makes a noise about Dyn

featuredimage_post32Oracle has written a cheque for the troubled DNS provider Dyn which was hit by a distributed denial of service attack in October that crippled some of the world’s biggest and most popular websites.

Oracle wants to add Dyn’s DNS solution to its bigger cloud computing platform, which already sells/provides a variety of Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) products and competes against companies like Amazon’s AWS.

The deal is expected to be worth about $600 million, but no one is going on record to say that. It is also unclear if the deal was being negotiated before the Mirai botnet took down a series of sites in October.

Dyn powers some 3,500 customers’ sites.  In its statement, Oracle said the outfit “drives 40 billion traffic optimization decisions daily for more than 3,500 enterprise customers”. Customers include Netflix, Twitter, Pfizer and CNBC among many others.

Oracle president Thomas Kurian said that Oracle already offers enterprise-class IaaS and PaaS for companies building and running Internet applications and cloud services.

“Dyn’s immensely scalable and global DNS is a critical core component and a natural extension to our cloud computing platform.”

In a letter from Kurian to customers and partners, Oracle fails to even mention of Dyn’s DDoS attack. Instead he talks about how Dyn’s platform “monitors, controls, and optimizes Internet applications and cloud services to deliver faster access, reduced page load times, and higher end-user satisfaction.”

The pair will continue to operate independently until the transaction closes.

Dyn is Oracle’s 114th acquisition. Other recent acquisitions to fill out its enterprise cloud services, include the security startup, Palerra which might be useful to solve Dyn’s woes.

 

Symantec buys Lifelock for extra security

securityAnti-virus outfit Symantec is writing a $2.3 billion cheque for US identity theft protection company LifeLock.

The hope is the tech outfit can breathe new life into its Norton cybersecurity unit which has been suffering from the downturn in PC sales. Symantec’s security software often comes bundled with personal computers and while Norton remains profitable, its sales have been falling.

Symantec Chief Executive Greg Clark said that the acquisition will bring $660 million in revenue to the consumer business and returns it to longer sustainable growth.

Symantec recently bought Blue Coat Inc, which helps firms maintain security over the internet, in a $4.65 billion deal. Clark previously held the top job at Blue Coat, and made the switch after the deal closed.

LifeLock offers services such as monitoring new account openings and credit-related applications to alert consumers about unauthorised use of their identity. It also works with government agencies, merchants and creditors to remediate the impact of identity theft.

Fran Rosch, executive vice president of Norton Business Unit, said that Symantec had dabbled in identity security but had nowhere near Lifelock’s 4.4 million members.

Symantec expects to finance the transaction with cash on balance sheet and $750 million of new debt.

Salesforce doing better than expected

 

Salesforce forecastSalesforce_Logo_2009 current-quarter revenue above what the cocaine nose-jobs of Wall Street predicted.

Deferred revenue, a key metric for subscription-based software businesses, rose 23 percent to $3.50 billion in the third quarter. Analysts on average had expected deferred revenue of $3.42 billion. For the current quarter, Salesforce said it expected revenue of $2.27 billion to $2.28 billion, above analysts’ average estimate of $2.24 billion.

Revenue rose 25.3 percent to $2.14 billion. Analysts had expected revenue of $2.12 billion. Chief Executive Officer Marc Benioff said that Salesforce was expecting to deliver its first $10 billion-year during our fiscal year 2018.

The more optimistic predictions were due to closing deals for its cloud-based sales and marketing software with several new major customers.

Salesforce has consistently reported double-digit growth in recent quarters as companies shift to cheaper and easier cloud-based products, but it is facing growing competition from Oracle and Microsoft.

The results marked a sharp reversal from the previous quarter, when a lighter-than-expected revenue forecast prompted concerns about slowing growth. But this quarter the company closed large deals with customers including Citigroup and Amazon to help it get back on track.

Benioff wants to broaden the company’s cloud offerings through new features, especially focusing on artificial intelligence.

The company, which launched its artificial intelligence platform Einstein this year, has made several acquisitions to build up its machine learning and big data analysis power.

However, competition between Microsoft and Salesforce is now intensifying and Microsoft’s Dynamics product is taking business from Salesforce among mid-sized customers. Microsoft also this summer launched a direct competitor to Salesforce’s AppExchange for business software.

 

Salesforce wants to bring AI to the channel

robotsWhile most channel partners might not be too interested in AI trends, Salesforce has a cunning plan to use the concept to spice up its partner relationship management software.

Salesforce’s PRM software, which is delivered as a service, uses an Einstein AI engine that the software outfit thinks could change the way the channel is run.

At the moment, PRM applications are loaded with data about customer transactions, but sorting through all that data to make the best optimal decision is laborious. Einstein is supposed to instantly identify what combination of products and services will, for example, yield the most profit for them.

Channel management teams can identify what partners make the best use of marketing development funds (MDFs) or have higher customer satisfaction ratings with a specific product or technology.

This means that the vendor can better identify when a customer is most likely to upgrade an existing product or service.

While this will not mean the end of the days where a nice lunch would improve vendor standing, it will mean that sales teams will come to the table with some good facts about what the client wants.

The technology is still limited AI technologies start to cut both ways in the channel. Instead of a PRM application, there will inevitably be a vendor relationship management (VRM) application infused with AI capabilities. Solution providers would then be able to instantly compare which vendor in a category, such as servers and storage, is providing them with the best deal at a given time.

Acquisition happy Exertis looks for a happy Medium

medExertis, which last month wrote a cheque for its Hammer acquisition wants to buy audio visual outfit Medium.

The move is part of Exertis’s cunning plan to snap up complementary businesses. Medium will strengthen its position in the AV market. It will get a much wider range of products and is being pitched to provide resellers with access to a complete solution.

Medium has been around for a long time and supplies a broad range of AV products, including projectors, interactive displays and digital signage from vendors including LG, NEC, Samsung and Panasonic.

The channel player employs 40 and has a turnover of £32 million and flogs its gear to 800 AV resellers across the UK.

Last month Exertis added the storage and server expertise of Hammer to expand its business coverage.

Ian Sempers, Medium MD said: “We are delighted to be joining forces with Exertis. The continued convergence of the IT and AV market means we will be in a great position to service a sector that extends beyond traditional AV solutions. Our expertise and technical knowledge in this market combined with Exertis’ wider product portfolio will provide a compelling proposition for resellers and vendors.”

UK SMEs need help to come up with cloud plan

cloudUK SMEs might need channel help because they are not defining their cloud computing strategy and do not seem to have any plans to formalise anything, according to new research.

The research from Close Brothers polled 906 small businesses across the UK, found that only 29 percent could be bothered formalising their cloud strategy.

Companies in the North East and Wales were the least likely to have a properly defined cloud computing strategy, while London firms were the most likely.

When asked to rate the importance of having a cloud computing strategy, only nine percent of businesses said it was ‘very important’, while 24 percent thought it was ‘important’.
said Ian McVicar, CEO, Close Brothers said the cloud was one of the key digital developments of the last few years and it was important that businesses don’t get left behind because it can be used as a competitive advantage.

“The results of the survey are quite sobering and make it clear that there is some way to go before business owners fully appreciate the importance of the cloud. Fundamentally, cloud computing means companies can avoid, for example, purchasing and hosting servers, along with other infrastructure costs. This is not only a cost saving, but means companies can focus on their core business instead of spending both time and resource on establishing and maintaining an IT infrastructure,” he said.

All this means that the channel can have a foot in the door with SMEs by helping to provide them with cloudy advice. It is apparently likely that an SME is going to approach a potential cloud partner to ask for help, or to work out how their business can be improved by moving to the cloud.

Commercial sector helps PC growth

20120313_InformaticaThe commercial sector has been a PC sales hotspot helping the market deliver low growth in third quarter, at least in Western Europe.

Bean counters from Context have been adding up the numbers, and dividing by their shoe size and decided that the commercial sector has been a growth area. While the back to school windows for the PC market have been disappointing, commercial orders grew to cover up the problems as efficiently as woodchip wallpaper.

Context said that most of the third quarter  was used by distribution to clear PC inventory, using special promotions as a tool, to get things ready for the fourth quarter.

Sales across Western Europe for third quarter came in at 0.8 per cent up, year-on-year, with notebooks improving by 3.5 per cent as desktops continued to decline with a 5.9 per cent fall. The UK saw third quarter PC volume growth beat the overall Western European market, coming in at 1.2 per cent in the third quarter.

Context said there were reasons to be optimistic about the future, with Windows 10 having an impact. However, it warned that Brexit would have an impact on pricing as would the uncertainty caused by the political situation.

The business customer base was the one that kept firing with sales up by 3.3 per cent, with notebooks driving that performance.

So far Windows 10 had not had much of an impact, but Context saw some spending as a result of upgrading to run the latest Voleware.  This is expected to filter through this quarter and the first half of next year.

Marie-Christine Piggott, senior analyst at Context said that there are expectations in the business space of continued, moderate growth at the end of 2016 thanks to year-end projects and Windows 10 commercial sales will also begin to pick up at the end of the year,” said.

There is little hope for the Consumer side. Customers were moving away from the traditional laptops and PCs preferring to splash out on convertibles, Chromebooks and gaming PCs.

Business customers also embraced detachable with that segment rising by 227 per cent year-on-year to go above 250,000 units through distribution.

The third quarter was great for vendors. HP which now commands a third of the units going through distribution. Asus also saw volumes increase by nine per cent  to gain a 13 per cent  share and Dell was also improving, Context said.

 

Apogee presses into Ireland

history-of-print-16th-century-printing-companyManaged print player Apogee has written a check for an Irish firm to add to the Scottish, Welsh and German businesses it has already collected this year.

In January Apogee’s joint CEO Jason Collins said: “Apogee will continue to grow its UK business in 2016 through organic growth and further acquisitions of organisations in the range of £1 million to £50 million turnover.”

The outfit has  bought Welsh firm Kon-x in April and last month bought Scottish print and copy specialist Direct Business Systems.The DBS deal gave the firm a larger footprint North of the border and and now it has bought Hibernian Business Equipment in a bid to break into the Irish market.

Hibernian is a print management outfit with offices in Limerick, Dublin and Galway. Its main focus is government departments. Hibernian’s founder Gerald Wall will continue to lead the Irish business.

Hibernian managing director Wall said that being part of a larger group gave it the chance to compete for larger deals.

Sophos improves revenue but makes more losses

sophos-HQUK insecurity outfit  Sophos today reported its interim results which showed that while revenues continued to rise, losses also widened.

Revenue increased to $256.96 million in the six months, up from $234.2 million in the same period last year. Sophos said its billings were up 15 percent while new customer billings were up 20 percent.

That still meant that it had an operating loss of $24.6 million which was an increase from $13.4 million from last year.

Sophos blamed the increased losses on investment into R&D, as well as a continued shift towards subscription-based billing.

Investors appeared largely satisfied first six months of results. The share price crept up by one percent today to 235 pence per share.

Kris Hagerman, chief executive officer said that he was pleased with Sophos’ first half results. They were in-line with Sophos’ outlook, and he was especially pleased with our cash flow performance which was ahead.

“As we enter the second half of the fiscal year we expect continued strong growth, as we benefit from key new product releases in next-generation endpoint and next-generation firewall, and the continued momentum of our Sophos Central cloud management platform,” Hagerman said.

For the year-ending 31 March 2017, the firm said that it expects to deliver mid-teens revenue growth whilst delivering ‘modest’ cash EBITDA margin expansion.

 

 

“Superfast broadband” sent to Coventry

Coventry at dawn

The Coventry City Council said that the next phase of its roll-out of “superfast broadband” around the region will be supported by £15 million worth of grants and aims to extend the network coverage to a further 8,000 local homes and businesses.

Regional state aid supported CSW Broadband project, which is mostly based around Openreach’s FTTC/P technology. It has already put superfast connectivity within reach of over 90 per cent  of premises in Warwickshire, Solihull and Coventry. Work has also begun on a second phase that will aim to achieve “nearly” 94 per cent coverage of the same area by the end of 2017.

More than 334 new street cabinets have so far been installed and 53,000+ premises have benefited.

Attention is now being turned to a future Phase Three contract, which is set to be supported by a public investment of £2.55 million from the city council, another £2.55 million from the European Regional Development Fund, £4.3 million from the local Growth Deal and £1.1 million worth of private sector funds.

More than £15 million is eventually predicted to become available for the next phase, which will seek to reach an additional 8,000+ premises on top of the existing target. One-off corporate funding of £150,000 will also be invested in order to project manage the Council’s investment and work as part of CSW Broadband.

 

 

Redcentric CFO quits over botched accounts scandal

364z280_redcentric_tcManaged services outfit Redcentric is in the centre of a multi-year accounting scandal which has already claimed the scalp of its top numbers bloke.

In a statement Redcentric said that CFO Tim Coleman was placed on garden leave and resigned with immediate effect as a director of the company on 6 November.

“The board anticipates making an external interim appointment as a replacement CFO,” the firm said. But there is a small matter of the discovery of a £10 million hole in the company accounts to sort out.

Redcentric confirmed it had identified “misstated accounting balances” in the P&L accounts when reviewing results for the half-year ended 30 September and had embarked on a “forensic review” that will delay the 14 November publication date of those results.

“The work to date has identified that audited accounts for previous years are likely to need to be restated, resulting in some write down in historic profits. Current indications are that all issues related to prior periods,” it stated.

Apparently, the numbers for the first six months of fiscal ’17 do not indicate any mistakes or wrongdoing, with new business sales and recognition of those sales into revenue “in line” with management’s expectations.

“The board believes from the information available to date that the impact of correcting these cumulative historic accounting misstatement would result in a need to reduce net assets by at least £10m,” the company statement added.

Now it seems that the company is sitting on a net debt closer to £30million and the group’s banking covenants will need to be re-calculated, “which will take some time to complete”, Redcentric revealed.

Redcentric was created in 2013 by the merger of Redstone and Maxima’s managed services business, and was supplemented by the slurp of InTechnology and the takeover of Calyx Managed Services.

Cloud suppliers promise not to harm customers

lightning-cloudThe UK Competition and Markets Authority has managed to get a promise from BT, Dropbox, Google and Mozy that they will not try to screw over cloudy punters with dodgy terms and conditions.

Apparently the four were compelled to take the pledge after the CMA started peering into cloud service providers’ contract terms and tutting that they discriminated against consumers.

After making its pledge, BT had promised that “free accounts will not be terminated due to inactivity during the first 365 days of the contract”. It has also promised to give 90 days’ notice in writing when it wants to zap unused cloud backup accounts. It also “agreed to amend” its terms and conditions, which at present give it the right to unilaterally change prices on a whim.

Dropbox has promised not to kill customers’ accounts without notice. Apparently that right existed in the terms and conditions and no one spotted it.

Google has agreed to “ensure consumers are given an opportunity to remedy their breaches” before terminating their accounts, as well as giving 30 days’ notice of a price increase “or storage plan decrease”.

The search engine outfit will now ensure that consumers can bring legal proceedings in their local courts and under their local laws if it breaks the terms of its own contract

Mozy, which provides Windows and Mac OS X backup services, made much the same promises as BT and Dropbox.