The tablet boom is still going strong and according to Forrester Research, plenty of growth is expected over the next few years. Tablet ownership in Europe is expected to quadruple by 2017.
At the moment, an estimated 14 percent of European online consumers own a tablet, and the number should hit 55 percent by 2017. But who stands to gain from the boom?
The maker of expensive printer ink HP has fast discovered the problems of hacking off the Channel.
For a number of years now, HP has had a problem in that its direct-selling sales teams have been nicking deals from their channel partners. While this has been good for the company in the short term, it has led some resellers to wonder why they should line up deals, when HP would just nick them from underneath them.
We reported on HP’s channel conference here, and here.
Unsure if it was going to keep its hardware business, HP did not seem that keen to tackle the problem. After all if Leo Apotheker’s plan paid off, then there was little reason to care about hardware partners, as they were going to be dealing with a new business, who would presumably be kinder.
As a result hardware sales dropped, in part because of the lack of morale of HP’s hardware partners. More than 70 percent of HP’s sales are delivered through its channel.
All that changed when the new CEO and president Meg Whitman decided to keep HP’s hardware business. She realised that without a fully functioning channel, the whole business was rubbish.
She ordered the company to develop better rules of engagement for HP’s direct sales team which did not step on the toes of the channel.
Speaking to the recent Global Partner Conference, Whitman said that partners had “literally built” HP’s business over the years, and she warned that any move which took business away from the HP channel and going direct would not be tolerated.
“Everyone in the HP organisation is crystal clear on the behaviour we expect. I am holding myself and the executives accountable for that,” she added.
But that did not mean that HP was going to close down its direct sales operations. Indeed the rules that Whiteman has been pushing forward might be hard to implement.
Her view was there are accounts that HP will take direct, but there must be “no mystery” in the process, and that partners who have done months of work on a deal will be paid even if transacted by HP.
The agreement basically makes a few pledges. Partners are not restricted from selling to anyone but the bigger accounts still have to involve an HP field rep.
HP has promised to leave the midmarket to the channel which which is a significant change.
The company’s opportunity registration policies are being used to govern behaviour. If HP accepts a partner’s registration, the company will not sell direct on that opportunity.
HP has set up a “value express pricing” programme, where HP channel partners will be rewarded for the value they provide.
It also has promised for there to be mandatory training on the new rules.
While this sounds good, it is hardly tangible. Under what circumstances would HP take a customer away from its channel partner? How much work would have to be done before a partner got paid?
In fact it might also be difficult for HP to fire sales staff that do pinch deals from partners. While they may be breaking HP’s policies, they are not breaking any laws. Sales teams are not famous being open to what they perceive as rivals when they are looking for commissions.
The only way a channel deal can be protected is if they are go for certifications and will use registration. This makes the deal more open, but it also makes it vulnerable to gazumping by HP’s internal teams.
As Jack Mele, vice president of sales at Data Impressions pointed out, it will only work if the Whiteman’s corporate edict trickles down the way it should.
However it is better than nothing, according to Search IT Channel, many in HP’s channel welcomed the change. Craig Sehi, of Sehi Computer Products said that HP’s new “rules of engagement,” were a welcome relief and was sign that HP is listening to its resellers.
But it is clear that HP has a long way to go before it can calm its jittery channel and get them working together.
The acquisition of UK Telefonica’s O2 broadband by BSkyB is “significant” for both customers and the industry, an expert has said.
The comments by Andrew Ferguson, editor at ThinkBroadband, come as BSkyB announced it would buy its rival’s 500,000 customer accounts for £180 million, including the O2 and BE consumer broadband and home phone businesses. It said the by gobbling up its rival it would be able to provide advantages of scale for its home communications business.
Currently BSkyB has around 3.6 million customers, who pay for the company’s TV, broadband and telephone services
The deal is due to complete by the end of April, subject to regulatory approval. Once it has been signed off, all O2 and BE broadband customers will be switched to BskyB’s all-fibre network.
“The acquisition is significant both for the customers involved who have elected to join a partial LLU service, rather than the fully unbundled options sold by TalkTalk and Sky and for the industry overall, as we now have a new second largest retail broadband provider,” Mr Ferguson told ChannelEye.
“For the industry as a whole the sale of the O2/Be customers means that the last significant partial LLU service (where telephone is left on the WLR platform and only the broadband is ran over the providers own hardware) is vanishing, at least in terms of the consumer retail arena. This means that the vast majority of the unbundled services in the UK actually have both their telephone and broadband service provided over a Sky or TalkTalk MSAN (MSAN being a DSLAM providing multiple services).”
However, he added that the acquisition would also remove the Be retail network “which while has remained small was well loved by its generally loyal customers”.
The company was also the provider that pushed ADSL2+ onto the UK market and also gave the people control over the various parameters of the ADSL2+ service, meaning customers could tweak the performance of their line to be the best in terms of line speed and latency.
However, this could be both good and bad news for both smaller providers.
“The Sky LLU platform tends to favour stability at the expense of a small amount of connection speed and latency, this means we are expecting to see a fair number of Be customers migrating to other smaller providers,” Mr Ferguson said.
“In terms of the regulatory position, it means Ofcom is now really regulating just five major players which control 94.4 percent of the retail sector in the UK.
“The problem with this dominance by a handful of major players is that it will be increasingly difficult for the small providers who service the pro-sumer and SME sector to get their voice heard,” he added.
Logitech’s newly appointed CEO is making his position known, grinding the axe and getting the pink slips ready.
In an announcement today the peripheral company has said that it will be cutting approximately 140 positions, around five percent of its worldwide non-direct-labour workforce.
Bracken P. Darrell, who look over the head honcho job at Logitech last month said the chops were as a result of the company taking on an “organisational alignment” and making “strategic priorities” in a bid to make cost savings of approximately $16 to $18 million in operating costs in Fiscal Year 2014.
These include increasing focus on mobility products, improving profitability in PC-related products and enhancing global operational efficiencies.
The axe wielder said the job cuts would help with the new plan by “delivering additional cost savings that will contribute to improved profitability”.
Logitech is trying to turn around its flagging business which has faced increasing competition from the smartphone and tablet market.
Last month the company also announced that it would be flogging its Harmony remote business unit following a “disappointing quarter”.
A series of optimistic reports and forecasts on e-commerce seems to indicate that mobile payments are becoming increasingly commonplace and that we could soon ditch our trusty leather wallets in favour of smartphones. Sadly though, we won’t, at least not anytime soon.
The trend is positive and we are seeing a lot of growth, especially in m-commerce. In addition, a number of big players have made significant announcements in recent months. Last week Visa expanded its Visa Ready Partner Programme in an effort to get more vendors, developers and retailers on board. Samsung followed up with a service of its own, the Samsung Wallet, which bears more than a passing resemblance to Apple’s Passbook app. Samsung already managed to attract several partners for its new service, including Visa.
Then there is MasterCard’s MasterPass service, which allows retailers come up with their own applications and services, based on MasterCard’s infrastructure. PayPal is no newcomer to the market, but its PayPal Here service is. Launched in the US last year, it finally found its way across the pond to European shores. It offers a comprehensive solution, with a hardware dongle and cross-platform app support, and it allows users to pay using credit cards, cash, PayPall wallet or checks.
What about the elephant in the room? Well, there’s actually two elephants. Google Wallet has been around for quite a while, but it failed to take off. It was supposed to demonstrate NFC capabilities on Nexus gear, dating back to the Nexus S, which it did. However, much like NFC, Google Wallet never made much of a name for itself.
It might have something to do with the second elephant, Apple, as it never embraced NFC technology and it is still unclear whether the next iPhone will feature it. Apple has not made much noise on the mobile payment front, which doesn’t mean it is not looking into it. To the contrary, Apple has already filed several patents for NFC enabled devices and services. Cupertino doesn’t like spilling the beans on upcoming products and services, and unlike some companies, it tends to have excellent execution. It is also worth noting that Apple bought AuthenTec, a maker of fingerprint sensors and security solutions, for $356 million last year.
With all that in mind, nobody should be surprised by soaring m-commerce and mobile payments statistics. In fact, we should be seeing even more services, from brick and mortar shops to pubs, but we aren’t. Mobile payments and are still geeky turf, with little traction among mainstream consumers. The sheer lack of widespread support for m-commerce platforms and the fast pace of development means that many consumers don’t even know it exists. What’s more, many of those that do still have some reservations.
Privacy and security are valid concerns, but a recent survey by Intela revealed that the majority of smartphone users in the UK now feel comfortable with mobile payments. It is hardly surprising, as most smartphone users have grown accustomed to making micro transactions in app stores or through in-app payments. The difference between spending a few pence on an app and a few pounds in a retail shop is philosophical and not technical in nature. In fact, it appears that humble micro transactions have already done more for m-commerce confidence than all the fancy services rolled out by credit card companies and tech outfits.
In spite of that, smartphones will not replace wallets, at least not entirely and certainly not anytime soon. Cash can’t be hacked, it can’t be rendered useless by a flat battery or a few drops of lager. In some cases it is just more practical. The same pretty much goes for credit cards. Smartphones have their own set of advantages. Motorway tolls, public transportation, congestion charges and parking based on GPS information are some that come to mind. Phones are an excellent payment platform, but they will complement cash and cards, not replace them.
Traditional resellers have been slow in embracing the cloud, with many predicting the technology was “just a hype,” a Microsoft spokesperson has told ChannelEye.
However, according to Clare Barclay, director of SMB at the company, two years later resellers are embracing market changes.
“Traditional resellers are in a competitive market with younger companies evolving far quicker,” she told ChannelEye. “Two years ago they put Cloud down to just a hype and continued with their business as it was. However, they are now changing.”
Microsoft believes cloud has changed the way resellers and the market operates, eliminating the need for cumbersome software and hardware. Savvy SMBs have also set up their business using this technology to make them appear bigger and offer their customers more services.
“Most SMBs have now realised that they need to capitalise on cloud, and offer services that put them in a position with their competitors,” said Barclay.
She also pointed out that Office 365 was enabling the company’s partners to offer more services to their customers.
“Three to four years ago customers were worried about buying into a cloud based model but now this is aggressively growing we’re seeing a number of partner engaging in monthly based subscriptions,” she said.
Microsoft said it is trying to seduce resellers into cloud confidence by offering training and events programmes to outline the benefits.
ARM is turning to enormous distie Avnet in a bid to push its gear.
The company has teamed up with old school dealer Avnet Electronics Marketing to make available its embedded development tools on the Embedded Software Store (ESS).
Launched in 2011 by Avnet Electronics Marketing and ARM, the online ESS is said to offer services in the embedded software community, providing software that supports ARM architecture.
The portfolio includes ARM Development Studio 5 (DS-5) tool chain, DSTREAM debug and trace unit, MDK-ARM microcontroller development kit and ULINK family of debug adapters.
In addition, Avnet has also signed on the dotted line to become its new pals authorised distributor for ARM developer tool products meaning it’s reps can now flog ARM products to their clients.
Mutual customers will also be able to access ARM’s embedded tools from ARM online, which the company said would help “accelerate engineers to develop robust and highly optimised embedded software for ARM devices.”
Uninformed or ignorant businesses believe that once data is stored on the cloud, companies lose their responsibility for it – although EU law says they are culpable.
Confusion over the cloud is not exactly surprising: currently laws differ depending on where in the world your servers are based and where your company is based. A report from Iron Mountain said this shows, with over three quarters of survey respondents claiming their service provider would likely get more flack than their own firm. But when it comes to storing sensitive data, it is probably worth doing your homework.
Although the evidence points in the other direction, the majority of respondents said their approach was “responsible” and said that they do take due dilligence when picking cloud suppliers. A fifth want cloud only storage for all their data.
Respondents were in the UK, Spain, France, Germany, the Netherlands and Hungary. Cloud is unsurprisingly a popular option. Iron Mountain urged all companies to understand the specific ins and outs of where their data is stored, whether it could be moved, and who has access to it. They should also consider the core IT infrastructure that is being used and if the providers have a rigorous vetting process in place to check for malware. Businesses should think about just how much data they plan to store, should make back ups, and are warned to seek out multiple providers in a tiered approach, using the cloud, tape, and disk storage.
M-commerce has come of age and according to fresh IMRG Capgemini Quarterly Benchmarking figures, it has already gone mainstream. Last year, mobile sales accounted for 12 percent of overall e-tail revenue compared to just 4 percent in 2011.
M-commerce sales in 2012 reached £7.5 billion, tripling in a single year.
Retail chains in Britain closed an average of 20 stores a day over the past year. According to a report by the Local Data Company and PwC, the number of shop closures in 2012 soared tenfold on the year before.
It makes for some depressing reading to say the least. The survey found that 1,779 stores were closed in 2012, compared to just 174 in 2011.
The downturn seems to be affecting every sector, from travel agents and sports goods shops, to banks, computer game shops and jewellers. However, some businesses seem to have bucked the trend, including charity shops, pawnbrokers, pound shops, betting shops and payday loan companies, basically all the services people are likely to use when they are broke like Greece and out of work like Spanish youths.
It gets worse. The number of closures is predicted to rise and the rate of closures in December, January and February is up and could hit 28 a day. Many companies are falling into administration, including former heavyweights like HMV. Blockbuster, Jessops and Comet are down and out as well.
Mike Jervis, insolvency partner and retail specialist at PwC believes the downward trend is getting even worse in 2013.
“2012 saw more retail chains go into insolvency than ever before. The failed chains generally shared two problems- too many stores and too little multi-channel activity,” he said. “A number of them had failed to deal with their underlying issues by hiding behind light touch restructuring processes, especially Company Voluntary Arrangements.”
Christine Cross, chief retail adviser to PwC, said the figures are more disappointing than many had hoped, but she pointed out that several major chains were forced to resort to closures and this was anticipated for a long time.
“What is surprising is the speed at which stores have been picked up by value and grocery retailers in particular. Good businesses with good operating models and good people don’t fail,” she said.
Although closures are up across the board, some regions have taken a bigger hit than others. The South East leads the way with 376 closures, 265 shops closed their doors in West Midlands and the North West saw 215 closures. The North East, Scotland, Yorkshire and the Humber stayed in double digits.
Earlier this month AMD went into damage control mode, after comments made by an exec in China were misinterpreted by tech hacks, or Google translate. The comments seemed to indicate that AMD’s next generation Radeons will not appear this year, while in fact AMD’s strategy this year will be to focus on HD 7000 sales, with HD 8000 products coming on line in late 2013.
Juniper Networks is pondering its future after talks to try to sell its assets last year fell through.
According to Reuters , a cunning plan is being hatched up which could see it buying more companies to bolster the security and enterprise business, with a longer-term view of a sale or spin-off.
Last year, Juniper contacted about half a dozen competitors to see if any of them wanted its assets that handle networking for enterprise clients.
There was some talk that storage provider EMC was going to buy the outfit, however, EMC CEO Joe Tucci ruled that out.
One of the assets pitched was NetScreen, a maker of firewall technology that Juniper bought in 2004 for $4 billion. No one was interested because Juniper’s enterprise-oriented assets were a little elderly.
When asked at Mobile World Congress in Barcelona if he was going to sell NetScreen or other parts of the business, chief executive Kevin Johnson said he was a buyer not a seller.
He added that the enterprise business, which was only focused on security five years ago, had since grown into switching and routing.
But Juniper made a mistake in that it focused on its core business of wiring service providers such as mobile carriers. This resulted in it spreading itself too thin. Then it developed products which came out late and were buggy.
Reuters said the company had problems in that some of its investors moaning that it did not want Juniper buying more security products.
It said that Juniper was undertaking a “soul-searching” to claw back market share as a pure play vendor for service providers.
So far it has not come up with anything and it is tricky to do much when your share price is lagging.
It is probably kicking itself for not hearing the voice of one of its top NetScreen executives, Nir Zuk. Zuk had tried to get the outfit to build a new-generation firewall, but he was ignored. He left to co-found security startup Palo Alto Networks, which has since taken market share from larger rivals in the $17 billion network security market.
Something has to be done fast. In the fourth quarter of 2012, Juniper’s enterprise revenues were down 10 percent from last year.
Although Apple is losing tablet market share to cheaper Android tablets, the iPad is still the clear leader in corporations.
According to a report from mobile device management outfit Good Technology, the iPad accounted for 93.2 percent of tablet activations across its business oriented consumer base. Android ended up with just 6.8 percent.
Mind you, Good Technology serves one in two Fortune 100 companies, which means its clients are not Facebook addicted teens.
However, Google is making up ground. A year ago, Google’s share of tablet activations was a mere 2.7 percent and it more than doubled in under a year. At this rate it will barely creep into double digit territory by the end of 2013.
Good Technology attributes Apple’s massive lead in business to a combination of factors, such as BYOD, the sheer popularity and user base of the iPad and the consumerization of IT. Then there is the ecosystem. Apple still enjoys a clear lead in iOS productivity apps and tablet centric apps in general.
Oddly enough, Apple’s lead extends to smartphones as well. The business crowd is usually associated with boring BlackBerry devices, but Good’s figures reveal that the iPhone accounted for 77 percent of activations across its user base and its share is still growing. It was 71 percent in Q4 2011. The ecosystem gap between iOS and Android is not as significant in phones as it is in the tablet space, so it is more than likely that business users are choosing it for the sake of compatibility, or superior build quality.
Now it’s Microsoft’s turn to take on the iPad in enterprise, with Windows RT and Windows 8 tablets. And fail.
While Brits are clutching tightly onto their purse strings, their foreign counterparts seem to be happy to splash the cash on the UK high street.
In a survey, VisitBritain found that overseas visitors had splurged a record £18.5 billion during their visits to the UK, up seven percent year-on-year from 2010.
The organisation said that this amounted to 25 percent of all expenditure by overseas visitors on the UK’s high streets.
The figure was a refreshing change from the doom and gloom spelled out in recent retail surveys, which continue to show Brits are reluctant to splash their cash on shopping.
Most recently a survey from CBI suggested that seven percent of retailers saw an increase in their volume of sales in the year to February and 29 percent reported a reduction.
However, it doesn’t seem dismal weather and high inflation are putting holidaymakers off.
According to VisitBritain, the majority of the shopping spend was on clothes, with an estimated £2.3 billion generated by fashion-conscious foreign tourists. Many visitors also bought souvenirs, gifts and household goods, accounting for around £1.6 billion.
Of the 18 million visitors, the French were the most prolific shoppers with over two million trips, followed closely by 1.63 million Germans, 1.63 million Americans, 1.3 million Irish and 1.1 million Spanish.
Rumours of Google’s retail store push seem to have been just that, groundless rumours. Android boss Andy Rubin now says that Google does not need its own retail stores.
Speaking to AllThingsD, Rubin said the need for physical stores is simply not there anymore. Consumers can get plenty of information online or through word of mouth.
Taking into account the sheer volume of bias and fanboy fuelled hype found in most tech reviews, we believe the latter option is a better choice.
However, Rubin believes consumers no longer have to go into stores to “feel” gadgets. He added that Google’s hardware effort is still in its infancy and we have to agree. Google’s Nexus programme is basically a way of showing the world how not to launch and market phones, or how to ruin perfectly good products with terrible execution.
“For Nexus, I don’t think the program is far enough along to think about the necessity of having these things in a retail store,” said Rubin. He went on to say that Google has no retail store plans and that it has nothing to announce. That’s nada.
For some strange reason, Google seems to view Nexus gear as a nuisance, something to get out of the way while developing newer versions of Android and web services. Tangible stuff is dirty in the Google mindset. Even Rubin refers to his own Nexus gear as “these things,” rather than actual products that could be very competitive and generate plenty of revenue if Google somehow managed to do things right.
Just ask Samsung.
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