Vulnerability VMware’s bare metal hypervisor

Several ransomware groups have been exploiting a vulnerability in vSphere ESXi, VMware’s bare metal hypervisor.

The attack was as simple as creating a Microsoft Active Directory (AD) group called “ESX Admins”, which was allowed for users with limited domain-level permissions. Adding users to that group automatically gave them full admin status in a privilege escalation attack.

A VMware by Broadcom advisory published on 25 June said: “A malicious actor with sufficient Active Directory (AD) permissions can gain full access to an ESXi host that was previously configured to use AD for user management by re-creating the configured AD group (‘ESXi Admins’ by default) after it was deleted from AD.”

Microsoft’s outage woes might be down to staff cuts

Software King of the World Microsoft’s recent batch of outages might be down to the large number of staff cuts that Vole has been carrying out.

For those who came in late, on 30 July, Vole faced a major outage affecting its Azure infrastructure and Microsoft 365 services. This outage significantly disrupted services for users globally, impacting businesses and individual users reliant on Microsoft’s cloud services. The outage began at approximately 11:45 UTC and was reportedly resolved by 19:43 UTC, which means it lasted almost 8 full hours.

According to BestBrokers analyst Paul Hoffman wonders if there is a causality relationship between the outage and the fact that on June 3, Microsoft laid off hundreds of employees from its Azure cloud unit.

Pure Storage updates SLAs

Pure Storage has announced major updates to its service level agreements (SLAs) to boost customer cyber security and resilience.

As part of this update, the data storage company will expand its ransomware recovery SLA on the Evergreen//One platform to include disaster recovery scenarios.

In a press release, the company said the new ‘Enhanced Cyber Recovery and Resilience SLA’ will offer tailored recovery plans, clean service infrastructure, onsite installation, and extra professional services for data transfer.

Pure Storage will also work with organisations to develop comprehensive cybersecurity strategies, conduct quarterly reviews to help businesses follow best practices, and perform risk assessments.

Schneider Electric launches new UK training programme

Schneider Electric has launched a new training programme in the UK and Ireland to address the digital skills gap.

The Schneider Electric Training programme aims to offer top-notch training by combining specialist academies, courses, and digital campuses into one comprehensive package.

The company, known for its energy management and automation solutions, says this initiative is in response to the ongoing skills shortage in engineering and the crucial role training plays in managing the complexities of digital transformation.

Red Hat revamps partner programme

Red Hat has announced significant updates to its partner programme, which it claims will provide its partners with greater simplicity, choice, and flexibility.

The open-source solutions vendor emphasised the necessity for coordinated cross-collaboration among multiple technology vendors and solution providers.

Today, Red Hat unveiled the first wave of updates to its Partner Programme, anchored in three core pillars:

  1. A globally standardised partner programme designed to facilitate more straightforward and transparent transactions, guided by a tiering framework based on partner engagement, expertise, and performance.
  2. Streamlined partner incentives applicable across all partner types to help build and accelerate partner business pipelines.
  3. An enhanced digital experience, providing unified tooling and access to critical resources for partners via Red Hat Partner Connect.

Computacenter anticipates lower first half 2024 sales

Computacenter has released a trading update which signals a decline in year-on-year sales for the first half of 2024.

Despite rising technology sourcing in North America, the company foresees that overall technology sourcing volumes have stabilised compared to the exceptionally robust performance in H1 2023.

The resale and services behemoth reported a solid underlying performance in Germany and North America. However, it noted a weaker-than-anticipated demand for hardware in the UK, with customers exhibiting greater caution and taking longer to finalise purchasing decisions.

Computacenter’s committed product order backlog has grown significantly since the start of the year, driven by notable technology sourcing successes in North America.

The company projects that H1 2024 figures will be lower than the previous year’s. The adjusted profit before tax for H1 2024 is expected to be approximately £87 million, down from £121.8 million in H1 2023. This decline is attributed to adverse currency translation effects and the timing of specific large orders in North America, which have been deferred to the year’s second half.

Vole accuses rivals of ‘muddying the waters’ in CMA cloudy probe

Software King of the World Microsoft has defended itself against allegations of anti-competitive behaviour in its cloud licensing practices, accusing competitors Amazon and Google of obfuscating the issues at hand.

This comes in response to the Competition and Markets Authority’s (CMA) ongoing investigation.

In a detailed 27-page rebuttal to the CMA’s June 2024 working paper, Microsoft challenges the interim findings that suggest its cloud software licensing strategy may undermine competition in the UK cloud infrastructure services market.

The CMA’s report had raised concerns that Microsoft’s practices could be inflating costs for enterprises using its licenses on rival cloud platforms, potentially stifling competition.

The CMA’s working paper highlighted that Microsoft’s licensing terms might make a significant portion of customer demand less contestable for its rivals, weakening its ability to scale and compete effectively in the cloud infrastructure market.

AI has transformed technology distribution

 IDC has unveiled significant shifts within the technology distribution landscape, largely driven by artificial intelligence’s (AI) burgeoning influence.

In its North America Distribution Tracker (NADT) report, IDC said distributor revenue for the second quarter of 2024 remained steady at $19.5 billion. However, this apparent stability belies notable changes across various product segments.

The PC sector, propelled by AI, has reclaimed its position as the leading product group, generating $3.9 billion in sales and demonstrating a robust 9.9 per cent year-over-year growth. AI-powered PCs have been instrumental in this resurgence, contributing 17.8 per cent of Q2 PC revenues and showing an impressive 33 per cent growth compared to the first quarter.

Apple and Microsoft have seen a significant boost in their PC revenues, with AI-powered models contributing 75 per cent and 32 per cent, respectively. This underscores the substantial impact of AI on major industry players.

Software sales have also experienced significant growth, reaching $3.9 billion, marking a 9.6 per cent increase year-over-year.

Leading this charge is software-defined storage controller software, which has seen a 31 per cent year-over-year growth, driven by AI support and hyperconverged infrastructure products. Network security software has similarly flourished, with a 30 per cent year-over-year increase.

Conversely, network infrastructure sales have witnessed a double-digit decline from the record highs of 2023, attributed to the clearing of previous backlogs.

IDC’s Research Vice President of Data & Analytics, Ruth Flynn said: “Market transitions to AI-centric processes will place less emphasis on network infrastructure build-out and more on developing endpoint, software, and storage cornerstones, with associated growth also expected in support frameworks and services.”

The report further highlights a 3.7 per cent year-over-year growth in enterprise infrastructure, driven by the rising demand for processing-centric workloads to accommodate AI platforms. This trend is anticipated to persist as infrastructure evolves to support AI-intensive workloads.

 

Exclusive Networks reports a strong first half

Exclusive Networks’ CEO says the cybersecurity VAD enjoyed a “strong” first half of 2024, despite “continued soft market conditions”.

The Fortinet and Palo Alto Networks distributor, which recently received a take-private approach, saw gross sales growth reaccelerate to 14 per cent in Q2, thanks partly to a significant Australasian acquisition.

Looking at its wider first half, gross sales came in at £2.15 billion, a ten per cent year-on-year increase.

CEO Jesper Trolle said: “We had a strong first half of the year amidst continued soft market conditions. Gross sales growth accelerated steadily over the first half, positioning the business well for the second half of 2024,”.

Having only floated on the Paris Euronext in 2021, Exclusive could be set to move back into private ownership after confirming a go-private approach from an investor group earlier this month.

Westcoast and ALSO merge

Leading distributors Westcoast and ALSO Group have announced a merger agreement and will operate under the ALSO name. The merger is awaiting regulatory approval.

Westcoast chairman Joe Hemani will become a major shareholder in ALSO, mainly owned by the Düsseldorf-based Droege Group.

The merger includes Westcoast’s UK, Ireland, and France businesses, while the German and Dutch operations will stay under Hemani’s control.

This merger follows Westcoast’s 2022 acquisition of telecommunications distributor Komsa, which is expected to be completed by 2025. Neither Westcoast nor Komsa has provided any updates on this integration since the announcement.

CallTower teams up with Tollring

CallTower has partnered with Tollring to offer call analytics on Microsoft Teams with  Analytics 365.

The pair say this new solution, designed for Microsoft Teams, changes how organisations use call data to boost team performance, improve customer engagement, and increase revenue.

Companies say that using Analytics 365 Call Analytics in their communication strategies can significantly boost sales and customer satisfaction. Users can identify missed revenue opportunities and improve customer experience by understanding call queues and missed calls.

This Microsoft Teams app helps organisations manage customer-facing teams and build lasting customer relationships. By monitoring call activity, staffing levels, and performance, organisations can use easy-to-read dashboards and create wallboards to improve performance and meet customer expectations.

ServiceNow snaps up Raytion

AI outfit ServiceNow has acquired Raytion to score its information retrieval technology.

The idea is that  ServiceNow will provide real-time access to business data from various sources, making AI search more powerful, efficient, and personalised.

ServiceNow said in a statement that Raytion’s technology, combined with ServiceNow AI Search, will help users find answers without knowing the exact location of the information.

It securely integrates data from different sources, including data within ServiceNow and third-party systems, offering a smart search experience from a single entry point.

Customers want AI transparency.

Customers want to see more transparency when tech companies flog their products based on AI.

The 2024 Smart Communications “State of Customer Conversations” report reveals consumer opinions on Generative AI (GenAI) and the importance of personalised, clear communications for customer experience, trust, and loyalty.

It found that most consumers want human oversight and clear indications of when GenAI is used. Over three-quarters (77 per cent) want companies to state when GenAI is used, and four in five (81 per cent) believe a human should check GenAI content. Consumers have ethical and security concerns about GenAI, with two-thirds expressing worries. Less than half (47 per cent) think GenAI can improve communications.

Google’s Wiz fiz

Israeli cloud security startup Wiz has rejected a $23 billion acquisition offer from Google.

Instead, Wiz, co-founded in 2020 by CEO Assaf Rappaport, plans to go public, aiming for $1 billion in annual recurring revenues.

Google’s offer would have doubled Wiz’s $12 billion valuation from a private investment round in May.

According to CNBC, Wiz executives were concerned about increasing antitrust scrutiny and investor reluctance to accept Google’s offer, which was never formally announced.

This marks Alphabet’s second failed acquisition attempt this year, following the abandoned plan to acquire HubSpot. Acquiring Wiz would have bolstered Google’s position against Microsoft Azure. Wiz offers a platform that scans the entire cloud environment without needing agents.

If successful, this would have been Google’s largest acquisition, surpassing its $12.5 billion purchase of Motorola in 2014. In 2022, Google bought Mandiant for $5.4 billion.

However, global regulators are scrutinising large tech acquisitions more closely. The US Justice Department has two ongoing antitrust lawsuits against Google over its search engine and digital advertising businesses.

Co-op shifts to SAP Rise cloud

The Co-op has been transforming its retail business using SAP’s Retail ECC suite on Hana software to improve stock visibility and forecasting.

It has migrated all its SAP systems to the SAP Rise cloud to move to S/4Hana on Rise. Co-op relies on fast-moving goods and quick turnaround times, adapting to weather and events like the Euros championship.

Ian Cox, Co-op’s director of technology for SAP, said that external factors like supply chain issues and high fuel prices influenced their decision to embed the ERP system into the business.

Co-op had many bespoke legacy systems, which were holding the company back. Reinvesting in SAP and embedding the software into the business was beneficial.