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Fujitsu UK calls time on Entatech distie deal

Fujitsu has given Entatech their marching orders following a review of the UK line-up designed to tackle over-distribution, but it has granted a reprieve to Ingram Micro and Arrow ECS to get their act together. Kevin Matthews, UK sales director for Fujitsu’s Technology Products Group, said the review criteria involved sales, …
Paul Kunert, 14 Jun 2016
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Humanity will only buy 47 smartphones per SECOND in 2016

Prognostication-producers Gartner reckon the disappointing start to 2016 will continue for smartphone makers, with the year to end a mere seven per cent ahead of 2015. If it's accurate, that would translate to 1.5 billion units for the year – a little over 47 units per second, up from 44 units per second for 2015 (1.4 billion …
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Eject button hit: UK overlords of tech distribution split

What a week it has been for high level UK departures, with three major tech distributors – Arrow ECS, Ingram Micro and Wick Hill – parting with a big cheese. First up is Nick Thurlow, veep of north west Europe at Arrow, who confirmed to us he is leaving at the end of this month a little over three years after he joined from …
Paul Kunert, 03 Jun 2016
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Anaemic hyperscale orders hurt server makers in Q1

A pause in hyper-scale deployments has triggered the first year-on-year decline in seven quarters for global server shipments and revenues. Also a “clear end to the enterprise refresh cycle” contributed to the Q1, 2016 slow down, according to IDC, the tech market watcher. In essence, Q1 2015 revenues were flattered by a major …
Drew Cullen, 02 Jun 2016
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Acer made less than £1m profits in Q1 as forex rates bit hard

Ailing Acer – one of the PC makers considered at risk of vendor consolidation – has made an inauspicious start to calendar year 2016 as sales and profits tumbled. The Taiwanese business today reported revenues of NT$56.32bn (£1.19bn) for the three months ended 31 March, down 17.1 per cent on the prior year’s stats. It didn’t …
Paul Kunert, 12 May 2016

Arrow ECS top dog parades $200m (run rate) cloudy biz

Cloud computing is on track to be a $200m plus annual business for Arrow ECS, the enterprise IT distie's big boss has claimed. The reliably boring firm - in a good way if you are an investor - notched up its umpteenth straight quarter of expanding sales, jumping nine per cent to $1.8bn for Q1 of fiscal ’17 ended 2 April. …
Paul Kunert, 04 May 2016
Businesswoman shoots arrow from cliff at balloon holding up rival... Bit silly conceptual art. Photo by Shutterstock

Salesforce takes AIM, hits bullseye in enterprise integration

If you buy into the IBM and Oracle PR that they are cloud “leaders” and are successfully transitioning their on-prem software businesses, think again. Gartner’s latest assessment of the application infrastructure and middleware (AIM) market serves as a timely slap in the kisser. The report demonstrates that gold made by those …
Gavin Clarke, 14 Apr 2016

Fake CEOs pilfer $2.3bn from US biz pockets in three years – Feds

Scammers have bilked American companies out of $2.3bn from 17,642 victims since 2013, the FBI has warned, and the problem is going to get worse before it gets better. Basically, the hustle works like this: miscreants pretending to be top bosses send emails to employees, particularly those handling sensitive financial …
Iain Thomson, 07 Apr 2016
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Truncated Q4 helped send Ingram Micro sales down 19 per cent

Sales at Ingram Micro went into a power-dive in calendar Q4, tumbling $2.7bn on the same period a year earlier. But on an organic basis the state of play was not nearly as bad as the topline number indicated. The world’s largest distributor - which is being slurped by Chinese conglomerate HNA Group for $6bn - filed turnover of …
Paul Kunert, 26 Feb 2016

Arrow: Fraudsters impersonated one of our execs to steal money

Enterprise tech distributor Arrow Inc will take a $13m charge on the chin after a fraudster posing as a company exec transferred money from the corporate bank account to an external one. The admission came as Arrow outlined calendar Q4 numbers for the three months ended 31 December, with sales up six per cent year-on-year and …
Paul Kunert, 05 Feb 2016
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Profits sink at Logicalis, UK captain no where to be seen

Not having a permanent UK leader in place amid the wider senior personnel changes at Logicalis is still - unsurprisingly - taking a toll on the bottom line. The company is now recruiting a boss for the British subsidiary following the resignation of Ben Gales, who quit after six weeks - it took seven months to recruit him. …
Paul Kunert, 27 Jan 2016

Computacenter: Win 7 upgrade cycle finally blows itself out

Computacenter closed off 2015 on a bit of a low as turnover slipped due to the strengthening Pound versus the Euro and comparatively lighter customer spending on classic tech products in Blighty. Unaudited calendar Q4 revenues for the group - HQ’d in London but with major operations in Germany and France - fell five per cent …
Paul Kunert, 22 Jan 2016
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Dell drops next network OS on the waiting world

Dell's taken another arrow from its software-defined network (SDN) quiver and drawn a new bead on Cisco, with the launch of Dell Networking Operating System 10. Leading the release is a split in the network architecture, to get rid of the platform-specific Linux tweaks needed so the operating system can talk to the silicon. …
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Seagate rolls storage kit for manufacturers down Dot Hill

Seagate is pushing out OEM products from its eyrie atop Dot Hill. These are for storage array suppliers, and based on its Dot Hill acquisition in August. It’s also tweaked the existing RealStor 6004 product. The acquisition cost was $694m, so Dot Hill, now in Seagate’s CSES (Cloud Systems and Electronics Solution) business …
Chris Mellor, 10 Dec 2015
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NetApp revenues and profits decline again despite positive spin

Despite its CEO saying NetApp was moving forward with clarity and speed in the data-powered digital era, NetApp recorded lower revenues and profits on the annual compare for its second fiscal 2016 quarter, ended October 20. Same old, same old. Revenues for the quarter were $1.45bn, six per cent down on the year-ago quarter’s $ …
Chris Mellor, 19 Nov 2015
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Acer: Our sales promos left us nursing operating losses

Acer is back to its operationally loss-making ways again after pumping cash into promos to get the products flying out the door - but it didn’t work, as sales fell through the floor. The PC maker today reported revenue of NT$67.24bn (£1.35bn) for calendar Q3 ended September, this was down 21.5 per cent year-on-year but up on …
Paul Kunert, 05 Nov 2015

Computacenter warns of squeaky bum time for Brit services contracts

It is edge of the seat time for Computacenter UK’s services peeps - they are preparing to bid on a ream of contracts that will “determine” if the recent good times keep on rolling. The services-based reseller issued a trading update this morn, giving an account of the good, the less good and the ugly for Q3; it was talking …
Paul Kunert, 21 Oct 2015
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Seagate sales droop: It was a nearline miss, says CEO

Something is still amiss with disks, but not PCs this time: Seagate warns that its latest quarter’s revenues will be 23 per cent less than a year ago, continuing the revenue slide seen in the previous quarter, blamed on low PC sales. For its first fiscal 2016 quarter, which finished on 2 October, Seagate expects revenues of …
Chris Mellor, 15 Oct 2015
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Dell-EMC merger could leave Lenovo out in the cold – analysts

+Comment Head PC seller and x86 server shifter Lenovo has a storage reselling deal with EMC which could well be toast with Dell’s takeover of EMC, according to analysts. Lenovo’s storage product lines include: PX2-300D and PX4-400D NVR video surveillance arrays, basically RAID-protected filers with Atom-powered processors and …
Chris Mellor, 15 Oct 2015
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Micron: Those dratted PCs, dragging down our revenues

Declining PC sales took their toll on Micron's DRAM revenues, sending year-on-year growth into reverse for its fiscal 2015. Full-year revenues were $16.2bn, one per cent down on fy2014's $16.4bn. Net income of $2.9bn was five per cent lower than the $3bn recorded in fy2014. Revenues for the final quarter in fy 2015 of $3.6bn …
Chris Mellor, 02 Oct 2015
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Strong dollar blamed for expected tech spend fall across all verticals

IT spending across every major vertical industry is set to shrink in 2015 and it’s largely down to the relatively robust US dollar. The weaker outlook from the beanies at Gartner has buyers splashing $2.699trn on tech this year, and if correct that will be a 3.5 per cent decline on 2014. “Appreciation of the US dollar, along …
Paul Kunert, 23 Sep 2015
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Story to write next chapter for Civica Group

Specialist software and outsourced services slinger Civica Group has hired former Capita exec Wayne Story to take charge of the UK sub. Most recently, Story was interim CEO at equity-based plan admin services outfit Equatex, and remains non-exec director at Montagu Private Equity and board chair at recruiter GatenbySanderson …
Paul Kunert, 21 Sep 2015
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Four CEOs in four years at Intrinsic Tech. How's that working out?

Intrinsic Technology isn’t giving backer RJD Partners a clear exit path after woeful financials showed the business is moving backwards – still, this is the havoc you can wreak when you swap four CEOs in as many years. The infrastructure services outfit staged a management buy-out in the summer of 2011 led by then CEO Mike …
Paul Kunert, 17 Sep 2015
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IBM grabs Harriet Green to run IoT and education divisions

Listing tech tanker IBM has hired former Thomas Cook Group CEO Harriet Green to head up two new business wings – Education and Internet of Stuff. “Harriet brings to IBM a strong, proven track record as a transformative leader,” said John Kelly, Big Blue senior veep for the solutions portfolio and research. Green – who …
Paul Kunert, 14 Sep 2015
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Booked that expensive holiday yet Mr Server Maker? Maybe just a day trip for now

The EMEA server market is on fire, but not in a good way – both shipments and factory revenues declined in Q2 amid the currency issue and uncertain business climate. Unit sales dropped 5.6 per cent year-on-year to 523,800 servers, and the money coughed for them dipped 2.3 per cent to $3.1bn, abacus fondlers at Gartner have …
Paul Kunert, 26 Aug 2015
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Enchanted Lenovo uses StorMagic spells for hyper-convergence

Lenovo and StorMagic are offering three hyper-converged configurations from Arrow partners that are channel-integrated, pre-tested and ready to plug-and-play for less than $5K. The entry level is a two-node cluster (without hypervisor) starting at $5,000, significantly less than Nutanix, SimpliVity and EVO: Rail hyper- …
Chris Mellor, 19 Aug 2015
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Sales up, profit up, but no champagne corks popping at Rackspace

The gods of tech sales finally smiled on Rackspace in calendar Q2 of 2015. But the biz isn't celebrating just yet, because it's public cloud arm is stuck in first gear. The cloud server-hosting biz reported an 11 per cent year-on-year growth in turnover to $489.4m (£314.2m) in the three months ended 30 June. Total costs and …
Paul Kunert, 11 Aug 2015
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Apple goes to crapple in stock plunge kerfaffle: $113bn wiped off in days

Peak Apple Apple is in the midst of a stock drop that has caused the Cupertino giant to lose as much as $113bn in market cap. Since posting its last quarterly numbers, Apple (Nasdaq:AAPL) has seen its stock price drop from $125.22 per share to a low point of $112.10. Wary that Apple's meteoric growth from recent years is slowing down as …
Shaun Nichols, 05 Aug 2015
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Tired tablets don't tickle the imagination, so sales fall again

Box-counter IDC's latest Quarterly tablet tracker has more bad news for fondleslab fans: sales are down and the market is fragmenting. The firm's preliminary data for 2015's second quarter finds 44.7 million fondleslabs and typoslabs shipped, down seven per cent on 2014's shipments. Q2's never a cracker – it contains no major …
Simon Sharwood, 30 Jul 2015
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Seagate bleeding sales as PC downturn starts to hit hard

Just like QLogic, Seagate sales figures have taken a dive along with the PC sales downturn, and it's had to issue preliminary results to warn the market. For its fourth fiscal 2015 quarter, instead of the expected $3.2-$3.3bn, it thinks it will make just $2.9bn. It expects to report unit shipments of approximately 45 million …
Chris Mellor, 13 Jul 2015
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Intel's tablet CPU share to DROP: analyst

Researchers at Taiwan's Digitimes have bad news for Intel: it just isn't going to sell many chips for mobile devices. Intel's thrown a lot of time, money and effort at mobile devices, but its efforts have resulted in red ink, a re-org to combine mobile and desktop products, and rumours of imminent layoffs. Digitimes now says …
Simon Sharwood, 09 Jul 2015
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Rigby Private Equity stuffs its face with a slice of Wick Hill

Security and storage value-added distributor Wick Hill is the first piece of channel real estate that Rigby Private Equity has invested in, with the proceeds to be used to fund wider expansion in mainland Europe. As The Channel exclusively revealed last week, the Midlands-based tech dynasty has incorporated a private equity …
Paul Kunert, 06 Jul 2015
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ISP Level 3 goes TITSUP after giganto traffic routing blunder

ISP Level 3's customers have been left without internet access since this morning, after the provider seems to have leaked routes to a Tier 1 transit provider in Malaysia. An incident report from CloudFlare said that while "the Tier 1 transit provider of the ISP leaking routes appears to have stopped accepting these …
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Tech Data leaps into professional services pool

Distie Tech Data has crossed the Rubicon into end-user land – ruffling a few feathers in the process – by acquiring North American data centre and professional services outfit Signature Technology Group (STG). The deal was made public last night and reseller customers are digesting the implications, which range from potential …
Paul Kunert, 28 May 2015
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Dot Hill sails along with the glass indicating profit set fair

Dot Hill is getting the trade winds behind its sails. The OEM disk array supplier continued its comeback with another quarter showing annual revenue and profits growth as new OEM customers like Teradata and Quantum took its arrays to market. The company reported $61.1 million revenues for its first 2015 quarter, 27 per cent …
Chris Mellor, 08 May 2015
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Computacenter UK giggles as cash rains on revived data centre ops

Computacenter’s UK sales team must be in self-licking mode after a barnstorming start to calendar ’15 – but revenue zapping currency conversions and an unsettled French operation hit the group’s top line. In a trading update, the London-listed services-based reseller said Q1 revenues reduced by two per cent as reported to £715. …
Paul Kunert, 23 Apr 2015
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Thought your dept was on budget this year? THINK AGAIN, matey

Tech buyers will likely need to revisit budget forecasts at the month's end with another price hike on commodity hardware to be pushed through by vendors in response to the relative appreciation of the dollar. Since last summer the US currency is up 15 per cent against the UK Pound (the impact on the Euro is even more pronounced …
Paul Kunert, 20 Apr 2015

Martinwolf: The state of the tech industry in Q1 2015

Beginning this month, The Channel and martinwolf M&A Advisors are forming an editorial partnership to feature martinwolf’s commentary and analysis concerning the challenges and opportunities facing the IT industry. The organisation, exclusively focused on the IT industry, has completed more than 130 transactions and sold seven …
Martin Wolf, 15 Apr 2015
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Cost cutting at Arrow ECS as senior accounts bods exit

Arrow ECS is integrating its UK sales desk with the team at Computerlinks, and in the process has decided to trim costs by getting rid of some senior account directors. Sources tell us seven experienced hands including Mark Chippendale - who spent more than a decade covering key accounts - were recently made redundant by the …
Paul Kunert, 09 Apr 2015
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VMware tells partners, punters, to pay higher prices (probably)

VMware has almost certainly increased the prices it charges to partners and customers. News of the increases is dribbling out after Virtzilla wrote to users and resellers over the last few days. In this Reddit thread VMware users report price hikes of between one and five per cent. Blogger and VMware-watcher Aidan Finn on …
Simon Sharwood, 27 Mar 2015
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Rackspace posts double-digit jump in sales and profits

Cloud purveyor Rackspace clocked up sales of $1.79bn (£1.16bn) for its full-year 2014, a 17 per cent increase on 2013, while net income rose 28 per cent to $110m (£73.1m). Fourth-quarter net income at the cloudy firm was particularly strong, increasing 80 per cent to $37m (£24m) on revenue up 16 per cent to $472m (£306m). But …
Kat Hall, 18 Feb 2015

Arrow CEO: Q4 was a 'record' quarter

In an alternative reality where one-off charges are meaningless, Arrow Electronics reported a healthy profit hike for calendar Q4 – however, in this (real) world, the picture was somewhat different. The distie colossus posted big sales of $6.39bn, up four per cent on the same period a year earlier, and this was without making …
Paul Kunert, 05 Feb 2015
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EMC pulls out VSPEX: I'll hyper-converge you in a minute

EMC has marched into the Nutanix/Simplivity hyperconverged appliance area with VSPEX BLUE, its partner-built EVO: RAIL product. VSPEX is EMC's reference architecture template for building converged systems, similar in intent to NetApp and Cisco's FlexPod. It contrasts with VCE, which builds converged server/storage systems …
Chris Mellor, 03 Feb 2015

Arrow Electronics buys Computacenter tech disposal biz for £56m

It may be cold outside, but Computacenter (CC) investors have got a warm glow this morning – they are to receive a £100m windfall, partly financed by the sale of the tech disposal and asset recovery biz. The London-listed tech supplier last night revealed to the City the sale of RD Trading (RDC) for £56m in cash to the UK arm of …
Paul Kunert, 03 Feb 2015
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Memory market climbs out of toilet: ASML reports beefy financials

Shares in semiconductor production equipment maker ASML hit a record high this morning after it beats analysts’ top and bottom line forecasts, suggesting the sector’s no longer stuck in the U-bend. The numbers for the Dutch biz are moving in the right direction: sales came in at €1.49bn, versus €1.32bn in the prior quarter. …
Paul Kunert, 21 Jan 2015
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SimpliVity claims fivefold sales boost, hugs Cisco tightly

Sysadmin blog Things are looking up for hyperconverged vendor SimpliVity, which reported record growth in 2014 on the back of a number of strategic wins and a key partnership with Cisco. Simplivity is claiming a nearly 500 per cent increase in sales compared to 2013 and has now passed 400 employees worldwide, all of which makes me wonder what …
Trevor Pott, 20 Jan 2015

Migration skills shortage looms as Server 2003 DEATH DATE approaches

A channel-wide migration skills shortage is a real danger this summer as stragglers strain available resources by making an eleventh hour dash to flee Windows Server 2003, distributor veterans are warning. Public and private sector organisation have 176 days to escape the software before extended support expires on 14 July, …
Paul Kunert, 19 Jan 2015
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Industry vet rocks up at Phoenix Software

Industry and distribution veteran Johnny Ellis has crossed into reseller land for the first time, rocking up as sales and marketing director at York-based Microsoft enterprise licensing partner Phoenix Software. Ellis, who only exited Arrow Enterprise Computing Solutions at the end of November, will also control the S&M …
Paul Kunert, 05 Dec 2014
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Can't flog software for love nor money? UK mega-reseller Softcat probably ate your lunch

Unstoppable reseller juggernaut Softcat has smashed through the £500m sales barrier in the most recent fiscal year ended July, meaning it has grown for the past 36 straight quarters. In the last four years alone, and in the middle of the worst financial crisis since the the 70s, turnover at the Marlow-based business jumped from …
Paul Kunert, 26 Nov 2014
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SCC: Brit biz are buying again, but as for mainland Europe ...

The much-used channel phrase ‘revenue is vanity and profit is sanity’ could easily be applied to mid-market reseller hulk SCC as it opened up on results for the first half of fiscal 2015. From its Midlands HQ, the Rigby clan’s last technology business turned over £729m at group level in the six months to the end of September, …
Paul Kunert, 06 Nov 2014

Opinion

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Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world