Contents 1. SLA – Senior Level Advisory – Maintel

2. Key Announcement Implications – Endangered IT – EMC/VCE

3. In Depth Focus – IOT-New Path to European Prosperity

4. Financial Round up – Amazon, Ciena, Juniper, Netgear and

ShoreTel

This Service has been designed specifically for senior-level channel executives. It provides guidance

and highly strategic advice on the channels focussing on the issues of which Senior Channel Executives should be aware. It will guide the management team on the impact of competitor announcements, insights into the market, brief focus on services sub-segments, value stack, vertical focus and Key Director Messages.

THE CHANNEL | Channel Issues and Advice |

April 2016

1 SLA – Senior Level Advisory

Eddie Buxton, CEO

Acquisitions:

Apr 2016 Azzurri

Communications for £48.5M Oct 2014 Proximity for £9.6M Sep 2013 Datapoint for £3.5M Sep 2011 Totality for

£6.8M

Maintel

Founded in 1991, Maintel became AIM listed in 2004. Significant organic

growth continues to accompany the success of the business, feeding expansion of its UK and Ireland footprint with additional international capabilities to support requirements for over 13,000 customer sites.

It has a skilled team of 300 people and has also grown through the acquisition of several key enterprise technology providers, whose

expertise complements the core Maintel proposition (see side bar Acquisitions)

Financials

Source: Company Financials–year end is Dec

Partner Services

Last year Maintel launched Partner Services offering two main types of service: professional services (including engineering, installation and consultancy) and managed services (including maintenance and support) across the UK and Ireland. Via a nationwide fleet of over 150 engineers,

the new division has been designed to offer a full scope of support. This ranges from basic break/fix services through to full-managed support wraps, where partners can guarantee SLAs with support from Maintel.

By setting up Partner Services Maintel hopes to build a Chinese wall between its own offerings and the channel. The channel business is

already half the overall revenue and this focus will drive additional business.

£28.17 M

£31.12 M

£41.89 M

£3.00 M

£5.60 M

£5.60 M

£6.84 M

£0.00 M

£2.00 M

£4.00 M

£6.00 M

£8.00 M

£10.00 M

2012 2013 2014 2015

£0.00 M

£10.00 M

£20.00 M

£30.00 M

£40.00 M

£50.00 M

Revenue and EBITDA £50.62B

Major awards:

#1 Avaya UK Service and Technical Excellence Awards in 2016

LSE 1000 Companies to Inspire

Joined G-Cloud 7 framework in 2015

O2 Digital Excellence

Award

ISO9001 for quality management

ISO 14001 for environmental management ISO20000-1 for IT service management ISO27001 for information security

management

RM1045 Network Services Provider

Eddie Buxton, CEO said in 2015:

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Structure

Technology includes hardware, software, professional services and other sales

Key Technologies

� Collaboration � Customer Experience and Optimisation � Security and Networking � Connectivity � Mobile � Professional and Transformation Services � Managed Services

Partners

Conclusion

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The Azzurri acquisition not only trebles the size of the company in

revenue terms but brings reoccurring skills, practices, customers and revenue.

NEXT > 2) Key Announcement Implications

2 Key Announcement Implications

EMC’s Converged

Platforms Division

commissioned

Arlington Research,

which surveyed

2,741 business and

IT professionals

in nine markets

worldwide,

covering companies

with between 50

and 1,000 or more

employees,

representing a

range of business

sectors

Respondents were

drawn from the UK,

Ireland, France,

Germany,

Switzerland,

Benelux, Sweden,

Denmark, Norway,

South Africa, UAE,

Saudi Arabia and

Qatar; split equally

between business

and IT

The research was

undertaken online

in January and

February 2016

Endangered IT – EMC Converged Platforms Division

Executive Summary

EMC’s Converged Platforms Division set out to understand what is driving the perception that many companies have lost faith in their IT and what

needs to happen for IT to reclaim technology. It spoke to C-suite and frontline employees in both IT and business roles in companies with 50 to 1,000 or more employees, representing different sectors in 13 countries in Europe, the Middle East and Africa. This paper summarises the findings of

that research.

Greatest IT Challenge

Does the current structure and purpose of your IT department

meet the needs of the business and its customers: today - and

three years from now? (%)

■ CIOs and CxOs

each believe that

they are the

greatest driver of

change (37 and 40

per cent) and that

all other roles are

resistant to change ■ However, in order

to survive and

thrive in a

connected future

the business needs

to move from a

traditional IT

infrastructure to an

integrated

environment ■ Despite their

differences, CxOs

(75 per cent) and

CIOs (62 per cent)

accept that the

convergence of

hardware, software

and networking is

critical to

successful business

growth

Please contact

euroLAN for the

complete report

Do you feel you personally have the skills to understand what

technology can do for your business?

In your journey towards becoming a digital, customer-focused

business, which one of the following do you consider to be the

main driver of/the most resistant to change?

Summary

Causative factors are the loss of faith in IT include a huge gap between IT

and business professionals when it comes to the perception of and priorities for IT. Nowhere is this seen more starkly than in the boardroom. CIOs are isolated both from their C-suite colleagues and from their own IT teams, lacking faith in the ability of IT professionals and infrastructure to

meet emerging business needs. They often disagree with other CxOs on IT-related issues and appear to judge the IT team far more harshly than their business-focused colleagues do. CIOs need to better understand

business drivers and to champion the role of IT. They need to build the competence and capability of IT professionals and ensure that internal barriers disappear.

Another influencing factor is that companies – and IT teams – are challenged by the technology demands of the next phase of business

growth. The study found that most businesses are struggling to evolve their traditional IT infrastructure and culture to meet the challenges of big data, operational complexity and real-time business.

NEXT > 3) In Depth Focus

3 In Depth Focus

says that with the

right focus, Europe

can capitalize on

the rise of the

Internet of Things

and the €1 trillion

opportunity that it

brings

The Internet of

Things. It is a

phrase that is

equally applied to

our using a cell

phone to control a

home’s

temperature from

hundreds of miles

away, or an

airline’s using

sensors on its

fleet’s engines to

save money in fuel

consumption. Even

more profound, for

Europe and its 28

member countries

(EU28), IoT means

the opportunity to

unlock 7 per

centage points of

GDP growth by

2025 through

productivity

improvement and

value redistributed

to end customers

Within the next

decade, the number

of connected

devices will

increase

dramatically.

Innovations are

converging,

including:

Internet of Things – New Path to European Prosperity

A.T. Kearney recently conducted unique, in-depth research and analysis of IoT to more thoroughly understand the value it offers the EU28 and the ways that member countries can best address the hurdles that will keep

them from realizing its fullest benefit. The overarching finding: Within the next 10 years the market for IoT solutions will be worth €80 billion, and its potential value for the EU28 economy could reach nearly €1 trillion.

The market for IoT solutions and 3 areas where it will create value

IoT’s GDP impact by sector

A T Kearney believes that value will come from three sources:

Increased productivity €430B) Analysis of real-time and historical data and remotely controlling objects will help companies make better,

more informed decisions. They will act earlier and at a lower cost to optimize and automate objects in ways that have not been possible

Breakthroughs in

the performance,

miniaturization,

and energy

efficiency of

sensors and

actuators, and

falling prices of

micro-electrical-

mechanical

systems. Highly

compact, low-cost

processing power

and data storage.

The introduction of

IPv6 which allows

up to 340 trillion

potential Internet

addresses. An

extending range of

connectivity

solutions allowing

both higher-speed

applications (5G)

and low-through

put, low-energy-

consumption

applications

(LPWA). Combined

with cloud

architectures and

big data algorithms,

IoT provides an

unprecedented

source of value

creation. In fact, all

of the fuss about

IoT is the sheer

disruptive value it

poses for society,

companies and

individuals in

Europe.

before. These capabilities will increase exponentially when connected objects are coordinated.

Increased consumer purchasing power (€300B) IoT-enabled objects will trigger significant energy savings for consumers and increase

products’ durability.

Freed-up time for individuals (€210B) Connected objects will improve individuals’ health and decrease their risk factors. Combined with pro-ductivity gains, this will provide people with more free time, a share of which will be spent on productive tasks, delivering economic value on top

of personal.

IoT Solutions market

Europe’s emerging IoT providers

The type and examples of emerging IoT providers are: Component and module makers: Sierra Network, Telit or Gemalto

Object manufacturers such as Bosch Siemens Hausgeräte (BSH) for home appliances or new entrants like Withings for connected health appliances

Connectivity providers (network access) such as Deutsche Telekom, Orange or Telefonica

Enabling Solution providers (cloud, analytics and automation):

Amazon AWS, Microsoft Azure, Google, Intel, IBM, ThingWorx, SAP

Systems and Management software makers: Bosch Software Innovations,

Telenor Connexion or Device Insight GmbH

Systems Integrators such as IBM or Accenture,

Services and Platform aggregators such as Deutsche Telekom Qivicon or Smart Home by Orange

NEXT > 4) Financial Roundup

4 Financial Roundup

Amazon AWS Q115

Recently Released Financials Amazon Q115 – Q115 was the first quarter in which Amazon broke out its AWS revenue. Revenue was $5.2B for the year. In response to a Financial Analyst question during the results call it

was stated that the results include infrastructure costs

Ciena Q115 – revenue was down 1 per cent Y on Y and down 10 per cent sequentially

o North America 63 (59) per cent o EMEA 21 (17) per cent o LATAM 8 (10) per cent o AsiaPac 8 (6) per cent

o Packet Optical Switching 64 (62) per cent o Software and Services 22 (20) per cent

Juniper Q115 – Revenue was down 9 per cent Y on Y and down 3

per cent sequentially o Americas 55 (58) per cent o EMEA 28 (26) per cent o AsiaPac 16 (17) per cent

o SP 67 (67) per cent o Enterprise 33 (33) per cent

o Routing 47 (47) per cent o Switching 16 (16) per cent8 o Security 9 (12) per cent

Netgear Q115 – revenue was down 12 per cent Y on Y and down

12 per cent sequentially o North America 56 (56) per cent o Europe 29 (31) per cent o AsiaPac 15 (14) per cent

o Commercial 23 (23) per cent o Retail 39 (34) per cent o Carrier 37 (41) per cent o Wireless 70 (69) per cent

ShoreTel Q315 – Revenue was up 1 per cent Y on Y but down 6

per cent sequentially. Recurring revenue is now 50 per cent of total revenue

o Americas 92 (91) per cent o International 8 (9) per cent o Service Provider 8 (8) per cent

For further information, please contact:

Keith Humphreys – Managing Consultant at euroLAN – keith@eurolanresearch.com