Comms Dealer

Arrow Business Communications has geared up for a period of fast growth and M&A activity following a strategic investment by Growth Capital Partners (GCP) that sees both parties hold a 50% shareholding in the business.

Arrow has completed seven acquisitions in the last six years and almost trebled in size, moving from its mobile roots to a broader based business communications supplier.

The company is now on the hunt for larger acquisition opportunities to bolster its hosted, data and IT services portfolio.

"Arrow CEO Chris Russell commented: "This deal is testament to the hard work contributed by the Arrow team over the last six years."

Richard Shaw, Investment Director at GCP, added: "With our funding support and technology sector M&A experience we look forward to supporting the next stage of the buy and build strategy."

The future outlook for managed services providers is bright but only if they are able to address emerging challenges, according to IT Europa MD Alan Norman.

"All indicators are pointing to the continued rapid growth of managed services, with the world market predicted to grow at a compound annual growth rate of 12.5% to 2019," he said.

"But the impact of new technologies and changing buyer behaviour in the face of evolving requirements is creating challenges for vendors and MSPs."

Norman also announced the date and location for this year's European Managed Services & Hosting Summit in Amsterdam on 7th December.

"Under the theme of the 'Digital Dividend - The Role of Managed Services in a Digital World', the summit will provide insights into how the market is changing and what it will take for MSPs to succeed as it evolves," he added.

Key focus areas this year will be the IoT and M2M, the growing importance of security, trends in service delivery and how to create value both within an MSP and for its customers.

According to MZA's latest Q1 2016 analysis the global call control (PBX/IP PBX) extensions and licenses market (discounting micro PBX products) fell by 5% year-on-year and by 13% quarter-over-quarter.

"The market dipped to its lowest quarterly volumes since Q2 2009 when the global financial crisis wreaked havoc on business investment worldwide," said Will Parsons, industry analyst at MZA. "Sequentially, it was no surprise to see the global market fall."

Parsons noted that the first quarter regularly shows lower volumes due to the high number of country markets with financial year-ends in the final quarter of the calendar year.

He attributed more of the decline to the enterprise market (over 100 extensions/licenses) which fell by 6% year-on-year, while the SME market (under 100 extensions/licenses) fell by 5% year-on-year.

"A slowdown in the global economy was exacerbated by currency fluctuations affecting worldwide exports for international vendors; and continued adoption of hosted multi-tenant telephony in developed markets prompted the global call control (PBX/IP PBX) market to register its lowest quarterly levels for several years," added Parsons.

Increasing political and economic uncertainties in Western Europe saw volume levels in call control solutions fall by 9% year-on-year in the region.

Parsons confirmed that the top nine positions in the global call control market remain unchanged against Q1 2015, with Alcatel-Lucent Enterprise, Unify, Microsoft and Huawei being placed from sixth to ninth respectively with NEC leading the market ahead of Avaya and Cisco in second and third positions respectively.

In solutions under 100 extensions/licenses, NEC increased its market share to 19% to stay ahead of Panasonic which took a 13% share.

Avaya, Mitel and Alcatel-Lucent Enterprise make up the remaining top five positions. Cisco led the over 100 extensions/licenses market in Q1 2016 with a share of 20% (down 2%). Avaya held onto second position ahead of NEC, Mitel and Microsoft with a 14% share.

MZA's analysis of the world IP extensions/licenses market revealed a fall of 2% year-on-year with TDM extensions still representing a significantly large proportion of the market.

"Global IP penetration to the desktop rose to 50% in Q1 2016 from 48% in Q1 2015," added Parsons.

"IP penetration fell against Q1 2015 in Latin America and MEA alongside declines for some of the more IP-centric international vendors."

Cisco continued to lead the global IP licenses market (19% share) with Avaya in second position (18%). Mitel retained third position ahead of NEC, Alcatel-Lucent Enterprise and Microsoft.

With crypto-ransomware's staying power, businesses must be proactive, writes Sean Sullivan, Security Advisor, F-Secure.

Crypto-ransomware has been dominating security headlines for months. In the UK the situation is reportedly even worse than in other countries: A new survey by Malwarebytes found that more than half of large UK firms have been hit by ransomware. And there's no sign it's going away anytime soon.

Crypto-ransomware, which encrypts the victim organisation's files and demands payment in return for their decryption, evolved from earlier forms of ransomware and scareware. Police-themed ransomware locked up the victim's computer, accused the victim of having performed some "illegal" online activity, and demanded a ransom in return for unlocking the machine. Scareware tried to fool people into believing they had a virus on their machine, in order to get them to pay for so-called "antivirus" software.

These schemes, while irritating and convincing to many, proved to have no real staying power. Once people became aware they were bogus, they simply stopped paying. If a computer had locked up, removing the malicious program would restore it.
?But crypto-ransomware is different. This time around, it is not a farce. Ransomware has figured out a successful business model offering a tangible benefit: Get your files back.

A strong business model isn't the only concept ransomware borrows from legitimate enterprise. The gangs behind these crypto-ransomware families have discovered that, like a legitimate business, they can achieve better results with good customer service. Accordingly, some families even feature support channels for victims needing help making the Bitcoin payment.

We recently did research to delve into this so-called 'customer journey'. We infected isolated test computers with five different ransomware variants. We then attempted to contact the criminals behind them via the channels they provided - some email, some an online support form.
?In a nutshell, our findings showed that these would-be extortionists are not immovable. Three out of four of them (the fifth never responded to our messages) were willing to lower the original ransom fee - netting us an average 29 per cent discount off the original demand. And all four of them granted extensions on the deadlines. (Full details are available in our report, Evaluating the Customer Journey of Crypto-Ransomware.)

According to the aforementioned survey, 58 per cent of UK businesses said they paid the ransom attackers demanded. Indeed, security experts acknowledge that file restoration may be completely impossible without paying. Paying the ransom usually ends up being the cheapest, most efficient way to get back to business. The ethical dilemma of encouraging the criminals understandably takes a backseat when compared with the downtime and expense required to get business online another way. Video

Fortunately, there are ways to minimise the chances of becoming a victim of ransomware. First, keep all software up to date. Ransomware often infects by taking advantage of security flaws in outdated software, making patch management a key part of ransomware prevention.

Second, use robust security software that employs a layered approach to block both known threats, as well as brand new threats that haven't been seen yet. For instance, Protection Service for Business (PSB) which is a feature-rich endpoint security product that is available thorough F-Secure's authorised network of reseller partners. Because it's a hosted solution, businesses do not need to invest in server hardware and with minimal maintenance, companies can spend their valuable time focusing on their core competencies.

Third, watch out for spam and phishing emails, as ransomware commonly rides along in attachments and email links - and keep employees educated about the latest phishing tactics.

Email safety for business also means using a good email filtering system and disabling macro scripts from Office files received via email. In addition, admins should limit the use of browser plugins; manage access controls so no user gets more access than they need; implement application controls so programs can't execute from common ransomware locations; implement application whitelisting; and segregate data to limit lateral movement within a network.

Perhaps the most important aspect of data protection is backups. Making backups, testing to be sure they'll work, and storing them offline is the fool proof way of making sure that ransomware won't destroy all your data.

Businesses who take the above precautions will be in much better shape. And even if you do still get hit, with reliable backups, you won't be joining the 58 per cent of UK firms who've had to pay the ransom.

Distributor DMSL is to launch Vonage's channel partner programme in the UK in a move that significantly extends the cloud comms provider's reach via DMSL's nationwide network of resellers. "Today's business requires a communications system that allows an increasingly mobile and distributed workforce to maintain a business presence and to be productive anytime, anywhere," said Simon Burckhardt (pictured), MD of Vonage UK.

"Employees are no longer tied to the office and the nature of cloud-based unified communications enables them to work from any location or device with access to the same information and functionality they have in the office. We are seeing increased demand for cloud communications solutions as a result and our partnership with DMSL enables us to work with its 300-plus resellers across the UK."

Vonage chose DMSL as a partner for its ability to identify, recruit and engage with its strong, network of resellers across the UK that understand the value of cloud communications for business.

DMSL MD John Carter added: "The addition of Vonage to our provider portfolio means instant access to flexible business communications solutions.

"We are currently at a tipping point for adoption as UK businesses see the potential of what a cloud communications system can do for their business."

DMSL plans to leverage its link-up with Vonage in a new reseller recruitment drive.

Carter said: "DMSL believes that being able to offer the Vonage solution will help us to attract more resellers. We are launching a new nationwide reseller recruitment programme focused on our ability to offer Vonage products and services. We expect to see a high level of enthusiasm from our resellers and their business customers."

Vonage generated revenues of $895m in 2015 and serves more than 70,000 companies. The firm launched in the UK in 2005.

Dell and EMC will combine on September 7th, and be known as Dell Technologies.

It follows regulatory approval of the Dell and EMC transaction by China's Ministry of Commerce, which has granted clearance for the companies' proposed combination. MOFCOM approval was the final regulatory condition to closing the transaction.

EMC shareholders approved the transaction on July 19th, with approximately 98% of voting EMC shareholders casting their votes in favor of the merger, representing approximately 74% of EMC's outstanding common stock.

"This is an historic moment for both Dell and EMC. Combined, we will be well positioned for growth in the most strategic areas of next generation IT including digital transformation, software defined data centre, converged infrastructure, hybrid cloud, mobile and security," says Michael Dell, chairman and CEO of Dell Technologies.

Huawei's Shape the Cloud event in Shanghai reaffirms how seriously the comms giant is taking digital transformation, betting on widespread IoT and a change in IT buying strategy.

Ken Hu, Huawei's rotating CEO, explained that the company aims to position itself as the enabler and driver of an intelligent world.

Throughout this process, Huawei aims to become a preferred partner that enables digital and cloud transformation, while actively contributing to the cloud ecosystem through openness, collaboration, and shared success.

Hu says it is vital for enterprises to change their mindsets around the role of ICT: They should start treating ICT as a production system instead of a support system, and proactively use technology to redesign their production processes.

Second, enterprises should rethink talent, and equip their employees with basic ICT knowledge, particularly as it applies to cloud technology.

Third, enterprises should think big and act small, making headway with tactical, gradual improvements that build lasting confidence in new technology and the success it brings.

"Cloud is changing everything," added. "We view change as a process of rebirth. For any business in the Cloud 2.0 era, change brings hope."

Information and communications technology (ICT) will be the cornerstone of an intelligent world.

Ken Hu compared devices to 'feelers' that give all things the ability to sense their environments. Networks will connect everything, and the cloud will be the source of intelligence behind all things. These three elements form a synergetic architecture of devices, information pipes, and the cloud, and they are the strategic focus of Huawei's investment in the future.

"Over the next five to ten years we will see all kinds of smart devices that automatically adapt to various use scenarios," he added. "All people and all things will have the ability to sense their surroundings, and devices will serve as entry points to the intelligent world.

"Optical and wireless networks will provide ubiquitous, ultra-broadband connections. In the meantime, interconnected computers spread across the planet will aggregate vast amounts of data, forming a 'digital brain' in the cloud. This digital brain will evolve in real-time, and it will never age, providing intelligence that can be called upon at any time by people and machines via high-speed connections and devices."

These solutions are highly open and secure, and offer enterprise-grade performance in an integrated one-stop environment, aspects of functionality that are designed in direct response to customer pain points.

In addition to individual solutions, it stresses that the cloud ecosystem must be developed around creating value for customers, and that every organisation within the ecosystem must contribute its own unique value. Huawei isn't going to release a handful of clouds on its own; as an ecosystem enabler, Huawei aims to help all of its customers build all manner of clouds.

Enterprises that were born in the cloud led the development of the first cloud era, disrupting industries around the world.

Hu believes that the next ten years will be the era of Cloud 2.0, marking the rise of countless industry clouds.

By 2025, Huawei predicts that all enterprise IT solutions will be cloudified, and more than 85% of enterprise applications will be cloud-based.

Every company will integrate its core business with the cloud, and will be on the look-out for the cloud solutions that suit them best.

A business set up to plug the small business funding gap has swung its focus onto the comms sector where company founders Christoph Rieche and James Dear have identified a need for ambitious telcos with growth potential to leverage the financial resources offered by the firm.

The company has launched against a backdrop of shrinking financial solutions for needy smaller businesses as evidenced by BBA figures for Q1 2016 which show that banks approved £6.1bn of new SME loan and overdraft facilities in the period, 18% lower than in Q1 2015.

"Small businesses, unlike their larger peers, often don't have the capital they need to invest in new opportunities while managing cash flow gaps," stated Rieche.

"This is particularly critical in the telecoms sector where businesses are confident about their growth opportunities but they lack the resources to take advantage of them. That is why we launched iwoca."

London-based iwoca operates independently of the banks, has developed a proprietary technology platform and automatically collects thousands of data points on every business that applies. This is collected in real-time through integrations with major banks, accountancy software providers, payment processors and more.

"Analysing this data allows iwoca to approve a business for a credit line of up to £100,000 within hours," explained Rieche.

"A business can then draw down as much of the funding as they want, either for day-to-day cash flow management or to make an investment.

"Everything is managed through an online account and customers are free to repay early or keep the funds for up to 12 months. It works on a pay-as-you-go model - companies only pay interest for each day they borrow with no other fees and no long-term commitments."

Since it began its commercial life in 2012 iwoca has lent over £120m to more than 6,000 businesses including ACT Communications which uses funding from iwoca to achieve better deals on stock orders.

The firm's MD Matthew Peach stated: "Bank finance has always been available to us. However, as the years have gone by and bank lending criteria has changed it has become much harder to achieve a good deal with minimal required security.

"We needed stock quickly and short-term cash was required to get the best price. With an approved credit line in place with iwoca we can commit to deals and orders that in the past we would have avoided due to potential cash flow issues.

"The business as a whole is moving forward at a much quicker pace and this is simply down to readily available cash."

iwoca has expanded beyond the UK to support businesses in Germany, Poland and Spain; and David Cameron highlighted iwoca as one of the UK's most successful FinTech leaders in a speech to the Innovate Finance Global Summit. The firm was also crowned Alternative Lender of the Year for Commercial Credit in the 2015 and 2016 Credit Today awards.

US-listed cloud customer collaboration specialist Interactive Intelligence has reported rapid expansion of its partner ecosystem.

Since the first of the year, the company says it has signed 50 new partners with indirect sales accounting for nearly half of new customer deals.

In Q2, an Interactive Intelligence channel partner closed the largest indirect deal in the company's history, worth more than $12.5 million.

"We overhauled our Global Partner Program late last year to make doing business with us simpler and to give partners new revenue opportunities within the cloud market," said Darren Gill, Interactive Intelligence vice president of channels.

"Our recent results show that partners are benefitting from these changes, and we'll continue to find ways to support their business."

The Interactive Intelligence ecosystem now comprises nearly 440 companies worldwide and includes EMEA firms: Advania, Altea, Bizmatica, Capita, KPN International, Maintel, MTM, NTT Data, OBS, Procat International, QPC, Telefonica and Wren Data.

A key objective of the company's Global Partner Program revamp was to speed the time-to-market of its PureCloud solution, a microservice-based platform built on Amazon Web Services Cloud delivering customer engagement, communications and collaboration functionality.

Hull-based Pure Broadband has joined CityFibre's Gigabit City project as a launch partner in its home town.

The network spans 62km across Hull which joins CityFibre's growing ranks of Gigabit Cities.

CityFibre has installed fibre connections to mobile masts throughout Hull, upgrading the majority of the city's mobile traffic to 4G, following a national framework agreement with mobile network operators EE and Three UK. This project led to an increase in mobile Internet use on Three's network in the city by 380%.

Rob Hamlin, Commercial Director at CityFibre, commented: "By working with Pure Broadband businesses in Hull can now capitalise on gigabit speed internet connectivity to compete and succeed in a digital world."

Adrian Bolster, MD of Pure Broadband, added: "We look forward to delivering a range of fibre fed products which will finally put Hull on the map as a true digital city. The key message from Pure is that this is here, now, it is time for Hull to join the Gigabit revolution."