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BULLETIN
4
According to technology solutions provider
hSo, uncertainty around Brexit has caused
a slowdown in the number of government
tenders to the technology sector. Data
collated from Crown Commercial Service
shows that in the run up to the Brexit vote
in June, government tenders were steadily
being issued, however since the vote and
confirmation that the UK electorate wishes to
leave the European Union, there has been a
slowdown.
In the nine months running up to the UK’s
EU Referendum there had been 815 tenders
per month on average, but in the subsequent
five months, there were only 652 per month,
representing a decline of 20%.
Chris Evans, Managing Director of hSo said:
“In respect to public sector government tenders
issued, there has been a slowdown since the
EU Referendum. It’s understandable, given the
appointment of a new Prime Minister that the new
administration is accustoming itself and looking
to make its mark. However, this shouldn’t prevent
them from maintaining the momentum that was
evident earlier in the year ahead of the Brexit vote.
“Before the vote there was clearly a big push
by private and public sector SMEs to reign in their
IT and network infrastructure spend, but since
then as economic activity has slowed, there’s now
even greater reason for businesses to look at more
cost efficient network, telephony and hosting
solutions.”
BULLETIN
New data from Synergy Research Group,
shows that across seven key enterprise
infrastructure segments, vendor revenues
for the last four quarters declined by 1% on
an annualised basis.
Aggregate revenues for the last four quarters
reached $88 billion, with revenue in each of
the last twelve quarters typically in the $20-23
billion range. Data centre servers comprise the
largest segment of the market though revenues
here declined by almost 5% in 2016. Switches
and routers are the second-largest segment
and they experienced growth of 1%. WLAN
grew the most, while the enterprise voice and
telepresence markets continued to be challenged
by aggressive price competition and market
disruption.
Cisco is the market leader in six of the seven
segments with the exception of data centre
servers where HPE is the leader. The number
two ranked vendors in the other segments
are Dell EMC (enterprise data centre servers),
Avaya (enterprise voice systems), Juniper
(network security), Microsoft (UC applications)
and Polycom (telepresence). Vendors who have
been achieving steady market share growth
in these highly competitive markets include
Palo Alto Networks (network security), Arista
Networks (Ethernet switching), Huawei (Ethernet
switching), HPE (WLAN) and Dell EMC (servers).
“Cisco continues to control a third of the
enterprise infrastructure market and remains
in a league of its own despite a variety of
challenges,” said Synergy Research Group’s
founder and Chief Analyst Jeremy Duke.
“HPE is the only broad-based competitor to
challenge Cisco’s dominance, though it does not
compete in all of the major segments. The main
disruption to the market is being provided by the
growth of cloud and hosted solutions, which are
redefining markets and enabling new competitors
to emerge.”
The multi-phase study will begin in April with a quantitative study of enterprise MPS
customers in the USA, Canada, Germany, France and the UK, followed by in-depth
interviews to understand the critical dynamics associated with satisfaction and
switching behaviour.
Photizo Group is launching this study to assist clients in addressing this serious information gap
and to identify growth opportunities in competitors' accounts, by identifying the types of customers
who are most likely to switch.
Ed Crowley, CEO of Photizo Group said: “Many vendors are making a serious error in assuming
that their existing customer loyalty or satisfaction study is adequately identifying threats to their
customer base. Without an understanding of how your customer satisfaction and loyalty compares
to your competitors, it's easy to overestimate the strength of your customer relationships."
Research and analysis into MPS customer defection rates by Photizo Group indicates that 33%
of MPS contract holders are considering either switching MPS vendors or bringing their outsourced
MPS project internal.
IT channel’s cloud
conundrum
Four in ten companies surveyed for
CompTIA’s Sixth Annual State of the
Channel report say cloud computing is
the number one reason to be optimistic
about the channel’s future. But at the
same time, cloud computing is one
of the main reasons that a third of
channel firms surveyed are thinking
negatively about the days ahead.
Channel respondents describing the
cloud’s impact in the last five years as
‘extremely positive’ has gone from 63%
to 37% in the last two years.
The Sixth Annual State of the Channel
study also found that channel firms view
vendor-based perks such as sales spiffs,
volume/upfront discounts, back-end rebates
and technical training provided as less
important to their bottom line. The number
one reason vendor benefits have declined
in significance is that channel firms say they
are relying more on their own sales and
marketing efforts.
£10k raised for charity
DMC Business Machines has raised over
£10,000 for Starlight Children’s Foundation.
In March 2016, the business’ own
remanufactured toner brand, planitgreen
celebrated its fourth year of business, setting
a target to raise £10,000 for the charity. The
company hit its first and second quarterly micro
targets of £2,500 and £5,000 each with a month
to spare and by October, had already raised
£7,000.
Thanks to an incredible third quarter of
fundraising events, donations and great sales
figures, the team managed to hit the total target
before Christmas. This achievement was seen
as the perfect way to end 2016 and leaves the
business with three months to exceed the target
by as much as possible.
Enterprise spending nudged downwards in 2016
Government tenders decline by 20%
Photizo Group launches enterprise MPS loyalty study
