Articles about Managed Services

Nope, there's no money in on-prem software licensing...

Microsoft may be making life harder for enterprise volume licensing resellers but there’s still money to be made from flogging on-premise software in the old way. Just ask Bytes Group. The Surrey-based specialist has filed its results for the year ended 28 February, and they reveal a business whose waistline is expanding from …
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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Invicta IT to vendors: 'Put us in the bucket... of ones to watch'

Reseller minnow Invicta IT has hired a raft of heavy-hitting - and no doubt expensive - sales account managers from Insight Enterprises as it eyes up moving into the bigger leagues. The Slough-based HP, Cisco and NetApp seller recruited ex-Insight corporate sales director Gary Remmington as sales director on 1 April and he in …
Paul Kunert, 17 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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Logicalis snaps up ex-NCR bloke Gale to run UK ops

Logicalis has finally filled its vacant UK boss chair with former NCR exec Ben Gale, who has picked up the baton to reshape the troubled integrator. The first job facing Gale, who fills a post that had been vacant for months, is to name a local services veep and FD and then to translate the strategy developed by Euro chief …
Paul Kunert, 14 Sep 2015

Amazon cloud consultant DualSpark slurped up by Datapipe

AWS consulting startup DualSpark has been schlurped by mega-host Datapipe to shovel cloud newbies onto Amazon. DualSpark was founded by a pair of former Amazonians in July 2014 to provide consulting services to help customers get on AWS. The duo are Simon Plant, a former AWS professional services practice manager, and AWS …
Gavin Clarke, 10 Sep 2015
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Interoute slips ring on cloudy hosting rival Easynet

Euro-bit-barn-operator-cum-cloud-hosting-provider Interoute is to wolf down pan-regional managed services outfit Easynet for £402m, including debts. The transaction, which is subject to certain closing conditions, is all about cross-selling products and services to the firms’ respective bases of enterprise, public sector and …
Paul Kunert, 08 Sep 2015

Big Data investment? Tick, says MXC Capital

Channel merchant banker MXC Capital has splashed £4.8m on a minority stake in big data analytics minnow Sagacity Solutions - a price tag that matches the software firm’s turnover last year. The move comes weeks after MXC director Ian Smith told us he wants to place bets behind businesses in software development, managed …
Paul Kunert, 08 Sep 2015
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Channel vets eyeing up investments from atop mount cash

Channel merchant bank MXC Capital is sitting on a pile of cash and finance facilities that will be used to grab minority stakes in managed services outfits, software players and FinTech start-ups. The London Stock Exchange-listed buy and build vehicle founded by industry vets Ian Smith and Tony Weaver yesterday acquired …
Paul Kunert, 26 Aug 2015

NetApp dissolves global centre of virtualisation excellence

NetApp has dissolved the “global centre of virtualisation excellence” it created in 2010 and ran from its Melbourne, Australia, office. The centre was established after the vendor won some colossal deals in Australia, believed to be at the nation's dominant telco Telstra and financial services outfit Suncorp. Both bet big on …
Simon Sharwood, 25 Aug 2015

Outsourcing tanker CSC sales growth torpedoed

Leaky outsourcing tanker CSC saw sales growth drift off on the horizon for yet another quarter – the first of its fiscal 2016 – but the services slinger is back in the black, without the help of tax benefits. The fact CSC slashed costs and expenses by nearly half a billion dollars had nothing to do with bottom line beefiness, …
Paul Kunert, 12 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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Daisy completes Phoenix IT gobble

Acquisition-ravenous Daisy Group has completed its gobble of tech services outfit Phoenix IT Group. The deal is a sizeable purchase for Daisy, with Phoenix turning over £233.4m in sales for the full-year 2014. The 1,400 engineers working for Daisy and Phoenix will be merged in the Partner Services division. The Phoenix …
Kat Hall, 31 Jul 2015
Champagne Not Included

Capita cracks open the bubbly after 10 per cent sales jump

This year's huge Capita spending spree boosted the company's sales by 10 per cent to £2.28bn, according to the outsourcing giant's first-half results for 2015. During that period, the outsourcer splashed a total of £279m on 11 businesses, most recently snapping up Scottish business intel outfit Barrachd. Profits before tax …
Kat Hall, 29 Jul 2015

Accenture still a little peckish as it snaps up digi biz Chaotic Moon

Outsourcing giant Accenture has snapped up digital biz Chaotic Moon for an undisclosed pile of cash. The Austin-based, 200-strong team apparently has digital design, prototyping, and development nous. The move is just the latest of a series of acquisitions designed to move the outsourcer out of the traditional managed …
Kat Hall, 23 Jul 2015
Parliament in the clouds

Parliament wants to splash £6m on network build 'n' run contract

The Houses of Parliament is looking to splash up to £6m on a data network management and support services network. The contract is worth between £3m-£6m over a six year period. The managed services deal will cover maintenance, support, management and monitoring of the Houses of Parliament Network Security Services. That …
Kat Hall, 23 Jul 2015

IT as a profit centre: Could we? Should we?

Let us agree that technology is or should be a big differentiator for business. Let us also agree also that particularly in very large companies, the IT department may be more cost effective, reliable, agile and so on than external service providers. And of course, getting IT to think and act as a services organisation where …
Dave Cartwright, 21 Jul 2015
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Daisy Group’s Riley: Integration of £200m + acquired beast starts today

Management at Daisy Group today start the mammoth task of integrating Phoenix IT Group, and getting the respective sales staff to cross-sell following yesterday’s purchase completion. The acquisition of tech services outfit Phoenix is the 48th acquisition Daisy has made since it was founded by chairman Matthew Riley in 2001, …
Paul Kunert, 17 Jul 2015
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Daisy Group seals Phoenix IT Group buy, exec set for exit

Some execs at LSE-listed Phoenix IT Group are edging toward the exit, El Chan can reveal, after the proposed takeover by Daisy Group today got the official rubber stamp. The approach from privately owned Daisy came in May when it offered 160 pence per share for Phoenix in a transaction that valued the equity at £135m. The …
Paul Kunert, 16 Jul 2015

Tech talent scout Braund scouted by troubled Coms Plc

Financially challenged B2B connectivity and voice provider Coms Plc has poached tech recruitment veteran Mark Braund to take control of the ship, following a messy divorce with his predecessor. Braund was a former EMEA director of SME at IBM in the 1980s, but for nearly the last thirty years has worked in senior positions at …
Paul Kunert, 14 Jul 2015
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Claranet swallows a couple of tech minnows

Euro managed services outfit Claranet has used some of its£100m + war chest to dip into the Brit tech market, devouring minnows Linux IT and and Biz Continuity/ DR specialist Techgate. The London headquartered firm that has tentacles in Germany, France, the Netherlands, Portugal and Spain, renegotiated its finances with …
Paul Kunert, 09 Jul 2015
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Confused Colt dumps the IT services market while revenues shrink

In a major about-turn, telecoms network provider Colt has today announced it will exit the IT services market as the firm searches for a fresh strategy to halt a worrying decline in revenue. "We are taking decisive action to become a more focused and disciplined organisation," said Rakesh Bhasin, CEO, in an update to the London …
Kat Hall, 30 Jun 2015
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SCC: Look at our bulging figure(s). We're fatter than some MSPs

Classic product reselling at privately-owned Midland tech dynasty SCC’s UK biz has crashed by a fifth but the company execs are still smiling. Why? The shift to services is paying off. Revenues generated in Britain for fiscal ’15, ended 31 March, dropped 13.3 per cent on fiscal '14 to £662m – including a full-year’s contribution …
Paul Kunert, 25 Jun 2015

Senior execs at NTT Com Security quit, but not with immediate effect

Top brass at NTT Com Security are hot footing it out of the organisation at the end of next month, the company confirmed today. CEO Simon Church, formerly COO at reseller Integralis (which NTT acquired in 2009 to form the backbone of its security ops), and chief beanie Heiner Luntz, have quit. Climbing into the chief exec’s …
Paul Kunert, 23 Jun 2015
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

CSC insiders: 800 job cuts will hit service delivery for punters

CSC is pressing ahead with plans to axe hundreds of workers, brushing aside concerns from some employees that customers are already feeling the pinch of past cost cutting actions. In what has become an annual ritual for CSC, almost 800 employees were put at risk of redundancy in May, with their roles earmarked to be sent to …
Paul Kunert, 23 Jun 2015
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Six Degrees separates: Sold to Charlesbank Capital Partners

Private equity biz Penta Capital has agreed to sell hosting and managed services outfit Six Degrees to funds affiliated with Charlesbank Capital Partners for an undisclosed sum. The business came onto the market in February with corporate financier DC Advisory managing the sale process, as El Chan exclusively revealed. …
Paul Kunert, 17 Jun 2015
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Revenue up 62 per cent, as Redcentric posts bumper post-buy results

Managed services biz Redcentric reported a significant increase in sales and profits for its full-year 2015 results, as the firm's acquisition strategy began to bear fruit. The Yorkshire outfit posted an increase in revenue of 62 per cent to £94.3m, compared with 2014. Profits rose to £8m from £1.8m for the same period. The …
Kat Hall, 15 Jun 2015
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Six Degrees love triangle: Final bids for data outfit due tomorrow

Two suitors vying to acquire Brit managed services and data centre provider Six Degrees have until tomorrow to lodge a winning bid. The Penta Capital-owned business was put on the market by corporate financier DC Advisory in February, as El Chan exclusively revealed. The private equity backer is looking to at least treble the £ …
Paul Kunert, 09 Jun 2015
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Phoenix IT Group comes back in black as new owners beckon

Phoenix IT Group is back in the black following the first full year of CEO Steve Vaughan’s turnaround strategy, in what is likely to its last fiscal before the Daisy Group acquisition is sealed. The LSE-listed organisation is still struggling to get the top line moving in the right direction, as revenue fell nine per cent year- …
Paul Kunert, 08 Jun 2015
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Oh no! That's another year you didn't grow, KCOM

Brit telco KCOM Group has reported top line shrinkage for the seventh consecutive year, this time blaming problems on “legacy activities” while unsurprisingly pinning its future on cloud services glory. The tech integrator/ comms provider reported a 6.1 per cent fall in revenues to £347m for the year ended 31 March - the last …
Paul Kunert, 05 Jun 2015

Piston to power Cisco Intercloud

Cisco is either dipping another tentative toe in the open cloud business, or about to Borg a potential competitor, announcing that it wants to buy cloud operating system company Piston Cloud Technologies. Piston's OpenStack expertise will now be wrapped into the warm embrace of Cisco's Cloud Services operation, the group charged …
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UK.gov opens kimono to SMEs in Tech Services framework cash spaff

The government has lifted the lid on its £200m Technology Services framework, with more than half of the 85 suppliers awarded a place being SMEs. The agreement is the new incarnation of its managed services framework, which originally included around 11 large suppliers. The new version is intended to help central government …
Kat Hall, 29 May 2015
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Gold to bind Phoenix IT, Daisy, Cisco

Phoenix IT is likely to rekindle its partnership with Cisco when the Daisy Group completes the acquisition of the services provider, as expected in the not-too-distant future. In late 2013, El Chan revealed Phoenix was among 1,000 companies across EMEA told by Cisco that their right to sell its kit was to be removed because they …
Paul Kunert, 29 May 2015
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Optus plans to skim the cream off the cloud

Margins in the cloud are rubbish: when you're selling servers for cents, there's precious little left for the bottom line. But Australia's second-largest telco Optus looks to be smart enough to have figured that out and devise a strategy that instead lets it go for the richest, most-monied parts of the cloud. The strategy was …
Simon Sharwood, 27 May 2015

IT Lab slips a ring on JMC IT

London-based managed service provider IT Lab has spread its tentacles to the north-west by subsuming Manchester outfit JMC IT. The combined organisation will employ some 300 staff servicing 750 clients including Somerset House, Talis Capital, the Greater Manchester Chamber of Commerce and Liverpool FC. Peter Sweetbaum, CEO of …
Paul Kunert, 27 May 2015
Roughly 150kg of gold

EMC coughs up the readies for cloud management software supplier

EMC is buying Virtustream in a seemingly billion-dollar-level transaction, as part of an effort to build a managed cloud services business. Virtustream sells xStream cloud management software for public, private and hybrid clouds, Infrastructure-as-a-Service (IaaS) and managed services to its customers. It says its xStream …
Chris Mellor, 26 May 2015
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Capita gobbles Berks-based mobility specialist Pervasive

Biz wireless networks integrator and mobility managed services player Pervasive Ltd is the latest organisation to be crunched up by Capita's acquisition mill, The Channel can reveal. The Berkshire-based company, which trades as Pervasive Networks and Beovax Computer Services, will sit within Capita’s IT Services division run …
Paul Kunert, 26 May 2015

Will YOU be living in a cardboard box under the motorway in five years?

Chinese kit-maker Huawei reckons one in four resellers will be out of business inside the next half a decade, such is the dwindling shelf life for the classic man-in-the-middle model. A report outlining the company's strategy predicted: "Within next five years, one fourth of the channels will disappear, and the remaining …
Kat Hall, 26 May 2015

Wanna buy a software reseller? Comparex big enough for you?

The Austrian parent of enterprise licensing specialist reseller and tech provider Comparex has hired an investment banker to sell the business, The Channel can reveal. According to multiple sources, Raiffeisen Bank has called on Jefferies to find a buyer, the formal process has started, and an Information Memorandum is being …
Paul Kunert, 22 May 2015
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Long knives at Logicalis as execs and vendors disposed of

Big changes are afoot at embattled integrator Logicalis UK following the loss of the Wales Public Sector Network (PSN) deal. This includes a re-org, vendor cull and some senior level departures - all ahead of a new boss starting. European head and acting interim UK MD Arnaud Spirlet told us the company needs to “transform” under …
Paul Kunert, 20 May 2015
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IaaS is OVER, ladies. Time for OpenStack to jump clear

Data. Was ever such a single word filled with such promise – and heartbreak – for IT firms? In the cloud, succeeding in getting hold of people’s data means these people are incentivized through inertia to stay with you. That’s the promise, at least. The rub? Actually making a successful business from people’s data. The act of …
Gavin Clarke, 20 May 2015

Gobblefest on horizon for managed services pair

The sales process for a couple of native data centre providers is gaining some momentum, with Six Degrees edging closer to a deal and Adapt appointing a corporate financier to market the business. London-based Six Degrees called on DCC Advisory in February to sell the voice and data hosting firm by April, as we exclusively …
Paul Kunert, 15 May 2015
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Efficient German sales engine Bechtle says Q1 was GUT

Insuppressible German headquartered reselling machine Bechtle piled more pounds onto the sales ledger during calendar Q1 seemingly surprising senior management. The business, with ops in 60 locations across Europe, revealed a 6.1 per cent boost in sales to €622.5m, EBITDA climbed 6.3 per cent to €22.5m and profit after tax up 6. …
Paul Kunert, 14 May 2015
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Sun shines on Datatec despite Logicalis' sales 'n' contract woes

It was the Westcon distribution arm that kept the tills ringing for parent Datatec, as integrator sub Logicalis was struck by a “significant” contract loss in Blighty and weaker product reselling. Across the group – which also includes consultancy Analysis Mason – revenues leapt by 13.3 per cent to $6.4bn for fiscal ’15, ended …
Paul Kunert, 13 May 2015
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Rackspace's 'fanatical' army drops in on rival clouds

Rackspace is growing – just not fast enough for the Wall Street pack. Looks like it’s time to roll out the service troops to support rivals' clouds. The firm’s stock was gang-battered on Monday, kicked brutally down the stairs by 13 per cent after management announced revenue growth of 14 per cent to $480m. Not bad – but not …
Gavin Clarke, 12 May 2015

US titans roll out the numbers... wow, reselling is a tough game

Calendar Q1 numbers are out for shape-shifting resellers Insight Enterprises and Systemax, with the former reporting flat sales and profits but the latter faring much, much worse. Both are trying to rapidly develop services operations based on consulting, managed services and the cloud to replace commoditised or 'empty calorie' …
Paul Kunert, 12 May 2015
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CSC picks up the axe yet again, eyes 800 staffers' quivering necks

Exclusive CSC is preparing to axe almost 800 staff in the UK and Ireland in what it is calling a "Get Fit" phase, with current proposals to transfer some of these positions to near-shore and offshore centres. Bloodletting is a seemingly annual custom for the scandal-hit ailing integrator. It is just over a year since CSC put 750 workers …

French outsourcer Atos fattens revenues on UK public sector

French outsourcer Atos posted bumper profits int its first quarter, mainly buoyed by the UK public sector deals. Revenue rose 17.6 per cent to €2.4bn (£1.7bn), compared with the same quarter last year. The UK was the biggest market for the outsourcer, growing 15 per cent to €511m (£367m) compared with the same quarter last year …
Kat Hall, 22 Apr 2015

Adapt Managed Services to be sold this year, whisper sources

Managed services and cloudy hosting biz Adapt is putting corporate finance houses through their paces before choosing one to manage a sale of the operation. Private equity firm Lyceum Capital coughed £30m for a majority stake in London-based Adapt in 2011 and multiple sources reckon the business will be on the market again from …
Paul Kunert, 21 Apr 2015
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Ravello unravels mystery of ESXi on AWS, Google

Ravello Systems, a purveyor of cloud hypervisors, has created a way to run VMware's ESXi in clouds from Amazon Web Services or Google. Does that sound nutty given that VMware itself and plenty of other cloud/managed services providers will happily give you a Virtzilla environment? Yes and no. Yes, because it seems like rather a …
Simon Sharwood, 17 Apr 2015