Turkey: because of the political unrest in the country and the subsequent cancellation of many exhibitors, Deutsche Messe has decided to cancel the 2016 edition of CeBIT Bilişim Euroasia. According to the organizer, the event will be integrated into a new concept in March 2017 (source: Computerworld Türkiye).
Pica8, a provider of white box networking solutions, has named storage VAD STORDIS as its pan-European distributor. STORDIS will supply through its offices in Germany and the United Kingdom a growing customer base with Pica8's software-defined networking (SDN) and white box networking products. "We pride ourselves on delivering best-of-breed products for networking, computing and storage, and Pica8 leads the industry in providing open SDN software and switches", said Alexander Jeffries, CEO of STORDIS. "By offering solutions like Pica8’s PicOS™ network operating system, we can put our customers, particularly in the broadcast media, security, and monitoring markets, at the forefront of open networking."
"In looking for a European partner, we wanted a company that has experience with using OpenFlow for monitoring, converged infrastructure, and broadcast network solutions, and STORDIS is emerging as a leading player in these areas", said Niraj Jain, vice president of business development at Pica8. "There's a strong and rapidly-growing market for open networking solutions in Europe, and we believe STORDIS will help us reach it."
Scansource acquires Intelisys
American POS, network and telecom VAD ScanSource has unveiled a definitive agreement to acquire Intelisys Communications, a distributor of business telecommunications and cloud services. With 2015 gross commissions of €108m, Intelisys distributes services for the main telecom carriers, cable companies, cloud services providers and technology partners through channel sales partners. ScanSource thus broadens its capabilities by entering the telecom and cloud services market with the acquisition of Intelisys. In the United States, small and medium-sized businesses spend an estimated €135B on telecom services. Approximately 10% of this market is currently served by the indirect channel, creating a large and growing addressable channel market for Intelisys and its sales partners. In addition, the market dynamics favor Intelisys' two-tier services-based business model with an expected growth of business opportunities for the indirect channel. With this acquisition, Intelisys' sales partners are better positioned to capture this benefit and have the potential to grow faster than the market. Craig Schlagbaum, Vice President of Indirect Channels for Comcast Business, added, "This next transformation of the channel is clear evidence of evolving end-user needs, as we begin to see the bundling of hardware and software with network and cloud. As our largest ‘Master Agent’ partner, Intelisys has been instrumental in helping Comcast Business build a scalable channel. With the combined strength of Intelisys and ScanSource, we expect outstanding customer and partner opportunities to result from bridging these two channels."
Intelisys provides agents and value-added resellers (VARs) with an extensive portfolio of services, support and enablement tools to sell cloud and connectivity services. The acquisition accelerates Intelisys’ ability to extend this successful model to the ScanSource VAR community. ScanSource VARs will gain access to Intelisys' robust portfolio of carefully selected, highest-quality connectivity and cloud services offerings, as well as the tools and platforms that help partners build recurring revenue streams.
Under the agreement, the all-cash transaction includes an initial purchase price of approximately €75.4m, plus earn-out payments based on earnings before interest expense, taxes, depreciation and amortization (EBITDA) over the next four years. Intelisys has demonstrated double-digit growth of net revenues and EBITDA, which is projected to continue during the four-year earn-out period. For the first full year after closing, Intelisys’ net revenues, which reflect gross commissions less payments to sub-agents, are estimated to total over €30.7m with a 45% to 50% estimated EBITDA margin.
"Intelisys is unmatched in the master agency space, and their two-tier model is an ideal fit with our culture and way of doing business. We are entering a high-growth, recurring revenue business that is complementary to our current business and represents a compelling opportunity for our VARs", said Mike Baur, CEO, ScanSource. "Since our founding nearly 25 years ago, ScanSource has effectively taken complex market opportunities and created avenues for customers to be successful. Acquiring Intelisys and their immense expertise and talent will be instrumental in helping our combined sales and supplier channels build on that success."
Founded in 1994 and based in Petaluma, California, Intelisys operates in the United States and has approximately 120 employees, more than 130 supplier partners, and over 2,400 sales partners. Last year, Intelisys was named one of the Best Entrepreneurial Companies in America by Entrepreneur Magazine for its growth, sustainability and ability to achieve lasting success. The experienced Intelisys management team will remain in place, including Co-Founders Rick Dellar and Rick Sheldon, and Co-Owner Dana Topping. Jay Bradley will continue to serve as President of Intelisys, and his senior leadership team will also remain in place. Upon completion of the transaction, Intelisys employees will join the Worldwide Communications and Services segment of ScanSource. "Intelisys' driving mission has always been to enable the growth and success of our sales partners. ScanSource shares that same set of core values. Our commitment will only be strengthened as we become part of the ScanSource team", said Rick Sheldon, Co-Founder of Intelisys. "This is an exciting time for the channel as VARs and telecom agents converge. Together, we believe ScanSource and Intelisys will become the ultimate channel company as we offer an unparalleled experience in the cloud and telecom space, including fully connected solutions for our partners."/p>
The acquisition is expected to close in the quarter ending September 30, 2016, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals. Prior to the close, ScanSource and Intelisys will continue to operate as independent companies.
The Western European IT channel is gearing up to ride a wave of new demand for security products as customers rush to adopt mobile and cloud services to support their businesses, according to the latest ChannelWatch survey from CONTEXT. Over 2,000 IT resellers in the UK, France, Germany, Italy, Spain and Portugal were surveyed at the beginning of 2016 for the report. In terms of growth prospects for the year, security was the number one rated category. With a weighted score of 79/100 among resellers with more than 25% of their sales in business services in the region, security came in just ahead of mobility (78/100), cloud computing (76/100), Software-as-a-Service (73/100) and Infrastructure-as-a-Service (69/100) in terms of growth potential.
"We're seeing the tangible effects of the growing interest in cloud and mobility services that's been predicted for so long", commented CONTEXT co-founder and CEO Jeremy Davies. "As actual cloud implementation grows, security is a huge concern and that is reflected in the demand resellers are experiencing today."
The CONTEXT ChannelWatch survey revealed that only 24% of resellers surveyed said they had sold cloud security services over the period. CONTEXT notes that cloud services and mobility represent an enormous opportunity for Western European IT resellers, enabling more agile and productive ways of operating and running IT departments, and without the right security tools, organisations find threats from nation state hackers, financially motivated cybercriminals and hacktivists overwhelming. For those business-focused resellers that had sold cloud services over the past three months, back-up (65%) and storage (49%) were the most popular categories, according to CONTEXT.
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