French-based Exclusive Group has unveiled the largest acquisition in its history: that of Singapore HQ'd cybersecurity and infrastructure VAD, Transition Systems. The acquisition adds a further 18 offices in eight countries including: India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam. With offices already in Australia and New Zealand, the move significantly expands the Group's presence and penetration in the APAC region, and – with 50% of Transition Systems' portfolio matching that of Exclusive Networks – the deal mirrors the profile of previous acquisitions where the benefits of scale and reach were immediately and positively realised.
The acquisition of Transition Systems brings the total size of the Exclusive Group to over 1,000 employees and 1bn€ annual revenues; 25% of which will now come from the APAC operations.
Olivier Breittmayer, CEO of Exclusive Group said: "Asia is crucial for the expansion of our global strategy and this acquisition gives us a great platform to grow throughout the region in the coming years. Transition Systems is a large, influential regional player with similar business DNA to our own, as well as having important vendors, technologies and a very strong value-adding culture in common. We have every confidence in the existing management of the business to continue applying its successful formula under its new Exclusive Networks brand in tune with our global VAST strategy."
"This marks a significant opportunity for our partners, customers and people as we become part of the global Exclusive family and continue the journey we started back in 1999," said Jonathan Juay, Group Managing Director of Transition Systems. "With the resources and support of the Exclusive Group we can remain committed to our value-adding principles, innovate new solutions and services tailored to local market needs, and invest for greater expansion in the future. We are already looking at starting BigTec, Exclusive's hyperconvergence business unit, into several countries here, and exploring synergies with strategic Exclusive vendors and global SIs."
Exclusive Group's unique business model generates value for vendor and reseller partners by continually challenging and disrupting VAD approaches, both through its choice of innovative technology solutions and its evolution of new value-added services. "To achieve this on a truly global scale is a first for our industry," added Breittmayer. "This acquisition adds significant capabilities to our overall proposition. Now our partners around the world have greater in-country presence to support global projects across Asia, while conversely our Asian reseller partners have the full spectrum of Exclusive Group services to support their deals into more than 100 countries worldwide."
The acquisition of Transition Systems follows the Group's track record of success in identifying and acquiring "like-minded" businesses and supporting their continued entrepreneurial success as distinct parts of a coherent, federated organisation.
"It also breaks the Euro Billions target we set ourselves just three years ago, almost one year ahead of plan," concluded Breittmayer.
Cloud as a New Channel Opportunity
Before the cloud, VARs made money by combining hardware and software into solutions, and then they would augment their product-centric revenue through professional services like technical services and maintenance support. Today, in contrast, the rise of the cloud has limited the market for physical products like servers and shrink-wrapped software – but customers still need servers, and they still need software, according to cloud-service broker Computenext.
Over the last few years, the IT channel has adopted cloud services either as hosted products, or it has resold services to capitalize on new opportunities. And most of all, customers still need the professional services as before, only now the services are more likely to involve cloud-based assets than physical ones.
Increased cloud adoption presents both challenge and opportunity to the channel. Fortunately for channel players, as cloud adoption increases, the channel's support for cloud products and services increases as well.
In fact, the cloud is an access point for new channel opportunities, for example, cloud-based disaster recovery, security solutions, business applications, cloud-based storage, as well as all the professional services and all the integrations that provide customers with complete cloud-based solutions. Furthermore, many channel players already offer some sort of professional guidance and support service for selecting, implementing and migrating customers to various cloud platforms. Solution providers are increasingly becoming an essential part of the cloud ecosystem, particularly in the midmarket, where they ensure the smooth migration of data and services from on-premises environments to the cloud. For more details, you can download the full whitepaper here.
Semiconductor specialist Avnet Memec - Silica has expanded its franchise portfolio to include Alliance Memory. Building on the success of their partnership with Avnet in North America and Asia, Alliance Memory's entire line-up of SRAMs and DRAMs is now distributed throughout the EMEA region by Avnet Memec - Silica through its offices in Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom.
Alliance Memory manufactures a complete line of DRAMs and SRAMs, including 3.3V and 5V fast asynchronous SRAMs with speeds from 10ns to 20ns; low-power devices with densities from 64Kb to 32Mb; and 2.5V and 3.3V ZBT/Sync pipelined burst (SPB)/Sync burst (SB) products. The company's offering of synchronous DRAMs (SDRAM) includes devices with densities from 16Mb to 512Mb, including components recently discontinued by Micron Semiconductor; mobile low-power SDRAMs for portable devices; and high-speed CMOS double data rate (DDR), DDR2, and DDR3 SDRAMs in a wide range of options.
"Avnet has been one of the most trusted names in the electronics industry for more than half a century and its global reach in the electronics supply chain is second to none," said David Bagby, president and CEO of Alliance Memory. "The company has played a key role in raising the profile of our legacy IC solutions within the North American and Asia markets, and we can't wait to extend that success to the EMEA region, where we expect to grow our customer base across a number of industries."
"To eliminate costly redesigns, there is a high demand across the world for legacy memory solutions, especially DRAMs," said Mario Orlandi, president of Avnet Memec - Silica. "Alliance Memory has made significant additions to its portfolio in anticipation of this demand, and with the company's solutions in our line-up, we've been able to meet the market need in North America and Asia. We’re now looking forward to providing greater access to these solutions globally."
India: as cloud computing continues to grow across the Asia Pacific region, broadliner Ingram Micro has announced the availability of the Ingram Micro Cloud Marketplace in the country. Now offered in five countries throughout the Asia Pacific region and 17 countries worldwide, the Cloud Marketplace is quickly gaining widespread traction in India with nearly 200 channel partners already registered and ready to transact on the automated platform. The mounting excitement for the Cloud Marketplace is a true testament to the growing interest and demand for cloud computing in the region.
Initially featuring Microsoft Office 365 through the Microsoft Cloud Solution Provider (CSP) program, the automated Cloud Marketplace empowers channel partners to quickly grow their cloud business by bundling their own cloud services and consolidating invoicing. In addition, channel partners can now seamlessly convert Microsoft Advisor subscriptions to the CSP program on the Cloud Marketplace. The service plan supports the rapid adoption of Microsoft CSP and allows channel partners to own the complete customer subscription lifecycle while recognizing topline revenue.
According to IDC, demand for cloud services in India is growing at a rapid pace. Public cloud services are currently valued in 2015 at €400m, and are expected to grow to €1b by 2019, with a compound annual growth rate (CAGR) of 26.6%.
"With cloud adoption growing steadily in India, we are pleased to deliver the platform, innovative solutions and expertise needed to support cloud business transformation," said Jaishankar Krishnan, Sr. Vice President & Chief Executive, Ingram Micro India. "The availability of the Cloud Marketplace empowers channel partners to lift their customers' businesses to the cloud while growing their own profitability and cloud presence."
The Ingram Micro Cloud Marketplace is an ecosystem of buyers, sellers and solutions that allows channel partners to transform and grow their business by offering instant access to a wide range of innovative cloud solutions from a single online console. Through its automated platform, the Cloud Marketplace delivers streamlined customer management of the complete cloud subscription lifecycle.
"Cloud adoption in India is growing in triple digit percentage year-over-year. We launched the Cloud Solution Provider (CSP) program earlier this year to help SMBs become more competitive with enterprise-grade technology and value-added services from Microsoft cloud. We feel it is important to understand the specific requirements and challenges that SMBs face and help them adopt the cloud in a manner that is financially viable and beneficial for their business", said Meetul Patel, General Manager, SMS&P Business, Microsoft India. "We are excited to be a part of the Ingram Micro Cloud Marketplace in India and look forward to helping both partners and customers get the best that cloud has to offer."
Along with the Cloud Marketplace, Ingram Micro offers additional cloud services and programs designed to further drive channel partner success, including Ingram Micro Cloud Ignite Services, which has been designed to assist channel partners with the data migration and on-boarding needs of their customers, as well as providing free customer service for all cloud solutions purchased on the Cloud Marketplace.
"Ingram Micro has simplified our transformation to the cloud, providing the support needed to uncover new business opportunities and revenue," said Anurag Gupta, Director of Total Application Software. "Through the Cloud Marketplace's automated platform and streamlined processes, we are able to effectively grow our cloud business while delivering greater value to our customers."
The Cloud Marketplace is now available in 17 countries worldwide including, Australia, Belgium, Canada, France, Germany, Hong Kong, Italy, Mexico, the Netherlands, New Zealand, Singapore, Spain, Sweden, Switzerland, the United Kingdom, United States and now, India. To ensure successful business transactions across the globe, the Cloud Marketplace provides multi-language and multi-currency support.
GTI acquires Diode
Spanish broadliner GTI has acquired for an undisclosed amount network, telecom and AIDC/POS VAD Diode as well as its operations in Portugal and Latin America. Eight years ago, both companies were roughly the same size. Since then, Diode has lost a lot of turnover, which may have led to a cheap acquisition price for GTI. The acquisition ought to help GTI strengthen its business in North Africa as well as Latin America, and reach a turnover of about €200m, hence consolidating its position on the Iberian market, all the more as Diode and GTI have complementary offers and target complementary markets. Diode will keep its identity in the GTI Group.