THE CHANNEL 1 2017 - euroLan Research · 3. In Depth Focus Edelman Trust Barometer 2017 4. Financial Round up Avaya, Brocade, Cisco, Extreme, Juniper, Mitel and Netgear This Service

Contents 1. SLA – Senior Level Advisory KCOM

2. Key Announcement implications Cisco 2017 Cybersecurity Report

3. In Depth Focus Edelman Trust Barometer 2017

4. Financial Round up Avaya, Brocade, Cisco, Extreme, Juniper, Mitel and Netgear

This Service has been designed specifically for Senior level Channel executives. It provides guidance

and highly strategic advice on the channels focussing on the issues of which Senior Channel Executives

should be aware. It will guide the management team on the impact of competitor announcements,

insights into the market, brief focus on services sub-segments, value stack, vertical focus and Key Director Messages.

THE CHANNEL

| Channel Issues and Advice |

Feb 2017

1 SLA – Senior Level Advisor

Board Directors:

Bill Halbert

Chief Executive

Jane Aikman Chief

Financial Officer

Graham Holden, Non-

Executive Chairman

Kathy Smith

Company Secretary

KCOM

KCOM Group plc (formerly known as Kingston Communications) is a

communications and IT services provider based in Kingston upon Hull, UK.

It is listed on the London Stock Exchange. It was founded in 1902 when

Hull City Council granted a licence to run its own telephone network.

Acquisitions

In March 2001 is acquired Milgo Holdings LLC from Platinum Equity for

£23.4 million and paid £12.5 million to acquire broadband ISP Eclipse

Internet in 2004. In December 2004, it bought Systems Integrator

Omnetica for £169.0 million and a year later disposed of the French

operation (trading as Arche Communication) to Telindus for £32.3 million.

In December 2006, it acquired JAM IP Limited, a specialist in converged IP

contact centre solutions for £2.56 million and in September 2006 it

acquired Smart421 for £24.2 million and, lastly, in February 2007 it

acquired Mistral Internet Group Limited for £19.6 million.

In December 2015 KCOM Group sold its UK network infrastructure to

CityFibre for a total cash consideration of £90 million.

Financials

Source: Company Financial Results Year end 31 March

Markets

KCOM addresses the consumer market but only within its local geography.

Business and Enterprise markets however are national and it is the focus

of THE CHANNEL.

£372.9 M £370.7 M£348.0 M £349.2 M

£74.8 M £75.3 M£74.3 M

£74.9 M

€0.00 M

€20.00 M

€40.00 M

€60.00 M

€80.00 M

€100.00 M

2013 2014 2015 2016

£0.0 M

£50.0 M

£100.0 M

£150.0 M

£200.0 M

£250.0 M

£300.0 M

£350.0 M

£400.0 M

EB

ITD

A £

M

Re

ve

nu

e i

n £

M

Revenue and EBITDA

Patrick De Smedt

Non-executive

Director

Tony Illsley, Senior

Independent Non-

executive Director

Peter Smith, Non-

executive Director

Liz Barber, Non-executive Director

Structure

KCOM recently split into two segments:

The Kcom segment provides

businesses and public sector

organisations across the UK

and the KC segment services

consumers and businesses in

Hull and East Yorkshire.

Segments

The Smart421,

Kcom, Eclipse

and KC brands

ceased to exist

on 4 April

2016

Enterprise

The Milgo and

Omnetica

acquisitions

provided

national (and

international)

Systems

Integration

skills for KCOM

which now

boasts a

variety of

customers

from central and local government to distribution and technology.

Enterprise Customers

Enterprise Vendors

Conclusion

KCOM has supplied a cloud-based contact centre solution to HMRC in one

of it’s biggest ever contract wins, that allows HMRC to communicate with

massively increased volumes of callers at peak times in the tax year.

Cloud and Managed Service Provision, is and should be, KCOM’s Big Bet.

NEXT >

2) Key Announcement Implications

£104.50 £249.90 Segments

KC

Kcom

2 Key Announcement Implications

The report

The Cisco 2017 Annual

Cybersecurity Report

presents research, insights,

and perspectives from Cisco

Security Research. Cisco

highlight the relentless

push-and-pull dynamic

between adversaries trying

to gain more time to

operate and defenders

working to close the

windows of opportunity that

attackers try to exploit. We

examine data compiled by

Cisco threat researchers

and other experts. Our

research and insights are

intended to help

organizations respond

effectively to today’s

rapidly evolving and

sophisticated threats. It has

sections covering:

• Attack Behavior

• Defender Behavior

• Industry

• Security Capability

Benchmark

Cisco 2017 Annual Cybersecurity Report

Executive Summary

Adversaries have more tools at their disposal than ever before. They also

have a keen sense of when to use each one for maximum effect. The

explosive growth of mobile endpoints and online traffic works in their

favor. They have more space in which to operate and more choices of

targets and approaches.

Defenders can use an array of strategies to meet the challenges of an

expanding threat landscape. They can purchase best-of-breed solutions

that work separately to provide information and protection. And they can

compete for personnel in a market where talent is in short supply and

budgets are tight.

Stopping all attacks may not be possible. But you can minimize both the

risk and the impact of threats by constraining your adversaries’

operational space and, thus, their ability to compromise assets. One

measure you can take is simplifying your collection of security tools into

an interconnected and integrated security architecture.

Integrated security tools working together in an automated architecture

can streamline the process of detecting and mitigating threats. You will

then have time to address more complex and persistent issues. Many

organizations use at least a half dozen solutions from just as many

vendors. In many cases, their security teams can investigate only half the

security alerts they receive on a given day.

Security Professionals’ Biggest Sources of Concern Related to

Cyber Attacks

• Annual global IP traffic will pass the zettabyte threshold by the end of

2016 and reach 2.3 ZB per year by 2020

• Traffic from wireless and mobile devices will account for 66 per cent of

total IP traffic by 2020

• Wired devices will account for only 34 per cent

• From 2015 to 2020, average broadband speeds will nearly double.

• By 2020, 82 per cent of all consumer Internet traffic globally will be IP

video traffic, up from 70 per cent in 2015

Most Commonly

Observed Malware

Suspicious Windows

binaries and potentially

unwanted applications

(PUAs) topped the list of

web attack methods for

2016 by a significant

margin. Suspicious

Windows binaries deliver

threats such as spyware

and adware. Malicious

browser extensions are

an example of PUAs.

Would you use 50 windows

from different companies?

IP Blocks per Country

Web Blocks by Country

Conclusion

Cisco Chief Security and Trust Officer, John N. Stewart, summarized the

three big issues in this year’s Cybersecurity Report as:

• Security Budgets (too low)

• Disparate Systems (would you use 50 windows from different

companies to build a house?)

• Shortage of Trained Personnel

NEXT >

3) In Depth Focus

3 In Depth Focus

The Ten Trust

Insights

1. Trust in Crisis

Globally, trust in the

institutions of

business, media,

government and

NGOs dropped three

points in 2017. Media

is at all-time lows,

government trust

continues to erode,

and two-thirds of

surveyed countries

are now “distrusters,”

with under 50 per

cent trust

2. Trust inequality

grows

Globally, there is now

a 15-point gap

between the trust

held by the informed

public and that held

by the mass

population—a three-

point increase in the

last year

3. A broken system

Globally, 53 per cent

believe that the

system is not working

for them—it’s unfair,

doesn’t give them

hope for the future

and leaders won’t fix

problems. 32 per cent

are uncertain, and

only 15% agree the

system is working

Edelman Trust Barometer 2017

Key Findings

4. Concerns & fears

Leading the list of

societal concerns and

fears we measured

that are commonly

associated with

populist actions are

corruption; eroding

social values; the

pace of innovation;

globalization and

immigration

5. Failing system +

fears = action

Ten of the 28

surveyed countries

combine an above-

average lack of belief

that the system is

working with multiple

societal fears: France,

Italy, Mexico, South

Africa, Spain, Brazil,

Colombia, the U.K.,

Australia and the U.S.

6. The media echo

chamber

People are nearly four

times more likely to

ignore information

that supports a

position they don’t

believe in; don’t

regularly listen to

those with whom they

often disagree (53 per

cent); and are more

likely to believe

search engines (59

per cent) over human

editors (41 per cent)

7. Peers highly

credible

For the first time, “a

person like yourself”

is as credible a source

for information about

a company as a

technical or academic

expert - continued

(all three at 60%).

Credibility of CEOs is

at an all-time low,

with a 12-point

decline in 12 months

8. Business adds to

fears

53% agree that the

pace of change in

business and industry

is too fast. They

worry about losing

their jobs due to lack

of training or skills

(60%); foreign

competitors (60%);

immigrants who work

for less (58%); jobs

moving to cheaper

markets (55%); and

automation (54%)

9. Expectations for

business high

The three most

important attributes

for building trust in a

company are treating

employees well,

offering high-quality

products and services,

and listening to

customers—and they

matter even more to

those who believe the

system isn’t working.

10. With the people

The trust crisis

demands a new

operating model for

organizations by

which they listen to

all stakeholders;

provide context on

the issues that

challenge their lives;

engage in dialogue

with them; and tap

peers, especially

employees, to lead

communications and

advocacy efforts

Conclusion

The full barometer is on SlideShare at

http://www.slideshare.net/EdelmanInsights/2017-edelman-trust-

barometer-global-results-71035413/4 NEXT >

4) Financial Roundup

4 Financial Roundup

Recently Released Financials

Avaya Q117 – Avaya filed for Chapter 11 bankruptcy in Jan 17.

At its ENGAGE event in Las Vegas CEO Kevin Kennedy only

addressed the issue with Analysts in an unapologetic homily

o Americas 63 (64) per cent

o EMEA 27 (25) per cent

o Asia 10 (11) per cent

Brocade Q117 – Sales up 1 per cent Y on Y but down 12 per cent

sequentially. As Broadcom buys Brocade, it sells the Ruckus

business to Arris

o Channel sales 43 (33) per cent

o International 53 (45) per cent

o OEM 57 (67) per cent

Cisco Q217 – Sales were down 3 per cent Y on Y and 6 per cent

sequentially

o North America 57 (58) per cent



Extreme Q217 – Sales were up 6 per cent Y on Y and up 21 per

cent sequentially




Juniper Q416 – Sales were up 20 per cent Y on Y and up 6 per

cent sequentially




o Service Provider 71 (71) per cent

o Switching 18 (16) per cent

Mitel Q416 – Sales were down 24 per cent Y on Y and down 12

per cent sequentially

o Total Cloud seats 3.09M (1.93M)

Netgear Q416 – Sales were up 2 per cent Y on Y up 9 per cent

sequentially

o Retail 66 (56) per cent

o Commercial 21 (18) per cent

o SP 14 (28) per cent

For further information, please contact:

Keith Humphreys – Managing Consultant at euroLAN – [email protected]

Documents

THE CHANNEL 1 2017 - euroLan Research · 3. In Depth Focus Edelman Trust Barometer 2017 4. Financial Round up Avaya, Brocade, Cisco, Extreme, Juniper, Mitel and Netgear This Service