Contents 1 SLA – Senior Level Advisory – Informática El Corte Inglés Group

2 Key Announcement implications – Hacking the Skills Shortage – Intel Sec

3 In Depth Focus – Vodafone IoT Barometer 2016

4 Financial Round up – Arista, Avaya, Brocade, Cisco, D-Link,

Extreme, Juniper, Mitel and Netgear

THE CHANNEL has been designed specifically for senior-level channel executives. It provides guidance and highly strategic advice on the channels and what senior channel executives should be aware of. It will guide management teams 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 |

August 2016

1 SLA – Senior Level Advisory

H Dimas Gimeno Álvarez El Cortes Ingles Chairman

Telecor is a company specialising in the commercialisation of telecommunications products and services - offers customers (private individuals, the self-employed, SMEs, etc.) an independent multi-operator service that covers the entire range that is currently present in the domestic market. To do so, it has signed agreements with all the telephony operators that exist in Spain, enabling it to advise customers and provide the solutions that best suit their needs

Informática El Corte Inglés Group

Established in March 1988, Informática El Corte Inglés has based its growth on developing its services from its initial mission to distribute IT products and solutions to include consultancy and integration of electronic business systems and solutions.

It is the information and communication technologies sector of the El Corte Inglés group, representing less than 5 per cent of group revenue, and consists of the companies Informática El Corte Inglés, Investrónica and Telecor.

In 2015, Informática El Corte Inglés underwent an internal reorganisation to increase efficiency and improve management systems. This process streamlined working teams and integrated Investrónica into Informática El Corte Inglés, enabling it to optimise this service for clients and strengthen the company's position as a sector leader. Its experience and market knowledge have enabled it to take on major projects for public- and private-sector organisations, in such diverse fields as telecommunications, transport, insurance, and banking.

Business Breakdown

Informática El Corte Inglés is the Group company specialising in integrating solutions and services, technology consultancy services adapted to business, and digital transformation.

It is headquartered in Madrid, Spain and in 2014 employed 2,400 professionals combining business experience with the highest levels of technological knowledge.

€699.67 M€659.97 M

€737.10 M€714.38 M

€41.34 M

€20.54 M

€24.18 M

€14.27 M

£0.00 M

£15.00 M

£30.00 M

£45.00 M

£60.00 M

£75.00 M

2012 2013 2014 2015

€0.00 M

€150.00 M

€300.00 M

€450.00 M

€600.00 M

€750.00 M

€900.00 M

Revenue and Net Profit

Informática El Cortes Ingles Markets

Geographical Coverage

Solutions

Analysis

In order to help its customers address Digital Disruption Informática El Corte Inglés has devised Square comprising Cloud, Social, Big Data and Mobility solutions.

NEXT > 2) Key Announcement Implication

2 Key Announcement Implications

A study of the international shortage in cybersecurity skills

Hacking the Skills Shortage

Intel Security commissioned an independent technology market research specialist to undertake the research upon which this report is based. A total of 775 IT decision makers who are involved in cybersecurity within their organization were interviewed in May 2016.

Key Findings

• Respondents in all countries surveyed said cybersecurity education was deficient. Eighty-two per cent of respondents report a shortage of cybersecurity skills.

• This shortage in cybersecurity skills does direct and measurable damage, according to 71% of respondents. One in three say a shortage of skills makes their organizations more desirable hacking targets. One in four say insufficient cybersecurity staff strength has damaged their organization’s reputation and led directly to the loss of proprietary data through cyberattack.

• High-value skills are in critically short supply, the most scarce being intrusion detection, secure software development, and attack mitigation. These skills are in greater demand than soft skills in communication and collaboration. A majority of respondents (53%) said that the cybersecurity skills shortage is worse than talent deficits in other IT professions.

• About half the companies surveyed prefer a bachelor’s degree in a relevant technical subject as the minimum credential required for entry into the field. The utility of a degree, however, is more in its market signal than its effectiveness in honing cybersecurity skills. Respondents ranked hands-on experience and professional certifications as better ways to acquire cybersecurity skills than a degree. Sixty-eight percent also said that hacking competitions (capture the flag exercises) play a role in developing critical cybersecurity skills within their organization.

• Almost nine out of 10 respondents said that cybersecurity technology could help compensate for skill shortages. More than half (55%) of respondents believe that, in five years, cybersecurity solutions will be able to meet the majority of their organization’s needs. They also say they will respond to in-house talent shortages by expanding their outsourcing of cybersecurity. The solutions most likely to be outsourced are ones that lend themselves to automation and include threat detection (networking monitoring and access management).

• More than three out of four (76%) respondents said their government is not investing enough in building cybersecurity talent, and the same percentage said the laws and regulations for cybersecurity in their country are insufficient. There is a public demand for political leaders to improve cybersecurity legislation.

The size and growth of cybersecurity spending correlates with the size and growth of the cybersecurity workforce and reveals how countries or companies prioritize cybersecurity. The United States government and the financial services industry, as big cybersecurity spenders, are uniquely positioned to pioneer recruitment and development practices for others to emulate. Similarly, the US and Israel, as large exporters of cybersecurity products and services, have established expertise and thus have a head start on improving their workforce. Market reports estimate total annual global cybersecurity spending ranged from $75 billion to more than $100 billion in 2015 and project annual spending

• Countries can change this shortfall in critical cybersecurity skills by increasing government expenditure on education, promoting gaming and technology exercises, and pushing for more cybersecurity programs in higher education.

Around four in 10 respondents listed a bachelor’s degree as the minimum credential for entry-level positions in their organizations, with significant variation among countries. Of the countries studied, France and Germany were more likely to require a master’s degree; 38 per cent and 32 per cent of respondents, respectively, in these countries cite a master’s degree as their minimum credential For a copy of the full Intel Security report please send a request to: info@eurolanresearch.com

Conclusion

A secure cybersecurity environment requires a robust workforce, yet currently there are not enough cybersecurity professionals to adequately defend computer networks. Countries and companies have to act quickly to fix this problem by facilitating the entry of more people into this profession through improvements in education, workforce diversity, training opportunities, security technology, and data collection. These concurrent efforts are vital to defeating cybersecurity threats and creating a more secure network environment.

NEXT > 3) In Depth Focus

3 In Depth Focus

Contributors:

Vodafone IoT Barometer 2016

This study is in it’s fourth year. The research has found that 28 per cent of organisations already use IoT. A further 35 per cent are less than a year away from launching their own projects, and more than three-quarters of businesses say that IoT will be “critical” for the future success of any organisation in their sector.

Executive Summary

1. Bigger commitment produces better results IoT remains a top business focus, and adopters are increasing their investment. Those that make a bigger commitment see better results. • IoT is at the heart of IT Strategies. Adopters assign 24 per cent of the entire IT budget to IoT - on a par with mobile, cloud and analytics. Businesses that allocate more budget and run more projects see stronger ROI. • Interest in IoT is higher than ever. 76 per cent of businesses say that IoT will be “critical” to future success, and 63 per cent expect to have live projects within the next year. • Adopters see strong results. 63 per cent are seeing “significant” return on investment, up from 59 per cent in 2015

2. IoT supports business transformation You can use IoT just to optimise operational processes. But when you build it into your products and use it to transform your business, you’ll see greater results. • IoT is driving transformation. 48 per cent of adopters say they’re using IoT to support large-scale business transformation and 29 per cent say they’re using it to connect multiple organisations into ecosystems • Connected products are the growth area. Top performers are using IoT to create connected products and services. 46 per cent of all adopters plan to launch connected solutions in the next two years. • IoT improves customer experience. 44 per cent of adopters say IoT has enhanced customer or user experience, making it the most popular benefit seen

3. Leaders measure IoT within business processes Most adopters have clear goals, but the top performers are those that treat their IoT initiatives as business projects instead of IT purchases. • IoT produces measurable results. Adopters measure on average a 20 per cent improvement in business indicators like revenue, system uptime, cost and asset utilisation as a result of using IoT • Effective planning is critical. 68 per cent of adopters say they set “clear targets” for their IoT projects - top performers were more likely to have done so. • IoT is a business initiative, not technology. 61 per cent of businesses say they consistently see IoT as an integral part of wider business initiatives

4. IT integration is key to using IoT data effectively Adopters see that IoT applications are a gold mine of data, and are focused on getting that data to the people and applications that need it. • Businesses are integrating IoT with business systems. More than 90 per cent of adopters say they store IoT data in the cloud, use analytics to support decision making, integrate IoT data with core systems like enterprise resource planning (ERP), and use mobile devices to give employees access to IoT data • IoT is all about data. 81 per cent of all businesses say that IoT can only deliver real value if you effectively use the data it generates. • Sharing data is part of ecosystems. More than two-thirds of those that use IoT say they feel safe sharing their IoT data with other organisations.

5. Security needs end-to-end attention Security and privacy can’t be ignored. Most adopters are cautiously optimistic, working with their IoT providers to control the risk. • Organisations are investing widely in improving security. They’re focusing on staff recruitment and training, process improvements and their relationships with providers (see chart, right). • Businesses are cautiously optimistic. While 30 per cent say they have changed or restricted the scope of IoT projects to limit security risks, 75 per cent say that security

1. From “if” to “how”

2. From “technology” to “business outcome”

3. From “caution” to “action”

4. From “optimize” to “engage”

For a copy of the full Vodafone report please send a request to: info@eurolanresearch.com

risks are a fact of life, and more than 60 per cent say they already have the necessary skills, processes and technology to manage IoT security. • Providers have a big role to play. 76 per cent of businesses say that IoT should be secured end-to-end, and 91 per cent say that it’s important for them to work with an end-to-end IoT provider.

The Geographies

The Future

Within the next two years, the majority of businesses will be using IoT. Just adopting IoT will no longer be a differentiator - it’s part of the IT landscape and digital strategy of every business. The decision to take is how best to use it. That may be as a highly visible technology that’s driving service quality, revenue or process efficiency. Or it may be invisible to most employees, as an intrinsic part of the business environment: quietly and autonomously monitoring the health of vehicles, updating digital signage, optimising building systems

IoT will increasingly be treated as indistinguishable from business processes; it will be part of the fabric of the organisation. IoT will be seen as an intrinsic feature of a modern warehouse system, company car fleet or security solution, for example. We expect business-led approaches to procuring and managing IoT - including end-to-end outsourcing - will dominate, in order to drive measurable business results and more effective governance. At the same time, we expect IoT, cloud, mobile and analytics will increasingly be conceived of and purchased together as elements of an integrated solution

IoT may be managed as part of the business, but just like cloud or mobile, it’s still a technology, and cybersecurity will remain a major consideration. Today, IoT security is dominated by fear of the unknown; we expect that this will shift as businesses recognise the value of data and the need to manage it. IoT will be absorbed into overall IT security practices and businesses will invest in actively protecting it as a mission-critical asset

We’re already seeing that IoT applications of all kinds are not only driving operational and process improvements, but having a noticeable impact on the employee and customer experience. As businesses increasingly look at building IoT into their products and services, certain sectors will naturally take the lead in revolutionising how they engage with their customers e.g. automotive (through the connected car) and healthcare (through mhealth)

NEXT > 4) Financial Roundup

4 Financial Roundup

Recently Released Financials

Arista Q216 – Growth of 37 per cent YoY and 11 per cent sequentially. The geographic breakdown:

o US 77 (75) per cent o International 23 (25) per cent

Avaya Q316 – Growth was down 12 per cent YoY and down 2 per cent sequentially. The geographic breakdown:

o US 55 (54) per cent o EMEA 23 (26) per cent o Asia and ROW 22 (20) per cent

Brocade Q316 – Growth of 7 per cent YoY and 13 per cent sequentially. First results including Ruckus Networks

o International 48 (43) per cent o North America 52 (57) per cent

Ciena Q316 – Growth of 11 per cent YoY and 5 per cent sequentially. No change in geographic breakdown

Cisco Q416 – Growth was down 2 per cent YoY but up 5 per cent sequentially. Geographic breakdown was:

o US and Canada 60 (61) per cent o Europe 25 (24) per cent o APAC incl Japan 15 (15) per cent

D-Link Q216 – Growth was down 13 per cent YoY and 6 per cent sequentially. The geographic breakdown:

o EMEA 20 (19) per cent o North America 16 (20) per cent o AsiaPac 64 (61) per cent

Extreme Q416 – Down 7 per cent YoY but up 12 per cent MoM o EMEA 37 (37) per cent o Americas 54 (50) per cent o AsiaPac and LATAM 9 (13) per cent

Juniper Q216 – Down 1 per cent YoY but up 15 per cent sequentially. The geographic breakdown was the same as the same quarter last year

Mitel Q216 – Down 2 per cent YoY. The geographic breakdown: o EMEA 47 (46) per cent o Americas 50 (51) per cent o AsiaPac 4 (9) per cent

Netgear Q216 – Down 8 per cent YoY but flat sequently. The geographical breakdown:

o EMEA 17 (23) per cent o Americas 67 (60) per cent o AsiaPac 16 (17) per cent

For further information, please contact:

Keith Humphreys – Managing Consultant at euroLAN – keith@eurolanresearch.com