NETHERLANDS
ENTERPRISE NEWS
Winning IBm may cut channel support
EUROPE
speaking with analysts, said: “We have “With an $85bn (€54.74bn) spend base, we have
good results because we can deliver a lot of opportunity to take out cost and expense
A CONFIDENT IBM started the specific value propositions to our and drive productivity across our business, so we’ve
year with 11% revenue growth and customers. For example, offerings set aggressive targets to reduce spending for our
believes its business model is right. that save cost and conserve capital infrastructure organizations. This includes support
First-quarter profit rose 26% from a have moved up the prioritization list functions like HR, finance, and legal, and business
year ago - it had strong sales in its of our clients. Growth also remains enablement functions such as sales support, supply
global services division and across strong in the emerging markets, and chain support, and administrative support. We’re
all its major geographic areas. we’re focused on building out the using these savings to fund investments in growth
IBM earned $2.32bn (€1.49bn) infrastructures in these countries. markets and sales efforts, as well as contribute
on $24.5bn (€15.76bn) in revenue, “Our growth in Europe was to our margin expansion, so it’s a pretty effective
compared with $1.84bn (€1.18bn) on consistent with performance over equation.”
revenue of $22bn (€14.16bn) in the the last few quarters, reflecting a
www.IBm.com
same period a year ago. The results moderate IT spend environment.
were better than expected. Gross “Demand in the growth markets is
OUR ANALySIS
margins as a percentage of revenue rose to 41.5% dominated by infrastructure build-out projects in
from 40.2% a year ago. Global services remained telco, banking, and retail. We formed a new growth No surprises here - IBM’s SMB grew just 3% - and
IBM’s top revenue generator, with total sales of markets organization and management structure that mainly in the emerging areas. It would need
$14.6bn (€9.39bn), up 17% from the year-ago quarter. to make the most of this opportunity. This the channel to grow here, and while it is doing
New services contract booking in the quarter quarter, revenue from the countries in our growth well elsewhere, it doesn’t need partners. In storage,
totaled $10.8bn (€6.95bn). Software also proved markets unit was up 11% at constant currency and with revenue up 10% year to year, it gained share,
to be an area of strength for IBM, as the division represented about 17% of IBM’s revenue.” though we don’t know how much of this was
recorded sales of $4.8bn (€3.09bn), a 14% increase The analyst’s briefing was notable for no indirect. We await the structure of IBM’s channel
over last year’s first quarter. mention at all of channels, partners or indirect after the Cognos acquisition.
Mark Loughridge (above) - CFO and SVP, models- in fact support may be facing cuts:
Innovator outsources basics
Waste partners wanted
FINLAND
RUSSIA SWEDEN
Highlighting the SEVANA Oy is looking for partners to expand
FINLAND
deal’s benefits to and further develop its Recycling Materials
ENFO and Tekes have struck a new cooperation Enfo, the company’s Management System, a fully customized,
deal to develop better technology solutions for Sales Manager, low cost and completely integrated business
Tekes. Under the five-year agreement Finnish Pekka Huttunen, automation solution for waste management and
service provider Enfo will provide Tekes, the Finnish says: “Tekes is an recycling companies. Initially Recycling Materials
Funding Agency for Technology and Innovation an organisation with Management System was developed as a custom
innovation and development centre, all its basic IT a strong position solution for an EU-based company working in the
technology requirements. in the public eye, field of recycling and waste management.
Enfo is an IT service company operating in which helps other Finnish companies to achieve Due to new regulations for Green Dot
Finland, Sweden and Russia. The 700-strong firm better international visibility.” companies the company faced challenges
provides outsourcing, infrastructure solutions, Under the deal Enfo will be responsible for continuing working within the same (mostly
integration and communication solutions. The the maintenance and running of Tekes’ 360 manual) approach to support its business processes.
company also offers information migration workstations, and the management of the The growing backlog produced a need for a
services. Tekes is a Finnish financer of industrial, company’s internal web and mobile hardware. solution that would automate work with reports
university and research institute R&D projects. The Harri Eskola says that Enfo will also be in charge of delivered to the supervising organizations, and
agency company has 360 members of staff and developing new basic technology solutions: “When reports provided by the customers.
Harri Eskola says that Tekes has one of the most developing new solutions and services for our IT The implemented solution is able to import
exciting cutting edge IT environments in Finland. users, as an innovator, we don’t have the time to customer reporting into database system,
He says: “Our modern IT facilities offer Enfo both a focus on basic technology solutions. Therefore we customers have an opportunity to submit recycling
challenge and an opportunity.” expect the service provider [Enfo] to acquire an reports through a browser interface. All actions
Commenting on the deal Tekes’ Chief active role in new solutions.” are tracked in the database, issuing invoices is
Information Officer, Harri Eskola (right), tells IT The deal, which has been signed for a maximum automated and done via e-mail. Reporting is
Europa: “We are delegating the responsibility of time of five years, is not the first of the two flexible and can be done on a customer basis,
our basic technology requirements to Enfo while partnerships. Pekka Huttunen says: “This will be the according to materials with pre-selected and
we focus on innovation and development.” third collaboration with Enfo.”
www.tekes.fi variable reporting periods.
www.sevana.fi
02 mAy 2008 5
It0808 - 4-7_enterprise_news.ind5 5 2008-04-30 12:18
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