Contents 1. SLA – Senior Level Advisory – Skyscape Cloud Services

2. Key Announcement Implications – Millennials

3. In Depth Focus – Five Priorities for Europe’s Digital Single Market

4. Financial Round up – Alcatel-Lucent, Extreme, Juniper, NetGear and ShoreTel

This Service 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 by

guiding the management team on the impact of competitor announcements, providing insights into the market, by focussing on services sub-segment, value stack, vertical focus and offering Key Director Messages.

THE CHANNEL

| Channel Issues and Advice |

Oct 2015

1 SLA – Senior Level Advisory

Jeffrey Thomas

Chairman

Simon Hansford CEO

William Ginn CFO

Skyscape

Skyscape Cloud Services was founded in 2012 and has data centres in Corsham, Wiltshire as well as Farnborough, Hampshire, where it is headquartered. Skyscape invested £15M to create a ground-breaking Cloud platform, built specifically for, and to address, IT procurement and

security issues of the UK Public Sector.

Financials

Source: Company Financials

Skyscape Cloud Services has an extensive network of over 150 partners to deliver end-to-end solutions to the UK public sector. These partners include major SIs, MSPs, ISVs, developers and consultancies. It generates

40 per cent of its revenues through these partners.

Accreditations and Partnerships

The Skyscape Cloud Alliance comprises QinetiQ (Defence and security),

VMware, Cisco, EMC and Ark Data Centres.

Recent accolades have been “Cloud Provider Innovation of the Year” at the UK IT Industry Awards 2014 and topping the Pathfinder 20 index of the UK's most exciting emerging technology companies. Skyscape has

been named as "One to Watch" in the 2015 Sunday Times Tech Track 100

awards.

£9.95M

NIST Definition of

Cloud Computing

From the above

diagram Skyscape

offers:

Infrastructure-as-

a-Service (IaaS)

Platform-as a-

Service (PaaS)

Software-as-a-

Service (SaaS)

HybridConnect

between Private

and Public Clouds

Skyscape's services are Pan Government

Accredited (PGA) up to IL3 and so suitable for all data at OFFICIAL (including OFFICIAL-SENSITIVE).

Skyscape maintains two

distinct platforms; one of which is natively connected to the internet (Assured OFFICIAL

platform) and the other is only connected to Government networks

(Elevated OFFICIAL platform). Skyscape’s Cross Domain Security Zone service offers

flexible and secure gateways between the lower and higher security platforms. In terms of

Government networks, Skyscape offers connectivity to the PSN, legacy GCF networks, the N3 health network and others.

Earlier this year, Skyscape launched its HybridConnect service for enabling access private and public Clouds for technology, such as Cisco

InterCloud Fabric or VMware vCloud Connector.

Big Data

Hadoop in the Cloud from Skyscape is an implementation of Hadoop built on Skyscape’s secure, assured infrastructure and environments. The service enables organisations to explore the potential of big data

solutions, as well as deploy production-grade environments, without the cost, time and risk traditionally associated with on-premises purchasing, provisioning and configuring of Hadoop infrastructure, platforms and

licenses.

Analysis

Skyscape are running over 40 per cent of all the accredited services on G-

Cloud which is worth £3B per month. Its Cloud platform hosts all of the 24 central government websites, 22 of the 25 Digital Exemplars and Gov.UK.

Using VCE enabled Skyscape to standardise on identical infrastructure in ARK data centres 80 miles apart for resilience and has allowed a hybrid

connection to Cisco’s InterCloud.

The G-Cloud does not allow suppliers to increase contracted prices but

this plays to Skyscape’s strength as it has reduced its prices four times already and believes in passing on its gains in efficiencies.

NEXT > 2) Key Announcement Implications

2 Key Announcement Implications

Graphics in margin

from WSJ/Pew

Research April

2015

Millennials

The 2015 Deloitte Millennial Survey was called Mind the Gaps. The study collected the views of more than 7,800 Millennials representing 29 countries around the globe. All participants were born after 1982, have obtained a college or university degree, are employed fulltime, and

predominantly work in large (100+ employees), private-sector organizations

Fig 1 The ‘Impact gap’: Business meeting expectations on wealth/profit creation, but under-performing on

social advancement, helping employees, etc

Millennials believe business is successfully impacting wealth creation, but is less effective in improving the wellbeing of individuals or providing general social benefit. In comparing purpose—what businesses should do—versus impact—what they are doing—Millennials consider business to

be under-performing by 10 points at improving livelihoods, and under-performing by 12 points on social/environmental benefit.

Fig 2 The ‘Leadership gap’: Generally women have a larger ‘gap’ on all aspects

Men are

significantly more

likely than women

to say “leadership”

was an individual

strength in: Peru

(20 point gap),

Italy (+19),

Germany (+13),

South Korea (+13),

South Africa (+12),

Switzerland (+12),

Japan (+11),

Mexico (+11) and

France (+10)

Fig 3 Large global businesses have less appeal for Millennials in Developed markets, who are also less

inclined to start their own business

In addition to evidence of a “leadership gap,” we also are seeing a gender gap between men and women within the Millennial generation, especially when it comes to their aspirations and attitudes around skills, the

qualities that define leaders and leading organizations, and the desirability of specific industry sectors services.

Fig 4 The ‘Reality gap’: ‘Supply’ of leadership and other core business skills behind perceived level of

employer ‘demand’

This apparent gulf between the skills presented by Millennials upon

graduation and those required by modern business can be partly explained by an assessment of the qualities Millennials believe they brought to the table upon graduation. Millennials say they

were stronger on “soft” attributes such as being professional, hard-working, flexible, and in possession of integrity and maturity.

Millennials believe

that an

organization’s

treatment of its

employees is the

most important

consideration when

deciding if it is a

leader. They then

consider its:

• Overall impact on

society

• Financial

performance

• Record for

creating innovative

products or

services; and

• Whether it has a

well-defined and

meaningful purpose

to which it is true

www.deloitte.com/

MillennialSurvey

Fig 6 Reality gap’ for Leadership widest in Western Europe

Fig 7 How much do generations identify as their generation

The graphic above relate to research from the American Trends Panel – part of the Pew Research Center – and relate to a perception of how

generations categorise themselves. NEXT >

3) In Depth Focus

3 In Depth Focus

The EU has set out

ambitious digital

goals in its vision

for a Digital Single

Market (DSM) and

with good reason.

The EUs Internet

economy

contributes some

€700B a year, or 5

per cent, to GDP

and the high tech

sector employed

almost 8.5 million

people in 2013

(almost 4 per cent

of total

employment)

The next wave of

growth will be

propelled by IoT

which is expected

to contribute

almost €330B of

new revenue in

Europe by 2020

This is abstracted

from a report ETNO

commissioned BCG

to compile

Five Priorities for Europe’s Digital Single Market

Europe has come a long way, and the European Commission’s strategy for achieving a Digital Single Market is headed in the right direction, but

Europe can do more.

Fig 1 IoT will have a big impact across multiple industries in Europe

Fig 2 Perceived advantages of Managed Services

Five topics should

represent digital

policymakers’ top

priorities:

• Ensuring

consistent

standards across

digital services for

consumers and

companies

• Analyzing the

market structure

with regard to

optimum invest-

ment and growth

• Adapting

wholesale market

regulations to drive

investments in

next-generation

access (NGA)

• Modernizing

spectrum policy to

cover accelerated

demand

• Enabling

specialized services

with guaranteed

network quality

needs

Fig 3 Few European companies in the Top 10 in major digital segments

Fig 4 Multiple requirements to be addressed for Digital Transformations in Europe

The wholesale telecommunications market has undergone radical change;

wholesale market policy and regulation need rethinking. There is strong evidence that the existing policy and regulatory framework has not led to the levels of investment needed to advance Europe’s digital infrastructure.

4 Financial Roundup

Recently Released Financials

Alcatel-Lucent Q315 – down 6 per cent Y on Y and down 1 per cent sequentially

o Core Networking 44 (41) per cent o Access 52 (47) per cent

o Other 4 (12) per cent Extreme Q115 – down 9 per cent Y on Y and down 17 per cent

sequentially o Americas 54 (48) per cent o Europe 37 (40) per cent o Asia 9 (12) per cent

Juniper Q415 –up 11 per cent Y on Y and up 2 per cent

sequentially - EMEA had second best ever results at $355M o Americas 57 (60) per cent o Europe 28 (26) per cent

o Asia 15 (14) per cent

o Service Provider 64 (66) per cent

o Enterprise 36 (34) per cent

NetGear Q315 – down 3 per cent Y on Y and up 18 per cent

sequentially o Americas 64 (55) per cent o EMEA 23 (31) per cent o AsiaPac 13 (14) per cent

o Business 25 (22) per cent

o Consumer 75 (78) per cent

ShoreTel Q116 – flat Y on Y and up 2 per cent sequentially. Recurring revenue is up to 51 per cent this quarter

o International 7 (8) per cent

o North America 93 (92) per cent

o Recurring revenue 51 (39) per cent

For Further Information, Please Contact:

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