Monday Morning Impact – July 16

Report: SMBs Still Feel Unprepared for Cyberattacks

Webroot, a Broomfield, Colorado-based cybersecurity company, has issued a new market research report that found that while SMBs in the U.S., U.K., and Australia are taking cybersecurity seriously, 79 percent say they aren’t completely ready to manage IT security and protect against threats.

The global report, entitled “Webroot SMB Cybersecurity Preparedness,” found that phishing has displaced new forms of malware globally as the No. 1 attack. Fear of phishing is up from No. 3 last year, with new forms of malware dropping to No. 6, behind DDoS attacks and mobile attacks.

Post WannaCry, ransomware also rose from the fifth most susceptible attack to third globally – and topped the charts to reach No. 1 in the U.K.

U.S.-based IT decision makers think their business will be most susceptible to phishing threats (56 percent), while the U.K. fears ransomware attacks (44 percent) and Australia DNS attacks (52 percent). Meanwhile, SMBs in the U.K. are significantly less concerned about DDoS attacks (17 percent) than the U.S. (52 percent) and Australia (49 percent). Australian businesses view insider threats as a bigger concern than in other regions surveyed (32 percent in Australia vs. 25 percent globally). In addition, U.S. respondents are more concerned about new forms of malware infections (37 percent) than the UK (32 percent) or Australia (34 percent).

Although almost all respondents train employees on cybersecurity best practices, that figure drops to half or a third when asked about training “continuously,” which Webroot says is vital for effectiveness. Businesses in the U.S. (54 percent) are more likely to offer continuous training to employees than those in the U.K. (31 percent) or Australia (32 percent). U.K. businesses (26 percent) are more likely to only conduct security training after a data breach takes place compared to those in the U.S. (9 percent) or Australia (19 percent).

Compared to last year, SMBs feeling “very confident” their business is “completely ready to manage IT security and protect against threats” dropped from 48 percent to 21 percent globally.

The survey was conducted among 600 IT decision makers at small to medium-sized businesses with 100 to 499 employees in three countries: the U.S., U.K., and Australia, between March 15 and March 26, 2018.

Channel Impact^®
While security has gained substantial traction on the needs list of IT decision makers, the data demonstrate substantial opportunities for channel partners.

Synnex’ Concentrix Division Announces Acquisition of Convergys

Synnex Corporation (NYSE: SNX) and Convergys have reached an agreement through which Synnex would acquire Convergys, and integrate it with Concentrix, a wholly-owned subsidiary and top global provider of customer engagement CRM BPO services.

This transaction is expected to accelerate Concentrix’ industry position and create a premier global services company. It also enables Concentrix to strengthen its profile in the delivery of high-value services to a strong, diverse client portfolio while bringing together a skilled global talent pool and extending geographic reach.

The disclosed price is approximately $2.43 billion, or $26.50 per share, which includes $13.25 per share in cash and 0.1193 Synnex common shares for each share of Convergys common stock, subject to a two-way collar.

“This transaction is expected to enhance our earning potential while continuing our strategy of investing in high-value services,” said Synnex CEO Dennis Polk. “Following this acquisition, we expect to have a solid leadership position in Technology Solutions and Concentrix businesses, with a more balanced adjusted EBITDA contribution.”

“The pace of change in customer experience requires constant innovation and service transformation, delivered globally, at scale,” said Chris Caldwell, President of Concentrix. “Following this acquisition, we believe Convergys will add an amazing team with additional subject matter expertise, thought leadership and innovative execution that will benefit clients.”

The transaction is expected to close by the end of the 2018 calendar year, subject to the approval of shareholders of both companies, regulatory requirements, and customary closing conditions.

Channel Impact^®
Services have become a strong component in the profitability of distributors, many of which are constantly on the lookout for opportunities similar to this one.

Aerohive Announces Global Partnership with Juniper Networks

Aerohive Networks of Milpitas, California has engaged a global partnership with Juniper Networks to sell Aerohive’s Cloud Managed Wi-Fi solution, including its new family of 802.11ax access points and its HiveManager Cloud Management platform. Additionally, Juniper Sky Enterprise, Juniper’s cloud network management solution, has already been integrated at the time of this announcement with Aerohive’s HiveManager using APIs to simplify management of the joint solution.

“We are proud to expand our strategic partnership with Juniper that enables Juniper to sell Aerohive technology through their global sales force and channel partners,” said David Flynn, chief executive officer, Aerohive Networks. “This partnership will be a force multiplier for Aerohive that significantly extends our ability to showcase our public, private and portable cloud management architecture and industry-leading access points to Juniper’s customers.”

“Many enterprise customers are asking for a single solution to help simplify their access network installation, configuration, and operation,” said Michael Bushong, vice president of cloud and enterprise, Juniper Networks. “Juniper’s expanded relationship with Aerohive provides our customers an integrated wired and wireless solution that delivers a simple, flexible, cloud-managed solution.”

Channel Impact^®
This alliance will likely stimulate increased joint sales that can benefit the vendors as well as their channel partners and the end customers they share.