Google Can’t Catch the Wave
Several channel pubs noted the demise of Google Wave, the search giant’s attempt to create an online collaboration tool. I’ve actually used Google Wave in a business setting, and I’m not surprised to see its passing. While innovative, it just didn’t have the feel of a business-class tool in the same since as Microsoft’s Sharepoint. The channel sentiment was best summed up by ChannelWeb’s Kevin McLaughlin noted, “Microsoft partners believe the collaboration parallels between Google Wave and Sharepoint were overblown, but they're nonetheless feeling a frisson of schadenfreude at the demise of the product.”
Redmond Channel Partner’s Jeff Schwartz reports that Google discontinued its collaboration effort simply because Wave never attained a critical mass of users. (Frankly, I don’t recall Google ever getting Wave out of beta.) According to Schwartz’s post, Google will continue to support Wave through the end of the year and incorporate some of its features in other products.
For further reading, check out:
- CRN: Microsoft Partners Dance on Google Wave’s Grave
- Redmond Channel Partner: Google Kills Wave
- MSPmentor: SaaS: Google Discontinues Wave Development
Distribution Leading Economic Recovery
The folks over at the Global Technology Distribution Council (GTDC) recently released tracking numbers showing channel sales through distribution in the second quarter exceeded levels posted in 2008 – the last high water mark for IT spending. Tim Curran, the group’s CEO, asserts that the numbers show distribution is a leading indicator that IT spending is coming back as businesses are spending refreshing aging technologies and investing in new systems that improve productivity and efficiency. As Curran told Dave Courbanou at The VAR Guy, “Distribution continues to be a core part of the IT ecosystem [and] distribution plays a key role in helping VARs integrate new technologies and system into solutions. [So] VARs [are a] key part of the ecosystem [and recovery too].”
No doubt GTDC’s numbers are correct. In fact, I personally checked them out with some of the distributors, and they’re good from a GTDC perspective. However, distributors are reporting that only certain segments are seeing robust improvement. As The VAR Guy noted, “No doubt, numerous distributors say their quarterly revenues are on the rise. But we still wonder if the rising distribution tide is lifting some — or most — solution provider boats.” In my personal blog, Channelnomics, I attributed the GTDC numbers to the growing number of vendors pushing channels and products through distribution to reduce costs. In other words, the GTDC pool got bigger.
CompTIA, SBA Form Education Alliance
This is a pretty big deal: CompTIA and the Small Business Administration have formed an alliance to provide education, tools and resources to entrepreneurs and small businesses to aid the development and growth. As ChannelPro reported, “The SBA and CompTIA will coordinate efforts to support entrepreneurs in the technology and engineering fields, making it easier for start ups and established small businesses alike to access technical experts for business counseling and information about SBA programs.” This alliance is a reflection of the several initiatives CompTIA has underway to support its members and small tech companies. At next week’s Breakaway conference, CompTIA is hosting a channel coaches’ summit that aims to create a network of providers to VARs that need development assistance.
M&A Watch
The biggest deal of the week was Arrow Electronics buying giant unified communications solution provider Shared Technologies. Arrow made the deal to get into the unified communications business. As ChannelWeb’s Scott Campbell reported, “The purchase is a dramatic departure for Arrow, which for years marketed itself as the only enterprise distributor that didn’t sell to end users. But Andy Bryant, president of Arrow Enterprise Computing Solutions, believes that Shared Technologies, which focuses on unified communications and managed services, is a different business model than Arrow’s traditional VAR base.” Shared Technologies suffered through the recession because of its close partnership with Nortel. The company, which was listed as one of Fortune Magazine’s best places to work, made a quick turnaround by adjusting its product lines and diversifying its partnerships.
Texas is becoming the new hotbed for managed services as White Glove Technologies acquired RIATA Technologies to create a $10 million MSP poised for growth. Tommy Wald, a favorite personality in the channel founder of RIATA, will continue as the new company’s CEO. MSPmentor’s John Moore reports on the significance of this deal: “Earlier this year, White Glove purchased Fintan Technologies, a San Antonio-based company. In total, White Glove has purchased five companies in Central and South Texas.” This is a company I’m sure MSPmentor will monitor and add to its MSP100 list.
And, finally, SonicWall CEO Matt Medeiros promises that the security hardware vendor will become more agile and innovative under private equity ownership led by Thoma Bravo. In an interview granted to me on Channel Insider’s Secure Channel blog, Medeiros affirmed SonicWall and Thoma Bravo’s commitment to working with and through the channel. “This is a private equity company that embraces the channel. These guys are saying the channel isn’t big enough and they’re pointing us in the right direction,” he said. The $717 million acquisition of SonicWall ended more than two years of speculation about the company’s fate as rumors swirled about potential buyers and business troubles. Medeiros says SonicWall is strong and will continue to develop products designed to make partners profitable.
Good Reads
Check out these interesting commentaries and analyzes from leading channel journalists.
- Everything Channel, Robert Faletra: Ingram Micro’s Smart Move: Everything Channel’s Bob Faletra praises Ingram’s expansion of its V7 switch line, calling it a reflection of the commoditization of switching technology and the growth that will likely come with cloud computing.
- The VAR Guy, Channel Coaches Working from the CompTIA Playbook?: The VAR Guy takes a look at Channel Coaches Summit hosted by Service Leadership’s Paul Dipple at next week’s CompTIA Breakaway conference.
- ChannelWeb, 2010 Women of the Channel: Everything Channel’s annual list of the most powerful and influential women of the channel continue to evolve. This year’s class includes inductees that span those standing at the top of the channel mountain and those rising through the ranks. It’s worth checking out.
- CompTIA Connect, Brian Sherman: Healthcare IT: Is it Right for You?: Sherman takes a look at the channel opportunities in health care technology and electronic medical records. There’s a lot of opportunity coming from this sector, and it’s time to start thinking about how to get into this market.
That’s the news from Channel-Lands. Let me know what stories you find important by emailing me or posting your comments right here.
