Contents 1. SLA – Senior Level Advisory – Novabase

2. Key Announcement implications – Huawei Global Connectivity Index

3. In Depth Focus – Microsoft Security Intelligence

4. Financial Round up – Brocade, Ciena, Cisco, DLink,

Extreme 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 |

June 2015

1 SLA – Senior Level Advisory

Key Executives

Luís Paulo Salvado (Chairman)

Pedro Afonso (Head of Infastructures & Managed Services)

Novabase

Over its 26-year history, Novabase has become the Portuguese leader in IT, and has been listed on the Euronext Lisbon stock exchange since 2000. Novabase’s vision is to make life simpler and happier for people and businesses, through technology. Novabase combines its expertise in Engineering and management with human sciences and design to create IT based solutions focused on people.

Sales

Source: Company Information Year end is December

International Business

39.2 per cent (86.5 M€) of Novabase’s total turnover are originated from outside Portugal compared to 72.8 M€ in 2013 in more than 40 countries and 9 different time zones. Novabase has offices in Spain, the United Arab Emirates, Mozambique, Angola, Turkey, the United Kingdom and Portugal.

€ 212.1€ 216.8 € 220.9

€ 18.1

€ 14.9

€ 14.7

£0.00 M

£7.50 M

£15.00 M

£22.50 M

£30.00 M

2012 2013 2014

€ 0.0

€ 50.0

€ 100.0

€ 150.0

€ 200.0

€ 250.0

EB

ITD

A i

n €

M

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n €

M

Revenue and EBITDA

Head Office in

Lisbon

Novabase’s vision

is to make life

simpler and happier

for people and

businesses,

through technology

Focus Areas

Novabase is mainly focused in the Energy, Financial Services, Government, Telecommunications and Transports industries. Its current businesses are Celfocus, Financial Services Business Solutions, Government, Transports and Energy Business Solutions, Infrastructures & Managed Services, IT Contracting and Venture Capital.

2014 Highlights

Novabase has maintained a continuous strategic investment in R&D for innovation and the specialization of its offerings with more than 60M€ invested in the past 6 years. Some of 2014 highlights are a 7M€ investment in solutions development and the opening of a new Delivery and R&D centre in the UPTEC Science and Technology Park’s at Oporto University in the second quarter of 2014, through its subsidiary Celfocus. Additionally Novabase opened its new logistics centre of Novabase Angola, in Talatona, in the first quarter of 2014, to support local operations more efficiently and on a larger scale.

Key vendors

History

Novabase was founded in 1989 as a software-house, specialized in customized development. In 1994, become the first Portuguese company in software development market to be certified to standard NP EN ISO 9001.

Analysis

In 2014, Business Solutions had a team of 1667 consultants, and generated 48 per cent of Novabase’s total turnover and 59 per cent of the total EBITDA.

Infrastructures & Managed Services (IMS) had a workforce of 495 employees in 2014, and generated 50 per cent of Novabase’s turnover and 31 per cent of the total EBITDA with its Managed Services offer accounting for 25 per cent of the total revenue with customers in Portugal, Africa and Europe.

NEXT >

2) Key Announcement Implications

2 Key Announcement Implications

Huawei Global Connectivity Index 2015

The positive impact a Better Connected World can have on any country, socially and economically, is evident and correlates well with the dynamics around supply, demand, experience, and potential of connectivity. In fact, by measuring, analysing, combining, and forecasting multiple connectivity dynamics, not only can a country’s current status of economic health be determined in relation to others, but it can also be predicted. This can be done by calculating a Global Connectivity Index (GCI).

GCI versus GDP per Capita

Western Europe

Singapore has the third highest GCI score at 81 and clearly leads from a GDP per capita perspective. In fact, it is the only leading country that scored above the average of its peers on all the connectivity categories (supply, demand, experience, and potential), as well as all the horizontal attributes. Indeed, Singapore has distanced itself from the rest of the leaders by focusing on a well-balanced ICT investment strategy that earns it a leading GCI score, as well as maximizes its GDP on their GCI.

Download the whole document: http://www.huawei.com/minisite/gci/en/index.html

GCI Performance by Country

Four Mature Countries Performance by Potential Factors

Spain, Italy, Czech Republic, and Portugal are all considered to be mature countries for all intents and purposes, yet these four countries stand separately within the “following” segment from the other mature countries that are positioned well within the “leading” group of countries.

NEXT > 3) In Depth Focus

3 In Depth Focus

The report covers the

period July through to

December 2015 and

uses the following

data sources:

Internet Explorer Windows Malicious Software Removal Tool Windows Defender Windows Safety Scanner Microsoft Security Essentials Exchange Online Protection System Center Endpoint Protection Outlook.com Exchange Online Protection Bing

Microsoft Security Intelligence Report

The article is based on the above report and a presentation given by Tim Rains, Microsoft’s Chief Security Advisor at RSAC London in June.

Industry-wide vulnerability disclosures

Worldwide encounter and infection rates

Top 5 malware families in the EU 4th quarter 2015

The presentation from

the RSAC London and

the Microsoft Security

Intelligence Report

are available on

request

Encounter rates 4th quarter 2015

Lowest ER locations in the EU

Highest ER locations in the EU

NEXT > 4) Financial Roundup

4 Financial Roundup

Recently Released Financials Brocade Q215 – Revenue of $546.6M was up 2 per cent Y on Y but down 5 per cent sequentially. Gross margin was 68 per cent

o OEM 63 (68) per cent o Channel 37 (32) per cent o International 44 (41) per cent o Services 16 (18)per cent o Data Storage 57 (60) per cent o Ethernet 27 (22) per cent

Cisco Q315 – Revenue of $12.1B was up 5 per cent Y on Y and up 2 per cent sequentially. Gross margin was 63 per cent

o US & Canada 60 (58) per cent o EMEAR 26 (27) per cent o AsiaPac 15 (16) per cent

Ciena Q215 – Revenue of $621.6M was up 11 per cent Y on Y and up 17 per cent sequentially. Gross margin was flat at 44 per cent

o North America 64 (67) per cent o EMEA 16 (17) per cent o Car and LATAM 8 (7) per cent o APAC 12 (8) per cent

o Packet Optical Transfer 70 (64) per cent o Packet Optical Switching 9 (12) per cent o CESD 3 (5) per cent o SW and Service 19 (19) per cent

DLink Q115 – Revenue of $217.1M was down 6 per cent Y on Y and down 20 per cent sequentially. Gross margin was 27 per cent

o EMEA 21 (22) per cent o North America 20 (13) per cent o AsiaPac 59 (65) per cent

Extreme Q315 – Revenue of $119.6M was down 16 per cent Y on Y and down 19 per cent sequentially. Gross margin 48 per cent

o EMEA 41 (39) per cent o Americas 49 (52) per cent o AsiaPac 11 (11) per cent

Netgear Q115 – Revenue of $309.2M was down 12 per cent Y on Y and 12 per cent sequentially. Segment breakdown:

o EMEA 29 (31) per cent o Service Provider 37 (44) per cent

For further information, please contact:

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