Contents 1. SLA – Senior Level Advisory – Claranet

2. Key Announcement implications – Business Security: Always a Journey…

3. In Depth Focus – McAfee Labs 2018 Threats Predictions Report

4. Financial Rou nd up – Avaya, Brocade, Ciena, Cisco, D-Link, Mitel, Nutanix

and Symantec

This Service has been designed specifically for Senior level Channel executives. It provides guidance

and highly strategic advice on the channels focussing on the issues of which Senior Channel Executives

should be aware. It will guide the management team 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 |

Dec 2017

1 SLA – Senior Level Advisory

Charles Nasser

Founder and CEO

Nigel Fairhurst, CFO

Andy Wilton

CIO

Claranet

Charles Nassar moved to England from Paris when he was 17 and used

his own money as well as funding from friends and family to start

Claranet in 1996. The original mission was to offer easy access to the

internet. It now employs over 1,800 staff with operations in 8 countries

Financials

Source: Company Financial Results Year end: 30 June

Geographical Footprint

Claranet provides

network, hosting and

managed application

services in the UK,

France, Germany, The

Netherlands, Portugal,

Spain, Italy and

Brazil. Claranet has

grown its business

through a number of

acquisitions, including

Netscalibur in 2003,

via net.works uk in

2004, Amen Group, in

2005, Star Technology

in 2012 and Oxalide in

France in 2017

£125.9 M£133.3 M

£152.5 M

£216.5 M

£23.0 M £24.0 M

£29.4 M

£38.7 M

€0.00 M

€50.00 M

€100.00 M

2014 2015 2016 2017

£0.0 M

£50.0 M

£100.0 M

£150.0 M

£200.0 M

£250.0 M

Ad

j E

BIT

DA

in

£M

Re

ve

nu

e i

n £

M

Revenue and Adj EBITDA

Michel Roberts

MD Claranet UK

Key Capabilities

and Customers

Cloud Premier Partner

status with Amazon

Web Services, Google,

Microsoft and

VMWare

ITV, Missguided,

Channel 5’s Big

Brother

Hosting

Peugeot, Unicef, WPA

Networks MPLS

Pets at Home, Harvey

Nichols, River Island

Communications UC includes MS 365

Penlon, Robinsons

Relocation and Vol

Security

Penetration and

Vulnerability Testing,

Web and Email

Security, and IT

Security Training

Santander, Sky Bet

and Kier

Acquisitions

Partnerships

For partners Claranet offers a collaborative partnership (a blended

offering), a referral partnership (paying commission at the rate of 5 per

cent of the annual contract amount) and a wholesale partnership

(reseller/dealer agreement). Claranet is one of a few MSPs which hold a

strategic partnership with AWS, Google, VMware and Microsoft

Conclusion

By encompassing Public Cloud, DevOps, Security and Big Data Claranet is

helping customers in Digital Transformation and facilitating partners to

guide their customers through the journey.

Claranet is diversifying from Managed Services via recent acquisitions. It

added DevOps and cloud specialist Oxalide in France and, in the UK,

security and penetration testing via Sec-1. Sec-1 is one of two

WatchGuard Platinum Partners in the UK and is also a Juniper partner.

Claranet SOHO is aimed at smaller businesses and euroLAN have been

customers since it acquired World Wide Web Services via VIA Networks.

NEXT > 2) Key Announcement Implications

2 Key Announcement Implication

Business Security: Always a Journey, Never a Destination

Executive Summary

Businesses face an unprecedented set of information security risks in

2017. Not only are companies suffering a growing number of data

breaches, but also the compliance risks are mounting. Organizations must

address cybersecurity and privacy, not just because they face financial

and reputational fallout if they don’t, but also because regulators can

penalize them for inadequate protection.

Against this backdrop, NTT Security interviewed 1,350 decision makers in

businesses across the globe to find out how they viewed information

security risk, and what they were doing to mitigate it. We asked questions

ranging from their awareness of compliance issues to how securely they

stored their data. This year’s NTT Security report featured questions in

several key areas, including where data was physically stored, the impact

of new compliance requirements, and how well businesses communicated

information security policies to staff. It broadens an already

comprehensive picture of global cybersecurity preparedness.

The results from the research are mixed. On the one hand, companies are

making headway in the fight to secure their data. They are showing

improvements in key areas, such as storing data securely, investing in

cybersecurity measures and cyber insurance. On the other hand, there

are several gaping holes in other aspects of cybersecurity preparedness.

Companies are unaware of how or even whether security-related

regulations affect them, and are still behind in the creation and com-

munication of information security policies. As the stakes rise for

businesses in Europe and beyond, with the impending General Data

Protection Regulation (GDPR) they must bite the bullet and invest

in cybersecurity. This isn’t simply a financial exercise. It also takes an

inspired and engaged workforce to create a cultural shift within the

organization. Cybersecurity is a journey, not a destination.

GDPR’s requirements, far too numerous to list in their entirety,

include:

• Individuals’ rights to gain access to data stored about them, to transfer

it to a third party, and to have it deleted

• Individuals’ rights to complain about how their data is being processed,

and to restrict its use

• A requirement to report data breaches and a description of the

measures taken to regulatory authorities within member states, and in

some cases to the individuals affected

• Appointing a Data Protection Officer responsible for overseeing privacy

within the organization

• Adopting ‘privacy by design’ to show that businesses have adopted data

protection techniques within their information processing systems

A copy of the report,

with all the sections,

is available from

euroLAN

Flying Blind on Compliance Requirements

The research conducted by NTT Security suggests that many companies

are still unaware of how much emerging security-related regulations will

affect them. A common misconception of GDPR is that it only affects EU

companies. This is inaccurate. It affects any company that processes

data about EU citizens, and promises to have a profound effect on

organizations across the globe.

Small Gains in Secure Data Storage

Data management and storage is a particularly important issue under

GDPR. One key piece of advice from the UK Information Commissioner’s

Office (ICO) is for organizations to map their data assets so that they

know what they are dealing with

Investing in Security

This lack of visibility isn’t creating as much concern as onlookers might

expect. Companies aren’t acknowledging information security enough in

their risk assessments. In 2015, almost one in five decision maker

respondents (18 per cent) considered poor information security to be the

single biggest risk to their business. In 2017, that number fell to one in

eight (12 per cent) and took fifth place, behind losing market share to

increasing global competition, eroding profits and unskilled employees

Assessing the Risk

Respondents to the survey didn’t seem to feel safer. 57 per cent of them

believe a data breach is inevitable at some point. If and when it happens,

the impact will be two-fold: companies expect news of a breach to affect

their longer-term ability to do business, and also to have a more direct

short-term financial impact

Conclusion

Businesses are making some advances in cybersecurity. They are

investing more in securing their infrastructure, and more of them are

storing data securely than in the past. They believe that they can recover

more quickly from data breaches, and do so with a smaller impact

on their revenues. Nevertheless, there are some significant chasms to

cross. Companies are still not raising cybersecurity as a board-level issue

as much as they could, and they are failing to get employees on board by

creating and communicating information security policies properly. And

they understand that failure to patch and upgrade systems makes it

difficult for them to get financial protection in the event of a data breach.

Perhaps the biggest risk of all is regulatory. Until now, companies that left

gaps in their information security strategies could simply take the risk of

compromise, and then cope with the problem if it arose. From 25 May

2018, they face a burden of proof. Should regulators come calling,

businesses must show that they have taken adequate measures under the

GDPR rules to protect their data. If they haven’t, the penalties will be

swift, and severe. Now is the time to address these issues and comply.

NEXT > 3) In Depth Focus

3 In Depth Focus

ML Anti-virus against

ML inspired attacks

Total ransomware

grew 56 per cent in

the past four quarters

Recent Event

McAfee interviewed

the actors behind

ransomware

campaigns. One of the

interesting findings

was cybercriminals

seemed to have a

sense of absolute

safety when

conducting criminal

McAfee Labs 2018 Threats Predictions Report

Overview

In the McAfee Labs 2018 Threats Predictions Report finds us in a highly

volatile stage of cybersecurity, with new devices, new risks, and new

threats appearing every day. Having polled thought leaders from McAfee

Labs and the Office of the CTO it offers their views on a wide range of

threats, including machine learning, ransomware, serverless apps, and

privacy issues

The Adversarial Machine Learning Arms Race Revs Up

The rapid growth and damaging effects of new cyberthreats demand

defenses that can detect new threats at machine speeds, increasing the

emphasis on machine learning as a valuable security component.

Unfortunately, machines will work for anyone, fueling an arms race in

machine-supported actions from defenders and attackers. Human-machine

teaming has tremendous potential to swing the advantage back to the

defenders, and our job during the next few years is to make that happen.

To do that, we will have to protect machine detection and correction

models from disruption, while continuing to advance our defensive

capabilities faster than our adversaries can ramp up their attacks.

Ransomware Pivots to New Targets, New Objectives

The profitability of traditional ransomware campaigns will decline as vendor

defenses, user education, and industry strategies improve to counter them.

Attackers will target less traditional, more profitable ransomware targets,

including high net-worth individuals, connected devices, and businesses.

This pivot from the traditional will see ransomware technologies applied

beyond the objective of extorting individuals, to cyber sabotage and

disruption of organizations. The drive among adversaries for greater

damage, disruption, and the threat of greater financial impact will not only

spawn new variations of cybercrime “business models,” but also begin to

seriously drive the cyber insurance market.

Serverless Apps: New Opportunities for Friend and Foe

Serverless apps can save time and reduce costs, but they can also increase

the attack surface by introducing privilege escalation, application

dependencies, and the vulnerable transfer of data across networks.

Serverless apps enable greater granularity, such as faster billing for

services. But they are vulnerable to attacks exploiting privilege escalation

and application dependencies. They are also vulnerable to attacks on data

in transit across a network. Function development and deployment

processes must include the necessary security processes, and traffic that is

appropriately protected by VPNs or encryption.

operations.

Cybercrime is an area

of crime like no other,

perceived as low-risk

with high returns,

which contributes

greatly to its rapid

growth.

This month (Dec

2017), with the arrest

of individuals

suspected of infecting

computer systems by

spreading the CTB

Locker malware, a

clear message has

been sent—

involvement in

cybercrime is not

zero-risk.as one of

the top

CTB Locker, also

known as Critroni, is

known as one of the

largest ransomware

families—helping to

drive a new

ransomware surge of

165 percent in 2015

as one of the top three ransomware

families, and earning

a spot as No. 1 just a

year later. Operation

Tovar, in which law

enforcement agencies

took down the

infrastructure

responsible for

spreading Crypto-

Locker, created a

need for more

malware—CTB Locker

and CryptoWall

malware families

helped to fill the gap.

New ransomware families discovered in 2017. On average, 20%‒30% per month of new samples are based on Hidden Tear ransomware code. Source: McAfee Labs

When Your Home Becomes the Ultimate Storefront

As connected devices fill your house, companies will have powerful

incentives to observe what you are doing in your home, and probably learn

more than you want to share. In 2018 McAfee predicts more examples of

corporations exploring new ways to capture that data. They will consider

the fines of getting caught to be the cost of doing business and change the

Ts+Cs on products or services to cover their lapses and liabilities. It’s more

difficult to protect yourself from these issues, and the next year will see a

significant increase in breaches and discoveries of corporate malfeasance.

Inside Your Child’s Digital Backpack

Perhaps the most vulnerable in this changing world are our children.

Although they face an amazing future of gadgets, services, and

experiences, they also face tremendous risks to their privacy. We need to

teach them how to pack their digital backpacks so that they can make the

most of this future. The world is becoming very public, and though many of

us seem to be OK with that, the consequences of an ill-considered post or

thoughtless online activity can be life altering for years to come.

Conclusion

In the corporate world, McAfee predicts that the May 2018 implementation

of the European Union’s General Data Protection Regulation (GDPR) could

play an important role in setting ground rules on the handling of both

consumer data and user-generated content in the years to come. The new

regulatory regime impacts companies that either have a business presence

in EU countries, or process the personal data of EU residents, meaning that

companies from around the world will be compelled to adjust the way in

which they process, store, and protect customers’ personal data. Forward-

looking businesses can leverage this to set best practices that benefit

customers using consumer appliances, content-generating app platforms,

and the online cloud-based services behind them. NEXT >

4) Financial Roundup

4 Financial Roundup

Recently Released Financials

Avaya Q417 – Revenue down 7 per cent Y on Y but up 1 per cent

sequentially. EMEA was the only non-gaining geo

o North America 56 (52) per cent

o EMEA 24 (29) per cent

o AsiaPac 11 (10) per cent

o ROW 9 (9) per cent

Ciena Q417 – Ciena revenue was up 4 per cent Y on Y and up 2

per cent sequentially. The high profit was due to a reversal of a

deferred tax asset valuation allowance

o North America 59 (65) per cent

o EMEA 15 (16) per cent

o Car and LATAM 6 (6) per cent

o AsiaPac 20 (13) per cent

o Packet Optical Transfer 68 (68) per cent

o Packet Optical Switching 12 (10) per cent

o CESD 0 (1) per cent

o SW and Services 20 (21) per cent

Cisco Q118 – Cisco revenue was down 2 per cent Y on Y and flat

sequentially. Categories are new this quarter:

o Infrastructure Platforms 57 per cent

o Applications 10 per cent

o Security 5 per cent

o Other Products 2 per cent

o Services 25 per cent

D-Link Q317 – down 11 per cent Y on Y but up 5 per cent Q on Q

o EMEA 20 (50) per cent

o Americas 52 (46) per cent

o Asia 4 (4) per cent

Mitel Q317 – up 13 per cent Y on Y and up 23 per cent Q on Q

o EMEA 21 (20) per cent

o Americas 13 (14) per cent

o Asia 66 (66) per cent

Nutanix Q118 – Nutanix revenue was up 65 per cent Y on Y and

up 22 per cent sequentially. Software is 44 per cent and service

is 30 per cent

o EMEA 14 (15) per cent

o North America 68 (64) per cent

o AsiaPac 27 (16) per cent

o Car and LATAM 2 (8) per cent

Symantec Q217 Symantec revenue was down 17 per cent Y on Y

but up 6 per cent sequentially

For Further Information, Please Contact:

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