FROM THE EDITOR
The market is currently facing one of its greatest challenges right now as the nation
grapples with the COVID-19 pandemic. I have spoken to several partners and
suppliers over the last month and everyone is expressing similar concerns. Although
the Channel has spent the last ve years transitioning to recurring revenues, they are
still very exposed on a number of levels.
Almost everyone has gone through a manic March and April as customers raced to get
sta set up with Remote Working tools at home. ings are starting to get pretty quiet right
now as most of those customers are set up now. New business has fallen o a cli for the
majority and large projects have been either deferred or canceled for the most part. Upgrades are also
being put on hold as customers look to preserve cash where they can.
For those that have high levels of recurring revenues in safe sectors, like public sector, weathering
a short-term blip in sales will be easier. As new enquiries fall away these companies can also furlough
operations and sales sta to protect their position. I’ve spoken to resellers/ suppliers that have put almost
half the company into furlough, others haven’t furloughed any sta because of the perceived loss of
momentum in having people out of the business for long periods and they are using the opportunity to
accelerate product development or further other projects within the business.
ere is no doubt parts of the supplier and aggregator community have stepped up to protect the
Channel where they can. Although the carriers have been slow, those conversations are going on in
the background. e amount of exposure partners have in the leased line space, particularly around
Ethernet where typical contracts are 36 months, is worrying. If liquidations increase we could see
smaller partners struggle or worse.
ere is already talk of the importance of being ready for the recovery, the general consensus is things
will bounce back at a rapid pace. e rate of recovery will be dependent on the length of time we remain
in this lockdown situation. I will be personally trying to reinvigorate the hospitality sector as soon as I
am able. I hope some of you will join me.
Most importantly, I hope you are all managing to stay safe and well.
Enjoy the issue
Publisher David Dungay
T 01322 466018
M 07799 654400
Sales Director Mat Swift
T 01322 466019
M 07919 177099
Area Sales Manager Moh Lalani
T 01322 466016
M 07766 081822
Production Manager Jo Claydon-Smith
T 01732 748064
Managing Director, MAB Jon Benson
Designer Hannah Walsh
T 01322 221144
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