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Nuzoo week in review

Oracle and Salesforce’s layoffs

Channel Futures reports that Oracle has pink-slipped hundreds of employees in the latest round of layoffs by the database management company.

In addition, Salesforce reportedly laid off workers recently and has implemented a hiring freeze through January. Oracle and Salesforce join Intel and 8×8 as the latest channel businesses to cut workers.

In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, Oracle said it cut 201 workers from its Redwood Shores campus in the San Francisco Bay Area.

Also this month, Salesforce reportedly has laid off a number of workers and implemented a new hiring freeze through January 2023, according to Protocol. Its sources said it appeared to be at least 90 employees. In addition, it seemed to largely impact contract workers as opposed to full-time employees.


Extreme Networks kit sold to Russia

Extreme Networks believes that its products were being shipped to “bad actors” in Russia and that an IT distributor was involved.

The networking giant unwittingly supplied equipment used in MMZ Avangard’s office IT systems, a state-owned firm that makes missiles for one of Russia’s most sophisticated weapons, according to a U.S. Securities and Exchange Commission filing by Extreme Networks Wednesday.

Extreme said that it was supplied with information by Reuters of the sales to the sanctioned company that included emails, business records and interviews with people familiar with the matter.

Extreme, for its part, told Reuters that its equipment was sold without its knowledge and that MMZ Avangard was an “indirect customer” of another networking business that the company acquired in July 2017. Extreme Networks acquired Avaya’s networking business for $100 million during that time.

Extreme Networks reported the findings of its own review to U.S. authorities.


IFS’ channel growth

 Software vendor IFS is on track to hit 40% channel sales in 2023, four years after switching from an almost entirely direct model.

Global channel leader Merlin Knott said when he joined the firm in 2019, the contribution from partners was just 2%. Speaking at IFS Unleashed in Miami, Knott said CEO Darren Roos tasked him with ensuring channel growth.

“He said, ‘We need to have engagements with people who are going to go to market, who are going to find business, who are going to sell, who are going to be able to demonstrate the solutions and then execute on them.’ And that’s pretty much the journey we’ve been on for the last four years,” explained Knott.

During the event, Roos noted that while the firm’s software business has tripled in the last four years, its in-house consulting business has remained the same size.

The firm was also helped by a glut of talent in the market leaving the likes of Oracle and SAP when IFS launched its recruitment drive.


IBM’s appeal to partners

IBM has decreased the number of direct customers from about 5,000 in 2020 to about 400, CEO Arvind Krishna’s told a CRN event last Monday. And the tech giant plans to leave potential new clients to partners.

“I want to increase the number of clients, also, not just wallet share,” Krishna said. “That means that we need your help. We are not going to go there directly at all.”

The CEO IBM discussed his company’s investment in partners, the integration of subsidiary Red Hat, encouraged partners to raise their prices given the inflationary economic environment and even weighed in on chipmaker Broadcom‘s pending acquisition of cloud vendor VMware at CRN parent The Channel Company’s 2022 XChange Best of Breed (BoB) conference in Atlanta.

Author: Christine Horton

Publish Date: 17/10/2022 11:49

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