Sungard AS Bankruptcy, Verizon Copper Dump Lead Channel News This Week

Just when you thought we'd read the last bankruptcy story.

James Anderson, Senior News Editor

April 5, 2019

4 Min Read
Bankruptcy Court

We’re almost there, folks.

Only four days remain before the Channel Partners Conference & Expo in Las Vegas. I know, I know — we talk about that event quite a bit on this site, but the show is a yearly highlight for us and for much of the IT/telecom channel. There’s something for everyone who attends, whether it be the Business Success Symposium, educational tracks, keynotes from channel gurus like Jay McBain and Janet Schijns or the ever-popular parties on the Strip (*ahem,*  I mean “networking events”).

Wherever you choose to go, you can bet there’ll be no shortage of juicy channel gossip to discuss with your peers. We wrote about two acquisitions, two bankruptcy stories and one major channel program overhaul this week. Take a look below and see what captivates your interest, dear readers. And we shall see you in Vegas.

7. Evolve IP Expands Cloud Communications via Acquisition

The “cloud strategy” company bought a speech analytics provider.

The goal is to improve Evolve IP’s cloud communications services with tools that help users keep track of  their phone calls’ content. Evolve IP noted that businesses and employees with compliance requirements or transcription needs will benefit from the technology. Chief technology officer Scott Kinka suggested that health care, legal and financial verticals fall into those categories.

Read Edward Gately’s story about Evolve IP.

6. Kemp Technologies Acquired by Private-Equity Firm

Kemp Technologies is coming under the ownership of private-equity firm Mill Point Capital.

Kemp, which provides load balancer and application delivery controller (ADC) offerings, will retain its management team following the financially undisclosed transaction. Mill Point has a history of investing in technology and business services companies.

Get details of the acquisition.

5. VMware Embraces Services in Upcoming Channel Program Update

The virtualization giant is realigning its partner program to make it more flexible and accommodating.

The Partner Connect program, which we’ll see in early 2020, centers its three tiers around its “Master Services” competencies. The new structure will reward partners of varying business models, even those who do more services than product transactions.

We also wrote about VeloCloud’s channel growth, which is quite significant. Its reseller channel has grown 230 percent since VMware bought the company in 2017.

Check out what the company’s channel chief had to say about the changes.

4. AT&T Vet to Lead West’s Global Partner Program

Meredith Caram joined West to steer its partner ecosystem.

Caram, a 14-year AT&T veteran, now serves as vice president of global distribution for the conferencing, collaboration and network infrastructure company. The job puts her in charge West’s global channel program.

Caram is well known within AT&T’s partner community. Her last job at AT&T Partner Solutions was assistant vice president of business channel marketing.

Further acquaint yourself with her background.

3. Fusion Connect Says Chapter 11 Bankruptcy Possible

The cloud service provider indicated in its latest 8-K filing that bankruptcy may be its best recourse.

Fusion told the U.S. Securities and Exchange Commission that it may not be able to successfully negotiate with its creditors. We learned that the company has yet to pay $7 million in loans and file its annual report.

Here’s what’s behind the bankruptcy speculation.

2. Verizon to Discontinue Copper in Heavily Populated Areas of the Northeast

More than Verizon 50 wire centers will see their copper facilities replaced by fiber facilities.

The company requested that the Federal Communications Commission (FCC) allow it to retire copper in various East Coast locations. The plan is to… … move its customers onto its fiber-to-the-premises network infrastructure on or after June 28.

Verizon cited fiber’s “resiliency and reliability, especially in inclement weather.”

Read more about why Verizon discontinued the service.

1. Sungard AS to File for Chapter 11 Bankruptcy After ‘Struggling Mightily’

This bankruptcy rumor came true.

Sungard Availability Services (Sungard AS) confirmed that it will file for bankruptcy in May. The company has agreed to the plan with most of its creditors in order to cut two-thirds of its $1.3 billion debt.

The IT recovery services provider follows Windstream, which made the decision to file for chapter 11.

Sungard AS’ senior vice president of global channel sales told us that the restructuring “will not have any impact on the strong partner relationships and alliances that we have built, and will continue to build.”

Read about Sungard’s plans.

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About the Author(s)

James Anderson

Senior News Editor, Channel Futures

James Anderson is a news editor for Channel Futures. He interned with Informa while working toward his degree in journalism from Arizona State University, then joined the company after graduating. He writes about SD-WAN, telecom and cablecos, technology services distributors and carriers. He has served as a moderator for multiple panels at Channel Partners events.

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