Rivals applaud ICM-Servo union
Channel onlookers back decision to put Phoenix-owned businesses back together
Phoenix IT Group’s merger of its two end-user businesses could make it a more potent force in the maintenance market, say rivals.
The London-listed giant used its interim results statement on Monday to reveal it will merge its ICM Business Continuity Services and Servo divisions next April.
A memo was sent from Phoenix chief executive Nick Robinson to staff last Friday, which CRN understands detailed that Servo managing director Andy Jones is stepping down as a result of the revamp. The memo also revealed that the combined unit, which will operate out of 17 UK locations, will be known as ICM.
Phoenix bought ICM in 2007 and immediately cut the firm in two, merging its SME activities with Servo – which it acquired a year earlier – and forming a separate business continuity arm.
It argued that the rise of cloud and virtualisation had blurred the two units’ business models.
Rivals say Phoenix should never have divided ICM and conceded the move could restore the cohesiveness it enjoyed before it was bought.
Colin Meakin, managing director of VAR Concorde Excel Holdings, who left ICM in 2007 after 19 years as group sales and marketing director, said: “It is good to see Phoenix re-combining the businesses, but it is only what the management team of the original ICM did.
“Customers will be less confused dealing with one voice from the enlarged ICM, not to mention the cost savings.”
Terry Hanvey, head of hardware operations at Kalamazoo Reynolds, said: “ICM had a good model before the acquisition. Moving it all back together may give it stability again.”
Phoenix was unable to comment.