7 controversial stories that shook the UK IT channel in 2022
Controversy reigned in 2022 as the channel was subjected to contentious vendor takeovers, unpopular partner programme overhauls and the introduction of polarising new working practices such as the four-day week.
Here we count down, in order of magnitude, the seven most controversial stories that ruffled feathers in the UK channel over the last 12 months.
7) Microsoft binning MPN
What happened?
The world waved farewell to the Microsoft Partner Network (MPN) on 3 October as the shiny new Microsoft Cloud Partner Program went live.
In what is arguably the biggest partner programme shake up by any vendor in recent history, Microsoft ditched MPN - along with its historic Gold and Silver badges - amid a flurry of changes to how it categorises and rewards its 400,000 partners globally. The move was first announced in March.
Why was it controversial?
Microsoft claimed the change would align its partners' "go-to-market motions" with the way customers buy in today's market. And after a 15-year run, MPN did seem a tad stale.
But it wasn't a universally popular move, with some partners even signing a petition campaigning against its introduction.
Becoming a Solutions Partner in the new regime would be "impossible" for most partners to achieve because the new points-based scoring system is unduly biased towards new sales, the petition claimed.
"Microsoft's objective is and always will be to cut down the 400,000 loyal partners," it stated.
Others felt that the programme overhaul came to soon on the heels of the launch of Microsoft's New Commerce Experience, which left partners taking on the financial risk of their customers if they were no longer to pay the rest of their Office 365 subscription.
Controversy rating: 7/10
7 controversial stories that shook the UK IT channel in 2022
6) Advent of the 4-day week
What happened?
The 4-day working week became a reality for many businesses in 2022 as the UK embarked on the world's biggest ever trial of the concept in June.
Reseller Highgate IT Solutions was among the firms in our industry to take the plunge with a six-month pilot launched in April. The dream for firms involved is to achieve a ‘100-80-100' ratio, whereby staff are paid 100 per cent for working 80 per cent of the time, while maintaining 100 per cent productivity.
Why was it controversial?
Despite its mooted benefits, the 4DW proved a polarising topic for the channel, with many insisting that a shorter working week for vendors, distributors and resellers doesn't match up with customer needs.
"People I have mentioned it to aren't considering this as an option yet," recruitment boss Marc Sumner told CRN in June.
"They are worried that the customer experience would be negatively impacted. Customer requirements/demand doesn't necessarily fit neatly into a four-day window and most businesses aren't in a situation where they can afford to leave a customer waiting until the right person is back working to resolve any of their issues."
Highgate permanently adopted the model in November, however. Sales director Bob Sahota said results of its six-month trial "exceeded anything we could ever have imagined".
"Commercially, we saw performance and productivity increase, including several individual and team personal bests being registered throughout the trial. We also experienced zero negative cases from our clients. However, it was the impact on employee wellbeing that stole the show," he said.
Controversy rating: 7/10
7 controversial stories that shook the UK IT channel in 2022
5) Vendor price rises, including IBM's 24 per cent hike
What happened?
Following a similar announcement by Microsoft earlier in the year, IBM last month fessed up that it will be adjusting prices in select currencies in January 2023 for all Passport Advantage Perpetual, Subscription License, Monthly License, Fixed Term Licenses, Appliances, and SaaS Products.
Customers in the UK, as well as across the eurozone and several other countries, face rises of 24 per cent.
Why was it controversial?
Considering the astronomical spike in the cost of butter, milk and fuel bills this year, you'd think we'd all be used to price rises by now. And vendor CEOs have spoken honestly about the need to pass cost increases onto customers.
But the magnitude of Big Blue's price increase, as well as the timing of the announcement, left some stunned.
Nial Eddery, IBM practice lead at SAM consultancy Livingston Group, said he could not remember a "credible" vendor "pushing a straight uncamouflaged price increase over 10 per cent in my time in licensing and SAM".
Rich Gibbons, ITAM services director at independent asset management analyst ITAM Review, meanwhile, said that customers will feel "blindsided" by the announcement given they had only several weeks to react.
"It's only a matter of weeks before 2023 arrives," Gibbons said.
"Most organisations will have their budgets set for next year and if that includes buying IBM that's a big change. We expect to see people looking at whether they can move from IBM to something else, or delay the project, because it's not the kind of price increase you can grin and bear."
Controversy rating: 8/10
7 controversial stories that shook the UK IT channel in 2022
4) As-a-service branded ‘s**t for customers' by Computacenter's CEO
What happened?
As-a-service offerings have been going great guns this year, with HPE recently announcing that GreenLake sales through partners grew by over 70 per cent in its most recent quarter.
But in September, Computacenter's plain-speaking CEO Mike Norris shot down consumption-based IT in flames by declaring at the Canalys Channels Forum EMEA that as "as-a-service is s**t for corporate customers".
Why was it controversial?
HPE and Dell are pumping beaucoup bucks into marketing their GreenLake and APEX consumption offerings, with the former recently saying that it wants to put the "entire company inside GreenLake". Dell claimed the latter recently hit $1bn in annual recurring revenue, meanwhile.
Having the CEO of one of your largest global partners diss the concept of paying for IT infrastructure as you use it was not in the script.
"We have to embrace it. The vendors want to do it. I'm not saying it's not going to conquer the world. It's [just] not very good for customers," Norris was quoted as saying in a Channel Futures article.
The Computacenter chieftan's opposite number at Softcat, Graeme Watt, leapt to as-a-service's defence, however.
"I don't agree that it's something that the vendors have dreamt up, and there's not a demand for it. There's definitely demand for it and we see it as a growing part of the business," he told CRN in October.
Controversy rating: 8/10
7 controversial stories that shook the UK IT channel in 2022
3) Curse of the CRN Industry Achievement Award
What happened?
Softcat CEO Graeme Watt, Insight's EMEA president Emma de Sousa and ANS CEO Paul Shannon all announced their resignations in 2022 (although the former is set to stay in post until next August).
Why was it controversial?
It's not really, but Watt (2019), de Sousa (2018) and Shannon (2021) happen to represent three of the last four previous winners of CRN's Industry Achievement Award (prior to Distology's Haley Robert's 2022 victory last month).
The exception to the rule is 2020 winner Mike Norris of Computacenter.
Picked by the CRN editorial team, the Industry Achievement Award is dished out at the CRN Channel Awards (see de Sousa's acceptance interview here).
Last year's winner, Shannon, was awarded the accolade after successfully transforming ANS from a reseller into a cloud and digital transformation specialist ahead of its private equity sale.
But Shannon stepped down from ANS in October and de Sousa resigned from Insight in November. Watt, meanwhile, announced in June that he would relinquish CEO duties at Softcat next August.
"I'm 62 next year and there's not long left in my working life and I just want to try some other things. This is a chance for me to step on the board and to become a non-exec starting with chair of Softcat which is exciting for me and a new thing for me," Watt told CRN in July.
We wish the three of them good luck in their future endeavours.
Controversy rating: 8/10
7 controversial stories that shook the UK IT channel in 2022
2) Kaseya CEO's expletive-ridden town hall meeting
What happened?
Kaseya CEO Fred Voccola held a two-hour Town Hall meeting at Datto's HQ in July to welcome the acquired company's staff to the fold. Kaseya closed its acquisition of its fellow MSP tools vendor the previous month for $6.2bn.
Why was it controversial?
Let's just say it was fortunate for Voccola that there was no swear jar in the room, with the unvarnished CEO repeatedly insisting throughout the session that he was "not being a d**k".
Unfortunately for Kaseya, the meeting cemented concerns that Datto's culture - which Kaseya had vowed to keep - was vanishing overnight.
"After the town hall, and the first few days here [at Kaseya], myself and everyone on my team have applied for multiple jobs," one incoming Datto worker who asked to remain anonymous for fear of reprisal told CRN.
"[Voccola] seems completely out of touch with anything going on around him. He was more like a showman than someone who cares about how things are being handled," the employee added.
To make matters worse, Datto founder Austin McChord took to GitHub the next day to blast Kaseya, saying the integration of the two companies so far was like watching a football team you love have its "legs broken" by the new owners. Kaseya responded by accusing McChord of spreading "false information".
Voccola opened up on his leadership style in an interview with CRN after the infamous, expletive-laden event.
Controversy rating: 9/10
7 controversial stories that shook the UK IT channel in 2022
1) VMware's proposed takeover by Broadcom
What happened?
Having first announced plans to acquired VMware in May, Broadcom moved a step closer to bringing the $61bn mega-deal to fruition last month when VMware shareholders green-lighted it.
Why was it controversial?
Broadcom has a chequered history when it comes to how it has integrated previous large acquisitions, including Symantec and CA Technologies - or at least that's the perception.
The news that VMware may become part of the semi-conductor giant's empire therefore understandably sparked concern among both customers and partners. Will Broadcom continue to develop VMware's technology? Will it raise prices? Will it take sales direct?
Despite efforts from both Broadcom and VMware's CEOs to counter such concerns (see here and here), some UK partners remain sceptical of the semi-conductor giant's motives.
"We've recently seen VMware transitioning away from using partners for professional services and bringing this in-house, which for us is concerning and already raises questions about VMware's commitment to the channel," Rob Smith, CTO at VMware partner Creative ITC told CRN in November.
"So, the Broadcom acquisition may just compound this stance. The biggest concern for any VMware partner is margin erosion. For now, we are neutral but there is without doubt concern."