Are Avaya going out of business and what exactly is Chapter 11?

If the rumours are true (as suggested by the Wall Street Journal), Avaya are due for yet another bad spell. On top of the rumours circulating that they’re about to sell of their Contact Centre business, speculation is growing that they may also file for Chapter 11 bankruptcy.

Rather than focus this post on why they have such woes, I thought it’d be useful to explore the basic principles of what Chapter 11 means, because the word bankruptcy tends to have a very finite meaning to many.

In the US, filing for Chapter 11 isn’t a ‘pack up your kit and go home’ affair, where all the investors end up fighting over the bones of a dead company. Rather, Chapter 11 is a form of bankruptcy that allows a company to re-organise itself in order to extract itself from a failure.

According to the US Courts Chapter 11:
…provides for reorganisation, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganisation to keep its business alive and pay creditors over time.

So, this will likely mean the management stays in place (with big decisions being approved by the bankruptcy court), and a new business plan is put in place to help revive the faltering organisation back to days of former glory – or at the very least to a position where they can continue to repay the creditors.

The new business plan needs creditor, shareholder and other interested party acceptance and bankruptcy court approval to be allowed. It is possible for the court to approve the plan even if creditors et al reject it – though this would need to satisfy the court that the plan is fair in its treatment to all interested parties.

Assuming the green light, trading continues as normal until one of two things happen within an agreed time frame. 1) the company gets itself to the business plan state, or 2) they don’t.

All said and done, history has shown the odds are against a happy ending, but you never know.

As for Avaya, this is all rumour and conjecture right now. Whatever they decide, it’s likely it’ll be sooner rather than later that we will all get some news. Like the once mighty Nortel before them, Avaya are up against it.

Watch this space…

You can only spend your pound once – don’t wait until it’s only worth 80p

It’s been called the ‘Brexit Effect’, the ‘Trump Effect’, and the ‘Exchange Rate Impact’. But whatever you choose to call it – let’s agree on Trumbrexchange – the result is the same: prices are going up, and not just in a small way.

Across the board, vendors and suppliers, mainly outside of the UK have made significant pricing adjustments upward to ensure they don’t fall foul of the exchange rate fluctuations. As we now know, these changes are ranged quite dramatically between manufacturers, with a popularly unpopular 10% by global PC builder Lenovo, a nerve jangling 15% from VMware, to an eye watering 22% from Microsoft. HP (like many that have already pushed prices north) have revisited the price hike booth with a further round of rises varying between 6 and 12%.

Yet whilst we may all know about these price changes, many of have forgotten that they don’t actually come into force until January 1st, 2017. With no rocket science required, If you have budget to spend on your IT now and where holding it off until the new year, you might want to think about changing that view.

In less than a month, your beloved pound will buy your a as much as a fifth less product than it used to.

2017 is certainly looking like it’ll be an interesting year in both politics and business, and with so much uncertainty it might just be wise to do your new years’ shopping early this time round. At the very least, today you definitely know what you’re dealing with. Tomorrow, who knows?

5 Reasons why Hyperconvergence might be right for you

Hyperconverged infrastructure (HCI) – may be a buzzword right now, but once it is better understood, its meaning makes sense – as combining multiple complex processes together helps make our IT lives easier. But how does hyperconvergence achieve this – and is it right for you? Below are five key considerations why this could be your next step in improving both your infrastructure and business performance.

But before we get to the five, let me quickly summarise HCI for context. If you’re familiar with converged infrastructure (CI), you’ll know it combines the 4 set pieces of a data centre – compute, storage, networking and virtualisation through a single interface. Hyperconvergence (HCI) on the other hand goes one stage further and manages all of these components of hardware through one piece of software, which is known as a hypervisor. This allows for the fast addition and removal of resources to the base unit.

With that in mind, here’s five HCI advantages:

1 Safe and sound
Let’s be honest – protecting and backing up data is boring, but it has to be done. However, many businesses only undertake the basic steps of protecting their data, because it’s tedious and it can be very expensive. HCI won’t make data backup thrilling, but it will make protecting your data simpler and cheaper, as backup and recovery features are all built in.

2 A moveable feast
Businesses are required to be adaptable and respond quickly to changing situations. The term agility comes to mind – staying fresh on your toes so you can move resources and infrastructure quickly and efficiently. In a HCI system, the entire data centre is stored in an easy to handle all-in-one box, so businesses can relocate quickly and easily without compromising the expectations of their customers.

3 A useful interface
The more separate components you have in a data centre, the more software you need to ensure everything runs well. HCI takes all these units, whether it’s storage, backup, or cloud gateway functionality, and combines everything into a neat, comfortable software package known as a hypervisor, which uses a centralised interface to mange it from – which saves training time, and cuts costs maintaining multiple layers of software.

4 One vendor, fewer problems
Under the traditional cloud deployment, businesses would have to get their storage from one provider, their networking from another, and so on. Because the hypervisor manages all of the hardware in an umbrella-like structure, only one point of contact is necessary, which can improve the efficiency of every stage of its lifecycle, from the analysis to the installation, management and maintenance.

5 It’s just cheaper
Given the above, this may seem like an obvious point, but new HCI systems are much cheaper than their standard counterparts up front. For small and growing businesses, the savings exponentially grow as more systems are required, with less time and effort is required to install the hardware, and less money needed to maintain and manage the software as more components are added, as only one interface is ever used.

That’s our quick take on HCI – if you’d like to learn more or request a demo, drop us an email at info@bcn.co.uk.