{"id":15544,"date":"2015-06-30T09:48:31","date_gmt":"2015-06-30T09:48:31","guid":{"rendered":"http:\/\/www.businesscloudnews.com\/?p=228812"},"modified":"2015-06-30T09:48:31","modified_gmt":"2015-06-30T09:48:31","slug":"colt-bows-to-competition-exits-it-services","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/colt-bows-to-competition-exits-it-services\/","title":{"rendered":"Colt bows to competition, exits IT services"},"content":{"rendered":"
\"Colt<\/a><\/p>\n

Colt is bowing out of the increasingly saturated IT services market<\/p>\n<\/div>\n

In a bid to increase profitability Colt announced this week that the company would exit the IT services market and put greater focus on its \u201ccore\u201d services including its network, voice and datacentre services.<\/p>\n

The company said its \u201cmanaged exit\u201d from the IT services market would also allow it to focus on offering datacentre services (colocation, cloud) and optimise use of its assets.<\/p>\n

\u201cOur IT services business would continue to need considerable investment in the short-to-medium term in order to deliver profitability and we do not believe this business can compete and grow successfully with a level of risk that is acceptable,\u201d the company said in a statement Tuesday.<\/p>\n

\u201cColt will continue to honour existing customer contracts through to termination, but will no longer seek new business.\u201d<\/p>\n

\u201cThe recent performance of IT Services has shown few signs of improving in accordance with the targets we set to deliver appropriate profit and cash returns in the medium term.\u201d<\/p>\n

The company anticipates the move will save about \u20ac25m annually, though it expects to incur cash and non-cash impairment charges of \u20ac45m to \u20ac55m and around \u20ac90m, respectively. Revenue from IT services is expected to decline \u20ac20m annually will become immaterial by 2018, it said.<\/p>\n

\u201cThe fundamentals of our core network services and voice services businesses remain solid, and we are driving improvements in our datacentre services business. We are taking decisive action to become a more focused and disciplined organisation which we believe will accelerate the performance of our Core Business,\u201d said Rakesh Bhasin, Colt chief executive.<\/p>\n

\u201cOverall, we believe the prospects for the Group are good and I am confident that, with the recent changes we have made within the senior management team, we will be able to deliver improved profitability and cash returns,\u201d he added.<\/p>\n

Colt still owns and will continue to operate its 22 carrier neutral datacentres in Europe and 7 in the Asia Pacific region (including those acquired through Japanese IT services provider KVH last year), though its goal of moving away from IT services may also mean a pivot towards becoming more of a systems integrator, which \u2013 like the IT services market \u2013 is quite competitive, and it isn\u2019t entirely clear how the company intends to differentiate from other large incumbents in this space.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a bid to increase profitability Colt announced this week that the company would exit the IT services market and put greater focus on its “core” services including its network, voice and datacentre services.<\/p>\n","protected":false},"author":105,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2846,1923,2868,898,1976,2869,392],"tags":[],"class_list":["post-15544","post","type-post","status-publish","format-standard","hentry","category-colt","category-it-services","category-kvh","category-managed-services","category-news-analysis","category-rakesh-bhasin","category-vendor"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/15544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/105"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=15544"}],"version-history":[{"count":2,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/15544\/revisions"}],"predecessor-version":[{"id":15554,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/15544\/revisions\/15554"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=15544"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=15544"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=15544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}