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For MSPs, small business owners and entrepreneurs, December is usually gut-check time. No doubt, many MSPmentor readers are deciding right now whether they want to (A) continue building their businesses in 2012 or (B) perhaps pursue an exit strategy. For those who are still in business development mode, quite a few readers are seeking ways to raise money for new business initiatives. For those folks there’s an emerging option called Crowdfunding. Here’s how it works.
The legal case between Zenith Infotech and bond holders is expected to resume the week of November 21, according to the Times of India. In the meantime, Zenith Infotech apparently has promised the High Court that it will not sell or spin off its cloud computing business. That statement is not to be confused with Zenith Infotech’s recent spin-off of Zenith RMM. Here’s why.
The Zenith Infotech bond default case will apparently have its next court hearing on November 14. In the meantime, Summit Partners apparently is willing to share details about the Zenith RMM purchase from Zenith Infotech — if the details are not disclosed publicly. But will those details really emerge? Here’s the update.
Deeper details about Zenith Infotech‘s financial state may potentially emerge. Zenith Infotech, which defaulted on a bond payment in September, has been ordered by the Mumbai high court to disclose details about the recent Zenith RMM business spin-off, according to the Economic Times. If those Zenith Infotech-Zenith RMM financial details emerge, it could shed light on a range of matters. Here’s why.
Across the managed services market, it’s easy to spot friends who became business partners. But can those friendships survive the day-to-day stress of business development and business management? I’ll answer that question by sharing my own personal experiences.
Give Zenith Infotech credit. The company remains on the road at trade shows and conferences across North America, even as Zenith Infotech tries to navigate a recent debt default. But here’s the glaring problem: During a keynote session at today’s ASCII conference in New Jersey, Zenith Infotech launched into a cloud computing educational session but failed to address the elephant in the room: The company’s financial viability amid the bond default. Here’s how Zenith Infotech has to adjust its public messaging going forward, especially ahead of the larger IT Nation conference in November 2011.
A bondholder petition against Zenith Infotech is expected to be heard in India court on October 26, according to MoneyControl.com, a financial portal in India. Zenith Infotech confirms that it defaulted on a bond payment in September 2011, but CEO Akash Saraf says the company is financially solvent, stable and strong.
Mike Cooch and I have finally reconnected. Cooch is well-known in MSP circles for starting a range of businesses — everything from Everon Technology Services to Kutenda. During 2008 and 2009, we typically spoke or traded email a few times per month. But changing businesses and growing families pulled me and Mike in different directions over the past two years or so. We finally reconnected tonight. After our conversation, I re-read a blog Mike wrote back in May 2011. It included four key questions MSPs should ask themselves every day. There’s pretty darn relevant.
Kutenda, a marketing firm that works closely with MSPs, has no exposure to the recent Zenith Infotech debt default, according to CEO Mike Cooch. Kutenda was co-founded in 2009 by Cooch and Akash Saraf, CEO of Zenith Infotech. But it has been a Cooch-Saraf co-founder relationship rather than a Kutenda-Zenith Infotech financial relationship.
Zenith Infotech CEO Akash Saraf said the company’s recent bond default is a matter he takes seriously. But Saraf wants to assure Zenith Infotech’s MSPs, partners and customers that “we’re in the process of getting this fixed. It’s not something that will sink the company.” Saraf made the statements to MSPmentor today. To reinforce his point, Saraf described how Zenith Infotech is marching forward with new product rollouts, including virtualization and enterprise enhancements to the SmartStyle Computing platform.
As Zenith Infotech attempts to negotiate new debt payment terms with bondholders, the company remains on the road engaging managed services providers (MSPs) across North America. In recent days, some MSPmentor readers have asked me if I think Zenith Infotech is financially stable and viable following the company’s recent bond default. It’s difficult for me to offer a pinpoint answer, since I’m not privy to the alleged discussions between Zenith Infotech and its bondholders. Still, I’m poking around for clues — and one of them potentially involves Zenith Infotech’s ongoing commitment to road shows and MSP-centric partner conferences.
Our next webcast is today (Wed., Oct. 19 at 2:00 p.m. eastern). Join us as two MSPmentor 100 companies — Kevin Crowe from Long View Systems and Tim Hebert from Atrion — describe how they maxed out their recurring revenues in 2011, and where their respective cloud and MSP strategies are heading in 2012. Crowe and Hebert will reflect on 2011 outcomes and preview 2012 game plans during our webcast. Instead of writing your 2012 business plan from scratch, borrow some great ideas from two top MSPmentor 100 companies and Nimsoft, the event’s sponsor. Bonus: Nimsoft CEO Chris O’Malley will join in to answer your questions live.
Zenith RMM CEO Michael George continues to draw a cordial but clear line between his company and that of Zenith Infotech, which recently defaulted on a bond payment. While Zenith RMM continues to partner with Zenith Infotech, George says Zenith RMM will also take steps to ensure MSPs have alternative cloud and BDR (backup and disaster recovery) partner solutions from which to choose.
When Zenith Infotech defaulted on a Sept. 21 bond payment, QVT Financial — a hedge fund with $6 billion under management — apparently was among the investment firms that missed out on the payment. Now, it sounds like QVT is taking legal steps to explore Zenith Infotech’s recent spin-off of Zenith RMM. But who exactly is QVT Financial and what is their interest in Zenith Infotech’s business? Here are some thoughts.
Zenith Infotech faces another round of questions about its bond default. The Times of India suggests Zenith Infotech’s bond defaults will be about $85 million, rather than the $33 million that had been originally reported. What’s my opinion?
In an open letter, Zenith Infotech CEO Akash Saraf has responded to questions about the company allegedly defaulting on a bond payment. Saraf confirms the default but assures customers and vendors that Zenith Infotech is “financially solvent, strong and stable.” Here’s the letter in its entirety — plus some perspective from MSPmentor.
Zenith RMM is marching forward with its business and is not impacted by the alleged bond default at Zenith Infotech, according to Zenith RMM CEO Michael George (pictured), who says the two companies are completely separate businesses. Here’s the update, along with a look at where Zenith RMM is heading next.
Zenith Infotech, the cloud computing company that works closely with MSPs, has confirmed that it defaulted on its $33 million foreign currency convertible bonds (FCCBs), which were due Sept. 21, according to Reuters. Zenith Infotech remains in negotiations with the bondholders to extend the time for repayment, Reuters added. So what exactly does this mean for managed services providers that work with Zenith Infotech? Here’s some perspective.
Zayo Group, which provides telecommunications services to the government and private sectors, has agreed to acquire 360networks. The deal will reportedly come close to doubling Zayo Group’s fiber network.
Before you pitch a technology upgrade to your SMB customers, consider this: SMB owners and entrepreneurs prefer proposals that help recruit new customers and drive revenue. And remember this: SMBs are generally not too anxious to borrow money these days, according to a recent blog posting on the website of The Boston Globe. Here’s why.
Techaisle predicts that managed IT services spending within U.S.-based small and midsize businesses will grow from $7 billion this year to $12 billion in 2015. We’re always skeptical when we read research reports because long-term IT spending forecasts can change from one year to the next. But generally speaking, MSPmentor is confident the managed IT services market continues to grow. We’ve got our own built-in biases — yes, we’re bet a portion of our business on this market — but we also have a pretty good feel for why managed services demand continues to climb.
The cloud backup and online backup markets are both expanding and consolidating. Two recent examples: VaultLogix has acquired assets from Utility Backup Solutions, and Vembu recently acquired Cloud Nucleus. Those deals surfaced around the same time that Axcient — a hybrid cloud storage specialist – raised $15.5 million in venture capital funding. Plus, more private equity is expected to flow into the managed services software market really soon, MSPmentor has learned. So how can markets expand and contract at the same time? Here’s some perspective.
It’s official: Everyone agrees that the last 10 years have been an economic nightmare. People everywhere are tightening their belts and stocking up expecting the worst over the next few years. And the worst may come, if the folks in Washington don’t get their act together. But all this is big picture. Let’s shift the focus to our own businesses. How much can we do to hedge against the future when we are still struggling to make it through today, right? The truth is, there is a lot of opportunity in a down economy. Here’s why.
