Hey guys! So I’m sitting here reading over and over everything and I know there’s got to be more that I can put into this but I’m coming up blank! So I’m calling in a favor! If you guys could just give it a read and give me some feedback hopefully I can start to find my bearings and get a grasp on things!
*So I got some very helpful feedback and I’m here for another go! 😀 Hit me with some feedback! Most of the changes were simply added onto the end (discussion about finance and conclusion).
** I just want to give a big thanks to everyone who has given me feedback and helped me out with this! I’m definitely guilty of over thinking on this one.
Who is Datatec?
Datatec is an International ICT solutions and services group, operating in more than 70 countries. Originally founded in Johannesburg, South Africa, by Jens Montanana in 1986, the year that the first laptop was unveiled and the first personal computer virus began to spread. It was originally a distributor of networking access and communications solutions, comprising of two divisions: Datatec Networking and communications, and POStec.
They have three core divisions within the company, Westcon Group (Technology Distribution); Logicalis (Integration and Managed Services); and the Consultation group which consists of three of its own divisions, Analysis Mason; Mason Advisory; and Via Group – All focusing on consulting and research within the ICT industry.
Technology distribution is simply the sale of technology, both hardware and software. Integration and managed services is essentially their support network, they keep the systems running, provide storage solutions and solve any software and some hardware issues that may arise. Meanwhile the consulting and research group is pretty self-explanatory, they do all the research to provide the best solutions for their clients to help them reduce risk and improve efficiency.
Projects
WestconGroup has recently launched BlueSky, a cloud based service that allows companies to access multiple cloud services from the one platform. This makes everyday jobs simpler such as, Ordering; delivery; and the management of multiple cloud services. They have partnerships with many other software providers such as, Amazon Web Services – cloud computing services; Cisco – Worldwide leader in IT and Networking; and FaceMe – a business orientated video communication software. As shown here this makes things a lot smoother when completing the day to day jobs required for any successful businesses.
One case study that I found for Logicalis was essentially the reinvention of an office space work environment. This video explains the positive result of completely changing their work environment and using technology to cut down on use of paper, time spent out of the office and increase the levels of accessibility and productivity. Logicalis also works with companies such as, Brisbane Airport; Crown Limited; and New South Wales State records. To me this shows the level of security and professionalism that this company portrays to be dealing with government level clients.
The Consultation Group focuses more on the research of Telecoms, media and technology. They design strategies for implementation, provide IT advice and they are always looking for better ways to reduce risk and improve efficiency for their clients. They have worked on numerous broadband schemes for places such as the United Kingdom and Brunei.
Key Challenges
While reading through the Key Risks listed within Datatec’s Financial Report I noticed some risks that really stood out to me, one for example was how dependent they are on their vendors. They specifically referred to one of their biggest vendors, Cisco. They explained how approximately 46% of the Groups revenue comes from this partnership and how it is a main priority to maintain a “close, transparent relationships”. After having a look and stumbling upon their YouTube page I found a few feedback videos from customers, I particularly liked this one.
Another one I liked was how they addressed their dependence on their main customers and the credit risk they face. This is also combated by maintaining close relationships along with regularly operate rigorous credit assessment and control procedures.
Time Line
1986
Datatec was originally founded by Jens Montanana.
1994
Datatec was officially listed on the Johannesburge Stock Exchange (JSE).
1997
Acquired Logical Networks – foundation of intigration division.
1998
Acquired US distributor Westcon INC. – foundation of technology division.
1999
Acquired Mason Communications – foundation of consulting division.
2008
Logicalis merged its existing South American operations with PromonTechnoligia, Brazel, making Logicalis the largest network integrator in South America.
2012
Datatec Group anual revenue exceeded US$5 billion.
2016
Datatec celebrates 30 years in the ICT industry.
After looking over the recent financial report I have found that Datatec’s income seems to have slowed. Their overall revenue has increased by only $11,000,000, with a large portion of that being acquisitions. Current assets have also increased by around $50,000,000. Meanwhile profits have fallen by almost half between 2015 and 2016. Liabilities have increased and earnings per share has decreased. All of these decreases have been explained by either difficult financial environments, foreign exchange losses and restructuring. Datatec still remains confident that they are stable and that their position within the ICT market remains sound.
In conclusion, Datatec is an ICT company based in Johannesburg that has achieved a lot in its 30 years of business. It has partnered up with some of the leading IT companies and worked with some high-level clients around the world. They have struggled through-out the 2015/1016 financial year but they have remained confident. I am looking forward to better understanding Datatec’s finances and operations, I genuinely think they sound like an exciting company that still have many years of great ideas to come.
I have also completed my company spreadsheet.
Datatec Ltd – Kate Parkinson – 12053899
Financial Reports:
Datatec 2016
Datatec 2015
Datatec 2014
A journey to the center of accounting! 