Category Archives for "Managed Services News"

Jul 25

Checkmarx Rolls Out New Partner Program for MSSPs

By | Managed Services News

The new program is in addition to Checkmarx’s reseller program.

Checkmarx, the provider of developer-centric application security testing (AST) solutions, has launched a new partner program for MSSPs.

The Checkmarx MSSP partner program provides access to Checkmarx One, the company’s cloud-based application security platform.

The program also offers opportunities to grow revenue by selling application security services. Furthermore, a purchasing model allows MSSPs to scale managed security offerings.

In addition, program resources help MSSPs develop and refine their propositions, tailoring these to their specific customer needs. The company also offers the ability to deploy whenever needed a variety of options, beginning with Checkmarx AWS Cloud.

Checkmarx's Mark Osmond

Checkmarx’s Mark Osmond

Mark Osmond is Checkmarx’s vice president of worldwide channels and alliances. He said this is an all-new program in addition to Checkmarx’s existing global reseller program.

“We have spoken to a long list of providers around the globe to obtain crucial information regarding their customers’ needs,” he said. “The opportunity for [an] … AppSec company like Checkmarx to enable the service provider market in an all-new way via the CXOne platform is highly desirable. We have a formidable list of partners ready to start.”

Already Simple and Easy to Work With

Checkmarx has already paved the way with the “simplest and easiest” to work with reseller program in the industry, Osmond said.

“We have taken the best and most relevant parts of that and enhanced for the service provider community,” he said. “We strive to offer the simplest partner program there is and this is no exception. Our MSSP community will be able to enjoy the benefits of a dedicated training program and focused marketing, on top of flexible licensing models to enable scalable growth.”

Emmanuel Benzaquen is Checkmarx’s CEO.

“The launch of our MSSP program is a milestone in the Checkmarx journey and a natural extension of our commitment to global excellence in application security enablement,” he said. “Our MSSP partners will bolster their service offerings, combining the industry’s most comprehensive application security platform with the strong relationships and expertise of their own teams in a way that benefits organizations everywhere.”

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

Wholesale Costs Bite AT&T Business Wireline Revenue in Q2 Earnings

By | Managed Services News

AT&T executives stressed the importance of putting customers on infrastructure the carrier owns and operates.

Rising wholesale network access costs and lower government spending propelled further AT&T business wireline revenue decline in the telco’s second-quarter earnings.

AT&T shared data on Thursday that reflects challenging macroeconomic circumstances as well as the carrier’s own efforts to reposition its core services to technologies such as fiber and 5G. Business wireline revenue dropped almost 8%, to $5.6 billion. Moreover, operating income for business wireline declined nearly 34% compared to a year ago.

Compare that to consumer wireline revenue, which increased a little more than 1% year-over-year. The wireline business is shrinking more in the office than at home. Nevertheless, consumer wireline operating income declined a little more than 1%.

AT&T pointed to less demand for traditional voice and data, as well as decreases in the public sector. In addition, the 2% decrease in operational expenses for business wireline reflects AT&T’s goal of “de-emphasizing non-core services” and repositioning business wireline.

CEO John Stankey said AT&T faces more pressure on business wireline than expected.

“This [legacy voice and data] business is increasingly facing secular pressures as customers replace traditional voice services with mobile and other collaboration solutions. On the data front, VPN and legacy transport services are being impacted by technology transitions to software-based solutions. Today, approximately half of our segment revenue comes from these types of services,” Stankey said in a second-quarter earnings call on Thursday.

AT&T's John Stankey

AT&T’s John Stankey

Overcoming Pressures

Stankey said his team hopes government spending will increase. He attributed 20% of the year-over-year business wireline revenue decline to government sales.

He also said the volume of enterprise infrastructure solutions might offset pricing reductions. Moreover, he noted that contractual resets increased costs due to inflation and wholesale network access charges. AT&T will pursue product migration, alternate providers and wholesale pricing adjustments to manage the cost pressure.

However, he said AT&T finds it “prudent to reset expectations.”

AT&T chief financial officer Pascal Desroches said the latest declines re-emphasize the need to put customers on infrastructure that AT&T owns and operates. He added that connectivity service revenue grew almost 15% year-over-year. The company attributes much of that growth to fiber.

“The world for us moving forward is a data VPN-replacement world,” Stankey said. “And that’s where we’re going to make our bread and butter. Our play in voice is to penetrate more deeply into wireless in these spaces.”

AT&T business operating income fell nearly 18% year-over-year.

Desroches, Pascal_AT&T

AT&T’s Pascal Desroches

Mobility Success

Aside from certain concerns in the business wireline segment, AT&T celebrated success in other categories. Mobility revenue increased more than 5%, to $19.9 billion, for an operating income of $6.2 billion.

The company also reported the most second-quarter postpaid phone net additions than it had in more than 10 years.

A major headline from the earnings release was AT&T’s decision to decrease its forecasted full-year free cash flow from $16 billion to $14 billion. Stankey said AT&T is witnessing “longer collection cycles and inflationary costs that we’ve not been successful in fully offsetting.”

“These cash flow impacts, along with expectations for a more tempered economic climate in the latter half of the year, have led us to adjust our cash flow expectations for the full year, even with our expected material improvements over the next 2 quarters,” Stankey told investors.

AT&T continued to lead J.D. Power’s large enterprise segment in its business wireline customer satisfaction rankings.

 

 

Jul 25

7 Channel People Making Waves This Week at Microsoft, Google Cloud, Keeper Security, More

By | Managed Services News

From alleged trade secrets theft to efforts at damage control online, a lot happened this week.

Channel people at Microsoft, Google Cloud, Keeper Security and more are among the individuals making waves in the channel this week. Channel Futures’ Channel People Making Waves showcases those who have made an impact over the last seven days.

Controversy and damage control are the name of the game this week. Lawsuits abound, including the conviction of a former CIA engineer who leaked classified hacking tools to WikiLeaks. Another company in the channel is accused of stealing trade secrets. While over at Kaseya, a post on GitHub led to a fiery internal email from management.

There were less controversial stories that also made their mark. Microsoft rolled out its new position, chief partner officer, and officials announced the woman taking that role. Finally, Google Cloud received the U.S. Department of Defense’s Impact Level 4 authorization. What does that mean for the cloud provider?

Find out that and more in this week’s roundup in the slideshow above. You can find our last edition here.

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