SPECIAL FOCUS - Integr8 Group
SPECIAL FOCUS - Integr8 Group
SPECIAL FOCUS - Integr8 Group
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special<br />
focus<br />
an independent report _ AUGUST 2008<br />
GOING<br />
PLACES:<br />
Why <strong>Integr8</strong>'s business<br />
keeps growing
ainstorm<br />
Just think.<br />
Special Focus<br />
EDITOR<br />
Mia Andric (mia@itweb.co.za)<br />
Editorial department<br />
brainstorm EDITOR<br />
PUBLISHER<br />
EDITORIAL DIRECTOR<br />
Contributing journalists<br />
SUB-EDITOR<br />
PRODUCTION MANAGERS<br />
TRAFFIC CONTROLLER<br />
Art Department<br />
DESIGN<br />
Photography<br />
Sales Department<br />
Sales director<br />
BUSINESS DEVELOPMENT<br />
DIRECTOR<br />
Sales executive<br />
SUBSCRIPTION MANAGER<br />
TECHNICAL DESK AND<br />
SECURE PAYMENTS<br />
Graeme Scala<br />
(graeme@itweb.co.za)<br />
Jovan Regasek<br />
Ranka Jovanovic<br />
Carel Alberts, Patrick Heske, Donovan<br />
Jackson, Candice Jones, Graeme Scala,<br />
Iain Scott, Sipho Memela, Richard<br />
Morgan, Samantha Perry<br />
Patricia Czakan<br />
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www.infiltratemedia.co.za<br />
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natalie Barker<br />
Carrie-Anne Roberson<br />
(carrie@itweb.co.za)<br />
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(payments@itweb.co.za)<br />
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<strong>Integr8</strong> IT may have begun life as a small start-up, but in less<br />
than a decade, the company has achieved unmatched successes.<br />
These successes, and the resultant growth, have seen<br />
the company branching out into different business sectors.<br />
Now an integral part of the <strong>Integr8</strong> <strong>Group</strong>, <strong>Integr8</strong> IT has built<br />
on its knowledge and customer base to create a number of<br />
companies that provide fax, telecoms, rental and network services<br />
to new and existing customers both in South Africa and<br />
worldwide. With a global client base including companies like<br />
Toyota, Volvo, Goldfields and American Express, it’s easy to<br />
understand why <strong>Integr8</strong>’s success has resulted in not only the<br />
formation of a number of new companies, but movement into<br />
new countries too. In addition to its South African offices, the<br />
<strong>Integr8</strong> <strong>Group</strong> is now represented across Africa, the USA and<br />
parts of Europe. <strong>Integr8</strong>’s success lies not merely in its ability<br />
to provide the services and products demanded by customers,<br />
but in its focus on and growth of its people. With a progressive<br />
BEE policy and a focus on creating an enticing workplace,<br />
<strong>Integr8</strong> has ensured that its people are fulfilled and that its staff<br />
remain at the company for many years – a rarity in an industry<br />
where staff turnover is notoriously common.<br />
With all of these things in place, the logical next step for the<br />
business would be to tap into the government sector. With its<br />
sound BEE policies, its skills, and its expertise, <strong>Integr8</strong> is ideally<br />
placed to provide government with tailor-made solutions – and<br />
to grow even further.<br />
Mia Andric<br />
Editor<br />
Copyright © 2008 by ITWeb Limited. All rights reserved. No part of this<br />
publication may be reproduced or distributed in any form or by any means,<br />
or stored in a database or retrieval system, without the prior written<br />
permission of the publisher.Opinions expressed in this publication are not<br />
necessarily those of the editors, publisher, or advertisers.<br />
and other<br />
retail outlets<br />
AUGUST 2008 - 1
4<br />
Keeping it real By Samantha Perry<br />
Founded in 2001 by Rob Sussman and Lance Fanaroff, <strong>Integr8</strong><br />
IT (Pty) Ltd. is associated to the <strong>Integr8</strong> <strong>Group</strong>, the 400+<br />
person-strong organisation with a global client base.<br />
8<br />
Success down to structure By Graeme Scala<br />
The company is owned 100 percent by people who work within<br />
it. There are no outside shareholders or passive investors.<br />
<strong>Integr8</strong> IT has come a long way in a relatively short time.<br />
10<br />
Driving online growth By Richard Morgan<br />
<strong>Integr8</strong> IS has grabbed international market attention with<br />
its Software as a Service and Web 2.0 applications.<br />
12<br />
Sticking to the fax By Carel Alberts<br />
<strong>Integr8</strong> FAX’s FaxM8 service throws the humble fax a life-line<br />
by offering a corporate-grade, free fax-to-e-mail service with<br />
zero installation, subscription, training and support cost.<br />
14<br />
Putting the C into ICT By Donovan Jackson<br />
<strong>Integr8</strong> Telecoms positions for long-term<br />
prosperity with its telecoms company.<br />
16<br />
“Each month<br />
there is a substantial<br />
compounded<br />
increase.”<br />
Why own ICT? By Patrick Heske<br />
In only three years, <strong>Integr8</strong> Rental has positioned itself as a<br />
leader in the technology and office asset rental market.<br />
con<br />
Ray Schur, Chief Financial Officer<br />
tenTs<br />
2
18<br />
Bolstering group achievements By Carel Alberts<br />
After nine years of strong growth and award-winning success,<br />
the <strong>Integr8</strong> <strong>Group</strong> has built up and branded a R300 million select<br />
property portfolio, which supports its operations and adds a strong<br />
asset base to the strategic group focus on annuity revenue.<br />
20<br />
Work or play? By Candice Jones<br />
While <strong>Integr8</strong> IT may be deadly serious about work, its personnel<br />
are also given a relaxed and fun environment to visit each day.<br />
22<br />
Tighter controls boost profits By Iain Scott<br />
In introducing regular reporting and tight control<br />
over expenditure, coupled with increased market<br />
share, <strong>Integr8</strong> <strong>Group</strong> has boosted its profits.<br />
24<br />
Heading north By Patrick Heske<br />
Africa is a continent with unbelievable ICT prospects, says <strong>Integr8</strong> IT.<br />
26<br />
Close to the heart By Sipho Memela<br />
For <strong>Integr8</strong> IT, BEE is not only something to<br />
comply with, but rather a way of life.<br />
28<br />
Staying connected By Richard Morgan<br />
<strong>Integr8</strong> plays a vital role in making sure that the Fidelity<br />
Security <strong>Group</strong>’s user group remains connected.<br />
30<br />
The value of optimisation By Donovan Jackson<br />
<strong>Integr8</strong> IT upgrades Gold Fields Ghana<br />
32<br />
At a glance<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 3
OVERVIEW<br />
keeping<br />
it real<br />
“Each month<br />
there is a substantial<br />
compounded<br />
increase.”<br />
Founded in 2001 by Rob Sussman and Lance Fanaroff,<br />
<strong>Integr8</strong> IT (Pty) Ltd. is associated with the <strong>Integr8</strong> <strong>Group</strong>, the<br />
400+ person-strong organisation with a global client base.<br />
Ray Schur, Chief Financial Officer<br />
Robert Sussman and Lance Fanaroff, joint-CEOs<br />
4
Starting with a mere R300 000 in start-up capital, invested<br />
by joint-CEOs Rob Sussman and Lance Fanaroff, The <strong>Integr8</strong><br />
<strong>Group</strong> houses <strong>Integr8</strong> IT, which is today the largest BEE, privately<br />
owned, ICT infrastructure management company in<br />
Africa. “The company was formed in 2001 by Lance and myself,”<br />
says Sussman. “We very rapidly found co-partners Jan<br />
Roux (technical director), Bennie Strydom (sales director)<br />
and Tami Milwidsky (now Sussman, regional director).”<br />
the pain and wins on the client sites,” he says. “It allows us to manage<br />
all our client sites from a central place. We could have put it<br />
anywhere in the world but we decided to put it in Africa. We are a<br />
100 percent African owned and run, so although we provide services<br />
around the world, we have our roots firmly on African soil.”<br />
The <strong>Integr8</strong> <strong>Group</strong> is headquartered in South Africa and has a<br />
presence in the US and UK. It uses these offices to provide services<br />
from Africa.<br />
WORDS Samantha Perry<br />
These entrepreneurs formed <strong>Integr8</strong> IT (Pty) Ltd., a company “very rich<br />
in skill and integrity and the delivery aspect around ICT infrastructure and<br />
managed services,” says Sussman. “We sat down in early 2001 to write a<br />
list of what we had, clients, financing and so on, and we had nothing. But<br />
we went out and did it, and picked up some very good minds.”<br />
He adds that they got into the market when everyone else was getting<br />
out, post-Y2k. “The listed companies were taking a hammering,<br />
the bubble had burst,” Sussman notes. “We founded the business with<br />
our own funds, and the company has continued to use its own funds<br />
to grow. It doesn’t have, and has never had, any debt and it hasn’t, and<br />
never has, used an overdraft facility. Our growth has been 100 percent<br />
organic,” he says.<br />
Zero to group<br />
Sussman says the company rapidly built a strong customer profile.<br />
“The market liked the view we had and what we did and saw<br />
us as a young innovation house with the ability to execute. We<br />
landed strong national and multinational brands early on.”<br />
<strong>Integr8</strong> IT’s main focus was then, and remains today, the design,<br />
implementation and, most importanty, the management of ICT<br />
infrastructure, in addition to its managed services offering. This<br />
involves managing an organisation’s underlying architecture and<br />
provides <strong>Integr8</strong> IT with a healthy, annuity-based revenue stream.<br />
“We had small, medium and large clients in the beginning,” says<br />
Sussman, “but that’s changed. We’ve realised that we are only able<br />
to work with companies that are serious about investing in ICT<br />
in order to make a difference to their business. In the early days<br />
it wasn’t about the reactive model but about roadmaps, where<br />
the client’s business wanted to go and how to use technology to<br />
get there. We’ve always been able to understand business. We’re<br />
business people in the IT world, not the other way around.”<br />
Neural hub<br />
One of <strong>Integr8</strong> IT’s underlying assets is its Nerve Centre. Sussman says<br />
<strong>Integr8</strong> IT built the first ever Nerve Centre on the African continent.<br />
Running 24/7, it comprises a knowledge centre, connecting <strong>Integr8</strong> IT to<br />
all of its clients and includes a call centre, support services, on-demand<br />
support and remote monitoring capabilities, to name but a few.<br />
“It lets us connect to our clients and acts as the digital nervous<br />
system, with our clients being the nerve endings. It lets us feel<br />
Brains trust<br />
People, Sussman states, are<br />
<strong>Integr8</strong> <strong>Group</strong>s’ most important<br />
asset. “We have over 400 full-time,<br />
highly educated, professional and<br />
skilled people who understand<br />
ICT from beginning to end.”<br />
The company’s culture is<br />
critical, Sussman adds, and when<br />
interviewing new candidates,<br />
they are carefully assessed to<br />
ensure they will fit in. “What we<br />
“We want<br />
to be the<br />
Investec<br />
of the ICT<br />
industry.”<br />
Lance Fanaroff<br />
look for, and our success is based on this, is people who can do very<br />
well within a short time frame. We look for a young mindset, which<br />
often but not always comes in a young body, entrepreneurs who can<br />
grow a business within the business, their ability to innovate, and, most<br />
importantly, passion for the brand. They must love what they do.<br />
“We’ve created a great environment too,” he says, noting<br />
the filter coffee that is available to all staff in all of <strong>Integr8</strong><br />
<strong>Group</strong>s’ offices. “It’s the small things that make a difference.<br />
People won’t leave family in a hurry but they will leave a business<br />
quickly, so we’ve created a family environment.”<br />
That said, Sussman says everyone is “deadly serious about work.<br />
It’s about retaining the best minds in the industry, so it’s a fun<br />
environment, but we are deadly serious about hard work.”<br />
Branching out from IT to <strong>Group</strong><br />
Sussman says the group has had opportunities to branch into<br />
other IT verticals over the years. Taking advantage of some of<br />
these has seen the company grow to the size it is today. The <strong>Integr8</strong><br />
<strong>Group</strong> has affiliated with it: <strong>Integr8</strong> IT, <strong>Integr8</strong> Telecoms,<br />
<strong>Integr8</strong> Fax, <strong>Integr8</strong> IS, <strong>Integr8</strong> Rental and <strong>Integr8</strong> Property.<br />
Intregr8 IT (Pty) Ltd. is the original business, <strong>Integr8</strong> Telecoms<br />
(Pty) Ltd. was set up to take advantage of telecommunications<br />
convergence. <strong>Integr8</strong> IS (Pty) Ltd. was originally known as 2Pi (Pty)<br />
Ltd. and founded as a development house focusing on SaaS and<br />
Web 2.0 hosted services. <strong>Integr8</strong> Fax (Pty) Ltd. was a company<br />
originally termed Binary Transmssions (Pty) Ltd., which owns and<br />
operates a global platform for fax to mail services. <strong>Integr8</strong> Rental<br />
(Pty) Ltd. used to be Arengo (Pty) Ltd., and was born out of the<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 5
FINANCIAL<br />
clients’ requirements to rent or finance, not purchase IT assets.<br />
All except <strong>Integr8</strong> Property are Pty Ltds in their own right. <strong>Integr8</strong><br />
Property, says Sussman, manages all of the group’s property in South<br />
Africa and is a holding brand for six additional property-owning entities.<br />
Says Fanaroff: “Every entity feeds off the other. So if, for example,<br />
we get a new fax client, once they’re entrenched, they<br />
can benefit from other relevant services from within the group.<br />
We have a deliberate strategy to keep all entities completely<br />
separate. This way we are able to conclude unique transactions<br />
that are applicable to a single entity and line of business.<br />
“We’re business<br />
people in the IT world.”<br />
Robert Sussman<br />
Sussman says <strong>Integr8</strong> is considering listing one of its entities in<br />
the near future. “The market is split into listed and unlisted businesses,”<br />
he says, “and this will take us across to the listed side. We’re<br />
at the top of our game, so the question is do we retain our position<br />
or move across and become one of the listed ICT giants? Before<br />
then we aim to control as much premium client market share as<br />
we can. We’re in a position where we are lucky enough to be able<br />
to choose which clients to deal with, and ensure that the client is<br />
the right profile. This isn’t a matter of size or spend, but a mindset<br />
of being serious about what ICT can do for the business.”<br />
Going up<br />
Sussman says it takes a lot of physical and mental work to<br />
get it right, and “you take your beatings. But we like to learn<br />
from those so that we don’t take the same beating twice.”<br />
“We want to be the Investec of the ICT industry,” adds Fanaroff.<br />
“Going forward, we don’t want to be viewed as the biggest but<br />
rather as the best at what we do. We’re lucky in that many of the<br />
bigger groups outsource to us. A lot of our growth has come<br />
from the faith these groups have in us in that we’re not big<br />
enough to be a threat to them but we are of use to them.”<br />
“We’ve often been asked what our intention is long-term,” says Sussman,<br />
“and our advisors have indicated that the company is perfectly<br />
positioned for a main board listing. That said, a lot of businesses like<br />
ours never become powerhouses because they sell too soon. Another<br />
reason not to sell is that even if we did, I’d use the proceeds<br />
of the sale to go out and invest in a business just like this one.”<br />
6
overview<br />
Jan Roux, <strong>Integr8</strong> IT technical director<br />
Ben Strydom, <strong>Integr8</strong> IT sales director<br />
Success<br />
down to<br />
structure<br />
The company is owned 100<br />
percent by people who<br />
work within<br />
“Each<br />
it.<br />
month<br />
There are no<br />
outside<br />
there<br />
shareholders<br />
is a substantial<br />
com-<br />
or<br />
passive investors. <strong>Integr8</strong> IT<br />
pounded<br />
has come a long way in a<br />
increase.”<br />
relatively short time.<br />
Ray Schur, Chief Financial Officer<br />
Aside from the healthy financial<br />
position <strong>Integr8</strong> IT finds itself<br />
in, the company has had better<br />
month-to-month revenue growth<br />
in the last nine months than ever<br />
before. What does it attribute<br />
this success to when many<br />
competitors in ICT are flailing in<br />
the economic winds of change?<br />
<strong>Integr8</strong> IT sales director<br />
Bennie Strydom says the<br />
biggest influence from a<br />
revenue perspective is that<br />
the company employs some of the best people in the industry.<br />
“They’re the best at what they do and are well equipped to<br />
deliver greater efficiency and innovation to customers – and<br />
the directors of the business are even more actively involved<br />
in the overall operation, looking at things like profitability,<br />
managing budgets and adjusting targets as required.”<br />
Interestingly, he adds that <strong>Integr8</strong> IT has yet to make a single coldcall<br />
to any customer in almost nine years of operation. This underscores<br />
the importance placed on customer and partner referrals.<br />
“We’ve also streamlined our processes, the ripple effect<br />
of which is that we’re able to run a tighter shop. For the<br />
first eight years of trading, there were only five people running<br />
the business. Now we are over 400 people, so in our early<br />
days it was difficult to efficiently manage the business.”<br />
WORDS graeme scala<br />
Middle management<br />
The result is that <strong>Integr8</strong> IT introduced an executive management<br />
team (exco) made up of the five directors and shareholders, and what<br />
Strydom calls a divco, a regional divisional management team. “By<br />
having a mid-level managing the company and staff, it has become<br />
easier for everyone to focus on their respective areas. Now we have<br />
people and processes and have formalised the structure within the<br />
8
Tami Sussman, <strong>Integr8</strong> IT regional director<br />
company,” he adds. “Plus, we have a focused HR department [see<br />
sidebar] that ensures our people remain happy. If they’re happy,<br />
they’ll stay with the company to ensure that we remain profitable. We<br />
pay our people above market related salaries, which means that when<br />
they decide to leave, it’s not for more money. Having said that, this<br />
reason, together with a passion and prestige associated with working<br />
at <strong>Integr8</strong> IT, is probably why our personnel turnover is so low.”<br />
Jan Roux, technical director at <strong>Integr8</strong> IT, points to the company’s<br />
laser focus on infrastructure. “Within the infrastructure<br />
business, our model is to concentrate on one or two products.<br />
When people call us, they know they’ll get expert advice; we’re<br />
not a jack of all trades,” he stresses. “As soon as we feel something<br />
is diluting our focus, we split it off into another company – and<br />
that’s where you get the <strong>Integr8</strong> <strong>Group</strong> structure. If there’s one<br />
golden thread that runs through all the companies, it’s our focus.”<br />
From a sales perspective, Strydom points out that he has one<br />
of the best sales teams he could have hoped for. “These guys are<br />
managing our clients’ expectations across the company’s multiple<br />
offices, ensuring that clients are visited and serviced as required.”<br />
Another key contributor to the success of <strong>Integr8</strong> IT has been its<br />
vendor partnerships with the likes of Microsoft, HP and Cisco. This<br />
is tightly integrated with <strong>Integr8</strong> IT’s managed services offering.<br />
Based on the way the market is changing, skills are becoming thin<br />
on the ground and more expensive. Due to this shortage, the price<br />
of skills has naturally escalated; it’s a simple supply and demand scenario.<br />
<strong>Integr8</strong> IT is innovative in supply of infrastructure as a service<br />
as opposed to what is commonly called “body-shopping”. This means<br />
that operational ICT support can be managed from a consolidated<br />
and centralised Nerve Centre, with guarantees (such as SLAs) provided<br />
to customers based on specific outcomes and requirements.<br />
Global expansion<br />
<strong>Integr8</strong> IT is on a steady drive to expand its international business<br />
ventures. Started in July, the company is moving aggressively into<br />
Ghana, Nigeria, Botswana, the UK, Dubai, Saudi Arabia, Hong Kong<br />
and Australia. It’s looking for new business opportunities and growing<br />
international revenue streams, says Strydom. He admits that although<br />
greater competition exists outside of South Africa, he is confident<br />
his company can replicate its services on the global playing field.<br />
“If we can achieve this, we could be very successful because service<br />
in those countries is very different to what we’re accustomed to<br />
locally. For example, there are not a lot of companies in the UK that<br />
“You have<br />
the JSElisted<br />
ICT<br />
companies<br />
and the<br />
privately<br />
owned ICT<br />
companies.<br />
We are the<br />
largest in<br />
terms of<br />
numbers<br />
and market<br />
share in<br />
the privately<br />
owned<br />
space.”<br />
have the underlying innovation<br />
that we have. And we are, therefore,<br />
seeing great return and a<br />
further massive opportunity.”<br />
Industry sectors that<br />
<strong>Integr8</strong> IT is actively working<br />
on include the financial and<br />
banking markets, as well as<br />
mining – the company is also<br />
focusing its attention on the<br />
manufacturing sector, property<br />
and government, to a degree.<br />
“Government contracts are<br />
proving lucrative. Our BEE rating<br />
is right, but we don’t have<br />
anyone right now to focus on<br />
that business. If we focus on the<br />
government space and replicate<br />
our success in the private sector,<br />
we’ll catapult ourselves further<br />
into an unrivalled position.”<br />
Should be something<br />
worth keeping an eye on.<br />
Personnel & skills retention<br />
Skills and people remain a major challenge for businesses of all sizes. <strong>Integr8</strong> IT seems to have the right formula.<br />
Regional director Tami Sussman says <strong>Integr8</strong> IT has very low staff turnover (four to five percent) for<br />
one simple reason: keeping its personnel happy and incentivised. She says the primary reason for<br />
personnel retention is that <strong>Integr8</strong> IT offers a flat management structure and an open-door policy.<br />
“Our entire environment is open plan and we ensure that our office, work spaces and<br />
‘chill areas’ are comfortable and equipped for staff. A key factor within the HR function<br />
of the business is to ensure the work environment is a happy place to be.”<br />
This is done through an initiative that offers monthly wellness programmes (health,<br />
financial advice, guidance, eye tests, vital signs testing), training from external<br />
and internal resources, regular social events and welfare programmes.<br />
“Barking orders is out. Instead, innovation and leadership have replaced the ivory tower<br />
concept. It’s common for personnel to have food delivered to their desks to encourage the<br />
blur between work and social interaction. Although the personnel are relaxed and play<br />
hard, we are deadly serious about our work. Success and achievement is constantly encouraged<br />
and rewarded via internal promotions, bonuses and other financial incentives.”<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 9
integr8 is<br />
Driving<br />
online<br />
growth<br />
WORDS richard morgan<br />
<strong>Integr8</strong> IS has grabbed<br />
international market<br />
attention with its<br />
Software as a Service and<br />
Web 2.0 applications.<br />
<strong>Integr8</strong> IS was established several years ago to extend additional<br />
service offerings to the strong <strong>Integr8</strong> IT client base. “<strong>Integr8</strong><br />
IS provides software solutions and development focused<br />
on core Microsoft technologies such as SQL Server, SharePoint,<br />
and .Net to our clients who are predominantly in the financial<br />
“Each month<br />
there is a substantial<br />
compounded<br />
increase.”<br />
services sector,” says Deon Robertson, CEO of <strong>Integr8</strong> IS.<br />
The company’s product offering includes the net.1 online enterprise<br />
business solution, online survey management, Microsoft<br />
Office SharePoint Server solutions, and SMS and mobile aggregation<br />
services. The net.1 online enterprise business solution consists<br />
of several modules that lets users maintain control of their business,<br />
irrespective of where they are. The control panel centralises all<br />
baseline information such as customer, supplier, project, and user<br />
data. Additionally, it supports user-defined workflow and collaboration.<br />
Modules include expense management, timesheet management,<br />
purchase order management, and task management.<br />
Ray Schur, Chief Financial Officer<br />
“The Online Survey Manager enables users to create customised<br />
surveys within a few minutes. Simply type in the questions and<br />
sub-questions, create lists of available answers as single or multiselections,<br />
save, and you are good to go. Additional features include<br />
the managing of mailing lists, a statistics dashboard that aggregates<br />
all relevant information, and reporting feedback,” explains Robertson.<br />
The Microsoft SharePoint Server solution lets people easily create and<br />
manage a range of content through dynamic websites. It allows users to<br />
share, disseminate, and keep track of this content without the restrictions<br />
of a traditional paper-based environment. <strong>Integr8</strong> IS specialises in<br />
planning, implementing, and customising SharePoint-based systems.<br />
Robertson says that the <strong>Integr8</strong> IS SMS Gateway is an international<br />
public gateway developed by the company in response to<br />
the increasing demand for instant notification. “Messages sent via<br />
the gateway to any mobile number in the world are guaranteed a<br />
sub-eight second delivery. The gateway facilitates user configuration<br />
options to provide e-mail-based delivery receipts and SMS<br />
replies,” he says. <strong>Integr8</strong> IS also offers an online webSend facility that<br />
can be hosted allowing a company to create and manage subaccounts,<br />
and set monthly limits by department or individual user.<br />
Growth<br />
However, the company is not stopping there. These products are<br />
part of a core offering that <strong>Integr8</strong> IS will continue to expand on, as<br />
Microsoft Core Competencies awarded<br />
<strong>Integr8</strong> IS encourages its Microsoft<br />
certified specialists and engineers to<br />
obtain and continually update their<br />
Microsoft certifications. This has seen<br />
the company being awarded a number<br />
of Microsoft Core Competencies.<br />
Development Solutions Competency<br />
The Custom Development Solutions<br />
competency is reserved for partners with at<br />
least three specialisations, proven to deliver<br />
focused customer value using the Microsoft<br />
Visual Studio 2005 development platform.<br />
Web Development Specialisation<br />
The Microsoft partner has proven Webenabled<br />
deployment solutions required<br />
in organisations that wish to operate and<br />
transact through the internet using Visual<br />
Studio, ASP.NET, IIS, Windows Server 2003,<br />
and SQL Server.<br />
Business Process and Integration<br />
Solutions Competency<br />
The solutions partner has helped<br />
organisations build integrated, interoperable,<br />
modularised, extensible, and secure<br />
e-business solutions with high levels of<br />
reliability and availability that connect<br />
information, systems, people, and processes.<br />
Microsoft BizTalk Server and Microsoft Host<br />
Integration Server on Windows Server 2003<br />
form the backbone of a growing number of<br />
integration and business process solutions.<br />
10
the need arises. “We have plans to continue growing our financial<br />
services solutions offering with respect to the core products already<br />
mentioned, as well as putting effort into further developing our<br />
expertise and increasing value for our clients,” Robertson says.<br />
He adds that the long-term strategy for the company is to<br />
continue to grow a quality client base on both a national and<br />
an international scale. With existing customers including Fidelity<br />
Security Services, acsis Ltd., Sizwe, Blue Financial Services, Fifth<br />
Quadrant, JTI, Brait, Goldfields, Mondi and Verizon, this foundation<br />
will provide a substantial point of reference for future clients.<br />
Because <strong>Integr8</strong> IS focuses on using its expertise and partnering<br />
with clients, the company is in a unique position to understand their<br />
business in order to provide solutions that work for them. Robertson<br />
explains that this is key to the continued growth of the company. “Our<br />
experience and know-how are better employed if we fully understand<br />
Preserv8<br />
Preserv8 is a full managed software as a service Web 2.0 e-mail archiving and compliance solution<br />
recently developed by <strong>Integr8</strong> IS. It is deployed to a global network of data centres to provide<br />
users with an instant disaster recovery strategy with no capital outlay.<br />
The e-mail of a company is routed through the solutions, sanitised, and archived before being<br />
routed and delivered directly to the various mail servers of an organisation.<br />
the client’s business,” he explains. “It is through our partnerships with<br />
our clients that we can reach that level of awareness and provide<br />
them with the right solution and better value for their business.”<br />
“We are continually<br />
developing our expertise<br />
and broadening the<br />
quality of our client base<br />
on local and international<br />
fronts.”<br />
Deon Robertson, CEO of <strong>Integr8</strong> IS<br />
Additionally, the solution remotely synchronises Active Directory users, mailboxes, and groups<br />
to reduce the administrative overhead associated with those tasks. Organisational policies, such<br />
as content restrictions, can be configured and enforced using Active Directory groups.<br />
Account activation is virtually immediate and Web-based administration facilitates complete<br />
visibility. Preserv8 also provides business continuity via a Webmail interface should the customer<br />
mail infrastructure fail or experience any downtime.<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 11
<strong>Integr8</strong> FAX<br />
Sticking<br />
to the<br />
fax<br />
<strong>Integr8</strong> FAX’s<br />
FaxM8 service<br />
throws the<br />
humble fax<br />
a life-line by<br />
offering a<br />
corporategrade,<br />
free faxto-e-mail<br />
service<br />
with zero<br />
installation,<br />
subscription,<br />
training and<br />
support cost.<br />
WORDS Carel Alberts<br />
Fax-to-e-mail (and back again) allows for the<br />
sending and receiving of faxes as e-mail attachments.<br />
This technology has become an increasingly popular<br />
office communications method, for obvious reasons.<br />
For starters, it integrates an old-school<br />
communications channel (fax) into a futureproof<br />
one (e-mail), giving it a new lease on life<br />
and broadening the accessibility of business<br />
communication. In a country undergoing<br />
wholesale upliftment of previously disadvantaged<br />
businesses, your trading partners may well rely on<br />
the humble fax; lowering the barriers for them to<br />
deal with you can only benefit your transformation<br />
score and enrich your trading ecosystem.<br />
It is also hugely convenient and cost-effective. With<br />
internet everywhere you care to look these days – at<br />
work, at home and on the run almost anywhere in<br />
the world – e-mail follows you wherever you are,<br />
on your Blackberry, smartphone or laptop. Lastly,<br />
you contribute to another very important cause.<br />
While fax-to-e-mail doesn’t herald the dawn of the<br />
paperless office just yet, it is one answer to the call<br />
for green IT, which is getting louder every day.<br />
It makes sense, then, that the <strong>Integr8</strong> <strong>Group</strong><br />
incorporated a company dealing exclusively with this<br />
technology into its portfolio of IT-associated businesses.<br />
<strong>Integr8</strong> Fax ensures that its, and the <strong>Integr8</strong> <strong>Group</strong>’s,<br />
clients have access to the best possible solutions.<br />
Cost benefit<br />
<strong>Integr8</strong> Fax’s FaxM8 service is one of these<br />
vitally important “green” facilities, launched in<br />
May 2007 in a bid to improve the efficiency<br />
of office communications. CEO Walter Bredell<br />
says the service is free to use when receiving<br />
faxes, but attracts a fee when sending.<br />
“Receiving FaxM8 faxes as e-mail attachments<br />
doesn’t cost a cent – no setup, no monthly<br />
subscription, no installation cost, and no training or<br />
support costs. FaxM8 is freely available to anyone<br />
with an e-mail address, by application to support@<br />
integr8fax.com. It will remain free, and there is no<br />
limit to the number and size of faxes received.”<br />
Walter Bredell, CEO, <strong>Integr8</strong> Fax<br />
The service is licensed with Telkom, which offers<br />
<strong>Integr8</strong> FAX a rebate on calls placed to 086 numbers.<br />
Bredell says this revenue is enough to allow the<br />
company to offer free receipt of faxes, while still<br />
offering a corporate-grade service. Rates for sending<br />
faxes are lower than normal fax-sending rates.<br />
Fax as a service<br />
With much experience in offering IT as a service<br />
through its Nerve Centre, an intelligent data centre<br />
and communications backbone, <strong>Integr8</strong> Fax servers<br />
are hosted in a highly scaled, secure and powerprotected<br />
environment, offering a fast, reliable<br />
and secure service. Faxes sent to a 086 number<br />
pass through the fax server, are converted to an<br />
image file (TIFF) or non-editable .pdf, and routed<br />
to the e-mail client of the 086 number holder.<br />
Faxes are sent from e-mail in the same way in<br />
reverse – as an e-mail attachment in a number<br />
of popular formats, converted by an off-site<br />
fax server, and routed to any fax number, 086-<br />
prefixed or otherwise. Bredell says conversion<br />
from attachment to fax, and back to attachment, is<br />
done up to 70 percent faster than the ponderous<br />
fax-receiving or -sending process of old. The 086<br />
number can be faxed from anywhere in the world,<br />
by simply prefixing the (0)86 number with 27.<br />
There’s a kind of touching justice in allowing an<br />
old technology a re-entry into a brave new world.<br />
As it is, Africa cannot afford to chuck out too much<br />
of the old while getting on with the new. So for the<br />
sake of business efficiency and support of a social<br />
and green cause, it makes sense to join the new fax<br />
revolution: No more klunky, on-premise hardware,<br />
no more get up and wait, no more away-from-myfax<br />
delays, and a whole new vista of trade partners. B<br />
12
<strong>Integr8</strong> Telecoms<br />
Putting<br />
the C<br />
into ICT<br />
<strong>Integr8</strong> Telecoms positions<br />
for long-term prosperity<br />
with its telecoms company.<br />
WORDS Donovan Jackson<br />
and deliver last-mile connectivity<br />
over whatever technology they<br />
choose, this market is going crazy.<br />
There is massive opportunity;<br />
those companies that have the<br />
ability to provide the telecoms aspect in conjunction with IT<br />
infrastructure solutions are able to provide their customers with a<br />
compelling value proposition that meets all their needs,” he says.<br />
Pointing out that IT and communications are no longer<br />
disparate, he notes that the industry at large has been seeking<br />
It’s not just the old parastatal boys and the like from<br />
the telecommunication business who are looking<br />
at tapping into the new opportunities presented<br />
by the deregulation of the telecommunications<br />
industry. Companies like <strong>Integr8</strong> Telecoms, which<br />
came from nowhere and was born out of Intergr8 IT,<br />
at the turn of the millennium looked to bolster their<br />
offerings to clients to provide a complete solution<br />
set which encompasses both the IT and the C.<br />
This, confirms Michael Vorster, head of telecoms<br />
at <strong>Integr8</strong> Telecoms, is a reflection of the reality<br />
of convergence. “As a growing company with a<br />
solid foundation of clients and services in the IT<br />
environment, adding telecommunications is a<br />
sensible step for the <strong>Integr8</strong> <strong>Group</strong>,” he says.<br />
More than that, it also secures the medium- to<br />
long-term future of a company that has grown<br />
steadily from its inception and intends to build on<br />
its blue-chip client base and present trajectory to<br />
become the country’s preferred ICT solution provider.<br />
Vorster points out that in the present environment<br />
in this country, where deregulation is finally taking<br />
hold, telecoms is exploding. “With new licences being<br />
awarded, which enable holders to self-provision<br />
to present combined services to market. “This is evident in, for<br />
example, the efforts noted in the local industry with the telco’s<br />
attempt to absorb local IT companies and skills. There is a<br />
definite understanding that without the telecoms component,<br />
it is not possible to handle the needs of enterprise clients.”<br />
That said, Vorster points out that it is not only the larger<br />
customers that are demanding complete ICT solutions.<br />
“Right down to the SME, there is demand for ICT solutions<br />
that lower operating costs. This is perhaps more relevant<br />
now than ever before where tightening economic conditions<br />
are putting pressure on companies to control costs as a<br />
tactical measure to improve profitability,” he explains.<br />
A full range of solutions<br />
With <strong>Integr8</strong> Telecoms (PTY) Ltd company being added to<br />
the fold, Vorster says offerings are focused around complete<br />
telecommunication services and solutions. These include<br />
innovative services right down to the standard incumbent<br />
offerings of Premicells, least cost routing, voice over IP and<br />
PABX management. “The primary area of value creation is<br />
that we can reduce telephony costs by up to 45 percent.<br />
That’s a big saving that speaks for itself,” he says.<br />
Backhaul connectivity, he says, is carried on Transtel’s fibre<br />
network or Neotel’s Metro Ethernet. Through various licences<br />
14
and joint ventures, Vorster explains that <strong>Integr8</strong> Telecoms is able<br />
to offer a full range of telecoms service to its clients, including<br />
last-mile connectivity. “Essentially, our agreements take care<br />
of our licensing obligations. We are free to deliver connectivity<br />
to our clients over the technology that is best suited, most<br />
convenient or most appropriate, whether that is WiMAX, fibre or<br />
OFDM – and without using Telkom’s infrastructure at any point.”<br />
He adds that interconnect agreements are already<br />
in place with Vodacom, Cell C, Telkom and MTN.<br />
With the successful launch of <strong>Integr8</strong> Telecoms into the<br />
<strong>Integr8</strong> <strong>Group</strong> stable, Vorster says it is also researching<br />
niche products for introduction into the African market. “For<br />
example, we have identified a product that makes personal<br />
cellphones integrate 100 percent with the PABX, so there<br />
is no need for a different device when a worker comes into<br />
the office. With built-in WiFi, making or receiving calls in the<br />
office on the cellphone doesn’t touch the GSM network – it<br />
is all VOIP for low cost and full PABX functionality,” he says.<br />
VoIP: From hype to demand<br />
In addition, Vorster says the telecoms division is very busy with<br />
the existing <strong>Integr8</strong>IT client base, which he says is perfectly<br />
positioned to take advantage of LCR and VOIP solutions.<br />
“There is no question that VOIP is a big story right now. It has<br />
gone from a much-hyped technology to a solution that can and<br />
does deliver the voice connectivity that every company, large<br />
or small, depends upon. And it does so with the levels of quality<br />
and reliability associated with traditional telephone networks.”<br />
He adds that while its corporate clients are clearly benefiting<br />
from VOIP solutions, there is also growing demand from<br />
SMEs that are seeking to reduce their communications<br />
costs. “We also offer PABX supply, service and maintenance.<br />
In effect, with the addition of the <strong>Integr8</strong> Telecoms<br />
business, we are geared to provide ICT infrastructure.” B<br />
Michael Vorster, head of telecoms at <strong>Integr8</strong> Telecoms<br />
“There is an<br />
understanding<br />
that without<br />
telecoms, it<br />
isn’t possible<br />
to handle<br />
the needs of<br />
enterprise<br />
clients.”<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 15
ental<br />
Why<br />
own<br />
ICT?<br />
In only three<br />
years, <strong>Integr8</strong><br />
Rental has<br />
positioned<br />
itself as a<br />
leader in the<br />
technology<br />
and office<br />
asset rental<br />
market.<br />
Outright information and communication<br />
technology and office equipment purchasing is<br />
becoming the exception rather than the rule in current<br />
volatile market conditions. Neal Fanaroff, CEO of <strong>Integr8</strong><br />
Rental, says that, with the current market conditions,<br />
some companies might find themselves in financial<br />
difficulties in the next year to 18 months, and are<br />
increasingly looking to renting equipment to mitigate<br />
risk and reduce their spending going into the future.<br />
“Companies – even though they are financially<br />
solvent – are going to try to limit their cash flow<br />
outflows and rent as apposed to purchase, especially<br />
with the likes of core assets such as ICT equipment,<br />
which as far as their balance sheet is concerned, has no<br />
value,” he says. “Where in the past companies made use<br />
of overdraft facilities or cash in the bank, particularly<br />
those who sell on credit, they are now looking at<br />
rental options in an increasingly uncertain market.”<br />
Additionally, he says that companies are finding it<br />
increasingly challenging to keep up with the faster<br />
pace of technology advancements as information<br />
technology hardware manufacturers and software<br />
developers continuously introduce new and better<br />
equipment to make companies more productive.<br />
This has, however, resulted in much shorter<br />
technology lifecycles and companies want more<br />
bang for their buck when going the rental route.<br />
Separate from the rest<br />
To address this need, <strong>Integr8</strong> Rental was started three<br />
years ago to cater for <strong>Integr8</strong> IT’s clients that looked for<br />
financed purchases as opposed to laying out cash for<br />
them. The business quickly expanded and, according<br />
to Fanaroff, he was approached by <strong>Integr8</strong> <strong>Group</strong><br />
16
Neal Fanaroff, CEO of <strong>Integr8</strong> Rental<br />
“Each month there<br />
is a substantial<br />
compounded<br />
increase.”<br />
the equipment at the end of life. “At the end of a<br />
contract, depending on the deal, customers can<br />
either return the equipment, or sign a new rental<br />
period for any given time at a reduced rate, or they<br />
can buy the goods at a reduced price,” he says.<br />
WORDS Patrick Heske<br />
joint-CEO Rob Sussman at the beginning of 2007 to<br />
spin off the company as a separate entity to <strong>Integr8</strong> IT.<br />
“The <strong>Integr8</strong> <strong>Group</strong> has several different<br />
operating entities and all of them are run as totally<br />
independent companies even though we have<br />
common shareholders,” Fanaroff explains. “We<br />
have been growing the business at a pretty rapid<br />
but sustained rate, although we are still in a new<br />
phase of development. We have also diversified our<br />
offerings to various different areas of the office, such<br />
as office furniture and health equipment,” he says.<br />
<strong>Integr8</strong> Rental’s customers today include many<br />
JSE-listed company and multinationals. Fanaroff<br />
believes that <strong>Integr8</strong> Rental has certain advantages<br />
and competitive edges over the rest of the asset<br />
rental market, but with that, also disadvantages.<br />
“One advantage that we do have is being associated<br />
to the <strong>Integr8</strong> <strong>Group</strong>; we are aligned to <strong>Integr8</strong> IT, who<br />
is a major player in the ICT industry. Through the whole<br />
<strong>Integr8</strong> <strong>Group</strong>, our procurement costs are a lot lower<br />
than our competitors. This means we can do deals at<br />
higher implied interest rates, and as a result, the actual<br />
renting cost to our customers is a lot lower,” he says.<br />
Fanaroff says <strong>Integr8</strong>’s rental model, unlike other<br />
local rental models offered by local competitors,<br />
often offers customers the option to purchase<br />
Geared for growth<br />
The company continues to grow and according to<br />
Fanaroff, <strong>Integr8</strong> Rentals debit order flow grew over<br />
400 percent over the last year. “Going forward for the<br />
next two to three years, I would be very surprised if this<br />
compounded momentum doesn’t continue,” he says.<br />
To cater for this growth for <strong>Integr8</strong> Rentals, Fanarofff<br />
says the company is in some exciting negotiations.<br />
“The one option is to maintain a preferred<br />
procurement and sourcing of equipment, and because<br />
of our policy and buying power within the group,<br />
we have got to be competitive. The second option<br />
is by reducing our cost of capital growth as we are<br />
growing. All of our excess revenue is plowed back<br />
into the lending side of the business, which reduces<br />
the cost of borrowing capital dramatically,” he says.<br />
He also explains that because of its client base that<br />
forms part of the overall <strong>Integr8</strong> <strong>Group</strong>, a lot of new<br />
business continues to come from within. “It’s a case of<br />
turning technology-buying clients into rental clients<br />
where it makes sense. We have to identify which clients<br />
are the ones who should be on the rental model<br />
and sell the idea to them. By doing that, the business<br />
will grow with the clients that we have already as<br />
well as the amount of business that we are doing<br />
on a monthly basis with them,” Fanaroff concludes. B<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 17
<strong>Integr8</strong> PROPERTY<br />
After nine years of<br />
strong growth and<br />
award-winning success,<br />
the <strong>Integr8</strong> <strong>Group</strong> has<br />
built up and branded<br />
a R300 million select<br />
property portfolio,<br />
which supports its<br />
operations and adds a<br />
strong asset base to the<br />
strategic group focus<br />
on annuity revenue.<br />
Rob Sussman, co-CEO, <strong>Integr8</strong> <strong>Group</strong><br />
Bolstering<br />
group<br />
achievements<br />
WORDS Carel Alberts<br />
18
“Besides adding strong<br />
cash flows and an<br />
underlying asset base,<br />
property ownership<br />
also supports and<br />
strengthens our core<br />
ICT operations within<br />
the group.”<br />
<strong>Integr8</strong> Property, the only non-ICT company<br />
in the <strong>Integr8</strong> <strong>Group</strong>, is nevertheless in close<br />
alignment with the group’s strategic focus on<br />
long-term annuity income, while also adding<br />
a significant asset base to its balance sheet in<br />
the form of prime property investments. “It’s<br />
not such a startling diversification as it may first<br />
seem,” says Rob Sussman, joint <strong>Integr8</strong> <strong>Group</strong><br />
managing director. “Besides adding strong cash<br />
flows and an additional asset base, our growing<br />
property portfolio also supports and strengthens<br />
core ICT operations within the group.”<br />
Sussman explains that <strong>Integr8</strong> <strong>Group</strong> companies<br />
themselves occupy some of the division’s larger<br />
commercial properties in Waverly, Johannesburg,<br />
Sea Point, Cape Town, and La Lucia Ridge, Durban.<br />
“As long-term owner-tenants we invest considerably<br />
in the buildings’ ICT, power generation and other<br />
infrastructure, as any owner would,” he says.<br />
“We take pride in our buildings featuring leadingedge<br />
technology and brand professionalism.<br />
Ownership further gives us much better control over<br />
our own fate when we outgrow our premises.”<br />
In the first five years of the <strong>Integr8</strong> <strong>Group</strong>’s<br />
existence, it moved practically once a year to<br />
accommodate its runaway growth, he reveals.<br />
“Now, should we become too big again, we can<br />
simply scale upwards and outwards,” he laughs.<br />
He adds that group companies occupying<br />
<strong>Integr8</strong> Property premises are, however,<br />
treated as true tenants, as <strong>Integr8</strong> Property<br />
entities operate with total independence.<br />
Separate and independent<br />
This division notwithstanding, <strong>Integr8</strong> Property<br />
has some common shareholders with other group<br />
businesses, which gives the group the platform from<br />
which to exercise its rights of ownership. Currently<br />
valued by registered appraisers in excess of R300<br />
million, <strong>Integr8</strong> Property’s holdings fall into two<br />
broad classes – commercial (70 percent of holdings)<br />
and residential (30 percent), and grouped as such<br />
into two overarching entities. Within those entities,<br />
six associated but independent companies manage<br />
<strong>Integr8</strong>’s property-related operations.<br />
“We don’t get involved in development<br />
and building,” Sussman notes. “We purely<br />
invest - in commercial properties for the<br />
annuity yield, and in residential properties for<br />
the capital appreciation.” While the annuity<br />
rental income on residential property is easily<br />
outclassed by other investment mechanisms,<br />
the capital base is what attracts <strong>Integr8</strong>.<br />
Even so, commercial properties attract significant<br />
annuity income on top of their asset value, a<br />
proposition that accounts for the company’s 70-30<br />
split between commercial and residential holdings.<br />
Purpose-suited<br />
Sussman says properties under <strong>Integr8</strong> Property’s<br />
control are either owned outright by it or in<br />
partnership with other organisations. “We always<br />
take a substantial stake in a property we deem<br />
suited to our needs, in any event never any less than<br />
25 percent,” he notes.<br />
As regards suitability, the group’s preference is<br />
for prime, high-value properties, both commercial<br />
and residential, in the right areas. On the coast this<br />
means prime sea-facing properties; in Johannesburg<br />
it means anything in and around Melrose Arch.<br />
A poor property in a poor area is evidently not<br />
attractive. Neither is a good property in a poor<br />
location. “During a down-turn, such as we’re<br />
experiencing now, you won’t get good annuity<br />
income on such properties or in those areas. Hence,<br />
we focus on AAA-grade properties; the best of the<br />
best in the best locations,” says Sussman.<br />
Having an asset base that yields long-term<br />
revenue is in many ways a natural outcome of a<br />
successful run of almost a decade in the <strong>Integr8</strong><br />
<strong>Group</strong>’s core business of ICT solutions integration.<br />
It bolsters an already strong value proposition and<br />
doesn’t deter from its strategic focus on recurring<br />
revenue. And to top it all, it represents the crowning<br />
glory of a mature, successful business. B<br />
<strong>Integr8</strong> IT - special focus<br />
AUGUST 2008 - 19
HR<br />
Work<br />
or play?<br />
While <strong>Integr8</strong> IT may be deadly<br />
serious about work, its personnel<br />
are also given a relaxed and fun<br />
environment to visit each day.<br />
WORDS Candice Jones<br />
There is a well-known maxim that if you love your job, you<br />
will never work a day in your life. <strong>Integr8</strong> IT regional director<br />
Tami Sussman has taken this one step further in creating the<br />
ideal workplace for the company’s employees. “People need<br />
to be happy and feel fulfilled within their role and function,”<br />
she says.<br />
Sussman believes the core of the company’s business lies<br />
with the people it hires. “People are our assets. I believe that<br />
key to this is ensuring that people feel part of the company<br />
as a whole and not just as a particular component of the<br />
bigger wheel.”<br />
The company has developed a comprehensive in-house<br />
human resources business unit that has been bolstered with<br />
consultants and advisors. “Each of which has a specific focus on<br />
people and personalities, so we can employ, train, and retain<br />
local South African skill sets,” says Sussman. The actual HR<br />
function has, however, been outsourced for around four years.<br />
“We have followed our business philosophy of our<br />
outsourcing model and followed our methodology of<br />
outsourcing anything we are not experts in, thus the<br />
outsourcing entirely of our HR department,” she explains.<br />
Sussman says this strategy allows the business to focus<br />
on its core competencies as well as give it access to<br />
industry expertise.<br />
But recruitment is not only left to the HR business unit.<br />
Employees are only hired by referrals or recommendations and<br />
not from recruitment agencies. “We offer placement bonuses<br />
to successful placements within our staff complement,<br />
therefore rather paying our people the fees as opposed to<br />
paying non-related entities,” says Sussman, adding that the<br />
company will only hire the best of the best. “We don’t employ<br />
mediocre people because mediocre people create a mediocre<br />
company. We teach and guide our managers to hire better<br />
skills than themselves.”<br />
Alongside the best minds, with the best skills, <strong>Integr8</strong> IT<br />
20<br />
also looks for a cultural fit. “The company culture is critical<br />
and it’s imperative that it always remains an attractive one. By<br />
maintaining an attractive environment, <strong>Integr8</strong> IT manages to<br />
keep its people energised and continues to attract and retain<br />
top talent,” says Sussman.<br />
“Every potential new member of our team undergoes a<br />
three-phase interview process before entering the company.<br />
Technical skills are probed and tested, but more importantly,<br />
personality and culture fit are analysed. The personality traits<br />
are imperative to ensure a compatible fit and a successful<br />
career for the candidates,” she explains. Building the talent that<br />
is hired is one of the business unit’s priorities. Every employee<br />
has a career path mapped for them once they join the<br />
company and staff members go through continuous training.<br />
A well-equipped and comfortable working environment<br />
is part of keeping the <strong>Integr8</strong> IT employees on the ball, adds<br />
Sussman. It also offers personnel several routes to welfare,<br />
health and wellness programmes, as well as the opportunity<br />
to sit on social committees. <strong>Integr8</strong> IT has been acknowledged<br />
as a finalist in the ICT African Achievers for three years in a<br />
row for Workplace Provider Of The Year. Sussman attributes<br />
the success to the entire company culture, where working<br />
together is imperative. “We work in a totally open-plan and<br />
transparent working environment. Managers and executive<br />
directors do not have their own offices; they share an open<br />
workspace. By having this transparency, everyone feels equal,<br />
everyone realises and feels part of the team and knows that<br />
they play an integral part in the success of the company.” B<br />
Tami Sussman, regional director at <strong>Integr8</strong> IT<br />
“We don’t employ<br />
mediocre people because<br />
mediocre people create<br />
a mediocre company.”
FINANCIAL<br />
Tighter<br />
controls<br />
boost<br />
profits<br />
<strong>Integr8</strong>’s<br />
financial team<br />
WORDS Iain Scott<br />
<strong>Integr8</strong> IT’s net pretax profit for the year to June 2008 is three times that<br />
of the previous year, on turnover that is about 50 percent higher year on<br />
year. The key to that success, says consultant Ray Schur, who manages the<br />
company’s finances, lies in regular reporting, tight control over expenditure<br />
and new business.<br />
Schur, a former financial director at retailer Woolworths, took The <strong>Integr8</strong><br />
<strong>Group</strong> on as a client with the financial year beginning July 2007, and,<br />
together with the company’s directors and heads of divisions, transformed<br />
the way that budgets were drawn up and managed. Among other<br />
measures, the corporatising of reporting and running the operation as if<br />
it was a listed entity was introduced. “Every expense will be actual budget<br />
variance, and there has to be an explanation for every variance,” he says.<br />
“I don’t produce the accounts for every single company within the<br />
group. The accounts are prepared by the finance department and are sent<br />
to me for final review, comment and presentation to the board. I write to<br />
the financial managers of all the companies with comment like, ‘What is<br />
this?’, ‘I don’t understand this’, ‘check this’. That process could take quite a<br />
while – up and down, up and down – but by the time I attend the monthly<br />
executive committee meeting and I present finance, I have satisfied myself<br />
that this is the reason why budget was or wasn’t achieved, I table all that<br />
and action is taken. That has made an unbelievable difference to the<br />
company,” Schur says.<br />
Improvements resulted in happy shareholders<br />
This control of expenditure and revenue has resulted in the marked<br />
improvements in turnover and profit. Schur adds that turnover is increasing<br />
monthly. “Each month sees a huge increase. Annuity-based line items are<br />
going up dramatically – they are signing on new clients all the time. And<br />
in addition to all of those lovely things, control on expenditure is<br />
unbelievable now.”<br />
Schur says he discourages the inclusion of “nice-to-have” expenditure<br />
in the budget, and so at the executive meetings, the budget is debated in<br />
detail before a bottom line is agreed to. Everyone then signs.<br />
Schur says the executives are the ones who actually control the<br />
expenditure. “I’m the guy asking the questions,” he says.<br />
Managing costs<br />
Performance measurement is another area that has helped the company<br />
manage its costs. Schur says it is common in the IT industry to want to hire<br />
more people. “Whatever area you’re in, they’ve got ten people and they say<br />
they need 11, or 12, or 13. Suddenly you start measuring performance, and<br />
you say, ‘What capacity is the client deriving from the current personnel?’”<br />
The solution, he says, has been to allow skills and personnel only if that part<br />
of the business has delivered above budget.<br />
Schur says the company has not gone into overdraft since inception and<br />
the balance sheet is strong, with no debt, which means the prevalent high<br />
interest rates are not having an effect on the <strong>Integr8</strong> <strong>Group</strong>. Debtors’ days<br />
have also been brought down significantly, from 120 days and 90 days<br />
to 30 days.<br />
“That’s without writing off anything. There have not been bad debt<br />
write-offs at this stage,” says Schur. “So we’ve tightened up revenue<br />
and expenses. And this business is motoring – it really is. And what has<br />
happened because of that, notwithstanding the control and being asked<br />
the questions, everybody is very positive and very excited because they see<br />
the bottom line. So it has been incredibly motivating.” B<br />
Ray Schur, Chief Financial Officer<br />
“Each month there is a<br />
substantial compounded<br />
increase.”<br />
22
africa and international<br />
Heading<br />
north<br />
Neo Nwako, head of<br />
<strong>Integr8</strong> IT in Botswana<br />
WORDS Patrick Heske<br />
Africa is a<br />
continent with<br />
unbelievable ICT<br />
prospects, says<br />
<strong>Integr8</strong> IT.<br />
Lance Fanaroff, joint-CEO at national network<br />
integration and infrastructure management<br />
specialist <strong>Integr8</strong> IT, is energetic and passionate<br />
about the company’s African expansion efforts. With<br />
funding already available from many governments,<br />
organisations and companies that want to become<br />
part of the global village, he believes there is a fortune<br />
of business opportunities in Africa.<br />
He says African businesses are no different from<br />
those on any other continent in the world when<br />
it comes to IT requirements, and are experiencing<br />
the same business pains, such the lack of high-level<br />
skills, services and support, due to challenging and<br />
remote conditions. “They also want the value add, the<br />
innovation and the latest processes in place that will<br />
allow them to be competitive in their industries,” he<br />
says. “With IT and where the world is today, anything is<br />
possible even in the most challenging conditions, but<br />
it’s also a case of ensuring that the solutions that make<br />
these companies work are financially sustainable. This is<br />
where we come into play.”<br />
<strong>Integr8</strong> IT’s rich technical skill set and the company’s<br />
ability to execute on decisions quickly, Fanaroff believes,<br />
are the two main areas that set <strong>Integr8</strong> IT apart from<br />
large corporate companies wanting to enter the African<br />
market. “The big problem large firms have is the red<br />
tape and time it takes to make and act on a decision.<br />
With some, it could literally take a year, but with us, it<br />
can be a month or two, or even weeks, so there is really<br />
not much competition. If a company has the right skills<br />
and right structures in place, there is more than enough<br />
work,” he says.<br />
Value adds<br />
Using Intergr8 IT’s multimillion-rand Nerve Centre, its<br />
high-tech digital central nervous system that hosts a<br />
hybrid of technology and technical skills to its clients,<br />
the company provides a range of technical skills,<br />
technology, support and customised value-added<br />
managed outsource services to its African client<br />
base, such as Goldfields, Blue Financial Services and<br />
Amadeus. “The rationale behind the Nerve Centre is<br />
that clients, irrespective of geographic location, can<br />
connect directly into the <strong>Integr8</strong> IT system, and be<br />
provided with managed infrastructure services and<br />
utility-based services immediately,” Fanaroff says.<br />
<strong>Integr8</strong> IT’s African growth has been organic, but<br />
the company made a conscious effort to expand into<br />
Africa through a two-phased approach. “Firstly, <strong>Integr8</strong><br />
IT pro-actively set up offices in countries such as Ghana,<br />
Nigeria, Namibia, Tanzania and Botswana, to name<br />
a few. Secondly, some of our larger clients, such as<br />
Goldfields and Blue Financial Services, have aggressively<br />
expanded into Africa and require the same level of<br />
support if not more than they do locally in South Africa,<br />
so it was really a case of providing that high level of<br />
service wherever they are,” Fanaroff explains.<br />
Roadmap for the future<br />
He adds that a key priority for <strong>Integr8</strong> IT is to ensure that<br />
the IT strategy it puts in place for its clients is not only<br />
right for them now, but is a roadmap for the future and<br />
that their infrastructure is scalable to gear for massive<br />
growth to keep their competitive edge. Not only is the<br />
company expanding its African operations, but it’s also<br />
24
“If a company<br />
has the right<br />
skills and right<br />
structures in<br />
place, there<br />
is more than<br />
enough work.”<br />
Lance Fanaroff, joint CEO, <strong>Integr8</strong> IT<br />
making inroads into the UK and the Netherlands due<br />
to referrals and past business encounters with local<br />
individuals that have relocated overseas.<br />
“For example, in the UK, we are one of the larger<br />
providers of fax to e-mail services, a product that has<br />
really taken the market by storm due to the significant<br />
cost savings involved. Other countries that have the<br />
vision and skills, such Saudi Arabia, are also requiring<br />
our high-level consulting services, design and road<br />
mapping from a technical perspective, and I think it’s<br />
just the beginning for us,” he concludes. B<br />
Intergr8it Ad_half page_June08_conv.pdf 2008/06/24 01:32:12 PM
BEE<br />
Close to<br />
the heart<br />
For <strong>Integr8</strong> IT, BEE is not only something<br />
to comply with, but rather a way of life.<br />
WORDS sipho memela<br />
<strong>Integr8</strong> IT’s approach to BEE is a progressive one;<br />
the company perceives it to be both an economic<br />
imperative and an opportunity to address the<br />
disempowerment of previously disadvantaged<br />
communities. To this end, the company is a fully<br />
complaint BEE contributor with regards to all aspects,<br />
and not just those required but also over and above<br />
legislative policy.<br />
Mantu Dlamini, <strong>Group</strong> HR manager at <strong>Integr8</strong> IT<br />
says that the BEE Act was intended to redress the<br />
Apartheid legislation which essentially restricted<br />
ordinary South Africans from the fundamental right<br />
to equal opportunities.<br />
She says that while people will always find personal<br />
opportunity in public programmes, the company<br />
strives towards driving the intent of the legislation, thus<br />
legitimising the country’s claim to democracy. “It has<br />
never made business sense to keep the economy in the<br />
hands of only four percent of the country’s population.<br />
Real economic development only happens when the<br />
majority of the population makes a direct contribution<br />
to the economy. We believe that this legislation should<br />
have happened a long time ago,” she explains.<br />
BEE tools<br />
Internally, <strong>Integr8</strong> IT has developed a number of<br />
strategies that will ensure that it carries out its intent to<br />
develop the people of South Africa within the framework<br />
of the BEE Act. Its transformation policy is aimed at<br />
implementing definitive strategies to promote the<br />
employment of historically disadvantaged individuals<br />
(HDIs) based on merit at all levels in the organisation. The<br />
company currently has a 43 percent representation of<br />
HDIs at all levels of the organisation, with the intention<br />
to grow this figure in an effort to better reflect the<br />
demographics of the regional population, bearing in<br />
mind the limited skills pool in the sector.<br />
“The other part of our transformation strategy<br />
deals with the identification and elimination of any<br />
employment barriers to HDIs that may exist within<br />
the company. We do this<br />
through sensitisation of our<br />
workplace and employee<br />
awareness campaigns that foster<br />
respect among all cultures and<br />
orientations,” elaborates Dlamini.<br />
Other tools include skills<br />
development initiatives relating<br />
to its core services. The company<br />
makes itself available to assist<br />
all employees to enhance<br />
their careers, whether through<br />
financial assistance, mentoring<br />
or internal training initiatives. It<br />
has an effective learnership agreement in place, through<br />
which it has undertaken to provide a substantial amount<br />
of HDI candidates the opportunity to study, gain the<br />
relevant qualification, and then join <strong>Integr8</strong> IT to get the<br />
practical experience with an aim to developing these<br />
individuals into key members of the organisation.<br />
Beneficiaries<br />
<strong>Integr8</strong> IT’s progressive attitude towards BEE extends to<br />
the fast understanding and uptake of policy changes.<br />
The South African government has recently announced<br />
the recognition of Chinese people living in South<br />
Africa as previously disadvantaged individuals, thus<br />
giving them BEE status. This entitles the Chinese to<br />
all opportunities set out for black people in the Broad<br />
Based Black Economic Empowerment (BBBEE) Act.<br />
Dlamini says: “We need to remain relevant with the<br />
current changes and embrace all challenges posed<br />
by it. This inclusion could also create opportunities<br />
to accelerate the development of the previously<br />
disadvantaged communities.”<br />
She says that as the country battles with<br />
unemployment, a direct result of the skills shortage,<br />
it is critical to offer long-term and sustained solutions<br />
to our communities. “Hence our long-term approach<br />
to social responsibility.”<br />
B<br />
Mantu Dlamini, <strong>Group</strong> HR<br />
manager at <strong>Integr8</strong> IT<br />
“We need to<br />
remain relevant<br />
with<br />
the current<br />
changes.”<br />
26
case study<br />
Staying<br />
connected<br />
<strong>Integr8</strong> plays a vital role in making sure<br />
that the Fidelity Security <strong>Group</strong>’s user<br />
group remains connected.<br />
WORDS Richard Morgan<br />
Fidelity Security <strong>Group</strong>, one of the largest South<br />
African security and cleaning group of companies,<br />
has outsourced the management, maintenance, and<br />
support of its entire ICT infrastructure to <strong>Integr8</strong> IT. The<br />
security services company has over 32 000 employees<br />
throughout its network of 54 branches in key regions<br />
in Africa that include Botswana, Lesotho, Namibia,<br />
Swaziland, and Mozambique. Its user network also<br />
stretches as far as Dubai.<br />
Bennie Strydom, sales director at <strong>Integr8</strong> IT, believes<br />
that the Fidelity <strong>Group</strong> is the largest security services<br />
operator in the country and says that <strong>Integr8</strong> IT plays<br />
a vital role in making sure that the company’s user<br />
group remains connected. “Our chief role is to ensure<br />
that the company’s extensive user group remains<br />
connected, is not affected by any downtime, and all<br />
the systems and infrastructure in place continue to<br />
operate at the highest level possible,” says Strydom.<br />
Changing agreements<br />
The <strong>Integr8</strong> <strong>Group</strong> has a service level agreement in<br />
place with the Fidelity <strong>Group</strong> that sees it contracted<br />
to provide outsourced services of all operations<br />
locally and internationally, a dedicated projects and<br />
compliance office, a full-time support service, and<br />
guaranteed uptime during critical payroll periods.<br />
Strydom says the service level agreement initially<br />
focused on stability and connectivity across the<br />
organisation. However, it has evolved<br />
over time to incorporate a higher level<br />
of service and support.<br />
“Because of the size of the Fidelity<br />
<strong>Group</strong>, managing their IT infrastructure<br />
internally became very challenging.<br />
The group selected <strong>Integr8</strong> IT to make<br />
sure that it keeps up to date with<br />
innovation to stay ahead by using<br />
technology,” he says.<br />
Getting things done<br />
For this to happen, <strong>Integr8</strong> IT has connected Fidelity<br />
to its Nerve Centre operation. This is a high-tech,<br />
centralised digital contact centre that is used to<br />
interact with and manage all of <strong>Integr8</strong> IT’s clients<br />
around the world. By being connected to the Nerve<br />
Centre, Fidelity has a stable network and an improved<br />
support infrastructure to ensure network uptime and<br />
availability for all its branches.<br />
“The immediate benefits of being plugged into the<br />
Nerve Centre operation includes around-the-clock<br />
surveillance of Fidelity’s infrastructure, proactive<br />
maintenance and management, offsite backup<br />
services, and national and international support,”<br />
Strydom continues.<br />
With the Nerve Centre, <strong>Integr8</strong> IT has a complete<br />
view of the group and is able to make sure that all<br />
their networks run smoothly and is able to identify any<br />
problems before they occur.<br />
Trusted partnership<br />
“As the trusted ICT services and support partner and<br />
advisor, <strong>Integr8</strong> IT offers the Fidelity <strong>Group</strong> the peace<br />
of mind to focus on its core business of providing the<br />
market with a total security system,” says Strydom, adding<br />
that the <strong>Integr8</strong> service offering includes the benefit of a<br />
dedicated projects and compliance office, which ensures<br />
that Fidelity has access to the skill sets of <strong>Integr8</strong> IT.<br />
“This includes the advantage of onsite technicians<br />
and maintenance staff, as well as skilled IT practitioners<br />
that can offer guidance and application of technology<br />
to ensure full compliance on systems as the company<br />
grows,” he concludes. B<br />
Bennie Strydom, sales director at <strong>Integr8</strong> IT<br />
“Our chief role is to ensure<br />
that the company’s<br />
extensive user group<br />
remains connected.”<br />
28
case study<br />
The value of<br />
optimisation<br />
<strong>Integr8</strong> IT upgrades Gold Fields Ghana<br />
WORDS Donovan Jackson<br />
Sometimes the pace of change is such that certain pockets<br />
of an organisation get left behind, especially where growth<br />
is by acquisition or assimilation. This was more or less<br />
the case for mining giant Gold Fields’ Ghana operations,<br />
where underperforming and outdated Windows Server<br />
Operating Systems and creaky old versions of Microsoft<br />
Exchange were among the company’s ageing systems.<br />
However, with systems integrator <strong>Integr8</strong> IT responsible for<br />
the management, support and maintenance of its South<br />
African information technology environment, Gold Fields<br />
soon sat down for a brainstorm session to see how it could<br />
modernise its Ghana offices and in so doing, reduce the cost<br />
of management and improve business communication.<br />
According to Jan Roux, technical director at <strong>Integr8</strong> IT,<br />
the real issue with Goldfields Ghana’s ICT infrastructure was<br />
one of high administrative costs across the mine’s multiple<br />
operations in the West African nation. “The Ghana operations<br />
had to be upgraded to Gold Fields’ standard infrastructure<br />
and messaging platform; in addition, with three different<br />
infrastructure and messaging systems in place, Gold Fields’<br />
Ghana IT division was experiencing difficulty in providing an<br />
integrated, available, scalable and robust system to their user<br />
base,” he explains.<br />
Keeping Busy<br />
With the presence of outdated and incompatible<br />
technologies, administrators were constantly kept busy<br />
solving day-to-day failures. “There was also reduced<br />
efficiency of communication given the incompatibilities<br />
between older systems and the new ones used at other Gold<br />
Fields offices,” he explains.<br />
A need was identified to action these issues. Strategy<br />
sessions held in South Africa in 2007 attracted the<br />
participation of all Gold Fields International IT managers,<br />
IBM, <strong>Integr8</strong> IT and Microsoft.<br />
Roux says a conceptual infrastructure solution was drafted<br />
and presented. “With all parties agreeing on the overall<br />
direction of the proposed strategy and technical solution,<br />
Gold Fields requested IBM and <strong>Integr8</strong> IT to provide a<br />
business case for how to solve the issues the company faced.”<br />
With its proven capability in handling the South<br />
African Gold Fields infrastructure, Roux says the<br />
company had the confidence to request that <strong>Integr8</strong><br />
IT upgrade its current environment, starting with<br />
Active Directory services and Exchange 2003 for all<br />
Ghana sites. “This resulted in a common integration and<br />
connectivity capability in Ghana and across all South<br />
African operations,” he notes.<br />
The Project<br />
The scope of the project included the planning, testing<br />
and deployment of a highly available, scalable and<br />
robust Advanced Infrastructure and messaging platform.<br />
Microsoft Identity Integration Server(MIIS) 2003 was<br />
deployed to provide Global Address List synchronisation<br />
between Ghana and South African operations. “This was<br />
done by leveraging of the existing MIIS infrastructure<br />
deployed in South Africa,” says Roux.<br />
In implementing a single Standardized Active Directory<br />
infrastructure and messaging platform for all Ghana<br />
sites that caters for growth and meets strategic business<br />
requirements, Roux says <strong>Integr8</strong> IT applied the<br />
MSF (Microsoft Solutions Framework), which he says<br />
provides for predictable outcomes.<br />
“Creating meaningful business solutions on time and<br />
within budget requires a proven approach. MSF is adaptable<br />
and allows for the successful delivery of solutions faster,<br />
requiring fewer people, and involving less risk, while<br />
enabling higher quality results,” he says.<br />
AS a result of <strong>Integr8</strong>IT’s intervention, Gold Fields Ghana<br />
today has a considerably simpler, standardised environment.<br />
Says Roux: “There is the immediate benefit that the Ghana<br />
operations can now interact with the rest of the Gold Fields<br />
world. At the same time, the burden on administrators<br />
is substantially reduced, allowing for strategic IT input<br />
instead of a reactive approach. And with <strong>Integr8</strong>IT providing<br />
ongoing support and maintenance from our Nerve Centre,<br />
Gold Fields can also be sure that the infrastructure in Ghana<br />
is as effective in a year’s time as it is today.” B<br />
Jan Roux, technical director at <strong>Integr8</strong><br />
30
integr8<br />
at a glance<br />
Founded: 2001<br />
Recent awards and accolades<br />
CEOs:<br />
Robert Sussman and<br />
Lance Fanaroff<br />
Directors:<br />
Jan Roux (Technical)<br />
Bennie Strydon (Sales)<br />
Tamara Sussman (Regional)<br />
Website:<br />
www.integr8it.com<br />
National offices:<br />
Johannesburg<br />
17 Scott Street<br />
Waverly<br />
2090<br />
Highview House<br />
“Each month<br />
Bracknell<br />
RG12 1DF<br />
there is a substantial<br />
compounded<br />
Suite 200<br />
Scottsdale<br />
increase.” Arizona<br />
Telephone: +27 11 555 9300<br />
Fax: +27 11 555 9301 85260<br />
Ray Schur, Chief Financial Officer<br />
Tel: (480) 603-9400<br />
Cape Town<br />
The Equinox<br />
3rd floor<br />
Main Road<br />
Sea Point<br />
8005<br />
Telephone: +27 21 439 9986<br />
Fax: +27 21 439 9983<br />
Durban<br />
3 Hollwood Park<br />
La Lucia Ridge<br />
4001<br />
Telephone: +27 31 566 4800<br />
Fax: +27 31 566 4801<br />
International offices:<br />
United Kingdom<br />
Tel: +44 (0) 207 164 2174<br />
United States of America<br />
» African ICT Achievers Awards – Most<br />
Innovative ICT Company– Winner<br />
» Technology – Top100 Company<br />
» National Business Award – Innovation Though<br />
Technology – Finalist<br />
» IBM – Outsourcing Partner of the Year<br />
» Advanced Infrastructure Solutions – Winner<br />
» Customer Eperience Initiative – Winner<br />
» Networking Infrastructure Solutions – Winner<br />
» Winning customer initiative – Winner<br />
» Networking infrastructure solutions – Winner<br />
» Absa entrepreneur of the year 2007 – Finalist<br />
» SA’s top performing company for 2007 – Topco Media<br />
» IT Personality of the Year – Finalist<br />
» Top Empowered Company in SA 2006/7 – Finalist<br />
» TOP ICTe Company<br />
» African ICT Achievers Award – Top Private Sector<br />
CIO – Winner<br />
» African ICT Achievers Award – ICT Workplace<br />
Provider – Finalist<br />
» Microsoft Gold Partner of the Year – Winner<br />
» Global Small Business Partner of the Year –<br />
Worldwide Winner<br />
» Security Partner of the Year for Middle East,<br />
Africa, & Eastern Europe – Winner<br />
32