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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 />

Cindy-Lee Minnaar<br />

Charmaine Smit<br />

www.infiltratemedia.co.za<br />

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natalie Barker<br />

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(carrie@itweb.co.za)<br />

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(payments@itweb.co.za)<br />

PUBLISHED BY<br />

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ISSN 1680-1555<br />

<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

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