Established in 1992, CAE Technology Services Ltd (CAE) has been a trusted technology partner to businesses for more than 30 years, helping customers secure and transform their operations through the provision of industry-leading solutions and services covering networking, connectivity, cloud, data centre, workplace and security.
CAE prides itself on delivering solutions chosen and optimised for each customer’s specific needs and last year took this to the next level with the launch of its own software development practice, CAE Labs. Enabling CAE developers to pool knowledge gained in different technology areas and collaborate with partners and customers, this new resource will enhance the company’s integration capabilities and accelerate the development of new productsand solutions that have applications across its customer base.
CAE is led by CEO and business owner Justin Harling, who joined CAE as Managing Director in 2000 before leading a management buy-out in 2004. Today, the company has annual sales of more than £130 million, employs 350 people across seven UK offices and works with customers on three continents – Europe, North America and Asia. Here, Justin Harling gives his view from the channel.
Technology Reseller (TR): How’s business? Better or worse than 12 months ago? And how confident are you about the future?
Justin Harling (JH): Fundamentally better – different in some respects, but definitely better. Global factors continue to throw up challenges, but none of these is dampening the demand for IT solutions that transform businesses. This is what underpins my optimism and gets me excited about the opportunities to come.
We’ve been through enough recessionary environments to know that good companies grow in difficult times. The reaction to many of the events of the past three years has been to remind us that, for all the good technology does, there is a human factor that can never be discounted. Seeing the development of our people, how they connect with customers and the difference this makes remains a source of inspiration and contributes to my positive outlook.
TR: In what areas are you experiencing strongest demand?
JH: The network continues to be core to a lot of IT strategies, with pervasive wireless an essential, and security has taken on a different dimension because of the level of threat and the dispersed nature of today’s workforce.
Recent research undertaken by us highlights the pressure security teams
are under. Just 7% of UK IT professionals believe security is at the forefront of their organisation’s thinking, despite 62% saying that security risks and pressures from their employers have increased. Plus, 40% of IT professionals believe that there is insufficient training and resources available to support them on a daily basis. Anything we can do to help them have more good days is something I feel passionate about.
TR: What recent wins are you most proud of?
JH: All those that demonstrate how innovative we can be, particularly in the adoption of automation. The speed with which software and app development has become a significant factor in our business continues to astound me. What started out as a science project has rapidly grown into a key source of differentiation that is now included in everything good we do.
Our recently launched in-house software development practice, CAE Labs, has developed into a key problem-solving methodology for customers and is allowing our internal teams to get their creative thinking hats on and change the way we approach customer conversations. The fact that this has driven growth and was recognised by Cisco in announcing us as their UK&I Partner of the Year has been a moment to enjoy and a major impetus to drive us forward.
TR: Where is business proving most difficult?
JH:Managing customer expectations in the face of stock shortages and supply chain disruption continues to be difficult. Although lead times have been improving, the overall level of predictability hasn’t and this makes managing projects extremely challenging.
The area that will remain most difficult and could affect growth more than any other is recruitment. Quality people are always in demand and the market has been driven to unsustainable levels by a frenzy of activity across the industry.
That said, we are seeing evidence that reckless short-term decisions have huge impacts on individuals and that it is better to consider long-term prospects when choosing a company to join. I am hoping that sanity returns and that our focus on people development means we continue to grow in the right way.
TR: How have you changed/are you changing business operations to exploit new opportunities?
JH: Software development is a whole new world that requires a new set of disciplines to sit alongside our hardware and services businesses, and this is having a positive effect on both parts of the business.
Just over a year ago, we moved into our new HQ, having embarked on a major refurb project. The new space is optimised to support a hybrid work model and is a great place to spend time with partners and customers.
We are also embarking on a complete systems upgrade to help drive productivity and better interactions with suppliers and customers. There is a lot of change happening, but this reflects the level of opportunity now and in the future.
TR: What do you see as the biggest challenges facing channel businesses today?
JH: The pace of change has never felt faster and this demands a constant level of investment across the business, financially, emotionally and in terms of time. Finding a sustainable model to achieve this for the long-term without sacrificing culture is difficult and requires a real commitment to purpose. There are no short-cuts, and it is about more than money.
The biggest challenge is maintaining that belief and trusting that acting with the right intent is the route to longevity.
TR: Could vendors and distributors do more to help you overcome these challenges? And if so, what?
JH: Thinking about reseller businesses strategically instead of through the prism of short-term forecasts and targets would be most helpful. Success is built on long-term planning, not reactive changes from quarter to quarter. A strategic approach to sales, marketing and service development yields stronger results if you trust that approach and remember that together we are trying to support and build trust with customers.
TR: Are customers become more demanding, and if so, in what ways?
JH: Customers aren’t necessarily more demanding, but they are certainly much more knowledgeable and therefore the value they expect from a reseller is heightened. Over the last few years, customers have shown how resilient they are to change and that translates into a desire to implement transformation decisions that require significant understanding and support. Just doing what has always been done is definitely not an option. Our adaptability must equal theirs.
TR: If you could change one aspect of your job, what would it be and why?
JH: I wouldn’t choose a different industry, as our ability to transform lives and experiences has never been greater. What I would take every day, though, is more time. I love talking to customers, partners and our people – this is what inspires me and helps shape what we do next. Unfortunately, every day seems to bring at least one more person I wish I had more time to spend with. Anything that gets in the way of those interactions I will always look to change; it’s how I get to have more good days!
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