Industry news

  • 22 Apr 2013 12:00 AM | Anonymous

    Data has become an inescapable reality of modern business, and the sheer volume of it poses huge problems to the enterprise. Recent research by Cisco predicts that by 2016 data centre traffic will have increased six-fold on the amount of data handled in 2011. That’s a startling statistic, and enough to keep any data centre manager awake at night.

    Traditionally, there have been two options for organisations that require a data centre: build your own, or, rent rack space from a data centre colocation provider. Both have their distinct advantages and disadvantages; however, the size of an organisation has often proved to be the deciding factor with the most influence.

    The biggest advantage of building your own data centre is exactly that. You designed it, you built it, you control what goes on in there. You can custom design your infrastructure to handle whatever systems you need to run. Upgrades to new technology can be carried out at the pace you need to go at, as slow or as fast as you like. Control also extends to security, and managing your own data on-premise means that physical security is less likely to be compromised.

    This level of control, however, comes at a price. Quite literally. Building a data centre is not cheap, and it’s not exactly cheap to run manage and maintain when operational either. Between unpredictable property prices and the rising cost of energy, regardless of the size of the organisation, committing to build your own data centre amounts to a significant outlay of capital.

    The other option is to use a colocation facility. There are many attractive and obvious benefits to this solution, not least the lower initial outlay involved and ability to buy more capacity as needed. This is a perfect solution to many organisations but the restrictions put in place in terms of available technology, ability to run custom systems and compromises to physical security mean that this is not a viable option for many companies.

    With data traffic skyrocketing, a very real dilemma for many organisations that manage their own data centres is what to do when they exceed capacity. Finding a service provider that can handle legacy systems can be a real challenge. My own experience as a technical data centre engineer in the financial services sector taught me that many of the traditional outsourcing options were not really fit for purpose.

    Recently, however, we’ve seen a different third model emerge, providing a viable alternative for those in need of rapidly expanding data handling capabilities. The advent of the modular wholesale data centre provider offers, in a way, what is the best of both worlds. Customers can lease what is essentially a managed data centre environment, providing a secure location, network connections, as well as power and cooling infrastructure, but critically, what happens inside this environment is completely down to the customer.

    The environment can be exactly what they make of it, and is not restricted to the hardware put in place by the datacentre provider, preventing compatibility issues that may have arisen using a traditional colocation provider. This approach lends itself to phased expansion, and the modular technology associated with this type of offering allows tenants to increase their capacity in the same footprint as they need to.

    For organisations that need more than just rack space, this is a godsend. In essence, it provides what is, for all purposes, a self-controlled data centre, while avoiding the outlay associated with building and maintaining your own. In a time when raising capital for infrastructure investment is becoming more and more difficult and budgets are being cut left right and centre, any opportunity to turn the data centre into an operational expense rather than a capital expense will be music to the ears of any IT decision maker.

    Businesses find cloud migration costly

    Cloud computing: let’s work together!

  • 22 Apr 2013 12:00 AM | Anonymous

    The MOD (Ministry of Defence) has awarded IT services company Atos with a leadership position in coordinating defence communication network services (DCNS).

    Atos as a MOD strategic partner will lead a team consisting of several other companies to deliver communication services with support from the MOD’s information services programme (ISS).

    The new service is expected to generate cost savings alongside increased flexibility aimed at supporting UK armed forces services throughout global operations.

    The contract itself is valued at £25 million over three years, with a clause for an extension to seven years if desirable.

    “The Atos Team solution brings world class commercial best practice in delivering information and communications, set within a comprehensive understanding of the operational and business needs of Defence”, said Commodore Jamie Hay, Head of the UK MoD ISS Programme Team.

    Concern raised over MoD’s reliance on foreign firms

    MOD rushed air movement procurement

  • 22 Apr 2013 12:00 AM | Anonymous

    IBM have reported a 5 percent decline in revenue for the first quarter of 2013 after the IT giant was unable to close on several major contracts by the end of the quarter.

    IBM reported revenue of $23.4 billion for the first quarter as the company feels the impact of the market slump for PC products and services, as mobile devices and tablets compete for sales.

    The business saw strong revenue decline in Asia-Pacific regions in comparison to U.S. and European markets, with a 7 percent loss in first quarter revenue.

    Ginni Rometty, IBM chairman, president and chief executive officer, said in a statement: “Despite a solid start and good client demand we did not close a number of software and mainframe transactions that have moved into the second quarter".

    Due to the inability of IBM to sign several large deals by the end of quarter results deadline, expectations now lie on reports of strong results from the second quarter of 2013.

    IBM opens new European datacentre aimed at driving social business technology uptake.

    IBM to move cloud software to open source platforms

  • 22 Apr 2013 12:00 AM | Anonymous

    An offer of £912 million from CVC Capital Partners and partner investors has been rejected by betting firm Betfair.

    The online site said that an offer at 880 pence per share “fundamentally undervalues” the business.

    Investors partnered with CVC include Richard Koch who already owns a 6.5 percent stake in Betfair.

    Chairman Gerald Corbett said: “We have a unique business with a market position, profitability, cash flow and prospects that this proposal fails to recognise."

    The company will now move to enact costs savings and develop its market performance, with shares opening up at 818 pence.

    CVC enters into talks on Betfair takeover

  • 22 Apr 2013 12:00 AM | Anonymous

    George Osborne is set to boost lending for SMEs as the government seek to push economic growth, with an extension to the Funding for Lending Scheme (FLS) run by the Bank of England.

    The FLS scheme has so far be credited with reducing mortgage costs for small businesses with the Chancellor admitting that an extension may have “merit”.

    The scheme established in August was originally set to expire in January 2014, but is now expected to be extended after the IMF have raised concern regarding the UK’s efforts to promote growth and current austerity measures, with another major credit ratings agency downgrading the country from triple-A last Friday.

    Expectations are on a FLS extension being announced before the arrival of an IMF delegation in May

    UK prepares for 2013 budget

    Government increases business innovation fund to £60 million

  • 19 Apr 2013 12:00 AM | Anonymous

    Chinese firm Huawei is looking to employ more than 5,000 workers for projects with Europe over the next four to five years.

    The planned increase employees would bring the phone and network provider’s European workforce size to around 13,000.

    The planned workforce increase comes as Huawei seeks to expand into the European marketplace, with expectations on the company’s ability to carve out a strong market from its ability to provide fast services at a competitive price.

    Hirings come at a time when telecomm businesses situated in Europe are making employee cutbacks.

    Ken Hu, Huawei chief executive officer and deputy chairman, said to Bloomberg: "We will continue to increase our investments in this market. If we can be successful in Europe and have a virtuous circle, we can invest more."

    Huawei set to generate over $2.4 billion in net profit

    Huawei records strong profits and revenue over 2012

  • 18 Apr 2013 12:00 AM | Anonymous

    Changes to the H-1B visa by the US Comprehensive Immigration Bill are expected to lead to increased costs for many Indian IT companies.

    The bill itself has been delayed in light of the events surrounding the Boston marathon explosions, but expectations are on increased costs for H-1B visas which most Indian IT firms use for local employees, restrictions on their use are also expected to come into force.

    The US Comprehensive Immigration Bill is expected to promote the employment of domestic workers, while the quota of H-1B visas for skilled workers has been increased, added costs and restrictions will decrease the attractiveness of investing in U.S. industries from an overseas-outsourcing perspective.

    India and Germany boost links through language education program

    Cameron signs cyber security deal in India leading the way for trade expansion

  • 18 Apr 2013 12:00 AM | Anonymous

    Apple has lost its position as the world’s largest company after shares fell to a 18-month low with a 40 percent decline in stock prices from last September.

    Shares closed at $23.44, a record low last seen in December 2011 a wiping out $20 billion in shareholder value, leading to Apple losing its leading position to energy giant Exxon Mobil.

    The decline in share prices was influenced by a reduced sales forecast from one of the technology giants leading suppliers for its iPhone and iPad, suggesting a slowing demand for its flagship range.

    Analysts are continuing to remain cautious, with fears that share prices may still have some way to fall.

    Apple have struggled in recent months, particularly over the winter period, as the company faces increasing competition from rivals including Samsung and Google.

    Expectations now rest on Apples line up of product releases in 2013 to turn around the companies decline.

    Samsung overtakes Apple as leading manufacturer of ‘smart devices’

  • 16 Apr 2013 12:00 AM | Anonymous

    A report by HfS and Accenture has found that neither sourcing buyers nor providers are making the necessary investments in the key driver of value creation – people. Barely a third of enterprise outsourcing customers believe their current governance talent – the people responsible for managing the service relationship – can drive innovation or define business outcomes. And only about half of outsourcing providers have established formal training programs to develop industry expertise and skills in analytics and relationship management.

    According to the report, which featured a survey of executives from 282 enterprises, two examples of strategic business skills are increasingly important to enterprise executives: defining business objectives beyond cost reduction and efficiency (83 percent regarded this as important or critical) and influencing executives (77 percent). However, executives acknowledge that their current skill levels are deficient in these areas.

    Mike Salvino, group chief executive, Business Process Outsourcing, Accenture: “If outsourcing is to deliver on its full potential, buyers as well as providers need to invest in developing the skills and talent to capture the greater levels of value available from fourth and fifth generation BPO solutions,” HfS Talent study – the first of its kind – highlights the growing talent gap between what the industry and its clients aspire to achieve and the lack of sufficient investment in people to make it happen. We hope it serves as a call to action for everyone involved in the business of outsourcing. The bottom line is that outsourcing business or IT functions is never ’done’ and with proper investments in talent, the outsourcing governance team has continual opportunities to improve productivity, efficiency and access to critical data.”

  • 16 Apr 2013 12:00 AM | Anonymous

    Business confidence among chief financial officers (CFOs) has improved for the third consecutive quarter, according to the latest Deloitte CFO Survey, which saw 34% of CFOs say now is a good time to take risk on to their balance sheets, compared to 25% in Q4 2012 and 13% in the final quarter of 2011.

    The Q1 2013 CFO Survey, which gauges the views of 120 chief financial officers, including those from 26 FTSE 100 and 44 FTSE 250 companies, shows that CFOs’ perceptions of macroeconomic and financial uncertainty have dropped to the lowest level for two and a half years. 23% of CFOs say their business faces a high level of external uncertainty - the lowest level since Q2 2011 (21%).

    Rising equity markets, exceptionally easy monetary policy and improving financial conditions have contributed to a more positive mood among major UK companies. Credit conditions for large companies have improved for the third consecutive quarter. Over two-thirds (69%) of CFOs say that credit is more readily available, 60% rated credit as cheap and 67% say that bank borrowing is an attractive source of lending, the highest levels recorded since the CFO Survey started in Q3 2007.

    Ian Stewart, chief economist at Deloitte, said: “Despite the gloomy coverage around the UK Budget and the crisis in Cyprus, CFOs believe that that the level of economic and financial risk facing their businesses has declined. Corporate appetite for risk is not far off the peaks seen in early 2011 when Europe looked set for a sustained recovery. Reduced stress in financial markets, especially in the euro area, has delivered improvements in credit conditions for big UK corporates. It is a measure of the change that CFOs now rate bank borrowing as offering a more attractive form of finance than at any time since the start of the financial crisis.”

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