Archive for February, 2010

Government plans integrated IT city near Bangalore airport

February 26th, 2010

The Karnataka government would build an integrated IT city near the Bangalore international airport to attract more investments in the knowledge sector, Governor H R Bhardwaj said yesterday.

“The state government has initiated measures to build an integrated IT city near the airport at Devanahalli, based on the central government’s guidelines to create an IT investment region,” Bhardwaj told law-makers in his address to the joint session of the state legislature in the Vidhan Soudha here.

Devanahalli is about 40km from the city.

Outlining the state’s industrial growth plans for the ensuing fiscal (2010-11), the governor said the government has approved proposals to set up 76 large and mega industries across the state with an investment of Rs1.95 trillion, with potential to create about 320,000 jobs.

“The government will develop industrial corridors and link them with core sectors such as IT (information technology), BT (bio-technology), automobiles, pharma, textiles, steel and cement. In line with the new industrial policy, additional incentives will be given in backward districts,” Bhardwaj said in his hour-long address.

The 2009 industrial policy offers a slew of incentives, including interest free loan on VAT (value added tax), anchor unit subsidy, interest subsidy, incentives for energy and water conservation.

The governor also noted the IT industry’s overwhelming response to the government’s scheme to set up rural BPOs (business process outsourcing) centres to create jobs and check migration to urban areas.

“Sector-specific BT parks will be located at Mysore, Mangalore, Dharwad and Bidar in the state to decongest Bangalore and attract investments across the state for socio-economic development of the region and create employment opportunities,” Bhardwaj pointed out.

Reiterating the state government’s commitment to build infrastructure across the state, the governor said to improve air connectivity, plans have been drawn to develop airports at Shimoga, Gulbarga, Bijapur and Hassan on the PPP (public-private partnership) model for providing feeder service.

“The Mysore airport expansion has been completed for commencing operations. Additional land is being acquired to upgrade and expand existing airports at Hubli, Mangalore and Belgaum,” Bhardwaj said.

The government also proposes to develop 11 airstrips at Davangere, Raichur, Chikmagalur, Udupi, Kushalnagar, Gokarana, Chitradurga, Bagalkot, Haveri, Gadag and Kollegal.

For the speedy completion of the new rail lines in the state, the state government will fund 50 percent of the project cost and the cost of land acquisition.

Stressing the need for quality road network for overall development, the governor said the World Bank has cleared tendering for upgrading 826km of roads at an estimated cost of Rs16.50bn under the Karnataka state highway improvement project-2.

Source:http://www.thepeninsulaqatar.com/Display_news.asp?section=World_News&subsection=India&month=February2010&file=World_News2010022682246.xml

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Sri Lanka to gain from Silicon Valley technologies

February 26th, 2010

The import of technologies from Silicon Valley will empower businesses, helping entrepreneurs to raise revenues and boost profits, said Latitude 655 chief execrative officer Shanil Fernando.

It will also assist Sri Lanka to gain a fair global market share in Business Process Outsourcing (BPO), he added.

He was speaking at the launch of Latitude 655, a new company.

Silicon Valley has remained the leading high-tech hub for the past several years with a large number of entrepreneurs investing in the IT engineering fields.

However, Sri Lankan companies have so far been unable to gain major benefits from these latest technologies, innovations and insights, Fernando pointed out.

There are around one million online users in Sri Lanka at present and the growth rate has been phenomenal over the years. Most of the technology and services used overseas are not available in Sri Lanka, a vibrant market,

“Sri Lanka is at the early stages of an economic boom, and our analysis in the past three years has shown that the economic boom will be followed by a technology boom,” he said.

The CEO also said that Latitude 655 had assembled a world-class team to form this partnership. “Our partners are veterans in the global IT industry and have been instrumental in luring high potential talent from local as well as foreign companies and universities.”

Source:http://www.lankatimes.com/fullstory.php?id=25191

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

The ROI on outsourcing your IT infrastructure

February 26th, 2010

Return on investment is a common term, often used by the companies and marketing heads to describe profit. However, many struggle to define it when it comes to compare in-house versus outsourced IT strategies. And, when it comes to IT, almost all enterprises outsource at least some of the IT resources and activities necessary to support business operations.

“Outsourcing” is the process of contracting with a third-party to provide a selective list of business activities. ROI is the key consideration when deciding whether or not to outsource IT activities. Hostway Corp., a provider of domain name registration, Web hosting and e-commerce, colocation, managed dedicated hosting, and more, said that the availability of competitive outsourcing products from a diverse set of service providers should result in significant opportunities for cost reduction and improved IT performance.

Today, there are a number of companies that specialize in outsourcing, and enterprises should exercise care when selecting the right service provider to meet their needs. In order to effectively outsource, the enterprise IT and executive management should perform an accurate assessment of the business objectives. And, then determine the IT implications, and tangible and intangible costs of meeting those objectives through in-house and outsourced strategies.

Hostway (News – Alert) officials said that the decision to outsource should be an objective and financially driven initiative. The decision should be made after assessing capital requirements, business and operational risks, and the value of maintaining the enterprise’s focus on core business activities and competencies.

The white paper, “Outsourcing your IT Infrastructure,” explains that significant ROI can be achieved by outsourcing some or all of a company’s servers and data center equipment. It talks about ROI in details, and discusses about a simple tool for analyzing the relative merits of some types of outsourcing. The paper also talks about the benefits of outsourcing. And, it contains factors to consider when exploring outsourced strategies.

Source:http://www.tmcnet.com/channels/dedicated-server/articles/76915-roi-outsourcing-it-infrastructure.htm

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Gartner releases 2010 end user predictions

February 26th, 2010

A new set of predictions by Gartner Inc. reports that by 2012, 20 per cent of businesses will not own any IT assets, neither end user nor data centre.

As organizations increasingly dabble in client virtualization, some are realizing that they don’t even need to own PCs if it doesn’t really matter on which machine users are working, said Leslie Fiering, vice-president with Gartner, based in Pescadero, Calif. “In fact, for some small to mid-sized business, having your own PC is a requirement to show up for work,” said Fiering.

Now that client virtualization takes care of security issues like how corporate data is isolated and protected, Fiering said there is now a growing desire to get help with the “non-strategic burdens of PC ownership.”

“We’re not completely there, but we’re certainly getting there.

There’s also a big move among infrastructure service providers to build server farms that offer the security and manageability that customers demand, allowing large organizations to move their IT infrastructures offsite or even off their books, said Fiering.

The role of the value-added reseller (VAR) will change, said Fiering, as they offer infrastructure services initially to smaller companies out of their own data centres or those of cloud providers. These VARs, she said, may even own and offer PCs as part of the infrastructure service.

Gartner also predicts that by 2012, India-centric IT service vendors will make up 20 per cent of the leading cloud aggregators in the market because they will use transparency to woo Western customers. The research and development efforts of these Indian vendors will also speed up progress in cloud offerings by creating competition in the market, and eventually higher-quality offerings, the report said.

Gartner predicts that by 2014, carbon remediation costs will form part of most IT business cases as a means of measuring savings in the face of increasing threat of penalties for excess carbon emissions. “These penalties could easily range between $10 and $50 per ton of CO2 emitted,” the report said.

By 2012, Gartner predicts 60 per cent of a new PC’s total life greenhouse gas emissions will have happened before the end user even turns on the machine. For that reason, Gartner foresees manufacturers eventually being pressured to make modular, upgradable machines that extend PC life rather than replacing them.

Gartner predicts that by 2014, more than three billion adults will be able to conduct transactions via the Web on their mobile devices. This will drastically alter the world’s trading economy as we know it, said Gartner. “For mobile operators, Internet companies and financial institutions, it will open vast new markets for the provisioning of transactional and funds transfer capabilities,” the report said.

By 2013, Gartner predicts mobile phones will overtake PCs as the most common Web access device worldwide. Already in 2012, Web-capable PCs number 1.62 billion units and smart phones number 1.69 billion, Gartner estimates. “This shift means that many Web sites will need to be reformatted or rebuilt.

Predictions for 2010 by Toronto-based IDC Canada Ltd. also foresees a continually growing smart phone market in Canada. Vito Mabrucco, senior vice-president of IDC Canada’s worldwide consulting practice, expects a “rising demand for mobility and portability” in the personal device market and that vendors will respond to IT managers’ need for management tools for increasingly complex mobile devices.

Source:http://www.itworldcanada.com/news/gartner-releases-2010-end-user-predictions/140082-pg1

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Banking push may throw up Rs10,000 crore IT deals

February 26th, 2010

Top software firms are eyeing projects worth Rs 10,000 crore from the domestic banking, financial services and insurance (BFSI) sector this year as the latter initiates measures to bring those outside the banking network into its fold.

The immediate projects from BFSI sector include those relating to mobile banking and banks’ plan to integrate regional rural banks (RRBs) and branches.

“We are looking at shifting the cash-based transactions to electronic-based ones. Projects worth Rs 8,000 crore may go to the private software companies this year,” S R Rao, additional secretary-IT in the Union ministry of communications and IT, said at the CII Banking Tech Summit.

Rao said the ministry is working on different technological options through which banking could be made easier through mobile phones.

Besides mobile banking, many large public sector banks are looking to integrate RRBs into their core banking system — a major software application that integrates various banking processes. Central Bank of India, for instance, is looking to integrate about 1,800 RRBs in its system.

“There are about 15,000 RRBs and an equal number of co-operative bank branches that are slated to be integrated with the core banking systems of the various large public sector banks. This can easily spell Rs 2,500-3,000 crore opportunity for IT firms in the next 12 to 24 months,” said an executive of a top IT services firm in India. Most top IT firms including TCS, Infosys and Wipro have already started bagging projects from mobile banking as well as RRB initiatives.

“We are already working for SBI’s various technological initiatives. We are also looking at projects from various other banks,” G Raghavan, country head, India business for TCS, said.

Wipro Infotech, which recently won a Rs 100 crore, 10-year IT outsourcing contract from Punjab and Sindh Bank, is eyeing a chunk of the emerging projects from banks. “The RRB opportunity is a large one. We have just closed a deal with a major public sector bank and more are in the offing,” Anand Sankaran, senior vice-president and business head, India and Middle East at Wipro Infotech.

Source:http://www.dnaindia.com/money/report_banking-push-may-throw-up-rs10000-crore-it-deals_1352643

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Virtualization should be 3D: DataCore

February 26th, 2010

Storage technology vendor DataCore Software Corp. is touting a three-dimensional approach to virtualization that encourages organizations to address server, desktop and storage concurrently from the outset when building a virtualized environment.

Augie Gonzalez, director of product marketing with the Fort Lauderdale, Fla.-based company, said focusing on just server and desktop at the beginning while neglecting storage will lead to negative consequences in the long run.

“Leaving out any one of those dimensions creates shortcomings and obstacles for that customer downstream,” said Gonzalez.

The number of dependencies on the storage infrastructure are magnified with server and desktop virtualization, said Gonzales. Specifically, performance bottlenecks occur when desktops and servers are consolidated and an increased number of inputs and outputs are driven against the storage pool, he explained.

Gonzales said problems encountered down the road due to bad planning are one reason IT departments hesitate to move Tier 1 workloads to a virtual environment. “As soon as they scale out to actually meet the workload demand, that’s when they hit upon it … and that’s when people start to rethink whether they were doing the right thing by virtualizing,” said Gonzales.
According to Dave Pearson, senior analyst for storage at Toronto-based IDC Canada Ltd., storage virtualization is a relatively new, albeit key, component of virtualization. But he said the storage component is still a “support” technology led in most cases by server virtualization.

Pearson said storage virtualization forms part of what he calls “virtualization 3.0,” where it’s not just about getting rid of physical machines and improving processes anymore. “It’s now part of optimizing the entire solution, making sure you’re really getting your money’s worth out of the hardware that you’re committing to these virtualization projects,” he said.

However, while Pearson agrees storage is a vital component of an organization’s virtualization strategy, he said such a 3D approach is hardly a novel idea to IT pros involved in large virtualization projects.

The 3D approach is “just really another tool that’s being added to the box of tools for virtualization,” said Pearson. Besides DataCore, Fremont, Calif.-based 3PAR Inc., among others, is in the market.

DataCore is relying on its community of resellers to evangelize this 3D virtualization approach because, according to Gonzales, customers still require a lot of education on the topic.

Gonzales said the “second phase of adoption” of virtualization to areas like business continuity, risk mitigation and disaster recovery, is beginning to shine a spotlight on storage. “All of those many machines and many users and many virtual workloads now become so centred on how the storage environment behaves and how well that virtual view of storage remains intact as you move through generations of hardware.

Source:http://www.itworldcanada.com/news/virtualization-should-be-3d-datacore/140005-pg1

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

MPHASIS: Expansion drive could lift valuation

February 26th, 2010

MPHASIS has continued to report impressive numbers for the three months ended January 2010. New contracts, through its parent HP and direct sales

channel, along with improved profitability and consolidation of its recently-acquired insurance portfolio from AIG, are the major highlights of its performance.

Sales rose sequentially by 5.2% to Rs 1,191.6 crore during the January 2010 quarter, which is also the first financial quarter of the current fiscal for MphasiS. Its net profit rose by 9.5% to Rs 268.3 crore.

Despite such a resilient performance, the company’s stock fell sharply by 8% in a flat broader market on Thursday. What is of concern to investors is the fact that MphasiS is heavily relying on its parent company HP for a major chunk of business and also dwindling billing rates and margins in its technology outsourcing and BPO segments.

Investors need to note that the nature of relationship between MphasiS and HP should not be confused with that between a client and a vendor. HP had acquired MphasiS’ parent EDS in May 2008. Since then, HP has been leveraging MphasiS’ strength in applications development and BPO. Today, The company generates over 71% of business through HP’s sales channel. What this means is that MphasiS provides IT and BPO services to HP’s global clientele and this relationship is only expected to strengthen in future.

Further, MphasiS is keen on developing business through its own sales channels. For instance, two out of every five new projects in the January quarter were through its own channel.

The management has clarified that the fall in its BPO revenue is due to an internal consolidation of the work it used to carry out for EDS. This is no more treated as part of revenue after HP acquired EDS. The significant fall in its IT outsourcing business, which contributes over 16% to total revenue, may raise concerns. However, according to the management, this is mainly on account of rate reduction for one of its biggest clients and should not be considered as an indication of a trend.

The company appears to be geared up for the next phase of growth, given its expansion plans. It has close to Rs 1,200 crore in liquid assets. It has chalked out plans to deploy this cash for acquisitions most probably in its strongest vertical banking and finance. It is also in the process of rolling out at least four development centres in Europe and Asia to cater to its growing client base in these regions.

At Thursday’s closing price of Rs 677, the stock trades at 14.7 times its trailing twelve months earnings per share. This valuation is likely to improve, given its future plans, and also the fact that the company is closing in fast on Tech Mahindra, excluding Mahindra Satyam, and may well be on course to pip them as the fifth-largest IT company to be listed in India.

Source:http://economictimes.indiatimes.com/Stocks-in-News/MPHASIS-Expansion-drive-could-lift-valuation/articleshow/5617526.cms

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks
Get Adobe Flash playerPlugin by wpburn.com wordpress themes