Posts Tagged ‘Cloud’

Huawei enters IT services with telecom projects

September 19th, 2014

Telecom networking giant Huawei has entered IT services, a shift from its hardware-focussed strategy which will eat into the marketshare of Indian software exporters, especially in telecom-related projects.Outsourcing10

The world’s largest privately held technology company is using its India R&D centre to take up projects involving managing of telecom infrastructure and their networks, thereby treading on the bread-and-butter businesses of Indian IT exporters. When contacted, Wilson Wang confirmed the development and told BusinessLine that engineers from India have started doing projects onsite and offshore for its clients such as China Mobile, China Telecom and others.

“Our 2,700 Indian engineers are paving the way in services, working on areas such as Ring Back Tones, cloud computing and agile software development, which helps telcos to provide different solutions to their customers” he said.

Huawei started off making telecom equipments such as routers and switches for telecom operators globally and within a span of a decade, the company gained significant marketshare from competitors like Cisco and ZTE. This development also underscores the ambition of Huawei, as it branches out into services, especially with global client base, noted Sanchit Vir Gogia, Analyst at Greyhound research.

The company, which started off selling networking equipment to Chinese telcos, now counts Mobily, MegaFon, Etisalat as their customers. “We already have an existing installed base of products that telecom companies use and services is our next frontier,” explained Wang. Also, services an area where Chinese companies have been laggards when compared to their Indian counterparts who have exported $75 billion worth of software in the 2014 fiscal year.

For a decade-and-a-half, Indian IT exporters have been trying to make a mark in the Chinese market, with the likes of TCS, Infosys, Wipro and others have subsidiaries in cities like Shanghai and Shenzen. However, they have not been able to make much inroads and almost all of these companies contribute a fraction of its overall turnover, according to company data. In a bid to spruce up revenues from China, TCS last year, Tata Information Technology was merged into TCS China.

Accroding to analyst data, global telecom outsourcing market is estimated to hit $76 billion by 2016.


IBM to Retrain Outsourcing Employees in Bid to Boost Competitiveness

September 19th, 2014

Technology giant IBM has reportedly asked some of its employees in its technology outsourcing business in the United States to undergo training and accept a 10% salary cut for the next six months.Outsourcing3

According to reports, IBM chose to offer them training instead of laying them off for being less competitive. But these employees, according to the New York Times, say the step is a cost-cutting tactic disguised as a training program.

It is not clear as to precisely how many employees have been told to undergo training. According to the NYT article, “a few hundred employees in the United States have been affected.”

The move, the paper says, could become a trend in retraining programs as both corporations and workers struggle to stay competitive in a fast-changing economy.

The technology service market has undergone drastic change over the past few years, with an increasing number of corporate companies adopting cutting-edge technologies such as mobility and cloud.

Some employees are obliviously struggling to keep pace with the change by acquiring the new skills that clients are looking for.

Employees receiving the offer are given little choice other than to look elsewhere in the company “for opportunities for which your skills may be a better match,” the paper said.

With hundreds of data centers and offices, IBM is one of the largest technology services provider in the world, helping companies manage their IT operations and resources. Its global business services division, which accounts for more than 50% of the company’s consolidated revenue, employs over 190,000 people across more than 160 countries.

Revenues from the Global Technology Services segment in 2012 totaled US$40.2 billion, a decrease of 2% compared with 2011.


Infosys and Hitachi Data Systems Expand Partnership to Deliver Next-Generation Infrastructure and Data Center Transformation Solutions

September 18th, 2014

Infosys today announced the expansion of its partnership with Hitachi Data Systems (HDS) to bring next-generation infrastructure and data center transformation solutions to enterprises. The new solutions will help improve operational efficiencies and facilitate smooth transition of their IT infrastructure to new cloud-based environments.infosys

Infosys will also establish a center of excellence to co-create pay-per-use solutions with HDS. Enterprises can then convert a significant share of their capital expenditure, related to infrastructure and data center management, into operational expenditure.

Partnership Highlights:

The new data center transformation solutions, developed by Infosys and HDS, are tailored to meet refresh cycles of enterprise data centers. The two partners will also create reference architectures and solution frameworks to accelerate private cloud deployments

Infosys Cloud Ecosystem Hub is a first-of-its-kind solution that helps enterprises build and manage a unified hybrid cloud environment. This will integrate with Hitachi Unified Compute Platform (UCP) to dramatically reduce time-to-market and simplify complex migrations. The combination will enable enterprises to move to a 100% virtualized environment with management, orchestration and hypervisor integration

Infosys will facilitate industrialization of big data programs by deploying its Big Data platform on Hitachi UCP creating reference architectures for the Hadoop ecosystem. Infosys Big Data platform enables real-time operationalization of decisions across enterprise systems and is part of the services offered by Infosys Cloud Ecosystem Hub
Infosys and HDS will create several private cloud offerings to be delivered as-a-service related to ERP, CRM, Exchange and Collaboration, with flexible pricing models. This will help enterprises reduce capital expenditure on their cloud infrastructure and optimize their private and public cloud investments
Infosys and HDS are collaborating to deploy SAP HANA on a HDS SAP HANA Appliance in both scale-up and scale-out solutions. This will help enterprises to optimally scale with certified reference architecture, speed, flexibility, and rapid implementation leading to lower total cost of ownership and better return on investment.

Brian Householder, Chief Operating Officer, Hitachi Data Systems:

“Hitachi Data Systems and Infosys have a long history of collaboration. We are pleased to take our relationship to the next level by delivering the latest Hitachi Data Systems ‘Continuous Cloud Infrastructure’ solutions to help our mutual customers around the world deploy the most available, automated and agile environment for next-generation data centers and cloud solutions. In order to execute in this business-defined world, IT teams are looking to new infrastructure strategies to deploy more continuous, adaptable and scalable infrastructure. Businesses need solutions that don’t require constant disruptive changes to the technology that supports them. This is what we are delivering today in strategic partnership with Infosys.”

U B Pravin, Chief Operating Officer and Member of the Board, Infosys :

“Growing our partnership with Hitachi Data Systems will enable us to bring together our complementary capabilities around cloud and big data to help our customers enhance their IT infrastructure with new technology solutions. Infosys and Hitachi Data Systems will help enterprises implement infrastructure and data center solutions faster, and at lower costs. Our partnership will also give enterprises the much needed flexibility to plan and progress their transformation to next-generation IT infrastructure seamlessly, and without being daunted by huge capital outlays.”


Cloud Computing set for massive growth in SA & Kenya

September 12th, 2014

Rapidly expanding bandwidth capacities, following the landing of undersea cables, have led to the proliferation of data centres and established a solid platform for the development of cloud computing services in South Africa and Kenya. Enterprises are steadily embracing outsourcing and managed services for various business and technological benefits, further driving migration to cloud computing.outsourcing42

New analysis from Frost & Sullivan, Overall Cloud Computing Market in South Africa and Kenya, finds that the market earned revenues of $114.6 million in 2013 and estimates this to reach $288.0 million in 2018. Software as a Service will become the most popular cloud computing platform.

Despite widespread awareness and the fact that cloud has been around for a couple of years in Kenya and South Africa, enterprises have understood and embraced cloud computing to varying degrees. By and large, actual adoption of these services continues to be dependent on sector, and more pertinently, on enterprise size.

“While private cloud services have been the main focus of tier I competitors in the large enterprise sector, the move towards public cloud is slowly gathering pace in both countries,” said Frost & Sullivan Information and Communication Technologies Research Analyst Lehlohonolo Mokenela. “Small and medium enterprises, in particular, are turning to cloud computing motivated by the availability of affordable and convenient public cloud offerings.”

However, security concerns and the lack of trust in third parties to manage internal IT systems are dissuading some enterprises and governments from employing data centre services. This outlook is especially prevalent in conservative verticals, such as the financial services and healthcare sectors, where security and compliance are critical to business operations. Nevertheless, insurance companies and banks are beginning to move their less critical applications to the cloud to reduce costs.

“Non-core applications, such as email and customer relationship management, will be the most commonly migrated solutions as organisations look to test the reliability of cloud services,” noted Mokenela. “It will be crucial for service providers to demonstrate the security of their solutions in order to allay consumer concerns and boost uptake in the South African and Kenyan cloud computing domain.”


Gartner Names IBM a Leader in the Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services

September 2nd, 2014

IBM today announced that Gartner, Inc. has once again recognized IBM as a leader, placing the highest for ability to execute, in the newly published “Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services” reports for North America(1) and Europe(2).outsourcing28

IBM’s cloud leadership, as well as its focused strategy on mobile, social and security – which are further fueled by extensive R&D and technology investments in analytics and automation – are key differentiators that enable the company to seamlessly integrate and orchestrate infrastructure services across hybrid environments spanning both cloud and traditional IT models.

Gartner evaluates the top providers of data center outsourcing (DCO) and infrastructure utility services (IUS), which are often enabled by remote infrastructure management (RIM) services and increasingly include cloud computing components. Gartner includes in its evaluation cloud infrastructure as a service (IaaS) and platform as a service (PaaS) offerings that are part of IUS and data center managed services.

“As clients look to grow their business with innovative technologies such as cloud, analytics and mobile computing, they are looking for a trusted partner to help them integrate the new IT solutions with their existing investments,” said Philip Guido, General Manager, IBM Global Technology Services, North America. “We believe this recognition from Gartner reaffirms IBM’s market leadership in assisting clients to evolve their IT infrastructure and meet their business demands.”

IBM delivers a full spectrum of infrastructure services that enable organizations to capitalize on the transformative power of cloud and hybrid IT environments. The company draws upon its vast technical resources and global delivery network – spanning 330 delivery services data centers; 40 cloud data centers, including new SoftLayer data centers in Toronto and London; 11 security operations centers; and 145 business resilience centers – to provide clients with fast, reliable, security-rich data center services.

According to Gartner, “growth in data center services has shifted from traditional to new models, such as cloud IaaS and PaaS, reflecting a shift in competitive delivery models. Gartner predicts it will deliver a global compound annual growth rate of 12.4% for the period 2012 through 2018.” The research firm also “predicts the key business indicators of data center service providers will improve significantly during the next five years and make them a more competitive outsourcing choice.”

(1) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America, William Maurer, David Edward Ackerman, Bryan Britz, July 31, 2014

(2) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, Europe, Claudio Da Rold, Gianluca Tramacere, Frank Ridder, DD Mishra, Gregor Petri, July 16, 2014

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


What’s all the worry about? The cloud is more secure

September 2nd, 2014

In the on-premise versus in the cloud debate it is always the subject of security that swings people in favour of on-premise.outsourcing27

People feel safer if their software is on their own premises, but does that mean it is safer. Everybody is connected to the internet so bricks and mortar is no protection.

You could argue that if it is on your own premises you have better control of physical security.

Anyway the point of this post is to highlight research from  analyst firm Pierre Audoin Consultants (PAC), which states that: “Cloud [is] more secure than on-premise IT”

“Rapid development in cloud-based security, including physical security within the data centres, means that, for many firms, it is more effective and cost efficient to locate IT systems in the cloud than on on-premise equipment. CIOs and CISOs should consider the cloud for many of their IT systems, while for SMEs and local government PAC recommends that it should be the default architecture,” said PAC.

“Security is often regarded as an inhibitor to cloud adoption,” said Duncan Brown, research director for cyber-security at PAC and the report’s author. “But today’s cloud-based security capability embeds state-of-the-art cyber and physical security that most company would find prohibitively expensive if implemented on-premise.”

With the outsourcing industry being transformed by cloud computing IT service providers can differentiate through adding value in areas such as security.

PAC said cloud service providers (CSPs) were initially slow to understand the importance of security and associated privacy issues. If this is the case they must have been meeting potential clients with ear muffs on.

“…in the last year PAC has noted a broad shift in CSPs’ marketing, positioning and product development strategies driven by two major trends. Firstly, security in the cloud is now a much more reliable and viable alternative to in-house security. Secondly, leading US-based CSPs are investing in their European credentials. Meanwhile non-US CSPs, particularly those headquartered in Europe, are making a virtue out of having datacentres based in Europe.

There are good reasons to take a cloud-based approach to security. Cyber security is highly complex, requiring deep technical skills. It is therefore expensive, the cost being exacerbated by a global shortage of skilled professionals.”


Microland bets on hybrid cloud to land large deals

August 27th, 2014

Bangalore-based Microland has embarked on a new strategy to get large outsourcing deals and has launched a new brand identity for itself.outsourcing18

This new strategy involves building on its capability of managing networks and other IT infrastructure of Fortune clients through a mix of private and public cloud, commonly known as hybrid cloud.

Hybrid cloud is a service that a combination of traditional IT, private, public and community cloud computing services, from different service providers such as Microsoft, Amazon and others. Companies like Microland take these offerings and integrate it with their existing business. Called version 4.0, Microland founder and MD Pradeep Kar told BusinessLine that it sees a multi-billion opportunity in this area, as companies are starting to consider vendors which have expertise in particular technologies.

In line with this, the company has come up with a new identity in its 25th year of operations. When asked about the impact of this new strategy on its business, Kar said the company will continue to grow three times faster than Nasscom’s projections for the 2015 fiscal. Nasscom estimates that the industry will grow 13-15 per cent. However, since it is a private company, Microland did not share revenue plans for the year.

Market for these services is growing, albeit not at a fast clip. The public cloud services market is expected to grow 17.8 per cent in 2014 to $153 billion, according to analysts. Forrester estimates peg the private cloud market at $15.9 billion, from $7.8 billion in 2011.

It has around 2,700 employees with 75 global clients and six global delivery centres – three in India and one each in the US, the UK and West Asia.


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