Posts Tagged ‘Data’

Global Data Analytics Outsourcing Market Report

April 15th, 2014

Research and Markets has announced the addition of the “Global Data Analytics Outsourcing Market Report” report to their offering.outsourcing54

The analysts forecast the Global Data Analytics Outsourcing market to grow at a CAGR of 31.68 percent over the period 2012-2016. One of the key factors contributing to this market growth is the rapid expansion of data. The Global Data Analytics Outsourcing market has also been witnessing the emergence of social analytics. However, the lack of awareness about data analytics could pose a challenge to the growth of this market.

The report, Global Data Analytics Outsourcing Market Report, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market in the Americas and the EMEA and APAC regions; it also covers the Global Data Analytics Outsourcing market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.

People use mobile devices for various purposes such as GPS navigation, people tracking, remote personal car safety, geo-targeted mobile advertising, and toll collection. GPS Navigation is done by GPS tracking and data analysis facility. This system integrates the data analysis, operations, and communication software tools and works with GPS receiver which is at the other end of the satellite. Hence, with the help of GPS Navigation we can easily track the data and perform data analysis in order to extract information.
With similar techniques, mobile devices are helpful in people tracking. Similarly, location-based data is helpful in generating mobile advertisements. With the help of this, the location of a person can be identified and the relevant advertisement can be sent on their mobiles. In recent years, data analytics service providers have started to invest considerably in their data analytics outsourcing offerings with increasing focus on mobile analytics. This helps vendors in concentrating on providing better offerings and moving up the value chain.

According to the report, one of the major drivers is the exponential growth of data. With the presence of a large amount of data, enterprises need data analytics to automatically track the performance and behaviour of the information stored in their IT systems. In addition, they require data analytics to develop innovative business strategies and improve their overall operational efficiency.

Further, the report states that the lack of awareness is one of the major challenges confronting this market. Enterprises are unaware of the potential benefits of implementing data analytics in their work environment. This is affecting investment in Global Data Analytics Outsourcing market.

Key Topics Covered:

1. Executive Summary
2. List of Abbreviations
3. Introduction
4. Market Research Methodology
5. Scope of the Report
6. Market Landscape
7. Outsourcing Destinations
8. End-User Segmentation
9. Geographical Segmentation
10. Key Leading Countries
11. Vendor Landscape
12. Buying Criteria
13. Market Growth Drivers
14. Drivers and their Impact
15. Market Challenges
16. Impact of Drivers and Challenges
17. Market Trends
18. Key Vendor Analysis
19. Other Reports in this Series

Companies Mentioned:
American Express
Capgemini S.A.
Citigroup Inc.
Credit Rating Information Service of India Ltd.
EXL Services Holding Inc.
Eclerx Services Ltd.
Evalueserve Ltd.
Fractal Analytics Ltd.
Fractal analytics Ltd.
Genpact Ltd.
Infosys Ltd.
Mu Sigma Inc.
Opera Solutions
TCS Ltd.
Tata Consultancy Services Ltd.
WNS Holdings Ltd.
ZS Associates Inc.


IT stocks in demand on good US economic data

January 31st, 2014

Key benchmark indices extended gains to hit fresh intraday high in morning trade. The S&P BSE Sensex was up 68.20 points or 0.33%, up 87.91 points from the day’s low and off 5.87 points from the day’s high. The market breadth, indicating the overall health of the market, was strong. In the foreign exchange market, the rupee edged higher against the dollar tracking the dollar’s losses versus other Asian currencies.

IT stocks gained on good US economic data. US is the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) gained after the company after market hours on Thursday, 30 January 2014 announced that it has been designated as a Leader in the IDC MarketScape. Aditya Birla Nuvo (ABNL) rose after the company before market hours today, 31 January 2014 said its wholly-owned subsidiary, ABNL IT & ITES, has on Thursday, 30 January 2014 entered into an agreement to divest its IT-ITeS subsidiary, Aditya Birla Minacs Worldwide.

A bout of volatility was seen in early trade as the key benchmark indices hit intraday high after sinking in negative zone following a slightly positive start. Key benchmark indices extended gains to hit fresh intraday high in morning trade.

Foreign institutional investors (FIIs) sold shares worth a net Rs 430.20 crore on Thursday, 30 January 2014, as per provisional data from the stock exchanges.

At 10:18 IST, the S&P BSE Sensex was up 68.20 points or 0.33% to 20,566.45. The index gained 74.07 points at the day’s high of 20,572.32 in morning trade, its highest level since 29 January 2014. The index fell 19.71 points at the day’s low of 20,478.54 in early trade.

The CNX Nifty was up 17.80 points or 0.29% to 6,091.50. The index hit a high of 6,096.45 in intraday trade, its highest level since 29 January 2014. The index hit a low of 6,068.35 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,169 shares gained and 421 shares fell. A total of 179 shares were unchanged.

Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.

Mahindra & Mahindra (up 2.69%), Tata Steel (up 2.31%) and Sesa Sterlite (up 1.47%) edged higher from the Sensex pack.

NTPC (down 2.93%), Tata Motors (down 2.74%) and HDFC (down 0.95%) edged lower from the Sensex pack.

IT stocks gained on good US economic data. US is the biggest outsourcing market for the Indian IT firms.

Infosys (up 0.47%), Wipro (up 1.08%), Tech Mahindra (up 2.96%) and HCL Technologies (up 1.27%) edged higher.

Tata Consultancy Services (TCS) gained 1.79%. TCS after market hours on Thursday, 30 January 2014 announced that it has been designated as a Leader in the IDC MarketScape: Worldwide Life Science Manufacturing and Supply Chain ITO. Among the attributes cited in the report, ‘IDC MarketScape: Worldwide Life Science Manufacturing and Supply Chain ITO 2013 Vendor Assessment,’ TCS was lauded for its overall capability and extensive experience in working with global life science companies across all three sections of the industry: pharmaceutical, biotech and medical devices.

The report evaluated the 12 leading IT vendors that serve the life science manufacturing and supply chain space, across a number of capability and strategy measures such as Offering Roadmap, Portfolio Strategy, Customer Base, Engagement Capability, Pricing Model, Investment, Growth Strategy, etc. IDC MarketScape criteria selection, weightings and vendor scores represent well-researched IDC judgment about the market and vendors through structured discussions, surveys and interviews with market leaders, participant buyers and end users.

In the current market conditions, there is a strong demand from life sciences companies for skilled IT Outsourcing (ITO) partners that have significant domain depth and experience, said Eric Newmark, Program Director, IDC Health Insights, Business Systems Strategies Program. TCS has demonstrated its expertise and innovation through its extensive work with life sciences companies in the manufacturing and supply chain market. TCS’ exceptional technical skills, coupled with the overall value that the company consistently delivers to its global life sciences clients, make it an established leader in the field.

Our continued leadership in the life sciences manufacturing and supply chain market is a testament to the unparalleled value we bring to our customers, said Debashis Ghosh, President, Life Sciences, Manufacturing and Energy, TCS. Our strategy is to enable life sciences companies to use technology effectively to optimize manufacturing operations and adopt emerging supply chain practices, which will result in a more holistic, patient-centric healthcare ecosystem. This, coupled with a strong global footprint and a continuous focus on innovation, ensures that we are a partner of choice for life sciences companies worldwide.

IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market.

Aditya Birla Nuvo (ABNL) rose 1.65%. The company before market hours today, 31 January 2014 said its wholly-owned subsidiary, ABNL IT & ITES, has on Thursday, 30 January 2014 entered into an agreement to divest its IT-ITeS subsidiary, Aditya Birla Minacs Worldwide, subject to customary closing conditions, third party consents and regulatory approvals. Pursuant to a share purchase agreement with a group of financial investors led by Capital Square Partners (CUP) and CX Partners (CXP), ABNL IT & ITeS will divest Aditya Birla Minacs at an enterprise value of $260 million subject to the working capital adjustments.

Aditya Birla Nuvo entered the iTeS sector in 2003 through acquisition of TransWorks, a $12 million company. Later to provide scale to the business, TransWorks acquired Minacs, a $265 million company in 2006. Committed to its turnaround and growth, ABNL supported Minacs over the years, to attain revenue of $450 million (Rs 2466 crore) and net profit of $23 million (Rs 125 crore) in fiscal 2012-13, Aditya Birla Nuvo said in a statement.

Today, Aditya Birla Minacs has risen to the stature of a global business solutions provider that partners with global corporations through its 35 centers spanning 10 countries across 3 continents. To further expand its scale, enhance its competitive advantage and attain the next level of growth, Minacs requires capital investments, the company added.

Being a conglomerate, Aditya Birla Nuvo constantly evaluates its capital allocation strategy and reviews its business portfolio. Given the multiple growth opportunities and ensuing capital requirements at ABNL, the company decided to divest Minacs to a strategic financial investor, with extensive domain experience, who can ensure that Minacs continues to progress forward on its strategic roadmap, Aditya Birla Nuvo said.

Dr. Rakesh Jain, Managing Director, Aditya Birla Nuvo, said, Considering ABNL’s capital commitment and growth plans for other businesses, the Company has decided to divest Minacs. We are confident that the new shareholders will provide the requisite direction to Minacs and enable it to rise to its full potential.”

The transaction is expected to be completed in 2 to 3 months, subject to the requisite customary and regulatory approvals, ABNL said.

In the foreign exchange market, the rupee edged higher against the dollar tracking the dollar’s losses versus other Asian currencies. The partially convertible rupee was hovering at 62.42, compared with its close of 62.56/57 /11 on Thursday, 30 January 2014.

India’s consumer inflation should ease in the next two months, and will fall to 8% by the end of the year, Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying in an interview with TV news channel on Thursday, 30 January 2014. The comments came after the RBI surprisingly raised the repo rate by 25 basis points on Tuesday, 28 January 2014. The consumer price index eased to a three-month low of 9.87% in December 2013.

Among Asian stocks, the Japanese Nikkei 225 index fell 0.78%.

China’s markets remain closed from today, 31 January 2014 until 7 February 2014 for the Lunar New Year holiday, while Hong Kong is shut until 4 February 2014. Among other bourses shut for holiday are those of Taiwan, South Korea, Indonesia, Malaysia and Vietnam.

Japanese industrial production rose 1.1% on month in December, the Ministry of Economy, Trade and Industry said Friday, on a demand rush ahead of an April sales tax increase. It also comes after a 0.1% decline in November. The increase in industrial output was due to a rise in production in the general purpose and production machinery sectors as well as electronic parts and devices.

Meanwhile, Japanese consumer prices rose at their sharpest rate in over five years in December, the government said Friday. Consumer prices also increased for the whole of 2013, the first annual increase in five years, according to data released by the Ministry of Internal Affairs and Communications.

The core consumer price index, which excludes volatile fresh-food costs, climbed 1.3% from a year earlier in December, faster than a 1.2% gain in the previous month, according to data released by the Ministry of Internal Affairs and Communications. It was the biggest rise since a 1.9% increase in October 2008. The core index for 2013 increased 0.4% after a 0.1% fall the previous year. The CPI including fresh food prices rose 1.6% on year in December.

Employment data released Friday also suggested a strongly recovering economy. The jobless rate fell to 3.7% of the work force, down from 4% in November and the lowest rate since December 2007. The closely watched ratio of available jobs to applicants also improved to 1.03, meaning 103 jobs were on offer for every 100 job seekers.

US stocks rebounded on Thursday, 30 January 2014 as investors welcomed data showing a robust pace of growth in the economy in the final quarter of last year, while upbeat earnings from Facebook Inc. boosted the tech sector.

The US economy expanded rapidly in the final quarter of 2013, the Commerce Department said on Thursday, 30 January 2014 as consumers shrugged off a government shutdown, with the data fueling hopes of even faster growth ahead. The gross domestic product grew at 3.2% annual pace. The economy’s strong year-end performance follows on the heels of a 4.1% growth rate in the third quarter. For the full year, US growth slowed to 1.9% from 2.8% in 2012.

Meanwhile, Janet Yellen will be sworn in as chairwoman of the Federal Reserve on Monday, 3 February 2014, the US central bank announced Thursday, 30 January 2014. Yellen will replace outgoing Fed Chairman Ben Bernanke, whose term as chairman expires on Friday, 31 January 2014.

The Federal Reserve on Wednesday, 29 January 2014, took another gradual step toward exiting its controversial bond-buying program, remaining stoic in the face of market turmoil. As expected, the Fed decided to reduce the pace of monthly asset purchases to $65 billion, from January’s $75 billion. The Fed will purchase mortgage-backed securities at a pace of $30 billion per month and add to its holdings of Treasurys at a pace of $35 billion per month beginning in February.

The Fed also signaled that it is likely to keep reducing its purchases in the coming months, citing a pickup in economic activity and improvement in the labor market.

In addition to proceeding with plans to scale back its bond buying, the Fed made no changes to its other main policy plank: its pledge to keep interest rates low for some time to come. It has pledged to hold rates steady “well past” the point that the unemployment rate falls below 6.5% as long as inflation remains low.


Dimension Data appoints new head of outsourcing

January 13th, 2014

Keith Murray to oversee giant’s entire services portfolio.

Dimension Data has appointed Keith Murray as its director of managed services to take charge of IT outsourcing, adding to his current responsibility for cloud services.

The restructure merges Dimension Data’s services portfolio under a single exec.

Dimension Data chief exec Rodd Cunico said: “Keith has been with Dimension Data since 2009 and has been responsible for the company’s managed services business, which has grown steadily.

“His skills and experience in general management, leadership, sales and engineering will greatly benefit our go-to-market, sales and service delivery for this important portfolio.”


The Big Data opportunity for Indian IT service providers

August 27th, 2013

After cloud, is Big Data the next big opportunity for Indian IT service providers? If you look at statistics or research by independent firms, then there is every reason to believe that ‘Big Data’ is a huge and colossal opportunity. Consider these facts: A joint study by NASSCOM and CRISIL Global Research & Analytics suggests that by 2015, Big Data is expected to become a USD 25 billion industry. The report estimates that the Indian Big Data industry will grow from USD 200 million in 2012 to USD 1 billion in 2015 at a CAGR in excess of 83 percent. Outsourcing26

While the domestic market is still nascent, the opportunity for Indian IT service providers to offer Big Data implementation and analytics outsourcing services is huge. This includes IT services such as Big Data technology implementation, including data collection, integration and designing of Big Data architecture.


Understanding the importance of creating IP and frameworks, Indian IT service providers are investing considerable amount of time and money to create a robust Big Data portfolio.

Infosys has created a Big Data platform called BigDataEdge, which enables real-time discovery of data across both internal systems and external sources. The platform includes a rich visual interface with more than 50 customizable dashboards and 250 built-in algorithms. These algorithms, a set of reusable business rules both function and industry-specific, enable business teams to self-serve the process of building insights while minimizing the need for technical intervention. It also has over 50 data source connectors, which allow easy access to structured and unstructured data residing across enterprise and external sources. This enables acceleration of discovery of relevant information from existing underutilized data. The Big Data platform also includes out-of-the-box applications for specific industry needs such as fraud detection and prevention, predictive analytics and monitoring, and customer micro-segmentation that deliver faster returns on investment.

Explaining his firm’s strategy in the Big Data space, Rajeev Nayar, Associate Vice President & Head, Big Data Practice, Infosys, says, “In Infosys, we started the Big Data journey back in early 2010 when the term Big Data was not even coined. We worked with some global companies in the industry to create their strategy around Big Data technologies to transform their IT and business at much lower cost at that point of time. At the same time, we also spotted the need and opportunity to create our own IP around the gaps in the Big Data technology space, which eventually we launched as our solution ‘BigDataEdge’ in February 2013. To keep up the momentum, our strategy going forward is to tap the Big Data Space in two ways  — mass scale enablement of our talent pool in Big Data and related technologies and churning out more IP.” Infosys currently has over 50 engagements in the Big Data space across industry segments and the firm says that the number of engagements and projects are close to doubling every year.

“Our strategy is to tap the Big Data Space in two ways — mass scale enablement of our talent pool in Big Data and related technologies and churning out more IP”

Rajeev Nayar, Associate Vice President & Head, Big Data Practice, Infosys

Similarly, Wipro has developed a Big Data adoption framework, christened ‘3B framework’, and has identified several system integration patterns for Big Data adoption  to enable faster processing of data, reduction in development time and cost of processing. Wipro has also taken a more strategic approach by taking a minority position in Opera Solutions, LLC, a leading global Big Data science company. This strategic partnership will enable Wipro to create industry-specific Big Data analytics solutions like 720 degree customer analytics solution by combining Wipro’s domain and technology expertise with Opera Solutions’ machine learning expertise, pre-discovered predictive signals and algorithms.

To capitalize on the rapidly growing machine-to-machine market, Wipro has also entered into a strategic partnership and invested for a minority position at Axeda Corporation, a leading provider of cloud-based service and software for managing connected products and delivering machine-to-machine (M2M) applications. Explaining the vision for Big Data, KR Sanjiv, Global Head and Senior Vice President for Analytics & Information Management business unit, Wipro Technologies, says, “Big Data represents an unprecedented opportunity for business value creation but many enterprises do not have the right business justification, technology and the data science capabilities to access its power. Wipro believes Big Data needs to be approached from a business perspective, not from technology perspective.”

Sanjiv says that Big Data presents the greatest transformative and business opportunities in discovering hidden insights, in preventing failures by leveraging machine and device data analytics, enhancing fraud and surveillance capabilities and in reducing total cost of IT by leveraging open source.

“We at Wipro believe that Big Data needs to be approached from a business perspective, and not from a technology perspective”

KR Sanjiv, Global Head & Senior VP, Analytics & Information Management business unit, Wipro Technologies

Another Indian firm, HCL Technologies, is following a two-prong strategy for Big Data. “We have followed a two-prong strategy for Big Data: Technology Up and Consulting Down. We have Centers of Excellence (CoE) as per different streams of Big Data: Programming Languages, Application Data Stores, Data Computing Appliance with OLAP, Pan-Enterprise Search and Data Science. These CoEs help us create the capability, capacity and proof of concept as per customer Big Data use cases,” says Naresh Nagarajan, Senior VP, Enterprise Transformation Services, HCL Technologies.

Nagarajan says that the strategy of ‘Consulting Down’ helps in handholding the customer on identified business service lines where it has invested in creating solutions and frameworks related to Big Data for different industry verticals such as healthcare and financial services.

Besides the big firms, mid-sized firms like Happiest Minds are also bullish on the opportunity in the Big Data space. “Happiest Minds ventured into Big Data less than two years ago, and has had a promising start by associating with key customers like large retailers and publishing houses. There are more than half a dozen projects and project discussions in progress,” states Venkatesh Subramanya, VP for Business Intelligence, Big Data & Analytics Practice at Happiest Minds.


Understanding the importance of creating success stories in a technology that is on the verge of becoming a big market, every major IT firm is showcasing select Big Data projects where it can show the ability to deal with the level of complexity and the benefits delivered.

Infosys, for example, did a Big Data project for one of the largest retailers in North America. For its online business the retailer needed to build the ability to crawl competitor websites and change its product pricing based on the crawl information. Infosys designed a solution that reduced the same crawls that took over 2 hours to 2 minutes — translating into a performance improvement of over 6,000 percent. The business benefit from this was the ability for the company to crawl additional retailers, thus helping to converge on the most competitive price for their product.

Infosys also did a project with one of the largest manufacturers in North America, which had a problem with exponentially growing data. “The data volume was expected to reach 10 petabytes by 2014. The cost of infrastructure to support this growth using the traditional solutions was extremely high. Infosys defined and implemented a Big Data solution, which resulted in cost savings of over 600 percent for the customer,” says Nayar.

Infosys also did a project with one of the largest consortium of pharma companies, which was looking to build a platform that could increase collaboration between its clients to reduce the time and cost of drug discovery. Infosys implemented a common platform that can be used to publish the different datasets while encouraging collaboration.

IT major Wipro has done a Big Data project for a large media company. Wipro helped enhance revenues by 16 percent on a pay-per view platform by building an ad recommendation engine. The firm built optimal ad placement statistical models for processing several years of device and log data to identify patterns and build recommendation engines. The financial services space is another huge market for Big Data.

“We are helping large financial services firms by setting up joint innovation councils for identifying appropriate Big Data analytics use cases and improve existing business processes like mortgage,” states Sanjiv of Wipro. The firm is also building a Big Data platform for a large consumer goods manufacturer that will enable capture and analysis of usage data from various devices and provide recommendations, and enable fraud detection by using techniques like machine learning.

Similarly, HCL Technologies is working on several Big Data projects. “We are using predictive analytics to identify customer segments with higher propensity to buy for cross-sell and up-sell. We are also using sentiment analysis by considering enterprise data and social unstructured data to understand the voice of the customer. Other projects include using voice analytics to interpret sentiments and channel analytics to evaluate the reasons for performance of sales,” says Nagarajan.

Happiest Minds is incubating a solution in Big Data Search space using technologies like HBase and ElasticSearch. Happiest Minds is also incubating a solution on predictive analytics on real-time stream data, which has won accolades in major international conferences. “We are working on a project where Happiest Minds is building real- time analytics pipeline using technologies like Kafka (Distributed Messaging system), Storm (Distributed Parallel Processing Engine on Stream Data), NoSQL solutions and Elastic Map Reduce (EMR). The complete infrastructure will be built in Amazon Cloud and will help the customer to capture, transform, store and predict certain patterns at real time. A huge volume of messages needs to be processed in real time — estimated at nearly 100,000 per second,” explains Subramanya.

“We are working on a project where a huge volume of messages needs to be processed in real time — estimated at nearly 100,000 per second”

Venkatesh Subramanya, VP – BI, Big Data & Analytics Practice, Happiest Minds

While the Big Data opportunity is massive, the shortage of talent is a significant challenge. This is because Big Data needs a different breed of professionals who have deep expertise in statistics, machine learning and analytics. According to McKinsey, the U.S. alone faces a shortage of 140,000–190,000 analysts and 1.5 million managers who can analyze Big Data.

Against this context, in terms of choice of destinations, India is favorably placed and is just behind the U.S. in terms of talent availability and the intention of service providers to build talent. For example, India churns out more than 2.5 million university graduates and about 7,50,000 post graduates every year, of which 7,00,000 students are graduates in mathematics and science.

This is supplemented by efforts from IT majors such as EMC, Oracle and IBM, which have been tying up with universities in India to introduce courses in various areas of Big Data. India also has seen the emergence of a huge number of specialized startups, which are focused only on Big Data. While these efforts are comparatively small, market observers believe that every effort or initiative will help in building a strong foundation for delivering Big Data solutions out of India.


MIC believes IT service market worth billions of dollars

August 22nd, 2013

According to MIC, big changes have been made in the world market in recent years. While the outsourcing, maintenance, consultancy and programming services tend to be narrowed, the integration and system development services, especially data services, have been prospering.Outsourcing14

The increasingly high demand for information on the internet makes the data volume double every year, thus creating a gigantic data volume which goes beyond the control capacity of the enterprises and organizations that create the data.

This has led to the strong rise of the demand for data management and exploitation services, from simple ones such as migration service (transferring data from old to new systems), to more complicated ones such as business intelligence.

The tendency is believed to continue growing for a long more time, while the services have generated a market worth hundreds of billions of dollars a year.

MIC, when emphasizing that data services have become the most urgent demand of all the enterprises and organizations worldwide. Therefore, it believes that this is the market segment Vietnamese firms should aim for. The firms have been urged to take quick actions to conquer the market while the market is still large enough with not too many service providers.

The Philippines, Thailand, Indonesia and Sri Lanka all have realized about the rise of the market segment and they have been making intensive preparations to earn money from the market.

The Philippines now has 350,000 workers in the IT services, while India has 300,000 software workers.
Domestic market vast enough for all

The IT services such as ITO (information technology outsourcing) and BPO (business processing outsourcing), cloud computing, mobile applications, e-banking, e-commerce have been developing rapidly in the domestic market.

Especially, the IT solution consultancy and system integration services have grown strongly over the last five years with the annual turnover growth rate of 35 percent.

The demanded IT services in the domestic market are diversified at different levels. The new technology achievements, such as cloud computing, have prompted users to use the services from professional institutions instead of owning and exploiting instruments themselves. They would rather order wanted services instead of doing everything themselves.

As such, the existing 400,000 businesses alone would create a market large enough to bring the turnover of billions of dollars. Infrastructure leasing, information providing, training, consultancy, website development, e-commerce, app solution providing, data services would be the most wanted services in the time to come.

The statistics about the turnover from IT services being provided in the market showed that the consultancy, training, security solution, content service on telecom networks would make a breakthrough in some more time.

As the national economy has been growing well, the service quality would be more demanding. Big enterprises have been focusing on training their workforce, striving to obtain international certificates on services providing.
While affirming the great potentials of the service industry, MIC believes that the State needs to support enterprises by laying down a reasonable legal framework to pave the way for them to develop and compete with foreign rivals.


Ten Benefits of Outsourcing a Data Center

August 22nd, 2013

Data center outsourcing is a growing trend, with many large enterprises embracing the financial and operational benefits associated with wholesale co-location solutions. The resulting demand has created U.S. data center hubs in Silicon Valley, New York / New Jersey, Northern Virginia, Chicago, Dallas, Los Angeles, Atlanta and Phoenix.Outsourcing11

There are millions of square feet of available data center space in these centers, providing Fortune companies with a variety of benefits. The following is a best-practices guide that highlights the key elements that differentiate an outsourced data center solution from an in-house operation.

Enabling Data Center and Cloud Service Management for Mid-Tier Enterprises Download Now
1. Uptime

Outsourced data center operators are required to offer service level agreements related to all the key environmental and infrastructure elements of the building. When an SLA is missed, the operator is required to compensate the tenant. Consequently, the building design and systems are generally state-of-the-art and maintained at the highest level to avoid downtime and subsequent financial penalties.

According to a Ponemon Institute study, the average recovery time for a total data center outage is 134 minutes, with costs averaging approximately $680,000. Corporate owned and operated data centers might not be built or operated to the standards of third-party data centers, since many were built more than 10—or even 20—years ago.

The Uptime Institute has created a tier rating system to grade the resiliency of data centers. Here are the basic requirements for the system.

Tier1: Basic site infrastructure with expected availability of 99.671%

Tier 2: Redundant site infrastructure capacity components with expected availability of 99.741%

Tier 3: Concurrently maintainable site infrastructure with expected availability of 99.982%

Tier 4: Fault-tolerant site infrastructure with electrical power storage and distribution facilities with expected availability of 99.995%

2. Risk Mitigation

Creating distance between a company’s corporate headquarters and its production data center eliminates the risk of a single event—such as a utility blackout or a natural disaster—taking out both facilities. Having a 25- to 500-mile distance between the headquarters and the data center is ideal, as this allows the team reasonable access to the data center, as well as a buffer of distance from the main hub.

The distance between facilities must take into account the latency tolerance of the applications that are running in both locations. Today, many companies are mitigating that risk by setting up data center hubs and co-location facilities in key markets where outsourced data center operators offer high-quality inventory.

3. Tax Incentives

The leading data center markets offer tax incentives that include relief from personal property taxes on IT gear, sales tax breaks, tax benefits for job creation and a variety of additional elements that are not available in secondary markets.

4. Speed of Delivery

Building a new data center or upgrading an existing one can take up to two years. Today’s data center operators provide an available inventory of space and power, offering the flexibility for expansion and a scalable growth platform that can reduce the time to occupancy by two to four months.

5. Discounted Power Costs

Power is one of the largest cost components in a data center. Large-scale data center operators typically consume 100 to 200 watts per square foot of space, which enables them to negotiate very favorable rates with public utilities. In a data center hub market, power can cost 40 to 60 percent less than the national average.

6. Operational Expense vs. Capital Expense

Reducing IT costs is one of the leading goals CIOs are asked to reach every year. On average, it takes about $15 million dollars to build a 10,000-square-foot, 1 megawatt data center. Excluding the cost of power, the operating and capital expenditures to run and maintain the data center systems can add another $10 million to $15 million over 10 years. An outsourced data center provider will absorb the entire infrastructure operating and capital expenditures—savings that can be used for IT gear and talent.

7. Connectivity

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Connectivity and latency are two essential elements of any data center strategy. Most top-tier service providers allow multiple carriers to provide service into their buildings. This diversity offers a tenant tremendous leverage in negotiating its telecom spending by opening up a variety of carrier choices with minimal provisioning timeframes.

8. Focus

CIOs with in-house data centers have to require key IT team members to spend a significant amount of time keeping their data centers running. These efforts siphon away time that could be spent enabling IT to develop strategies for higher-powered rack densities, virtualization and ever-changing data storage needs. In an outsourced data center model, the operator bears the burden of upgrading the infrastructure and building systems, which enables the CIO and IT team to focus on their highest goals and best activities to support the business.

9. Regulatory Compliance/Audits

In today’s business climate, more and more data falls under government or industry protection and retention regulations. Maintaining these compliance standards is difficult without dedicated staff and resources. The outsourced data center model comes with compliance and audit capabilities to satisfy SSAE 16 standards, the Health Insurance Portability and Accountability Act, the Payment Card Industry Data Security Standard, and many other requirements that challenge corporate data.

10. Ecosystem

The mixed-tenancy data center model provides an environment that is rich from an ecosystem perspective. Along with a wide variety of telephony options, tenants benefit from the ability to cross-connect in the same building with other companies that may be part of their supply chain, customer base or financial transaction functionality. This ecosystem benefit improves latency-sensitive interactions.

Due to the unique requirements of data center facilities and the growing need for data center infrastructure management, the selection of the outsourced data center site is essential to maintain uptime, mitigate risk, and achieve maximum availability and operating efficiency.


IBM Drives Cloud, Big Data, Services Into Emerging Markets

August 12th, 2013

IBM announced a series of wins that indicate wider adoption of Big Blue’s cloud, big data and services solutions in emerging markets.

In a series of recent wins, IBM demonstrates how its cloud technology, systems, storage and outsourcing services are helping organizations worldwide – particularly in emerging markets — to make a smooth transition into the digital era, harness big data and improve their overall infrastructure.Outsourcing9

IBM recently announced that Capitalonline Data Service Co. (CDS), one of China’s leading Internet data center (IDC) service providers, tapped Big Blue to develop an infrastructure for delivering enhanced cloud solutions. As part of a multi-million dollar engagement, IBM will build and manage CDS’s public cloud service based on IBM SmartCloud technology.

As one of the earliest IDC service providers in China, CDS entered the cloud computing market in 2009 to provide cloud, datacenter and value-added IT services to clients in government, finance, entertainment and other industries.
“CDS has made a long-term development strategy for cloud, and one of the important aspects of the strategy is to adopt the world’s leading cloud computing technologies,” said CDS CEO Qu Ning, in a statement. “IBM is a leading provider of enterprise-class cloud services globally, with a deep understanding of the Chinese market. With this collaboration we will be able to offer organizations superior public cloud services and help them achieve business innovation and transformation.”

The CDS cloud infrastructure will be based on IBM’s SmartCloud framework leveraging IBM PureFlex systems. IBM’s China Development Lab had been involved in the design and development to ensure that the cloud services are customized and optimized to local business requirements. Under the agreement, IBM will manage the infrastructure for the next four years.

The collaboration will enable Capitalonline to expand its cloud service in global markets, IBM said.

“Today, enterprises are looking for high value cloud solutions to drive real business transformation,” said Wang Shenghang, director of the cloud business unit for IBM Greater China Group, in a statement.

IBM also demonstrated its cloud computing prowess in a recent deal with the city of Geraldton, Australia. IBM and Market Creations, a business solutions provider based in the City of Greater Geraldton, announced a multi-million dollar deal to help the city to become a carbon-neutral region and emerge as a hub for sustainable and renewable energy.

Geraldton is the administrative center of the Australian Midwest’s industry base, which includes mining, fishing, manufacturing, construction, agriculture and tourism. The city is projected to grow rapidly over the next decade, with more than $27 billion Australian dollars of planned investments for the region, IBM said.

IBM and Market Creations will design and construct a cloud-enabled data center in Geraldton to help the city realize its goals of energy efficiency and economic competitiveness.

“With Geraldton fast becoming a strategic service for industries across Western Australia, we have a responsibility to ensure that our city develops and expands in a sustainable way – and without compromising the quality-of-life for our citizens as the economic growth of the city continues to accelerate,” said Ian Carpenter, mayor of the City of Greater Geraldton, in a statement. “Geraldton needs to be able to best leverage scalable and resilient technology to support our vision of becoming a technologically advanced and carbon-neutral hub. The new data center will help provide that platform as the first stage of this exciting digital evolution for our city and citizens.”

Under the contract, IBM will design and construct a scalable modular data center with the uptime, security and resiliency features needed to sustain growth. The data center will be designed for a Power Usage Effectiveness (PUE) rating of 1.3 or less, making it one of the most energy-efficient data centers in Australia.

The data center will have the ability to scale up to four times its current capacity, a key requirement that aligns with the City of Greater Geraldton’s projected growth. The cloud capabilities will enable the facility to operate as a multi-tenanted data center.

IBM is not new to the City of Greater Geraldton. In 2012 IBM performed pro bono consulting there. The engagement was funded by the IBM Smarter Cities Challenge, a competitive grants program that has provided $50 million worth of consulting for 100 cities worldwide over the last three years. Geraldton had asked IBM to evaluate its vision to become a digital and carbon-neutral regional hub.

“The state-of-the-art data center serves as an example of how cities with bold leadership can become ‘smarter’ in realizing future economic opportunities while advancing outcomes for both citizens and the environment.” said David
Yip, technical leader for IBM Smarter Planet and Cities Solutions, in a statement.

The consulting phase of the project began this month.

Meanwhile, in a big data win, IBM and the Wroclaw University Library in Poland announced a national scientific project to preserve and digitize nearly 800,000 pages of European manuscripts, books, and maps dating back to the Middle Ages and rarely accessible to the public until now.

The project, co-founded by the European Union through the European Regional Development Fund, creates the largest digital archive of medieval manuscripts and ancient geographical atlases in Poland. It uses a solution consisting of IBM System x servers and Storage disk and SAN solutions to address the big data challenge of managing and providing fast search and retrieval services for up to 300 terabytes of information.

“The Wroclaw University Library’s mission is to protect, preserve and ensure broader access to Polish cultural heritage,” said Adam Zurek, head of the Department of Scientific Documentation of Cultural Heritage at Wroclaw University Library, in a statement. “We selected IBM to help us identify, choose and implement a solution in line with our goals of digitizing the library’s documents and making them available to the broader public online.”

The Wroclaw University Library, founded in 1811, houses unique documents such as medieval manuscripts and old prints. One of its most valuable treasures is the “Statuta synodalia episcoporum Wratislaviensium,” containing the texts of everyday prayers printed for the first time in Polish by Kasper Elyan in 1475. Other cultural texts include “Legenda major de Beata Hedwigi,” published by Konrad Baumgarten in 1504, and early publications of Martin Luther, Miguel de Cervantes, and William Shakespeare. The archive also includes thousands of old printed maps, like the handwritten “Portolan Atlas” by famed cartographer Battista Agnese.

Until now, these documents were accessible to only a small number of students and scientists. Through this digitization project, the Wroclaw University Library can now provide access to this material to anyone via the Internet.

IBM designed an IT platform based on IBM System x 3550 M3 servers, IBM Storwize V7000 Unified Disk Systems and IBM System Storage SAN24B-4 Express storage systems. The solution helps collect, preserve, store, manage and index all types of digital content, including text, images, audio, and video. The IBM System Storage Easy Tier function automatically and non-disruptively manages frequently accessed data, eliminating manual intervention when requesting large volumes of information. This means that readers will be able to quickly open, view, retrieve and explore library documents online. The system was implemented at the Wroclaw University Library by ProSystem SA, an IBM business partner.

“Preserving our ancient cultural documents is a major project which opens our Polish cultural heritage to the world,” says Grzegorz Dobranowski, business partner organization director for IBM Poland, in a statement.
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During the implementation, 1,100 medieval manuscripts were digitized together with old prints, maps and music. Over 140 documents underwent conservation and a 360-page album is about to be published, IBM said.

In the meantime, in a straight up services agreement, IBM and Bank of the Philippine Islands (BPI) recently announced a strategic partnership agreement for BPI to outsource its IT infrastructure services to IBM.

Under the agreement, IBM will take over BPI’s IT network and data center activities. This will allow BPI’s Information Systems team to concentrate on the bank’s strategic initiatives. This engagement will help BPI focus on more strategic business areas while IBM manages its day-to-day IT operations, IBM said.

“The country’s growth trajectory provides BPI with the opportunity to grow,” said President and CEO of BPI Cezar “Bong” P. Consing, in a statement. “The partnership with IBM will help provide the IT infrastructure that is supportive of the bank’s growth objectives.”

Mariels Almeda Winhoffer, president and country general manager for IBM Philippines, said, “IBM will provide smarter, scalable IT services and capabilities that will enhance and accelerate BPI’s transformation for growth.”
Founded in 1851, BPI is the Philippines’ third largest bank in terms of assets.


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