Posts Tagged ‘Software’

Xerox to sell IT outsourcing arm to France’s Atos for $1.05 billion

December 19th, 2014

Xerox Corp said it agreed to sell its information technology outsourcing arm to French IT services firm Atos SE (ATOS.PA) for $1.05 billion, sending its shares up almost 4 percent in late trade on Thursday.Outsourcing28

By divesting the slower-growing unit which became part of Xerox as part of the 2009 acquisition of ACS, Xerox can now focus on building up the faster-growing units, business process outsourcing and document outsourcing, Robert Zapfel, president of Xerox services business said.

The IT outsourcing business generated $376 million in the quarter ended Sept. 30.

“Xerox’s ITO business includes about 9,800 employees in 45 countries,” the company said in a statement. The unit’s leadership team will join Atos.

In Paris, Atos said the deal was expected to close in the second quarter of 2015 and would boost its earnings per share by 10 percent as early as the first year.

It said the move would also triple its size in the U.S. which would represent its largest market. Atos also said in a statement it would pay $950 million in cash for the business plus $100 million representing tax benefits, and would pay an extra $50 million subject to the condition of certain assets.

Xerox has spent roughly $300 million this year, including a deal in May to acquire ISG Holdings for $225 million, to expand its insurance solutions. It also bought smaller software companies, Consilience Software and Intrepid Learning, in the past few months.

“This will provide incremental cash which gives us more flexibility to do more acquisitions,” Zapfel said in an interview.

Xerox, best known as a maker of printers and copiers, has been focusing on services to offset a drop in printing by companies and as personal computing moves to tablets and smartphones.

Xerox forecast adjusted earnings of 28 cents to 30 cents per share for the current quarter ending Dec. 31, from 30 cents to 32 cents per share it expected earlier.

Analysts on average were expecting a profit of 31 cents, according to Thomson Reuters I/B/E/S.

Xerox also said it now expects adjusted full-year 2014 earnings per share of $1.04 to $1.06, below analysts’ average estimates of $1.12, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $13.89 on the New York Stock Exchange.

Source:http://in.reuters.com/article/2014/12/19/us-xerox-atos-deals-idINKBN0JW2U920141219

10,000 IT engineers and the mission to connect Vietnam and Japan

December 15th, 2014

Nikkei said this program is particularly important and it can become a bridge between the two countries, particularly when China has long been the largest outsourcing market for Japan.Outsourcing19

BridgeSE will train software engineers who understand Japanese language and Japanese culture. They will assume the mission of learning requirements from Japanese firms and transmit the information to the engineers who cannot speak Japanese and manage the software development process.

Currently, most software engineers of FPT Software – a leading software firm in Vietnam — do not understand Japanese, so to get more contracts from Japanese partners, the role of BridgeSE is indispensable.

FPT Software’s plan is to train 10,000 software engineers by 2018, from 700 at present.

“If the program is successfully implemented, it can be compared to a cooling rain for Japan’s IT industry which is lacking talented resources to serve the integration of the large-scale system of tax code and general social security of financial institutions in Japan,” Nikkei said.

Of the 10,000 engineers, half will study in Vietnam while the other half will go to Japan and participate in the seven-month Japanese course. The first partner of FPT Software is Meros Language Institute (Tokyo, Teshima). FPT will gradually send its trainees to the academy, starting with 50 in April, 200 in July and 250 in November 2015.

“We want to accelerate Japanese learning through the living environment and communication entirely in Japanese,” FPT Chairman Truong Gia Binh said.

The director of the Meros Language Institute, Ms. Junko Kagawa, said she hoped that Vietnamese students “can also learn the rules of business and culture of Japan.”

The Academy aims to train Vietnamese students with extensive knowledge and proficiency in Japanese, up to the “N2″ level of the Japanese language proficiency exam.

The remaining 5,000 people will attend Japanese courses in Vietnam and will gain experience and practice their Japanese in Japanese companies after becoming BridgeSE engineers.

FPT Chairman Truong Gia Binh urged Vietnamese IT firms to join this program in order to “strengthen the capacity of the entire IT industry in Vietnam”.

He said this is a great opportunity to accomplish the dream of young people who wish to work in IT companies of Japan.

The entire living expenses in Japan (about $14,400) will be paid by the trainees. FPT will combine with local banks to lend trainees with tuitions. The amount of $14,000 is equivalent to the salary of bridge software engineers working for Japanese IT companies for 1-2 years.

In the future, if students can find a job in Japan, it is not necessary to return the entire amount, FPT said. The company will set up a mechanism under which the employers will pay the training cost for the staff after clarification of certain conditions.

Vietnamese Ambassador to Japan, Mr. Doan Xuan Hung, said this plan “links the development of Vietnam – Japan”, and on behalf of the Vietnamese government expressed support for with this plan.

Currently the largest outsourcing market for Japan is China. Their cooperation, however, in recent years has been stagnant due to dramatically increased labor costs. Meanwhile, the advantage of Vietnam is the competitive price.

The salary of an IT engineer in Japan is at around 200,000 to 300,000 yen ($1,700-2,500) per month. In Vietnam, it is only 20-40%. In terms of product quality control, the costs are also cheaper, 40-60% compared to Japan, and 30-40% compared to China.

“The problem is only the Japanese language. But this weakness is expected to be overcome through the 10,000 BridgeSE training program,” Nikkei said.

Source:http://english.vietnamnet.vn/fms/science-it/118804/10-000-it-engineers-and-the-mission-to-connect-vietnam-and-japan.html

Optimism wanes: TCS warns of seasonal trends impacting revenue in Oct-Dec

December 15th, 2014

The country’s largest software services firm Tata Consultancy Services (TCS) expects its revenue in October-December to be ‘in line with seasonal trends’.Outsourcing18

The third quarter of the fiscal is traditionally weaker for IT companies as business is impacted by low volume growth amid Christmas and New Year holidays and furloughs in the US and Europe.

The US and Europe are the key markets for the over $100 billion Indian outsourcing sector.

“Q3 2015 revenue expected to be in-line with seasonal trends. Retail, Manufacturing and Hi-Tech likely to see impact of holidays and furloughs,” TCS said in an investor presentation today.

It added that banking, financial services and insurance continue to be impacted. According to a report on CNBC-TV18, the company said it was more positive at the start of the year and expressed difficulty in predicting the sentiment at this point.

Meanwhile, the company expects telecom and smaller verticals to grow better than the company average, the report said adding that it has maintained its operating margin guidance of 26-28 percent.

On geographies, TCS said the demand environment in North America is in-line, adjusted for seasonal weakness. It said pricing trends were fairly stable, and that demand environment in the US was in-line with expectations, the CNBC-TV18 report said.

It said growth in Europe revenues would be better than the company’s average, though the UK was expected to be weak.

“Europe to grow better than average while UK remains weak due to seasonality and impact of insurance,” it said.

In India, the demand environment was fragile, and growth from its India and Asia Pacific businesses would be in line with the company’s average growth.

The company is expecting a slight uptick in realisations and a 10-20 basis points positive impact due to dollar strengthening. However, it expected a negative 220 basis point impact due to cross currency headwinds.

Shares of the company closed 1.48 percent down at Rs 2,455.70 apiece on the BSE on Friday.

Source:http://firstbiz.firstpost.com/corporate/optimism-wanes-tcs-warns-of-seasonal-trends-impacting-revenue-in-oct-dec-113125.html

Indian IT companies lag behind global peers in SaaS space

December 12th, 2014

The rise of software-as-a-service cloud delivery model poses a threat to the dominance of the homegrown software exporters as most of them lag behind the foreign companies, including IBM and Accenture in offering services to customers.Outsourcing12

Although significant investments are currently being made by Infosys and Wipro in strengthening their cloud offerings, some of the fastest growing SaaS firms globally do not even name any of the country’s largest IT firms as their strategic partners.

“We’ve got strong partnerships with Deloitte and Accenture and IBM and increasingly, PWC and KPMG, Towers Watson and Aon Hewitt,” said Aneel Bhusri, co-founder and co-CEO of Workday, in an analyst call last month, underlining the fact none of the Indian tech giants made the list.

For now, Indian companies are catching up with the foreign IT firms, as Wipro entered into a partnership with Workday in 2011, three years after Accenture first became Workday’s global deployment partner.

“We are there but we may not be matching them (IBM, Accenture)…It requires a lot of investments. They are ahead of us,” said Satishchandra Doreswamy, chief business operations officer at Wipro. “(But) we are also picking up…we are currently building cloud business platforms.”

Software-as-a-service, in which companies pay for software based on their usage, is expected to top $22 billion through 2015, up from about $14 billion in 2012, according to research firm Gartner.

The impact of this is most visible in Indian tech giants losing out to global software exporters when it comes to migrating existing infrastructure to cloud model. One of the examples is when IBM won a 10-year, multi-billion dollar deal to provide computer infrastructure services to Dutch bank ABN Amro running on its cloud systems. As in most deals, the biggest names, including Infosys and Wipro were in the race to bag this contract.

Another wrinkle for Indian tech majors is the inability to offer IPs in cloud space which can help them bag large contracts when competing for large deals.

“We have acquired industry leading cloud intellectual properties (IPs) which help us provide our customers with a strong orchestration layer to manage diverse cloud platforms in a seamless manner,” claims Anand Sankaran, president, Infrastructure and cloud computing at privately-held Dell services.

For this reason, some analysts believe cloud could pose a long-term challenge, capping upside potential in a sector growing at 13-14% annually.

“In the long run (5-10 years), we think cloud will eat into the enterprise application services (EAS) revenues of India’s IT services companies (15-20% of total), assuming ‘ERP on cloud’ becomes a reality,” Yogesh Aggarwal, an analyst with HSBC Securities said in a report dated November 25. “In the near term, the risk is more manageable at just 5-6% of total business, as cloud companies have achieved little in terms of operating metrics.”

To be sure, some of that impact is already showing. The time-and-material model of payment, where companies pay for the effort rather than the outcome, has been dropping steadily over the past few years.

“Clients are asking for a significant sub set of the existing work to be converted into a pay for use model. This will pose significant challenges to the Indian based providers which currently utilize an FTE base model,” said Peter Bendor Samuel, CEO of outsourcing advisory firm Everest. “Its impacts are already showing in the slowing growth and the increased need for investment.”

A senior executive of Infosys acknowledges the company’s limitations, with lack of certified consultants who can help customers to move to cloud space.According to the HSBC Securities report, Accenture leads the pack among IT outsourcers, with about 3100 certified Workday consultants. Additionally, the outsourcer also has 1800 Salesforce-certified consultants. In comparison, top five Indian IT firms collectively have a little more than 2,000 Salesforce certified professionals.

Still all is not lost as some believe a recognition by the leading IT firms to increase their investment can help them battle again the likes of Accenture when it comes to winning large deals.

“The two things that they need to do is to build these strategic alliances with companies that have cloud-based products and second is to have hosting either in their own data centres in geographies where they want to provide these services or they should have tie-ups with data centres in those regions,” said Biswajeet Mahapatra, research director at Gartner.

To combat the long-term threat, companies will also have to change how their services are delivered as the lowered complexity of cloud-based solutions will reduce the need to employ armies of engineers.

“Companies will have to invest in robotic process automation, artificial intelligence, analytics tools and capabilities, business process skills, consulting talent. They will need to change the revenue model from one driven by selling just labour to one selling products and expertise weaved into those services,” Phil Fersht, CEO of advisory firm HfS Research, said.

Source:http://timesofindia.indiatimes.com/tech/it-services/Indian-IT-companies-lag-behind-global-peers-in-SaaS-space/articleshow/45491781.cms

‘Life is pretty good here for IT people': Where techies earn five times the average salary

November 27th, 2014

When you look at the numbers, a software engineer in Romania makes as much as a van driver does in the UK. But when you take into account the cost of living, the picture shifts dramatically. In Romania, IT professionals make headlines for earning five times the average local salary, and most recruiters are talking about wages rising up to 15 percent next year.Outsourcing9

Software engineers’ salaries
However, for the moment, there is a significant gap in Europe between the East and the West. Tudor Constantin, an experienced Perl developer working in Cluj-Napoca for software company Evozon, has considered the idea of moving to Western Europe or the US, but gave up the idea after he compared income and living expenses.

“At the moment, it’s not worth the trouble. A software developer in Cluj with seven years’ experience earns an average of €1,700 a month,” he says. “I’ve calculated using numbeo that in order to afford the same kind of life, I’d have to make about €8,000 in New York.” He included rent, utilities, meals, cabs, and even the occasional beers and nights out.

Constantin would move abroad only if he were to set up his own startup. “In the US, there are investors, important technology websites, and ecosystems for entrepreneurs. I’d build a startup in Romania, because it’s a low-cost location, and launch it in the US,” he says.

Most senior software developers in the country have a take-home pay of €1,700 to €2,200 a month, according to a study conducted by recruitment agency Brainspotting. That accounts for €24,000 net a year, or the equivalent of $30,000. Junior engineers, with only a bit of experience, get €700 to €1,100 a month.

“Usually, companies look for Java, .Net, and PHP developers. They want employees who are more than simple doers. They want developers with good communication skills, people able to share knowledge,” Maria Hostiuc, ICT recruiter at Brainspotting, told ZDNet.

Higher on the payscale are project managers (who earn €2,000 – €2,500 a month) and IT managers (€2,100 – €2,700). Meanwhile, quality assurance and network/system administrator jobs start at €500 per month for a junior employee and can reach up to €1,800 for a dedicated senior professional.

Certain skills are paid better than others, Claudiu Lazar, IT recruiter at Adecco Romania, told ZDNet. Candidates for Ruby on Rails or Python are scarce and therefore companies are willing to offer them more, he says. “Salaries vary from €400 to €4,000 per month, dependent on experience and the job the company offers.”

At the moment, software development managers get between €2,200 and €3,500 a month, software architects are in the €1,800 – €2,500 range, while database developers earn  somewhere in the €900 to €1,900 range. Other desired jobs are team leader (€1,500 – €2,200), software implementation consultant (€800 – €2,900), project manager (€1,600 – €3,000) and web designer (€500 – €1,500), according to Adecco.

Three-quarters of IT professionals are registered as employees for the companies they work for, while a good 11 percent receive their entire salary through a self-employed contract. The rest of workers are a combination of the two. “In some cases, the people who receive  their payment through a self-employed contract or through a mix of contracts, also receive a bonus of 15 percent on average,” according to a study done by Brainspotting.

Changing jobs?
The end of 2014 is busy for both HR and IT professionals. “Right now, among our top recruiters in the field, we have Oracle, Electronic Arts, Siemens, and Amazon,” a spokesperson for BestJobs.ro recruitment website, told ZDNet. Jobs ads for PHP developers get more resumes, compared to the ones offering a position of .NET/C++ application developer.

In the first ten months of 2014, the recruiter said there have been around 44,000 IT jobs posted on the site, an increase of over 35 percent year-on-year.

“Usually, most companies advertise a good work-life balance, with some even allowing their employees to set their own schedule if they’re students. Other benefits are healthcare services at a private medical center and meal vouchers.”

The job market is dynamic, so professionals in the field have learnt not to settle for less.”Usually, an IT employee has the same job for two or three years, but there are some who change it after a year, if they find a more interesting project and are eager to learn,” Adecco’s Lazar says.

“Most of them change jobs because of the salaries. Not that they have low salaries, but because other companies are willing to offer them more. They’re thinking about changing the job if they get at least 20 percent more,” Maria Hostiuc, an ICT recruiter, told ZDNet.

Software developers and other professionals from this field are also motivated by how geeky the work environment is and by other benefits, like a company car and lately even all-inclusive holidays paid for by their bosses. They also stress phrases like “great team” or “freedom in taking job-related decisions” are attractive in a job advert.

Brainspotting’s studies show that about a third of the IT candidate show “real interest for changing the current job”, and only 16 percent of them are not interested under any conditions.

Harder and harder to find skilled developers
Depending on how much a company wants to spend, finding the perfect candidate for a job can take some time.

“There are positions for which we need up to a month to find the right candidate. Those are usually niched or need knowledge of new technologies. Therefore, the number of professionals is relatively low,” Adecco’s Lazar says.

Adrian Punga, head of technology and backend development at Kalon Global Group in Bucharest, agrees. He told ZDNet it isn’t easy anymore to find people with strong IT skills, “mainly due to the big number of wannabes attracted by the higher than average pay in the IT sector”.

“Good HTML5 developers are scarce as the technology is very new. Good UX designers are also hard to find because we don’t have any education system that can produce them in Romania,” he says.

Salaries will continue to rise in 2015
Adrian Punga gets job offers “at least once a month,” especially from companies located in London and Berlin. It’s a similar situation for many Romanian IT experts, Brainspotting says. 35 percent of these professionals have never had to reply to a job ad, its study shows, as the demand in high.

Salaries in the IT sector have grown at a rate three times higher than the average salary in the past year, according to the National Institute of Statistics in Romania.

There are several drivers behind the change. First of all, companies like Oracle, Microsoft, or IBM have opened large offices in Bucharest and throughout the country. They want the best and the brightest – and have resources to pay them.

Secondly, outsourcing companies which pay well are experiencing an all-time high in the area. And third, there is an income tax exemption for developers who have finished a long-term academic degree.

This year alone, both Adecco and Brainspotting estimate a 10 to 11 percent salary growth in the IT sector. Projections regarding 2015 go even further. “We definitely see an increase next year of even 15 percent for more complex positions and those related to new technologies,” Lazar says.

Luminita Fediuc, senior HR strategy consultant at Brainspotting, estimates job growth of 5 to 12 percent in 2015. “Our data suggests that the number of jobs available will continue to expand in the next three years,” she says.

Worldwide, a Mercer survey projects a salary increase of three percent for the high-tech sector next year. According to the report, “professional non-sales IT employees were identified as most difficult to recruit and to retain”.

Software developers like Adrian Punga or Tudor Constantin believe it is better, financially speaking, to work in Romania, where rent is only a fraction of that paid in Western Europe, and beer is only 1 euro a bottle.

Adrian Punga says he didn’t think much about changing the country where he lives and works. “Life is pretty good here for IT people. Better than in most other countries. I remember I saw a study somewhere that concluded that Romania is just third in the world after the US and UK on the standard of living for IT people.”

Source:http://www.zdnet.com/life-is-pretty-good-here-for-it-people-where-techies-earn-five-times-the-average-salary-7000035916/

10 Principles Of IT Security Every Small Business Should Know

November 17th, 2014

IT security breaches are a risk to small business.Condoleezza Rice Meets With Alexander Downer

Without a dedicated IT department, managing online security for a small business can be a daunting task.

While big organisations have entire teams working to secure networks and information, small businesses are lucky to have a computer guy.

But there are simple steps you can take to secure your data – and remember, much of this is your customers’ data too, and they expect it will be cared for properly.

So to get up to speed, here are 10 things every small business should know to protect systems from intruders.

1. Invest in and update security software
Even if you’re a small business, security is important because being connected to the internet opens you to the world, Airtasker COO and co-founder Jonathan Lui told Business Insider.

Last year Australians spent $408 million on security software but they spent $770 million on potato chips. The message: invest in reliable and up-to-date security software.

Security software needs to be installed on all your devices. It should include a firewall, anti-virus and anti-spyware. One of the mistakes people make is installing the software and never updating it – new threats emerge on the internet every day and your protection software needs to keep up with that.

Also good to know – many of the cloud software offerings on the market already have stringent security solutions built into them. So you may not need to invest over and above the technology that you already have.

2. Back everything up
Gone are the days where backing up your data was a tedious task. Cloud technology means you can set up your devices to back up all the information they hold as often as you like.

A comprehensive solution combines online and offline – so back up to the cloud and to a USB regularly.

3. Build a culture of IT security in the business
Establishing a culture which is aware of security threats is one way to protect your business. This can be as simple as training staff around expectations and technology uses.

“It comes down to a lot of human security principles,” Lui said.

“Generally when a new employee comes in we get them to sign a policy agreement which outlines what we expect in terms of IT security and confidentiality. I generally do an audit once a quarter but try to keep it a bit random.”

Expert360 head of engineering Tom Jowitt said education can be one of the strongest security policies.

“Educate your team on best practices. Small improvements can drastically improve security. People are always the weakest link,” he said.

4. Outsource to an expert global provider
Outsourcing tasks like hosting and servicing IT infrastructure to a global provider is important. It enables small business to take advantage of the big company’s developments and have less chance of data being lost or breached as well as hopefully minimising any downtime.

“Don’t try to bring all the security skills into your business if you don’t have to. You’re not the security guy. If you think it’s a priority pay for those skills,” Lui said.

“You need to delegate the responsibility to someone who is going to care about your IT security.

“You’re trying to minimise the risk of something catastrophic happening down the track.”

Jowitt said outsourcing gets security out of the way of critical business tasks.

“In small businesses, data is one of the most valuable assets yet you often lack the resources that larger companies do. You need to make sure that your security approach is manageable and doesn’t get in the way of the business. Security is always a trade-off between being secure and being usable,” he said.

5. Have different passwords for everything
Setting passwords on all devices and introducing two-factor identification for more sensitive information can protect your business from intruders. It’s especially important with the rise in portable and mobile devices that leave the office. Passwords can stop people from accessing information if a phone or laptop for example is lost or stolen.

Passwords should also be different for each device or platform to stop giving someone access to everything if they figure out one access code.

Think about what would happen if someone could read your email. A sophisticated hacker could trawl your correspondence for all those times you shared passwords around the business, and reverse engineer much of your security.

Lui said setting up a password management plugin is an easy way to manage security when a business has multiple users. It also enables a manager to set different access levels and allocate a master password.

6. Learn to remote wipe
Just like you would want all your data backed up if a device was lost, stolen or infected with malicious software – you also need to have the ability to wipe data remotely.

This means you can log in from another device in the case of an unexpected event and wipe all the data to stop it being accessed by prying eyes.

Lui said setting up the ability to lock down access to emails and files that an employee has access to is also important, especially if they leave the company unexpectedly.

“I always err on the side of being cautious from the start,” he said. “It prevents these types of issues if they happen.”

7. Brush up on the Australian Privacy Act
Knowing the rules and regulations around obtaining and storing data – especially customer data – is important to ensure you’re not breaking any laws.

Lui said there is also business incentive for ensuring personal data is properly protected.

“Customer data is quite sensitive,” he said.

“It’s very important to hold as much data as possible but that it’s secure.

“You don’t want to get famous for the wrong reasons, if the story leaks out that you let out the details of your customers that’s not good.”

Importantly, the major providers have local data centres that operate under Australian jurisdiction which remove the legal uncertainties.

8. Lock up your gadgets
It may sound rudimentary but having a device stolen can be a headache for business.

Locking up laptops and gadgets and keeping them out of sight when people aren’t around can go a long way ensuring hardware isn’t taken.

“No computers lying around the desk when people aren’t there, it has to be locked up. Don’t just leave things lying around that might have data on it,” Lui said. “Do a general check on locks after hours.”

9. Think about how you’re sending data around
Emails can be forwarded all over the place without the sender ever knowing.

“If someone asks for some data that they need I make sure I pass it to them securely,” Lui said.

“These days with more data going online for everyone there’s a lot of ways people can get their hands on that data.

“We try and do almost everything in the cloud and try not to store anything on our computers.”

10. Have a disaster plan
If something can go wrong, chances are it probably will, Jowitt said small businesses need to think about how they might deal with worst-case scenarios. Larger businesses have incredibly detailed plans for how they will respond in case of things like fire, mass power outages, or other unforeseen disasters. For small business, it needn’t be complicated, but some basic planning will help.

“Make sure you have contingency and disaster recovery plans for when things go wrong,” he said.

“If you can’t afford a full-time sysadmin or security team make sure you at least bring in an external auditor to review your IT infrastructure.”

Source:http://www.businessinsider.com.au/10-principles-of-it-security-every-small-business-should-know-2014-11

IT buyers calling it quits with Silicon Valley

November 13th, 2014

As enterprises discover the need to build their own software, they’re ending the romance with Silicon Valley vendors. Outsourcing32

Once upon a time, vendors developed and sold software and enterprises bought it. Companies like Oracle and Microsoft grew up in such halcyon days and minted billions of dollars in profits for their troubles.

That was then, this is now.

Today’s enterprise is increasingly assertive, building their own software and, in a small but growing trend, releasing it as open source and inviting others to contribute. Just ask the CEO of Under Armour.

“We are a software company”
Entrepreneur and investor Marc Andreessen was right to declare that “software is eating the world.” In a nutshell, Andreessen argued that technology was no longer something external to a business; it was core, not complement. As such, every company had to be in the business of developing innovative technology.

Under Armour CEO Kevin Plank got the memo.

In an interview with Businessweek, Plank insists that he has no plans to outsource technological innovation to Silicon Valley:

“I’ll be damned if I’m going to cede anything to Silicon Valley or any other technology company, because I believe we are a technology company. And if the phone is going to get integrated into the shirt, should that be a technology company making apparel or the apparel company starting to make technology? I choose the latter, and that’s exactly where I’m pushing my company.”
He’s not alone.

For example, while we like to talk about Hortonworks filing its S-1 to go public on the back of market adoption for Hadoop and other big data technologies, the more interesting news is “Barclays Bank…work[ing] with Commonwealth Bank of Australia on the development of open-source tools for analysing large data sets.” When banks or other IT buyers stop buying and start sharing between themselves, cutting out the vendor middleman, that’s a big market shift.

So big, in fact, that the impact of open source and other trends like cloud are dramatically changing how “software vendors” define their businesses.

As Redmonk analyst Stephen O’Grady notes:

“Vendors… will continue to point to ‘software’ as their primary revenue source. But the reality is that when successful companies say ‘software,’ they will actually mean software plus some combination of public cloud infrastructure, hardware/appliance, automated management/monitoring capabilities, hosted micro-services, and data enabled analytics. The majority of which is software, of course. Just not strictly software as we have been conditioned to think of it.”
Yes, there will always be a need for software vendors, because it simply won’t make sense for enterprises to build some software themselves. While it will differ from company to company, there will always be functionality that doesn’t generate competitive advantage for a company, making it ripe for outsourcing to a vendor.

However, far more software will need to be written in-house.

Increasing competition for developers
All of this means that the competition for developers is about to get even worse. Silicon Valley has been on a hiring binge for engineers for years, and that same trend is about to hit the rest of the world.

Asked about recruiting, Plank was candid about his quest to assemble a developer army:

“I’ll say this, sporting goods has not always had very intelligent people. We have not attracted the best and the brightest. They’ve gone to Silicon Valley. They’ve gone to Wall Street. Now, we’ve got a pretty powerful ecosystem that we can tap into, especially with the acquisition of MapMyFitness. I have 100 engineers, and a year ago, I had zero. I have nine Ph.D.s, and a year ago, I had zero.

“I hear people say, ‘I want to go work at Google,’ and I think ‘What are you going to do at Google? It’s a search engine.’ The ability to touch people and literally change lives is incredibly relevant in a consumer-products company.”

The good news implicit in Plank’s statement is that developers won’t need to leave the Midwest or Far East or wherever they happen to live. Increasingly, they’ll be able to build interesting software right where they are, without the headache commutes up 101 or the crushing mortgages of Los Altos.

In fact, as I’ve previously written, “The older the industry, the more profound the change big data [and a great developer] can make.”

Breaking down barriers
There has never been a better time to work in technology and, let’s face it, who isn’t in the technology business these days? Or rather, who shouldn’t be? Forward-looking companies like Netflix are already chest-deep in technology, laying waste to more laggardly competitors like Blockbuster. Going forward, companies that embrace technology as central to who they are will win, and everyone else will evaporate into Chapter 11 obsolescence.

That’s the good and bad news. It won’t be pleasant for companies ill-prepared to embrace technology. But for developers, this news is only positive. With companies as diverse as Google, Under Armour, and John Deere competing for their services, developers can write their own ticket while taking home a fat paycheck.

Source:http://www.techrepublic.com/article/it-buyers-calling-it-quits-with-silicon-valley/

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