Tag: services

Network virtualisation services to soar

technic, funk, man at short-wave receiver, 1961, 1960s, 60s, 20th century, historic, historical, radio operator, radio operatorsA report said that global network functions virtualisation (NFV) which includes hardware, software and services will generate revenues of $11.6 billion in 2019, from its existing revenue base of $2.3 billion.

IHS said that the additional revenues will be generated because operators want to shift from hardware to software, with NFV software representing over 80 percent of the revenues expected in 2019.

Michael Howard, a senior research director for carrier networks at IHS, said software is a much bigger investment than the server, storage and switch hardware.

The move to NFV is in its early stages, he said, with most carriers viewing a move to virtualised networks that will take 10 to 15 years.

He said that revenues from outsourced services for such projects will grow at an estimated 71 percent compound annual growth rate (CAGR) from now to 2019.

Greek exit from euro to hit IT sales

Greek flagEarlier this week we reported that Greek IT staff are leaving the country in their droves because they can earn much more money and rely on getting paid.

And with the European Union possibly setting Greece adrift from the Eurozone, a report suggested that IT spend in the country is likely to plummet.

IDC said that a Greek exit from the euro will see IT spending in the country drop by as much as 18 percent in 2016.

Ut’s not yet certain that Greece will leave the Eurozone, but even if it does reach agreement with the EU, that will still have a negative effect on IT spending because of loss of business confidence and will lead to a double digit decline in IT spend next year, IDC believes.

IDC doesn’t think, however, that there will be very much effect on other European Union countries.

Right now, Greece only accounts for half of a percent of 2015 European IT spend, and is the worst performing Western European country.

If Greece does wave goodbye to the euro, the software and services sector will be largely protected because of recurring maintenance fees and contracts spanning multiple years.

PCs are going to cost 10 percent more

IBM PCThis year we’ll see the price of PCs rise by as much as 10 percent because of the effects of the US dollar’s rise against other currencies.

That is particularly true in Europe and Japan, according to Gartner research director Ranjit Atwal. “PC vendors selling to Europe and Japan, where local currencies have fallen up to 20 percent since the start of 2015, have little choice than to raise prices to preserve profits.”

Vendors margins hit by the currency fluctuation will not only raise prices, but will sell PCs with less features to keep costs down.

In the non commercial market, people will buy down the price range.

And in the commercial sector, big business will divert funds from the PC budget to spend on software and services. Atwal said that large organisations will cut their PC buys by 20 percent due to price rises, while SMEs will buy PCs aimed at the common people rather than the commercial world.

All of this seems to spell doom and gloom for the entire PC supply chain worldwide.

ZTE says it will triumph in services

ZTE, the Chinese telecoms company intent on conquering the consumer and services industry worldwide, has announced it plans to reach $1.5 billion revenues in services alone by the end of the year.

Convincing companies globally that its services are the right ones has been a breeze for ZTE so far, its main bump in the road being that Chinese rival Huawei which is behaving similarly. Otherwise it is plain sailing.

ZTE has also announced the snappily titled Managed Services Solution, which it thinks will help its ambitions of clambering to the very top of the network market.

Using Zsmart business intelligence and its ZXT2000 agile probe, ZTE thinks its new product will help carriers decide on where to go and what to do next. The answer will inevitably be “buy more ZTE products”, but anyway, the kit will give carriers a way to analyse end to end signals across networks. That means picking up on where the networks are failing and stepping in to fix it.

Not the most thrilling development then, but its highly aggressive sales strategy still seems to be working.

On the consumer side, it recently bragged it shipped 35 million handsets in the first half of the year, including making inroads to the vital Europe and Americas markets that it wants so much. Of course, China is still on its mind.

ZTE’s profits were lower than expected, which execs put down to its highly rapid expansion.

Google spy cars driven out of Bangalore

Google’s spy cars have been driven out of another city.

This time, city police in Bangalore have stepped in to stop the company’s Street View project,  and demanded that its street cars stop taking photos of the streets – we imagine this was a slow task considering Bangalore’s traffic is abysmal.

The demands come less than a month after Google launched the service in the city. It said in a statement that it had temporarily parked up its spy fleet following a letter from the  Commissioner of Police.

“We are currently reviewing” the situation “and have stopped our cars until we have a chance to answer any questions or concerns the police have,” it said.

Last month the company launched its service and decided to use cars as well as strikes – a
specially designed three-wheel pedi-cab mounted with cameras – to visit various locations in the city for taking photographs of public locations.

It said it was allowed to do this following getting the green light from the  traffic department of the city police. However now everything has come to a stop.

The reasons for the police force’s intervention isn’t known although there is currently speculation that it could be that this is part of the restriction on photography by foreigners and foreign firms in India.

It could also be down to the fact that Google hasn’t had a very good track record with its service in the past with allegations of data collection and privacy concerns.  

HP wins $2.5 billion NASA contract

HP has won an impressive $2.5 billion services contract from NASA

Despite being full of clever people who dedicate their time to space and science, it seems NASA’s desktops could do with a bit of work and that’s where HP comes in. It’s an infrastructure rehaul which will see PCs and devices delivered to over 60,000 in the organisation.

As usual the idea is that there will be boosted productivity and long-term cost savings, until the next rehaul is needed at least.

HP will be working in tandem with what NASA calls the Agency Consolidated End-User Service program, or ACES. Although exciting-sounding when abbreviated it is core IT which will be managed and maintained by HP. The contract applies to all of NASA.

NASA has small business participation guidelines, so some will be brought in to help out. 

HP has heaps of government contracts in the States, not least the Navy which got sick and tired of the ineptitude of the whole business

Platform as a Service will do well this year

Platform as a service (PaaS) offerings will be introduced across different software companies and industries this year.

PaaS is the middle layer of the software stack for cloud services and is the predominant technology in the way that it intermediates between the underlying system infrastructure such as operating systems and networks, and overlaying application software.

As the years have gone on, this technology has become instrumental in application development tools, database management systems and business process management.

According to Gartner, enterprise software vendors, as well as large cloud specialists will introduce PaaS offerings to deliver new or strongly expanded features. It predicts that by the end of this year the battle for leadership in PaaS and the “key PaaS segments will engulf the software industry.”

New vendors are expected to walk into the market through acquisitions or in-house development, which according to Gartner means that users can expect a “wave of innovation and hype” and the industry will see a boost in competition.

Gartner predicts that most midsize and large organisations will shun wholesale transitions to cloud computing and instead go for an extension of the use patterns of on-premises application infrastructures to hybrid computing models.

This essentially means “on-premises application infrastructures and PaaS will coexist, interoperate and integrate”.

PaaS will be allowed to grow in the cloud industry because the cloud computing era is just beginning. At the moment the prevailing patterns, standards and best practices of cloud software engineering have not yet been established, which means there is an opportunity for new software providers to build a presence in the market.

However, those who already have service offerings in place won’t be able to rest on their laurels, as they will have to work to remain at the top of this market and beat off new competition.  

Gartner predicts that to achieve the latter large vendors will aim to grow through in-house development, partnerships and acquisitions. Smaller vendors on the other hand will grow through partnerships, while users will be driven into cloud computing as business application services and advanced platform services  mature and grow technologically.

Gartner predicts that by 2015, most enterprises will have part of their run-the-business software services in the cloud, using PaaS services or technologies directly or indirectly. Most of these will also have a hybrid environment in which internal and external services are combined.

IBM miles ahead of HP in integrated service software. Says IBM

IBM is a better company than Hewlett Packard, according to IBM.

IBM’s services division chief Mike Daniels reckons, in terms of integrated software and services, HP is not quite up to scratch. Ahead of a speech from chief HP exec Leo Apotheker, Daniels said: “It’s not like we have a company that has a software strategy and then a services strategy or a hardware strategy.”

IBM believes that linking its software close to services it has the edge on HP. While HP has been focusing on services, Daniels said: “I think it would take a long time for anybody to accumulate the kind of capability that we have.”

Apotheker’s vision won’t screw up Wall Street either, according to IBM, and it won’t push up purchase prices. There were worries, says the Financial Times, that an HP software push would send acquisition costs sky high. 

“I don’t see one more person in the marketplace as changing things,” Daniels said.

The worst situation, IBM didn’t say, would be a 3PAR-style drama in the middle of Silly Season that forces technology journalists into writing about a dull as dish water acquisition because there’s nothing else out there. 

Centrica migrates to cloud with seven year HP contract

HP has won a hefty outsourcing services agreement with UK based utilities company Centrica, worth over $400 million.

The deal will see Centrica making use of HP’s Enterprise Services for the long term: a seven year contract to be exact. It’ll move its utility services up to HP’s cloud which Centrica hopes will lower costs, speed of deployment, and interestingly for a company that deals in fossils, its carbon footprint. 

It’ll be a full migration to that trustworthy cloud – where liability and standards have still not been drawn up – and will be provided through two of HP’s UK data centres. One will be in Wynard, which HP underlines is known for “its eco-friendliness”. As is often the case, Centrica will have its data centre support delivered off-shore by HP from staff in Malaysia, the Philippines and India – by people probably dubbed Tom, Rick or Jerry*

Dave Bickerton, group CIO at Centrica, reckons HP’s utility computing won the contract because they’re “flexible, cost-effective and help reduce our carbon footprint,” he said in a statement. “Centrica is striving to improve our ability to respond to market changes to supply gas and electricity to homes and businesses more efficiently.”

*EyeSee The reason call centre staff off shore are handed nick names is because of pronunciation. According to those in the trade, it’s easier for a baffled manager to call support staff Rick rather than get their heads around saying Daggubati Venkatesh. 

Capgemini announces audited 2010 results

Capgemini, the services and IT company, looks set to turn a profit on the back of public sector cuts. While cuts are not yet fully in effect, it has secured plenty of contracts including with Transport For London – as TFL plans to cut workers amidst a flurry of strikes – and saw a return to growth in the second half of 2010. 

Total revenues for 2010 were $11,792 million (€8,697 million), up 3.9 percent on published revenues compared with 2009. They were down slightly, says Capgemini, on a like-for-like basis – so that’s constant group structure and exchange rates. The fourth quarter was up 16.2 percent year-on-year for published figures, 10.5 up following the acquisition of Brazil’s CPM Braxis, and 5.8 percent like for likes.

Booking totalled roughly $13,372 million (€9,863 million), up nine percent from 2009. Book-to-bill ratios for consulting, technology and loca professional services was 1.14 for the year and 1.21 for the fourth quarter.  Outsourcing saw the highest growth of all Capgemini’s businesses, up 16 percent on 2009. Five late-launch 2009 service lines, beginning operations in 2010, accounted for 37 of total bookings according to Capgemini. 

Total group profit for the year was roughly $379.7 million, or €280 million. That’s up an impressive 57 percent on the year before. Outlooks from Capgemini’s finance team reckons that it will see growth of between nine and 10 percent in revenue. Operating margin improvements are expected to be between 0.5 points and 1 point. 

Capgemini recently signed a £10.4 million IT outsourcing contract leading on until 2013 with Tube Lines, owned by Transport for London. It’s a contractor under management by London Underground, which maintains trains, tracks and stations for the Jubilee, Northern and Piccadilly Lines. Capgemini has taken over all IT support and applications at Tube Lines.

Capgemini is worth keeping an eye on. It’s a gigantic company that wins lucrative IT contracts in the public sector including an early signing with the Metropolitan police. It wields influence and as it returns to growth will likely continue to handle applications behind the scenes. Over in India, late last year we reported that along with rivals it has been locking in employees to stop them from jumping ship.