ServiceNow Named a Leader in the 2020 Gartner Magic Quadrant for Software Asset Management Tools

ServiceNow, the company that makes work, work better for people, has been named a Leader in the 2020 Gartner Magic Quadrant for Software Asset Management Tools. ServiceNow was recognized for its Software Asset Management (SAM) solution. This recognition comes just two and a half years after ServiceNow first launched its SAM product.

ServiceNow’s SAM solution provides customers with the ability to help reduce software spend and license compliance risk, allowing companies to gain a more complete picture of their software assets deployed in their datacenter, on end user computers and in the cloud. With ServiceNow, customers can optimize IT productivity, cost, and resilience. This is crucial for companies, especially during times of economic uncertainty, where companies are looking to drive even greater efficiencies with their capital.

At ServiceNow’s recent Knowledge 2020 Digital Experience, customers such as Accenture, Exelon, and Microsoft presented on their successful journeys with ServiceNow SAM to achieve high value.  Many customers are finding opportunities to save millions of dollars very quickly by eliminating unused software.

“Now more than ever, companies around the world are looking to drive efficiencies and reduce costs,” said Manish Srivastava, VP and GM of IT Asset Management at ServiceNow. “We feel Gartner’s recognition of ServiceNow as a Leader for Software Asset Management tools is a reflection of our solution’s unique ability to not only provide insights, but automate taking action on these insights using the ServiceNow workflow platform, accelerating savings realization, and compliance remediation.”

ServiceNow’s SAM product runs on a single architecture, natively interacting with other critical functions such as Hardware Asset Management, IT Service Management (ITSM), IT Operations Management (ITOM), and IT Business Management (ITBM). The single data model provides workflows to connect the enterprise throughout the full IT life cycle.  ServiceNow’s single system approach modernizes and simplifies how SAM gets done.

Gartner Disclaimer

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

Acronis Recognized as Visionary in Gartner 2020 Magic Quadrant for Data Center Backup and Recovery Solutions

Acronis, a global leader in cyber protection, was positioned in the Visionaries quadrant in the Gartner 2020 Magic Quadrant for Data Center Backup and Recovery Solutions

According to the report, “the move toward public cloud, heightened concerns over ransomware, and complexities associated with backup and data management are forcing I&O leaders to rearchitect their backup infrastructure and explore alternative solutions. This research provides analyses of backup and recovery vendors.”

“Over the past several years, Acronis has shifted its focus from being a backup vendor to offering cyber protection, a holistic approach that combines data protection and cybersecurity. It is encouraging to be acknowledged as a Visionary by Gartner, and we see this recognition as validation of the critical interdependency between backup and cybersecurity,” said Acronis Founder and CEO Serguei “SB” Beloussov.

While the Gartner 2020 Magic Quadrant for Data Center Backup and Recovery Solutions report is focused on the data center, the primary focus for Acronis has always been protecting the edge and endpoint. Beloussov continues, “We have a unique ability to provide cyber protection for enterprises - focusing on edge and endpoint workloads. Our newest solution Acronis Cyber Protect provides AI-powered anti-malware protection, vulnerability assessments and patch management, continuous data protection, URL filtering and fast, reliable backup and disaster recovery, all from an easy-to-manage console.”

Gartner, “Magic Quadrant for Data Center Backup and Recovery Solutions”, Santhosh Rao, Nik Simpson, Michael Hoeck, 20 July 2020.

Gartner Disclaimer

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

About Acronis

Acronis unifies data protection and cybersecurity to deliver integrated, automated cyber protection that solves the safety, accessibility, privacy, authenticity, and security (SAPAS) challenges of the modern digital world. With flexible deployment models that fit the demands of service providers and IT professionals, Acronis provides superior cyber protection for data, applications, and systems with innovative next-generation antivirus, backup, disaster recovery, and endpoint protection management solutions. With award-winning AI-based antimalware and blockchain-based data authentication technologies, Acronis protects any environment – from cloud to hybrid to on-premises – at a low and predictable cost.

Founded in Singapore in 2003 and incorporated in Switzerland in 2008, Acronis now has more than 1,500 employees in 33 locations in 18 countries. Its solutions are trusted by more than 5.5 million home users and 500,000 companies, including 100% of the Fortune 1000, and top-tier professional sports teams. Acronis products are available through 50,000 partners and service providers in over 150 countries in more than 40 languages.  

India mobile users to cross 1 billion by 2015

India’s mobile subscriber base should up to 993 million by 2014, according to researcher Gartner, which expects the world’s fastest-growing mobile market to close 2010 with more than 660 million subscribers.

India is the second-largest wireless market in the world after China with its 618 million mobile subscribers at end-May, according to data from the country’s telecoms regulator. Mobile connections were at 525 million at end-2009.

While the regulator’s data also includes fixed wireless subscribers of operators like Reliance Communications and state-owned Bharat Sanchar Nigam Ltd, Gartner forecasts exclude these subscribers, Neha Gupta, a senior research analyst at the research firm, told Reuters.

She estimated India had about 519 million mobile users at end-2009, excluding the fixed wireless subscribers.

More than half of the population in India now have a mobile phone, and Gartner sees the penetration reaching 82% in 2014, it said in a statement.

Sharp fall in call charges and launch of services by new mobile operators have helped the country step up mobile subscriber additions in the past one year, but increasing mobile penetration could lead to some slow down in future growth.

“We were expecting a degrowth in 2009, given the penetration rate, but because of the entry of new operators and decrease in price points, it didn’t happen,” Gupta said.

“We are not expecting that kind of triggers in 2010,” she said.

Gupta estimated Indian operators would add mobile subscribers at a monthly average of 12 million, lower than 15 million seen in 2009.

Gartner estimated mobile service revenue in India to reach $19.8 billion by the end of 2010, up about a fifth from 2009 and reach $23 billion by the end of 2014, it said.

IT spending likely to fall 5.2% worldwide, says Gartner

The worldwide IT spending is on pace to decline 5.2 percent this year. However, the IT industry will return to growth in 2010, with IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009, according to research firm Gartner. In Asia Pacific, IT spending is expected to grow by five percent to reach $515.6 billion in 2010.

Peter Sondergaard, Senior Vice President at Gartner and Global Head of Research, said that this represented a fast V-shaped recovery for IT spending in the region. Emerging regions will resume strong growth, he said. By 2012, the accelerated IT spending and culturally different approach to IT in Asia will directly influence product features, service structures and the overall IT industry.

However, growth varies considerably by country, vertical market and IT sector. Sondergaard said that while software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.

In Australia, the five-year outlook for enterprise IT spending is a compound annual growth rate of 1.3 percent, with total IT spending by Australian businesses to reach Australian dollar 56.4 billion by 2013. The vertical sectors with the highest IT spending growth would be communications (3.2 percent), healthcare (2.6 percent) and utilities (2.3 percent). While IT spending will increase next year, Gartner cautioned IT leaders not to be overly optimistic.

"While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012," said Sondergaard. 2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of Chief Information Officers the IT budget will be zero percent or less in growth terms. It will only slowly improve in 2011, he added.

Sondergaard said that the three most-searched terms by Gartner clients on gartner.com provide some clues as to the priorities of IT leaders around the world. Cost remained the most-searched term during 2009, although it peaked in May, followed by cloud computing. "Next year will be the year when cloud computing moves from the discovery phase to small pilots, as part of organizations' desire to move from owned to shared IT," he said.

The third most-searched terms on gartner.com were business applications such as enterprise resource planning (ERP) and customer relationship management (CRM). "We believe that 2010 will see increased focus on optimization of business processes linked to software applications, what we call application overhaul. That is what will drive growth in the software segment," Sondergaard said.

Agencies

Highest software budget for 2009-10 comes from APJ firms

Asia Pacific companies plan to increase their software budgets by 4.4 percent on average in 2010, while overall IT budgets was expected to decline by 3.1 percent on average, according to the latest survey by Gartner. More organizations in Asia Pacific (38 percent) expect to increase their software budgets in 2010 than their overall IT budget (31 percent).

"For most organizations, the budgeting process happens once a year, but adjusting the IT budget is a continuous exercise that is driven by economic conditions and changes in the business," said Gartner Research Director Yanna Dharmasthira. "In the midst of economic volatility, hardware budget allocation remains the top priority in most countries, but software budgets are a real bright spot and continue to demonstrate a positive outlook, although more cautious when compared with last year's survey."

The survey showed that the average expected increase in software budget of 4.4 percent in Asia Pacific is higher than all other regions surveyed including Europe, Middle East and Africa (EMEA), North America and Latin America. India-based respondents are consistently the most optimistic, with the highest number of respondents intending to increase their IT budget in 2010 (42 percent), followed by China (32 percent). On the other hand, Malaysia-based respondents remain pessimistic, with the largest number of respondents intending to decrease their spending (52 percent), followed by Singapore (48 percent of respondents).

The respondents of this survey were asked whether they expected their 2010 IT budget to be below, the same or exceed their IT budget for 2009. Gartner surveyed 323 IT managers in Australia, Singapore, Malaysia, China, India and Hong Kong, as part of a worldwide survey of 982 respondents, to help business and IT managers compare their enterprise IT spending with peer organizations.

Software is expected to represent the second-largest portion of the IT budget in most countries, with the exception of India (where software and hardware spend are roughly equal) and Australia (where spending is notably higher on IT staff). India is the most aggressive with the highest software budget allocation (26.9 percent), followed by Singapore (25.8 percent), Malaysia (24.1 percent) and China (23.1 percent).

India is also the most optimistic in software spending, with the average expected change in software budget of plus 10 percent. Dharmasthira said that vendors should revisit their potential customer list, as they may have shifted in terms of geography, as well as market segments. "Software vendors should not only focus sales efforts on traditional hot spots such as India and China, but look at opportunities in mature markets too. The intentions to increase software budget have become more varied among different countries and organizations, presenting good opportunities in a mix of developed and emerging countries," said Dharmasthira.

Agencies

Is Apple OS enterprise ready? Check out with Gartner

Apple Inc's soon to be on board operating system, Snow Leopard does not signal enterprise readiness, even though is noted for its native support of Microsoft Exchange 2007, stated analyst firm Gartner.

Snow Leopard, which runs exclusively on Intel-based Macs, includes full 64-bit support, Grand Central Dispatch (which allows programmers to more easily use multicore processors), OpenCL (to more fully utilise the power of graphics processors), and Exchange support for Apple mail, contacts and calendar.

From a business perspective, the most important feature is the ability for the Mac e-mail client to access Microsoft Exchange (2007 version only) in a native fashion.

The Mac client binds to Exchange Web Services (EWS) via its web services application programming interface (API), not the traditional messaging application programming interface (MAPI), which is difficult to write to and maintain.

Gartner analysts Mike Silver and Matt Cain said that they expect this ability combined with an improved version of Entourage, the e-mail client in Microsoft's Office: Mac would result in growing end-user demand for IT groups to grant support for the Mac.

According to Gartner, while native support for Exchange would allow users to run their Macs at work more easily, this does not mean that Macs can more easily replace Windows PCs in most organizations.

"Apple is not addressing business needs for service or support, and most organizations will continue to require Windows to run a majority of their applications. Furthermore, to the extent Mac users may still require Office, either natively onMac OS or running in a Windows virtual machine, native Exchange support, which does not support Outlook personal store files (PSTs), will address only part of the user need," added the analysts.

The analyst firm recommends businesses to understand the various ways Macs can support Exchange.

Mike Silver and Matt Cain noted, "Even if you don't officially support Macs, you will likely need to provide some assistance to users who are running them. Don't assume that because Apple is making Macs easier to integrate into the enterprise, the company is entering the corporate market. Also, understand that this development will not allow Macs to easily replace Windows PCs in most cases,"

For IT groups, Gartner recommends preparing to handle requests for Mac integration into corporate networks. Before granting widespread support for Macs, consider the full range of user needs and Apple's ability to offer corporate-grade support.

It advises to continue investing in web-oriented architecture and service-oriented architecture, which would help in becoming more OS-neutral and allow more choice in hardware and software.

"If you run web applications, move these forward to support the emerging set of Web standards, such as HTML5 and CSS2.1, and interoperability protocols such as OpenID and oAuth," said the analysts

Agencies

17% drop in the semiconductor revenue in 2009

The global semiconductor revenue is on course to total $212 billion in 2009, which is a 17.1 percent decline from 2008 revenue of $255 billion reveals a report. The report by research and analysis firm Gartner says that the projection is better than the second quarter projections of a 22.4 percent decline, which shows signs of recovery in the market.

Some of the major semiconductor vendors have reported positive second quarter sequential revenue growth. Intel posted 12 percent revenue growth, while Samsung announced its revenue increased by 30 percent and Qualcomm reported a 35.7 percent increase in its mobile chip sales. "The semiconductor market has performed better than expected, as was evident when second quarter semiconductor revenue increased 17 percent in sequential sales," said Bryan Lewis, Research Vice President at Gartner.

The increasing demand for products using semiconductor was the key driver behind the growth in the market. "Consumers reacted strongly to reduced PC and LCD TV pricing as price elasticity was amazing. The industry also benefited from the China stimulus package that worked remarkably well to boost short-term demand. Governments worldwide took action quickly and extensively to avoid a meltdown and it worked," added Lewis.

Though, the outlook for 2009 has improved, Gartner also points out that all major segments of the semiconductor market are expected to report double-digit revenue declines this year. The application-specific standard product (ASSP) - the largest segment in the semiconductor market - will touch $57.2 billion in 2009, a decline of 16.5 percent over last year's revenue. The memory market is predicted to total $41 billion with a 13.5 percent decline and the microcomponents segment is forecasted to reach $39.4 billion in 2009, a 19.2 percent decline from 2008.

According to Lewis, foundries are concerned that demand may drop off more than seasonal in the fourth quarter, and it may carry into first quarter 2010. Gartner's most likely scenario is a negative five percent growth in the first quarter of 2010, as customers take a break and absorb all the devices they purchased over the previous three quarters.

Agencies

Open Source projects dominated by IT vendors

More vendors are getting involved in open source project despite the economic slowdown. Gartner has reported many key findings related to open source in Predicts 2009: The Evolving Open-Source Software Model report. Gartner reports that 50 percent of direct commercial revenue attributed to open-source products or services will come from projects under a single vendor's patronage. Many new projects are being commercialized early in their maturity phases - often by a dot-com startup and before a broad community "network effect" is firmly established. These projects are often under the patronage of a single vendor that employs nearly all key code contributors.

According to Gartner's key findings, driven by expanding mainstream IT adoption, open-source usage profiles are shifting to more-conservative, risk-versus-reward dynamics. As a result, new adopters now place an increasing premium on commercial support channels to establish service-level agreements on par with closed-source alternatives. Gartner recommends that companies should understand the role that a broad and vendor-independent community plays in mature open-source projects. More specifically, keep in mind that intellectual-property warrants and indemnities are strongest when vendors maintain more control over the source code pedigree.

The report also says that through 2011, less than 50 percent of Global 2000 IT organizations would have implemented a formal open-source adoption and management policy as part of an enterprise software asset management strategy. Open Source Software (OSS) has become unavoidable for most IT organizations. Open source is leveraged in virtually all mainstream enterprises. A comprehensive enterprise open-source adoption policy is the most important critical path towards establishing an optimal balance between risk and reward; however, less than 30 percent of IT organizations have such a policy in place.

Agencies

Intel & Nokia to jointly work on mobile devices

Intel Corp announced a technology partnership with Nokia that could potentially give the chip maker the breakthrough it as been looking for into the mobile market.

The companies said on Tuesday they would work together on a new class of mobile computing devices, but would not say when they would come to market or give details on the kind of wireless products they hoped to develop together.

Analysts saw the pact as strategically important for Intel in the long term because it gains the world's top cellphone maker as a potential client. But given the lack of details, analysts said it could take one or two years for products to come to market, and it remained to be seen if they would find favor with consumers,

"Intel at least has its foot in the door. It's an important and strategic customer," said Gartner analyst Jon Erensen, who sees the partnership as a way for Intel to get into the market for advanced phones known as smartphones.

However, he added, "You're probably talking about something like 2011 before you get down to the power consumption and integration (levels) you'd need for that kind of device."

Analysts said the deal gives Intel a chance to take on leading cellphone chip makers Qualcomm Inc and Texas Instruments Inc, a big Nokia supplier.

It could also mean stiffer competition for ARM Holdings Plc, which supplies core cellphone processors to both Texas Instruments and Qualcomm, and whose customers rely in part on software from Wind River Systems Inc.

Intel said earlier this month that it would buy Wind River, whose software speeds up and connects devices made by Samsung Electronics, Apple Inc, Hewlett-Packard Co and Motorola Inc.

Intel, whose microprocessors are found in eight out of 10 personal computers, already works with LG Electronics on mobile devices. The agreement with Finland's Nokia, the world's largest cellphone maker, is a bigger step.

Intel Chief Executive Paul Otellini has said that the handheld, embedded and netbook markets would be as important for the company as the PC market in the near future.

NEW MOBILE PLATFORM

Under the agreement, Intel will buy intellectual property from Nokia related to high-speed wireless technology. They also plan to collaborate on open-source mobile Linux software projects, which some analysts say will compete with Google's Android software in the netbook and mobile Internet device (MID) market.

Intel and Nokia said they aimed to define "a new mobile platform beyond today's smartphones, notebooks and netbooks" for hardware, software and mobile Internet services. They stressed the pact was about their technology collaboration and not about specific products.

Until the companies give more detail about their plans, the news is unlikely to provide much of a boost to share prices, analysts said.

Intel's shares rose 0.83 per cent to $15.81 while Nokia shares fell 0.78 per cent to 10.21 euros.

Intel already sells Atom chips for netbooks - small, no-frills computers
good for Web surfing - and Nokia has said it would look into the possibly of expanding beyond phones to develop netbooks.

The pact may help Nokia compete with rivals such as iPhone from Apple Inc and BlackBerry from Research In Motion, as well as Pre from Palm Inc.

J. Gold Associates analyst Jack Gold wrote in a research note that he expects the first Nokia-Intel devices to be Atom-based and to hit the market in early to mid 2010. Within two to three years, Intel could ship tens of millions of units annually, he said.

Gold wrote on Tuesday that he expects to see Intel enter into more deals and alliances in new markets.


Agencies

$13 Billion by 2013; Can Indian mobile reach this milestone?

The Compound Annual growth rate (CAGR) of the Indian mobile market is projected to grow at 12.5 percent from 2009-2013 and will exceed by $30 billion. According to Gartner, the India mobile subscriber base will cross around 771 million connections by 2013 and will grow at a CAGR of 14.3 percent in the same period from 452 million in 2009. India is also expected to become 2nd largest mobile consumer market after China.

"The Indian mobile industry has now moved out of its hyper growth mode, but it will continue to grow at double-digit rates for next three years as operators focus on rural parts of the country, growth will also be triggered by increased adoption of value-added services, which are relevant to both rural and urban markets," said Madhusudan Gupta, Senior Research Analyst, Gartner.

The mobile market incursion is projected to increase from 38.7 percent in 2009 to 63. 5 percent in the year 2013.

This growth is primarily because of the operators increasing their focus on the rural market, local consumer durable and electronic companies entering the domestic mobile handset segment, and lower handset prices, Gartner said.

Prepaid subscribers continue to be dominating the Indian mobile connection market. They accounted for more than 93 percent of all mobile connections in 2008 and are expected to grow to more than 96 percent of the connection base by 2013, surpassing 741 million connections versus 312 million in 2008.

The postpaid subscriber base will exceed 29 million subscribers by 2013; grow at 2.5 percent from 23 million in 2008.

The churn rate in India is 53.2 percent in 2009, and despite a maturing market, the ratio is expected to increase to 59.6 percent in 2013.

The overall growth of mobile services in India will be significantly contributed by revenue from data services, with a CAGR of 16.8 percent from 2009 to 2013. Prepaid subscribers are expected to adopt data services faster and more than the post-paid segment. The bulk of revenue will continue to come from voice services.

With the increased growth in data services, the percentage of revenue coming from voice will reduce from 89 percent in 2008 to 86 percent in 2013.

Gartner predicts that a significant drop in Average Revenue per User (ARPU), as the bulk of new subscribers will come from rural areas that are dominated by prepaid subscribers.

With the new operators joining the market, the voice tariffs will decline substantially in 2009. Growth will be triggered by increased adoption of value-added services, which are relevant to both rural and urban markets.

Agencies

Do Indian IT firms vie for $11.4-billion domestic market?

With the IT clients in the U.S., Europe and Japan tightening their purse strings, Indian IT companies are scrambling to raise their share of the Indian software and IT services market, which industry body Nasscom values at around Rs 57,200 crore ($11.4 billion), reported Mint.

Mumbai-based TCS and Bangalore-based Infosys, India's largest and second largest IT service exporters, respectively, have set themselves the target of earning $1 billion, or around Rs.5,000 crore, in revenue from the domestic market in the next three to four years. Wipro wants to raise its India focus, as does mid-sized firm MindTree. In March, Employees' State Insurance Corporation, a government of India agency that provides health insurance to 10 million workers, had awarded a Rs.1,182 crore information-technology (IT) project to Wipro, which outbid other biggies like Infosys and Wipro to clinch this deal.

Adding allure to the domestic market is the plans by the sectors like government, energy and utilities, telecom, banking and finance to step up their IT spending. Customers in the US and Europe have traditionally made up as much as 80% of revenue earned by Indian exporters of software and related services.

A late 2008 report by research firm Gartner says that the Indian IT software and services segment, excluding business process outsourcing, is expected to grow at an annual pace of almost 20 percent to touch $13.2 billion by 2012.

TCS earns around $500 million (Rs2,500 crore), or nearly 8 percent of its total revenue, from Indian clients. "We have a base of key clients and solutions portfolio. We have made investments and have people, business and clients. We will accelerate all of this," a TCS spokesperson said.

However, the worry at TCS is that "India, like other emerging markets, is volatile and most business is project-based and not annuity based and hence there is a certain element of uncertainty," the spokesperson added.

Meanwhile, Infosys earns less than 2 percent of its revenue (or less than Rs400 crore) from the domestic market. "The market is very large, and has matured over a period of time," said Binod HR, head of the India business unit of Infosys. He said a "big challenge" is that Indian customers are very price-sensitive.

Wipro is one of the largest system integrators in India and, according to Springboard Research, has the second largest share of the domestic market after IBM.

P.K. Gopalkrishnan, Senior Vice-President and India business head IT services of Bangalore-based MindTree said the company earns up to 5 percent of its revenue from India and aims to double it by 2014.

Increasing the domestic market share would, however, not be easy. It entails competing with global technology firms such as IBM which, according to a late 2008 report by research firm IDC, commands a 10 percent share of the Indian market. IBM is the market leader and earns revenue of around Rs 5,700 crore from the Indian market.

Agencies

Have computer sales dipped by 12%; As cos cut IT spends

Personal computer (PC) sales in India fell about 11.7% during the first quarter of the calendar year to about 2.1 million units as enterprises slowed down IT spending, according to research firm Gartner.

Both desktop PC and laptop sales declined about 11% during the period, as both large enterprises and small and medium businesses delayed their IT hardware purchases.

“Cost pressure seems to have kept away enterprises from spending on IT hardware during the first quarter of 2009, while there are signs of some turnaround in the consumer sentiment,” Gartner principal analyst Diptarup Chakraborti said.

Hewlett-Packard continued to lead India’s PC market, selling about 300,000 PCs in the quarter. The PC maker, however, saw an year-on-year decline in both desktop and laptop sales during the period. HCL Infosystems (200,000) and Dell (158,000) were ranked second and third, respectively. Acer was ranked fourth.

Gartner said it expects PC sales in India to decline 3.7% year-on-year to 8.98 million units this year. The firm had projected sales of 11 million units for the calendar year in the beginning of January, but the first quarter made it revise its projection downwards.

“Production of desktops and laptops has come to near a halt in manufacturing destinations such as Taiwan,” Mr Chakraborti said. PC makers say they saw some growth in new categories, such as netbooks and higher retail sales, in the first quarter but the good news is limited to the consumer space.

“Large enterprises and small and medium businesses are not buying. The e-government projects are also in a limbo with the Model Code of Conduct in place,” Acer India chief marketing officer S Rajendran said.

With the slowdown in enterprise spending, corporate buyers are expected to account for 69% of total PC sales in 2009, down from 71% last year.

The economic slowdown has resulted in a slump in PC sales across the globe. Worldwide PC shipments declined 6.5% in the first quarter of 2009 to 67.2 million units. As per Gartner, the decline could have been steeper but for low-priced laptops such as netbooks.

Agencies

Global IT spending to drop by 3.8% in 2009, says Gatner

The ongoing global slowdown will force companies worldwide to reduce their IT expenditure to USD 3.2 trillion this year against $ 3.4 trn in 2008, according to an IT research company.

"The unprecendented decline of the global economy is impacting the IT industry with worldwide IT spending forecast to total $ 3.4 trn in 2009, a 3.8 per cent decline from 2008 revenue of nearly $ 3.4 trn," IT research and advisory company Gartner said in a report.

Gartner said that all four of the key market sectors of the IT industry-- hardware, software, IT services and telecommunications have been revised downward, with only software spending growth remaining positive.

"Spending in computing hardware
will see a decline of 14.9 per cent with total spending to be around USD 324.3 billion as against $ 3.4 trn in 2008," Gartner said.

The spending in IT services and telecommunications sectors will also fall by 1.7 per cent at USD 796.1 billion and 2.9 per cent at USD 1,891.2 billion, respectively, the report said.


Agencies

Nokia, Qualcomm tie up after years in court battles

Top cellphone maker Nokia will use Qualcomm's chips in its advanced cellphones, the firms said on Tuesday, marking a further warming of ties between the former courtroom rivals.

The cooperation gives Qualcomm access to a major share of the smartphone market, while it enables Nokia to further lower production costs.

"In the end of the day Qualcomm needs Nokia as much as Nokia needs Qualcomm," said Gartner analyst Carolina Milanesi.

The deal marks the first time Nokia will use Qualcomm chipsets in its 3G phones, and brings the firms closer together after years of bitter disputes over intellectual property rights and royalty payments.

"We are very very excited about this opportunity," Andrew Gilbert, the head of Qualcomm's European business told the media in an interview. "We are going to compete for as much of their business as we can."

Nokia's key suppliers of 3G chipsets have been Texas Instruments and STMicro, which has spun off wireless chips into a joint venture with Ericsson.

Nokia and the new ST-Ericsson venture said on Tuesday they would cooperate on providing ST-Ericsson's U8500 chips for 3G smartphones using Symbian foundation software.

Nokia said on Tuesday it had tapped also Broadcom , its current supplier of second-generation technology chips, to supply 3G chipsets.

Nokia eyes U.S. Market

Nokia and Qualcomm agreed last July to a 15-year settlement that included a hefty 1.7 billion euro one-time payment from Nokia, ending a three-year legal battle where the firms raised dozens of cases against each other on three continents.

The agreement also comes against the backdrop of an ailing cellphone market, with 2009 sales set to drop as consumers rein in spending on new gadgets due to the economic recession.

Nokia said it would introduce the first model using Qualcomm chipset and Nokia's software in the middle of next year.

The phones would initially be for the North American market and work on third-generation networks and run on the Symbian operating system, the most widely-used smartphone software that is currently controlled by Nokia but will eventually be made royalty-free for all users.

Nokia shares were down 2.2 percent at 9.11 euros on a weaker Dow Jones Stoxx European Technology Index.

"I don't see the markets reacting since the products are expected to be sold only around mid-2010," said Nordea analyst Martti Larjo. "(But) at least the cooperation shows that Nokia is focusing its efforts on the North American market."

Nokia has long struggled in the U.S. market. North American sales dropped 20 percent year-on-year in the fourth quarter, and Nokia's North American market share of some 8.7 percent was well below its global figure of 37 percent.

Agencies

Motorola India issues pinkslips to employees

Seems the predictions of a tough 2009 for the cellphone market have started coming true. According to a report in a leading daily, more than 200 people Motorola India had hired just a few months ago to drive its mobile handsets business have been laid off.

The company has decided to stick to its current model of doing business through distributors, says the report.

Industry sources said that Motorola paid all the laid-off sales personnel two months salary in lieu of the notice period.

The company is also reported to have issued pink slips to at least 100 of its 4,000 employees in India in December. It is, however, not clear if the current number of employees given pinkslips includes these.

The December move was said to be a part of the Illinois-based company's earlier announced strategy of slashing 3,000 jobs, or about 5 per cent of its global workforce.

This week the company also launched MotoYuva EM325. The eighth MotoYuva mobile phone in India offers a one-touch access to MP3 library, a universal 3.5 mm jack, 2 GB of removable microSD memory and drag-and-drop USB 2.0 technology. The phone is available in India at a price of approximately Rs 5,149.

In an interview to a news agency, Sony Ericsson CEO, Hideki Komiyama said that the company expects a challenging year 2009 as the handset sales are expected to be down by 5-6 percent.

Sony Ericsson's predictions follow similar ones from Nokia and Gartner according to which the global handset market is set for a slowdown in 2009.

Indiatimes

Is Google a threat to telcos?

Google's influence and market power with key telecommunications industry stakeholders is having a significant impact on the industry, says research firm Gartner.

According to Alex Winogradoff, research vice president, Gartner, Google will continue to be a market disruptor and disintermediator, especially in the communications market. "Carriers should selectively partner with Google rather than trying to compete, especially in areas where they don't have differentiated and core assets," he said. "However, carriers should also find common ground with Google (for example, on network neutrality) and, if necessary, look for creative ways to oppose Google on issues critical to their survival."

Gartner said that coming late to the operating-system and mobile markets has not been a problem for Google and that its Android and Open Handset Alliance (OHA) activities have already had a profound effect on the mobile industry. In addition to disrupting the traditional telecom ecosystem, Google's actions are diluting the market potential and the service providers' ability to profitably monetise their investments in new markets (such as entertainment and software as a service (SaaS) applications).

The research firm highlighted six critical actions by Google that have already had, or will have, the greatest impact on the telecom industry. Google pressured the Federal Communications Commission (FCC) to set aside the "C" Block (22MHz to 11MHz in the uplink and 11MHz in the downlink within the US 700MHz spectrum auctions) as an open-access spectrum. All winning "C" Block bidders would be required to provide open access to applications (which cannot be blocked) and devices (which cannot be locked).

Google's primary motivation was to encourage the development of open broadband network platforms to ensure they will be able to deliver bandwidth-intense over-the-air services and applications.

On November 5 2007, several technology and wireless companies jointly announced the formation of the OHA and the development of Android, a new software platform for mobile devices that includes an operating system (OS), middleware and key applications based on the Linux OS and open-source principles.

This was quickly followed on November 12 2007, with a preliminary release of the Android SDK, as part of Google's $10 million developer challenge. This will help ensure that application and access openness is maintained on the mobile Internet as effectively as on the wired network to enable Google's ad model to spread as successfully as it has on the wired Internet; to open up the "closed" mobile industry ecosystem to Google's applications; and to enable Google to exert a strong influence over the development of the next-generation mobile OS.

Since the US regulator (FCC) adopted four network neutrality principles designed "to encourage broadband deployment and preserve and promote the open and interconnected nature of the public Internet," Google and other Web-centric companies have been lobbying the US Congress to codify these rules in favour of something called non-discrimination in network design between the public and private Internet.

In short, Google wants regulation to ensure that the public Internet remains free from potential discrimination and content blocking but also wants equality between the public and private Internet at no cost to customers or Web companies (in essence, no quality of service).
Google has been investing heavily to develop the world's most complete storehouse of geographic and mapping data supported by innovative applications that can detect mobile devices.

Google wants to be "the most-trusted source" and the best at matching up unique geographic location-based data so it can take advantage of just-in-time advertising opportunities derived from location-aware applications and bypass device manufacturers and carriers as the gatekeepers of location data.

Known as "white space" in the US and "interleaved spectrum" in the UK, this is the underutilised 800MHz spectrum that can be used to broadcast TV through the airwaves but also has highly favourable propagation characteristics for wireless broadband.

A powerful industry lobby backed by Google, Microsoft, Philips, Dell, HP, Skype and others (known as the Wireless Innovation Alliance) has been urging the FCC to develop rules to unlock the potential of TV white spaces.

Google's interest in white spaces is another effort to ensure that there are viable broadband options available for their services. The spectrum, which will likely be released as an open spectrum in 2010, would become another means for bypassing the carrier access network. Google is looking to engage enterprises by getting them hooked on using its applications and cloud computing infrastructure. Making it easy for users to download Google applications and giving them free space on Google's cloud infrastructure.

This will give Google great marketing insight to help it develop a presence within the SMB market. With eventual migration to larger enterprises where enterprises will come to Google for all their back-office SaaS needs.

The impact on carriers looking to generate revenue from the SaaS business model within the SMB market will require carriers to clearly differentiate their applications from Google or partner with it.

Source: Indiatimes

Terror strikes; Is outsourcing safe?

Terror times; Is outsourcing safe?

large global firm runs its trading desk out of Mumbai. Bookings for a leading airline are happening out of another office in a neighbouring city, while the telecom infrastructure of an overseas operator is being remotely monitored from another location in the country.

A terror attack on any of these sites can have significant implications for corporations in the US and other parts of the developed world as India emerges as the world’s back-office.

For instance, if a trade is not squared off on time, the firm will have to carry higher liabilities. Wednesday’s attack raises questions about the vulnerability of these locations to terror threats and the preparedness of firms and authorities to tackle them.

The issue assumes importance as nearly seven out of every 10 outsourced processes come to India, according to industry estimates. While 6-7 years ago, business process outsourcing (BPO) mostly involved basic data entry, a number of mission critical processes such as airline bookings and investment research are now taking place out of offices in Mumbai, Pune and Bangalore.

In its strategic review, Nasscom, the apex industry body, notes, “Indian BPO has undergone significant transformation since its inception over a decade ago... The past few years have seen the scope of these services expand progressively to include more complex processes involving rule-based decision making and research requiring informed judgment and domain knowledge,” the apex industry body notes.

Indian firms also manage infrastructure worth over $3-4 billion remotely for clients. Damage to these locations can bring down desktops and servers, besides crippling entire sections of organisations outside India. “After 9/11, there is a greater appreciation of the risk arising from a terror attack,” admits KPMG executive director Akhilesh Tuteja.

“But the level of preparedness even for mission critical operations is below average,” he adds. The redundancy plan usually involves a backup and mutiple service providers to ensure connectivity. But process capability and an ability to swiftly execute the process at another centre are not a reality in most cases.

“Disaster recovery plans are like an insurance you may never use. There is now an awareness about the need to have them, but the decisions are usually postponed because this is not an investment that will result in growth. Firms usually make investments for growth,” says PriceWaterhouseCoopers managing consultant Nikhil Donde.

Companies are saving costs amid the slowdown, as every bit can eat into margins. Multinational parents are managing a majority of the mission critical operations by way of captives. Ideally, 70% of the process should be offshored and 30% retained at the onsite location to minimise the risks, according to Mr Tuteja. But again there is a trade-off on costs, with real benefits kicking in only when the process is completly offshored.

In client contracts with third-party firms, it is not uncommon to find clauses related to business process continuity (BCP). However, these clauses rarely go into specifics and are usually interpreted in terms of having a multi-locational presence, back-up capability and multiple connectivity providers. Rarely do they consider whether the alternate locations will have people with the necessary skills. And this is really the biggest threat in a terror attack, when people at one location can be killed, say the experts.

Source: Economic Times

Mexico emerges great destination for Indian BPO firms

The Latino country is eyeing for $8 billion revenue from information technology services by 2030 For most people, Mexico doesn't equate with a home for high-tech companies. However, with a likely shift in the world economic superpowers in the future, the 'Latino' country is eyeing for $8 billion revenue frominformation technology services by 2030.

The global markets for IT services and business process outsourcing (BPO) is posing strong growth despite challenging conditions worldwide. According to Gartner, the revenues of $748 billion in 2007, is set to grow 9.5 percent in 2008, while the Everest Group estimates the present BPO market to be values at $28 billion is expected to grow up to $280 billion by 2012.

In this context, Mexico is set to fully take advantage of the growth prospects for these markets. Talking to CIOL at the BangaloreIT.biz 2008, Ricardo Alvarez, executive director of International Promotion, Mexico says, "Mexico is has already signed free trade agreements with 44 countries and is the second largest NAFTA country. India has always been the key strategic partner in many industrial sectors and would like it to expand in the IT front as well."

Alvarez says, "Goldman Sachs report indicates India and Mexico are likely to emerge big as world's economic superpowers and so need to work together in this regard. We can do so much together with India in IT despite the present financial crisis."

As per the report, China will top the list as the 'Economic Superpowers' by 2030, followed by USA, India, Brazil, Mexico and Russia.

With a privileged geographic location right next to the world's largest IT market, Mexico offers abundant qualified human resources and strong support. "These are among the many reasons why the government estimates that these sectors will export $8 billion by 2030," adds Alvarez.

Now with US economy tottering and President-elect Barack Ombama posturing against outsourcing, Mexico sees itself as alternative destination Indian IT Inc can explore for furthering their business.

With more than 1,200 software, BPO and IT services firms, Mexico generated revenues of $4 billion in 2007 growing at 36 percent annually (including IT oursourcing) of which $3.1 billion were exports, he adds.

Home to ten Indian IT firms, Mexico is rolling the red carpet for more Indian IT firms to set up shop there. Sasken, Mphasis, Sutherland, Hexware, Infosys, TCS, Wipro, Aricent, iGate and Mindtree have logged their presence in Mexico from 2005. "Our purpose in participating at IT.biz is to diversify our markets and establish better IT ties with India, he says.

Mexico's need of IT service professionals is expected to double from 41,000 in 2007 to 89,000 in 2013 and BPO professionals triple from 50,000 in 2007 to 155,000 in 2013, he said, adding it has 23 regional IT clusters in 20 states. For promoting IT in the country, Mexico First initiative is being rolled out with $100 million spend over the next five years, Alvarez adds.

Mexico, he said, was pushing Mexico City, State of Mexico, Jalisco, Nuevo Leon, Puebla, Sonora, Sinaloa and Veracruz, as fast-growing IT industry destinations for nearshore outsouring with advantages like time-zone alignment, lower costs, fast and simple visa regime, ease of software and hardware procurement, and legal and IP protection.

Recognizing the importance and economic potential of the software, IT services and BPO industries, the country has set up Prosoft — federal flasghip programme for the IT sector to provide financial assistance to IT investment and development. TechBA — business incubator and Mexico IT to provide information and advice to foreign firms keen on doing business in Mexico.

Lawson to make a dent in the Indian ERP market

Lawson Software, the Minnesota-based third largest ERP company has entered the Indian market as part of the strategy to attract regional partners to serve customers.

According to a Gartner reports, India's ERP market is pegged at $143 million and is growing at 14-15 percent on a yearly basis. With more companies emerging in the infrastructure space, Lawson has opened an office in New Delhi to expand in the region. It has also appointed Kamal Sharma as its regional head for Lawson South Asia.

Talking to CIOL, Harry Debes, president & CEO of Lawson Software said, "we were predominantly a US-based company but have gone global since and have presence in about 33 countries. We see huge opportunities in India and other BRIC countries and expect to grow at a steady pace."

The company is already serving customers in India and Sri Lanka through partnerships with Symphony Services and ETP International and plans to draw on the expertise of more local partners and provide sales and marketing support via its India office.

"Even though ERP major Lawson opens India office have had their presence in India for several years, still we are sure of gaining a sizeable market share in the coming years through our partnership," remarks Debes.

In fact, the company entered India way back in 1994 and has about 25 customers existing in India and hopes to now focus on the mid-level customers. "Walmart, the leading global retail giants is one of Lawson's big corporate customers, so not necessarily targeting only on mid-sized or big corporates but will remain focused on new companies in fashion, F&B, healthcare, public sector verticals in India," says Sharma.

But on specific verticals like the healthcare segment where in Lawson claims to have about a 60 percent market share in the USA, the company is looking for active partners in the healthcare industry mainly for back office. Likewise, it has already signed up with ITC, Reliance Retail, PTEX in the fashion and garment vertical and KPIT Cummins in the equipment service and retail segments. It also has TBA in the food & beverages (F&B), Symphony in the distribution & manufacturing and likely to enter in the other segments also shortly.

The company plans to employ four initially at its Delhi office and grow over the years. On the global front, the company is expected to grow its headcount by 15 percent in 2008.

Lawson currently has offices in China, Hong Kong, India, Indonesia, Japan, Malaysia, Philippines, Singapore, Taiwan and also in Thailand.

Formala for cost containment

Gartner preaches '25-techniques' for CIOs

It is aimed at helping CIOs and their organizations around the world
cut costs and improve their performance

Manu Sharma

BANGALORE, INDIA: Enterprises increasingly expect CIOs and IT to deliver
solutions that make a difference to business strategies. But many times
CIOs far exceed their IT budgets thus impacting on the company's growth.
However, Gartner, a leading information technology research and advisory
company has proposed a "25-points formula" for companies towards cost
containment and improving their performance.

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