Local Telcos Are Well-Positioned For Cloud Services In Southeast Asia

At the 2nd Annual Telco Cloud Strategies 2013 event in Singapore, I moderated a discussion on how Southeast Asian telcos are gearing up to offer cloud services. Here’s what I observed:

  • In the cloud era, SE Asian telcos are moving faster than they are used to. A year ago, Philippine telco Globe Telecom set up a new division, IT Enabled Services, to effectively deliver cloud services, supported by more than 100 professional services people on the ground. While revenues are still low, the new division is now freed from being part of the larger parent company’s processes and can move quicker than competitors to offer managed cloud services for specific industries. Indonesia’s Indosat, on the other hand, has brought both the IT and network divisions together to offer a bundled service — cloud with connectivity — in the same period. Others, like Singapore’s SingTel, acquired IT services company, NCS, to tap into the enterprise segment.
  • Telcos need partners for cloud services. This is essential, as telcos do not typically have all the pieces for an end-to-end solution. For instance, even with a solid IaaS offering, a telco still needs partners to build the value chain in their ecosystem, e.g., SaaS, and grow together. Indosat, for instance, partnered with Dimension Data to offer enterprise cloud services in Indonesia. The partnership combines Indosat’s nationwide connectivity backbone infrastructure and its 10 data center facilities in Indonesia with Dimension Data’s cloud consultancy services.
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Take a forward thinking, while pragmatic approach to Windows migration

Many CIOs, technical architects as infrastructure and operations (I&O) professionals in Chinese companies are struggling with the pressures of all kinds of business and IT initiatives as well as daily maintenance of system applications. At the same time they are trying to figure out what should be right approach for the company to adapt technology waves like cloud, enterprise mobility, etc., to survive in highly competitive market landscape.   Among all the puzzles for the solution of strategic growth, Operating System (OS) migration might seem to have the lowest priority:  business application enhancements deliver explicit business value, but it’s hard to justify changing operating systems when they work today. OS is the most fundamental infrastructure software that all other systems depend on, so the complexity and uncertainty of migrations is daunting. As a result, IT organizations in China usually tend to live with the existing OS as much as possible.

Take Microsoft Windows for example. Windows XP and Windows Server 2003 have been widely used on client side and server side.  Very few companies have put Windows migration on its IT evolution roadmap. However, I believe the time is now for IT professionals in Chinese companies to seriously consider putting Windows upgrade into IT road map for the next 6 months for a couple of key reasons. 

Windows XP and pirated OS won’t be viable much longer to support your business.

  • Ending support. Extended support, which includes security patches, ends April 8, 2014. Beyond that point, we could expect that more malwares or security attacks toward Windows XP would occur.
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Forget IaaS vs. PaaS: Devs Adopting Cloud Services Now

I get a lot of questions about the best way for developers to move to the cloud. That’s a good thing, because trying to forklift your existing applications as is isn’t a recipe for success. Building elastic applications requires a focus on statelessness, atomicity, idempotence, and parallelism — qualities that are not often built into traditional “scale-up” applications. But I also get questions that I think are a bit beside the point, like “Which is better: infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS)?” My answer: "It depends on what you’re trying to accomplish, your teams’ skills, and how you like to consume software from ISVs.” That first question is often followed up by a second: “Who’s the leader in the public cloud space?” It’s like asking, “Who's the leading car maker?” There’s a volume answer and there’s a performance answer. It’s one answer if you like pickups, and it’s a different answer if you want an EV. You have to look at your individual needs and match the capabilities of the car and its “ilities” to those needs. That’s how I think we’re starting to see developer adoption of cloud services evolve, based around the capabilities of individual services — not the *aaS taxonomy that we pundits and vendors apply to what’s out there. This approach to service-based adoption is reflected in data from our Forrsights Developer Survey, Q1 2013, so I've chosen publish some of it today to illustrate the adoption differences we see from service to service. 

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Midmarket IT Spending In India: Rising Customer Expectations Drive Change

I’m currently in the process of wrapping up a report on midmarket IT budgets and spending trends in India for the 2013-2014 fiscal year (April 1, 2013 to March 31, 2014). For this report, we collected extensive data from 430 midmarket businesses (those with 400 to 2,500 employees) in the country to examine IT and business priorities among IT decision-makers. In addition to analyzing spending plans across standard IT categories (software, hardware, and services), we also analyze the likely impact on IT spending of key initiatives, including computing, mobility, and big data.

Despite increasing economic and political uncertainties in India, our survey found that midmarket companies are continuing to invest in IT to drive competitive differentiation. Our survey also signaled a changing attitude among Indian midmarket companies who are increasingly viewing IT as a means to better engage digitally enabled constituents. This is fueling a fundamental shift in the way Indian midmarket firms interact with customers. Here are some key highlights from the report:

  • The majority of Indian midmarket firms will increase IT spending in 2013-2014. Among all the companies surveyed, 61% of firms surveyed expect to increase their spending on IT by 5% to 10% in the current fiscal year. New IT initiatives and expansion of capacity will contribute to an increase in IT capital budgets as the current fiscal year’s budget is evenly split between new IT initiatives and expansion of existing capacity to better support growth initiatives. The need to modernize infrastructure and improve business applications to grow business will drive hardware and software spending from Indian midmarket firms.
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