Carrier Ethernet aims to provide users with a wide-area service to connect sites, in the same way that asynchronous transfer mode (ATM), Frame Relay, and X.25 services from carriers have done in the past. While end user demand for carrier Ethernet services in Asia is relatively small, it’s growing year over year and is having an impact on service providers’ bottom lines: Carrier Ethernet services currently account for 8% to 10% of service providers’ total connectivity revenues in the region.
From June to August 2013, Forrester invited large and medium-size organizations in India to share details about their live enterprise mobility applications. Our objective was to understand how Indian organizations are leveraging mobile applications to better connect with customers, partners, and employees. In total, we received details of 59 mobile application projects from 41 organizations with more than 500 employees in India. These organizations are spread across verticals like manufacturing, financial services, automotive, media, healthcare, professional services, telecommunications, and utilities. Our research provided some interesting findings:
Mobile application development is skewed toward internal, employee-facing projects. Among the projects reviewed, 59% of the enterprise mobility applications have been developed for internal employees, 24% target customers, and the remaining 19% are for business partners. Most organizations in India are first developing applications for employees, because calculating the ROI is easier and more tangible for employee-centric applications as compared with customer- or business partner -centric applications. For instance, sales force/field force automation is currently the most commonly developed mobile application by Indian organizations.
The majority of projects are co-owned by IT and business. 71% of the enterprise mobility application projects we covered are jointly owned by the IT team and the relevant business stakeholders. Business inputs, especially on user interface and experience, are key to ensuring adoption of mobile application post-launch.
Information workers in India are increasingly using their personal devices, applications, and web services to accomplish both personal and work-related activities. Results from Forrester’s Forrsights Workforce Employee Survey, Q4 2012 indicate that at least 85% of employees use phone/tablet applications and web-based services for both purposes which is putting corporate information security under serious threat.
My interactions with numerous infrastructure and operations (I&O) professionals from large enterprises in India over the past six months have revealed that there is a high degree of awareness of the need to develop a bring-your-own-technology (BYOT) policy. However, actual implementations aren’t yet common, as I&O professionals are unable to address management’s three key concerns. These are, in order of priority:
How can we ensure that information on employee-owned hardware and software is secure?
Telstra’s recent FY13 earnings announcement recorded a strong showing of its Network Application and Services (NAS) division, which saw a 17.7 per cent increase in revenue to A$1.5 billion from the previous year. Its international business delivered a combined Global Connectivity and NAS revenue of A$566 million, or a growth of 11.4 per cent from the previous year. Telstra also plans to continue to build out its NAS division, particularly in Asia.
What It Means
A beneficiary of the NAS investment is Telstra Global, nestled under its International division, offering network connectivity and services to enterprises in Asia. In my recent report, I argued that Telstra Global is a well-placed partner for medium-size to large companies in sectors like transportation and logistics, shipping, manufacturing, and professional services looking to expand their operations out from Hong Kong, Australia, and Singapore into Southeast Asia and China. While this looks rosy, there are areas that require closer attention:
Tata Communications has emerged from its role as an incumbent Indian service provider to become a globally recognized provider of network connectivity services such as MPLS, Ethernet and IP transit as well as managed hosting in data centers, voice, data, and video.
Tata Communications is starting to measure up to global carriers. I’ve received a number of inquiries on Tata Communications’ regional and global carrier wholesale strategy, as well as its market focus. This increased interest among Forrester clients is a sign that Tata Communications is getting some things right in its carrier business, as the aforementioned global MPLS report makes clear. Its continual network and cable investments are paying off for the service provider.
Google is officially serious about the enterprise space. I met with Google Enterprise execs hosting their very first analyst day in Singapore recently, and was introduced to their enterprise suite of services, which was, unsurprisingly, similar to their consumer suite of services.
However, while they took their starting point from the consumer end, providing enterprise-ready solutions requires a different level of product calibration. To that end, Google cites spending of approximately US$3 billion annually on building/improving its data center infrastructure, investing in undersea cable systems, and laying fiber networks in the US specifically. In Asia Pacific (AP) last year, they spent approximately US$700 million building three data centers in Singapore, Hong Kong, and Taiwan.
In addition to infrastructure investments, Google has also acquired companies like Quickoffice to enhance their appeal to enterprises weaned on Microsoft Office, while also expanding existing offerings in areas like communications and collaboration (Gmail, Google Plus), contextualized services (Maps, Compute Engine, Big Query), access devices (Nexus range, Chromebook), application development (App Engine) and discovery and archiving (Search, Vault).
I attended my fifth Cisco Worldwide Partner Summit in Boston the first week of June. As always, the first day’s keynote presentation by John Chambers was impressive and covered market transitions, opportunities, future big bets, and how Cisco can work better with its partners. John also stressed the need for partners to embrace change and move to a new business model.
Building on this presentation, Cisco made three key announcements at its partner summit, which I’m highlighting below because I believe they are especially important for partners that operate in Asia Pacific (AP) markets:
Cisco has committed to doubling its investment in the mid-market space globally from US$75 million to US$150 million in FY2014: Typically perceived as a large enterprise-focused company by partners and mid-sized businesses alike, Cisco’s announcement that it would double its investment in demand generation activities, building its mid-market portfolio through new products (e.g., the low-cost router developed in India) and through acquisitions (e.g., Meraki), and incentivizing sales people is very timely. With a large mid-sized business population in Asia Pacific, proactive efforts toward creating a mid-market brand will help establish Cisco more firmly in the space.
Cisco dCloud, a cloud-based demonstration service for partners, is now available: One of the major challenges for AP-based partners is their inability to invest in costly demo equipment or visit vendor demo solution centers. The availability of Cisco dCloud will not only help partners increase their chances of winning a deal, but also potentially help them reduce the sales cycle, making it a profitable deal.
At the half mark through 2013, both the global and the European tech markets have pockets of strength and other pockets of weakness, both by product and by geography. Forrester's mid-2013 global tech market update (July 12, 2013, “A Mixed Outlook For The Global Tech Market In 2013 And 2014 –The US Market And Software Buying Will Be The Drivers Of 2.3% Growth This Year And 5.4% Growth Next Year”) shows the US market for business and government purchases of information technology goods and services doing relatively well, along with tech markets in Latin America and Eastern Europe/Middle East/Africa and parts of Asia Pacific. However, the tech market in Western and Central Europe will post negative growth and those in Japan, Canada, Australia, and India will grow at a moderate pace. Measured in US dollars, growth will be subdued at 2.3% in 2013, thanks to the strong dollar, and revenues of US tech vendors will suffer as a result. However, in local currency terms, growth will more respectable, at 4.6%. Software -- especially for analytical and collaborative applications and for software-as-a-service products -- continue to be a bright spot, with 3.3% dollar growth and 5.7% in local currency-terms. Apart from enterprise purchases of tablets, hardware -- both computer equipment and communications equipment -- will be weak. IT services will be mixed, with slightly stronger demand for IT consulting and systems integration services than for IT outsourcing and hardware maintenance.
As individuals get better access to the technology that enables their participation in the information age, so privacy has to be considered and regulation applied to raise standards to those that are acceptable across that society. It was interesting, therefore, to note the cultural recoil that occurred in response to the NSA’s recently discovered, and rather widespread, caller record collection (not to mention other 'PRISM' related data!) - it’s clear that this has crossed a boundary of acceptability.
This isn’t however, just a US problem. A news story recently broke in India highlighting that local law enforcement agencies had, over the past six months, compelled mobile phone companies to hand over call detail records for almost 100,000 subscribers. The requisitions originated from different sources and levels within the police force and their targets included many senior police officers and bureaucrats.
Unlike the NSA scrutiny, which although potentially unreasonable, at least appears legal, the vast majority of these data requests did not have the required formal documentation to uphold or justify the demand, yet they were fulfilled. This revelation was revealed by Gujarat’s State Director General of Police, Amitabh Pathak, and came hot on the tail of a similar story originating from New Dehli where the mobile phone records of a senior political leader, Arun Jaitley, were also acquired by a very junior law enforcement officer.
As part of my ongoing research into data privacy laws in Asia Pacific (AP), I spoke with chief information security officers (CISOs), consultants, lawyers, and governance, risk, and compliance (GRC) professionals. This is critical to gauge key decision-makers’ awareness and understanding of the ever-evolving data privacy regulations and policies across 15 different jurisdictions in the region.
Some senior people have admitted to me that their organizations have not traditionally taken data privacy issues terribly seriously within their AP operations. However, in a clear sign that this is beginning to change, GRC practitioners are starting to see increased demand for their compliance-related services from both government and business sectors, particularly since late 2012. Regardless of where you stand on this spectrum, the reality is that the awareness levels of data-related regulations – and the level of compliance required to abide by these regulations – varies widely across the region.
This should not be particularly surprising. The concept of “privacy” or “right to privacy” is relatively new in large parts of the region, and legislative environments are highly fragmented among AP countries. With drastic economic changes and technology advancement under way, many AP governments have imposed sector-based data privacy and security measures, aiming to regulate telecommunication network infrastructure and banking systems in particular.
Below are some of the broader trends we’re seeing across the region: