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How connectivity and security can go together

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While the interconnectivity has led to efficiency gains, it has also led to increased security risks, which is why it is important to have a good cybersecurity strategy in place, writes ROY ALVES, Country Manager at Axis Communications South Africa.

Within the modern business environment, employees can communicate and collaborate with customers and colleagues from anywhere and anytime, using virtually any device or platform because of technology trends such as mobility and cloud computing. In this era of interconnectivity, information can also frequently flow between the business and suppliers or partners, while employees utilise big data analytics solutions to gather and disseminate an ever-increasing amount of data on consumers and market trends as well opportunities. While the interconnectivity has led to efficiency gains on an individual and company-wide level, it has also led to increased security risk, because it has made cybersecurity and physical security more complex.

Where a security manager in charge of physical security systems might have exclusively focussed on creating a closed system that can never be breached, s/he must now adopt a more ecosystem-centric approach. This is the result of converging technologies, with the industry migrating from analogue to IP-based technology for instance, and making use of a new IoT ecosystem, which has culminated in every cybersecurity measure having an impact on everything else on the network.

Even if physical security is run on a separate network from the corporate IT infrastructure (an impractical and expensive solution) human beings are fallible: an inadvertent connection to a broadband router; an accidental cross connection in a wiring closet or any number of unintentional oversights. In the face of all these challenges, how do you develop an effective cybersecurity strategy?

Securing an interconnected web of systems

The solution is to find an optimal way of merging the best practices of both the physical security world with the best practices of a traditional IT domain, without introducing new cybersecurity vulnerabilities for other components in the converged system.

In a converged ecosystem such as an IP-based physical security scenario, the cyber threats and vulnerabilities become far more complex. Not only does the number of components increase, so do the number of vendors that are supplying that technology and the number of users accessing them. To mitigate risks in this kind of an open ecosystem, you need all the vendors operating off the same cybersecurity playbook.

Finding common ground to mitigating cyber risks

IT, physical security and technology manufacturers should be working as a cohesive unit – reaching consensus on current standards and current cyber mitigation technologies that really reflect “Highest Common Denominator” cyber risk mitigation techniques.

In most cases, the video surveillance cameras and video management system (VMS) are selected on two main criteria: their specific intended use – perimeter protection, surveillance in crowded public areas, etc. – and the strength of the vendor to satisfy that specific use. But there’s a third criteria that needs to be considered as well: does Camera Manufacturer A support the same security protocols as VMS Manufacturer B and do these protocols tie seamlessly into IT’s current suite of hardware, software and cyber protection protocols?

Who owns connectivity?

Since the ecosystem runs on IT’s infrastructure, it raises another important question: Who is responsible for the connectivity? Do cybersecurity strategies for the physical security network-attached systems and device now belong to IT? Or does the physical security department mandate that IT support the cybersecurity technologies built into physical security’s solutions? The simplest answer is that physical security management needs to work with integrators and manufacturers to devise solutions that are inherently supportive of IT’s current methodologies for cyber risk mitigation.

Making sure cybersecurity is a team effort

The similarities in cyber protection technologies between IoT and physical security might be self-evident, but there are some key concerns that should remain at the forefront of any system builder. No matter how sophisticated IoT devices and systems become they still operate in an IT world. And as such, they need to adopt a cooperative cyber protection strategy. Mature IoT technologies such as physical security will need to evolve to benefit from some of the emerging IoT cyber protection techniques.

In the meantime, those in the trenches will have to understand the environment their organisation exists in and address the increasing risk of cyber threats as a joint effort between vendor, security professionals and IT. We need to work with common tools to provide the end-user with the best possible cyber protection while living within budgetary constraints.

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Online retail gets real

After decades of experience in selling online, retailers still seek out the secret of reaching the digital consumer, writes ARTHUR GOLDSTUCK.

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It’s been 23 years since the first pizza and the first bunch of flowers was sold online. One would think, after all this time, that retailers would know exactly what works, and exactly how the digital consumer thinks.

Yet, in shopping-mad South Africa, only 4% of adults regularly shop online. One could blame high data costs, low levels of tech-savviness, or lack of trust. However, that doesn’t explain why a population where more than a quarter of people have a debit or credit card and almost 40% of people use the Internet is staying away.

The new Online Retail in South Africa 2019 study, conducted by World Wide Worx with the support of Visa and Platinum Seed, reveals that growth is in fact healthy, but is still coming off a low base. This year, the total sale of retail products online is expected to pass the R14-billion mark, making up 1.4% of total retail.

This figure represents 25% growth over 2017, and comes after the same rate of growth was seen in 2017. At this rate, it is clear that online retail is going mainstream, driven by aggressive marketing, and new shopping channels like mobile shopping. 

But it is equally clear that not all retailers are getting it right. According to the study, the unwillingness of business to reinvest revenue in developing their online presence is one of the main barriers to long-term success. Only one in five companies surveyed invested more than 20% of their online turnover back into their online store. Over half invested less than 10% back.

On the surface, the industry looks healthy, as a surprisingly high 71% of online retailers surveyed say they are profitable. But this brings to mind the early days of Amazon.com, in 1996, when founder Jeff Bezos was asked when it would become profitable.

He declared that it would not be profitable for at least another five years. And if it did, he said, it would be in big trouble. He meant that it was so important for long-term sustainability that Amazon reinvest all its revenues in customer systems, that it could not afford to look for short-term profits.

According to the South African study, the single most critical factor in the success of online retail activities is customer service. A vast majority, 98% of respondents, regarded it as important. This positions customer service as the very heart of online retail. For Amazon, investment back into systems that would streamline customer service became the key to the world’s digital wallets.

In South Africa online still make up a small proportion of overall retail, but for the first time we see the promise of a broader range of businesses in terms of category, size, turnover and employee numbers. This is a sign that our local market is beginning to mature. 

Clothing and apparel is the fastest growing sector, but is also the sector with the highest turnover of businesses. It illustrates the dangers of a low barrier to entry: the survival rate of online stores in this sector is probably directly opposite to the ease of setting up an online apparel store.

A fast-growing category that was fairly low on the agenda in the past, alcohol, tobacco and vaping, has benefited from the increased online supply of vapes, juices and accessories. It also suggests that smoking bans, and the change in the legal status of marijuana during the survey, may have boosted demand. 

In the coming weeks, we can expect online retail to fall under the spotlight as never before. Black Friday, a shopping tradition imported “wholesale” from the United States, is expected to become the biggest online shopping day of the year in South Africa, as it is in the USA.

Initially, it was just a gimmick in South Africa, attempting to cash in on what was a purely American tradition of insane sales on the Friday after Thanksgiving Day, which occurs on the third Thursday of November every year. It is followed by Cyber Monday, making the entire weekend one of major promotions and great bargains.

It has grown every year in South Africa since its first introduction about six years ago, and last year it broke into the mainstream, with numerous high profile retailers embracing it, and many consumers experiencing it for the first time. 

It is now positioned as the prime bargain day of the year for consumers, and many wait in anticipation for it, as they do in the USA. Along with Cyber Monday, it provides an excuse for retailers to go all out in their marketing, and for consumers to storm the display shelves or web pages. South African shoppers, clearly, are easily enticed by bargains.

Word of mouth around Black Friday has also grown massively in the past two years, driven by both media and shoppers who have found ridiculous bargains. As news spreads that the most ridiculous of the bargains are to be had online, even those who were reticent of digital shopping will be tempted to convert.

The Online Retail in SA 2019 report has shown over the years that, as people become more experienced in using the Internet, their propensity to shop online increases. This is part of the World Wide Worx model known as the Digital Participation Curve. The key missing factor in the Curve is that most retailers do not know how to convert that propensity into actual online shopping behaviour. Black Friday will be one of the keys to conversion.

Carry on reading to find out about the online retailers of the year.

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Reliable satellite Internet?

MzansiSat, a satellite-Internet business, aims to beam Internet connections to places in South Africa which don’t have access to cabled and mobile network infrastructure, writes BRYAN TURNER.

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Stellenbosch-based MzansiSat promises to provide cheap wholesale Internet to Internet Service Providers for as little as R25 per Gigabyte. Providers who offer more expensive Internet services could benefit greatly from partnering with MzansiSat, says the company. 

“Using MzansiSat, we hope that we can carry over cost-savings benefits to the consumer,” says Victor Stephanopoli, MzansiSat chief operating officer.

The company, which has been spun off from StellSat, has been looking to increase its investor portfolio while it waits for spectrum approval. The additional investment will allow MzansiSat’s satellite to operate in more regions across Africa.

The MzansiSat satellite is being built by Thales Alenia Space, a French company which is also acting as technical partner to MzansiSat. In addition to building the satellite, Thales Alenia Space will also be assisting MzansiSat in coordinating the launch. The company intends to launch the satellite into the 56°E orbital slot in a geostationary orbit, which enables communication almost anywhere in Africa. The launch is expected to happen in 2022. 

The satellite will have 76 transponders, 48 of which will be Ku-band and 28 C-band. Ku-band is all about high-speed performance, while C-band deals with weather-resistance. The design intention is for customers of MzansiSat to choose between very cheap, reliable data and very fast, power-efficient data. 

C-band is an older technology, which makes bandwidth cheaper and almost never affected by rain but requires bigger dishes and slower bandwidth compared to Ku-band connections. On the other hand, Ku-band is faster, experiences less microwave interference, and requires less power to run – but is less reliable with bad weather conditions.

MzansiSat’s potential military applications are significant, due to the nature of the military being mobile and possibly in remote areas without connectivity.  Connectivity everywhere would be potentially be life-saving.

Consumers in remote areas will benefit, even though satellite is higher in latency than fibre and LTE connections. While this level of latency is high (a fifth of a second in theory), satellite connections are still adequate for browsing the Internet and watching online content. 

The Internet of Things (IoT) may see the benefits of satellite Internet before consumers do. The applications of IoT in agriculture are vast, from hydration sensors to soil nutrient testers, and can be realised with an Internet connection which is available in a remote area.

Stephanopoli says that e-learning in remote areas can also benefit from MzansiSat’s presence, as many school resources are becoming readily available online. 

“Through our network, the learning experience can be beamed into classrooms across the country to substitute or complement local resources within the South African schooling system.”

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