Regulatory policy can inhibit investment in Internet companies – and governments wanting to drive growth in the digital economy need to ensure policy doesn’t unintentionally stifle this. This is according to the 2016 Fifth Era Report – The Impact of Internet Regulations on Investment.
Commissioned by Google and conducted by Fifth Era, the report shows that governments in developing countries need to ensure that regulatory policies do not inhibit investment in the ICT sector.
Fifth Era surveyed 475 investors in 15 countries in order to assess the degree to which the future legal environment might impact their investments in Internet companies. The research company surveyed thirteen countries in Asia, Africa and the Middle East (Australia, India, Indonesia, Israel, Japan, Korea, Nigeria, Saudi Arabia, South Africa, Thailand, Turkey, UAE and Vietnam) representing a spectrum of more to less developed Internet economies. The UK and US were also added to the survey respondents provide a perspective on overseas investors.
Speaking at the launch event in Johannesburg, Fifth Era researcher Matthew C. Le Merle said that the digital economy will be the most significant driver of growth of GDP, jobs and well-being in the next five years.
Most national governments understand this, he stated, noting that most governments have an innovation strategy in their national and industrial plans.
“The notion of an innovation-based strategy always collapses down to the fact that we need entrepreneurs and venture capital and both are scarce,” Le Merle comments. Entrepreneurs have a choice of whether or not to build a business, and where to build a business. If you make it difficult for entrepreneurs to do business in your country they will choose to go elsewhere, he says.
31 investors in South Africa were assessed for the Fifth Era report, all of whom said that the current legislative / policy environment in the sector has a negative impact on their investment activities.
Seventy-four percent of those surveyed said that they are not comfortable investing in business models where the regulatory framework is ambiguous.
Eighty-four percent said the risk of secondary liability and exposure to large damages was of concern.
Conversely, 87% said they would likely increase their investment if South Africa adopted anti-piracy laws similar to those in the US.
Eighty-one percent of those surveyed would not be comfortable investing in Internet companies if South Africa applied tax rules that make Internet companies liable for double taxation.
Eighty-seven percent of investors surveyed said they would not be comfortable investing in internet businesses if intermediaries could be held liable for third party content or actions (for example internet service providers or user-uploaded content hosters).
Fifty-eight percent of investors said they would be uncomfortable investing in internet or mobile businesses if regulators apply traditional telecom regulations and tariffs to mobile messenger and free online content services such as Whatsapp or Viber. Conversely, 77% would be interested in investing more in internet businesses if South Africa adopts policies that reduce regulation in the mobile apps ecosystem.
Ninety percent said they would be less inclined to invest if country user data is retained and disclosed to law enforcement on request, unless international baseline standards are followed. Allowing security agencies to install their own equipment on ISP networks would deter 77% of investors.
Investors would invest more in Internet businesses if the government adopted policies that indicate it is supportive of new business models (e.g the sharing economy) and protect freedom of expression online, if government invests in education and digital skills, in internet and mobile infrastructure, enables policy that reduces taxes and fees for internet and mobile end users, promotes open data use, liberalises mobile payments, enables access to backhaul and spectrum, and releases transparent regulatory roadmaps and holds public consultations on all new internet/mobile-related legislation and regulation.
Veeam passes $1bn, prepares for cloud’s ‘Act II’
The leader in cloud data management reveals how it will harness the next growth phase of the data revolution, writes ARTHUR GOLDSTUCK
Veeam Software, the quiet leader in backup solutions for cloud data management,has announced that it has passed $1-billion in revenues, and is preparing for the next phase of sustained growth in the sector.
Now, it is unveiling what it calls Act II, following five years of rapid growth through modernisation of the data centre. At the VeeamON 2019conferencein Miami this week, company co-founder Ratmir Timashev declared that the opportunities in this new era, focused on managing data for the hybrid cloud, would drive the next phase of growth.
“Veeam created the VMware backup market and has dominated it as the leader for the last decade,” said Timashev, who is also executive vice president for sales and marketing at the organisation. “This was Veeam’s Act I and I am delighted that we have surpassed the $1 billion mark; in 2013 I predicted we’d achieve this in less than six years.
“However, the market is now changing. Backup is still critical, but customers are now building hybrid clouds with AWS, Azure, IBM and Google, and they need more than just backup. To succeed in this changing environment, Veeam has had to adapt. Veeam, with its 60,000-plus channel and service provider partners and the broadest ecosystem of technology partners, including Cisco, HPE, NetApp, Nutanix and Pure Storage, is best positioned to dominate the new cloud data management in our Act II.”
Veeam has been the leading provider of backup, recovery and replication solutions for more than a decade, and is growing rapidly at a time when other players in the backup market are struggling to innovate on demand.
“Backup is not sexy and they made a pretty successful company out of something that others seem to be screwing up,” said Roy Illsley, Distinguished Analyst at Ovum, speaking in Miami after the VeeamOn conference. “Others have not invested much in new products and they don’t solve key challenges that most organisations want solved. Theyre resting on their laurels and are stuck in the physical world of backup instead of embracing the cloud.”
Illsley readily buys into the Veeam tagline. “It just works”.
“They are very good at marketing but are also a good engineering comany that does produce the goods. Their big strength, that it just works, is a reliable feature they have built into their product portfolio.”
Veeam said in statement from the event that, while it had initially focused on server virtualisation for VMware environments, in recent years it had expanded this core offering. It was now delivering integration with multiple hypervisors, physical servers and endpoints, along with public and software-as-a-service workloads, while partnering with leading cloud, storage, server, hyperconverged (HCI) and application vendors.
This week, it announced a new “with Veeam”program, which brings in enterprise storage and hyperconverged (HCI) vendors to provide customers with comprehensive secondary storage solutions that combine Veeam software with industry-leading infrastructure systems. Companies like ExaGrid and Nutanix have already announced partnerships.
Timashev said: “From day one, we have focused on partnerships to deliver customer value. Working with our storage and cloud partners, we are delivering choice, flexibility and value to customers of all sizes.”
‘Energy scavenging’ gets funding
As the drive towards a 5G future gathers momentum, the University of Surrey’s research into technology that could power countless internet enabled devices – including those needed for autonomous cars – has won over £1M from the Engineering and Physical Sciences Research Council (EPSRC) and industry partners.
Surrey’s Advanced Technology Institute (ATI) has been working on triboelectric nanogenerators (TENG), an energy harvesting technology capable of ‘scavenging’ energy from movements such as human motion, machine vibration, wind and vehicle movements to power small electronic components.
TENG energy harvesting is based on a combination of electrostatic charging and electrostatic induction, providing high output, peak efficiency and low-cost solutions for small scale electronic devices. It’s thought such devices will be vital for the smart sensors needed to enable driverless cars to work safely, wearable electronics, health sensors in ‘smart hospitals’ and robotics in ‘smart factories.’
The ATI will be partnered on this development project with the Georgia Institute of Technology, QinetiQ, MAS Holdings, National Physical Laboratory, Soochow University and Jaguar Land Rover.
Professor Ravi Silva, Director of the ATI and the principal investigator of the TENG project, said: “TENG technology is ideal to power the next generation of electronic devices due to its small footprint and capacity to integrate into systems we use every day. Here at the ATI, we are constantly looking to develop such advanced technologies leading towards our quest to realise worldwide “free energy”.
“TENGs are an ideal candidate to power the autonomous electronic systems for Internet of Things applications and wearable electronic devices. We believe this research grant will allow us to further the design of optimized energy harvesters.”