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Still not in Cloud? You may be left behind

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A few years ago, cloud computing was touted as the next big thing. Today, however cloud computing is not an option but a necessity for businesses wanting to stay ahead of the curve, writes AJ HARTENBERG of T-Systems.

Just a few short years ago, we in the technology industry were touting cloud computing as the latest and greatest competitive advantage for progressive companies. Fast-forward to today, and it now seems like cloud migration is more of a hygiene factor than a competitive differentiator.

Simply put, if you’re not already moving your IT estate into private, hybrid or public clouds, you’re going to fall behind in the coming years.

Markets are digitising, they’re globalising, and they’re coalescing into each other, or splintering apart in interesting new ways. And these market shifts are changing the rules of the game for everybody.

Netflix started life as a DVD rental company, then became a video streaming service, and is now spending $5billion a year on creating original movies and TV series. Nintendo’s modern-era began with console games, before launching a new realm of motion-sensor technology with the inventive Nintendo Wii. In its most recent ‘pivot’, the immersive augmented reality game Pokemon Go, it hauled in $200 million in just its first month.

There’s a litany of reasons for these firms’ successes – from culture, to leadership, to strategy. But from a technology perspective, boundary-pushing companies like Netflix and Nintendo all share one common principle – flexible, scalable cloud architectures that enable the rapid expansion of services, to millions of users.

These two firms have truly leveraged the power of cloud computing. But, in fact, in every industry you’ll find examples of digital cavaliers, quickly gobbling market share from slower-paced incumbents who’ve been entrenched for decades.

Failing fast, failing forward

Cloud-based digital tools and assets allow organisations to create new routes to market, insert themselves into new value chains, and address entirely new customer segments and geographies. They help the organisation to better understand changing market dynamics, influences and trends – and to respond with speed and decisiveness.

The cloud also enables faster, lower-risk experimentation with new strategies, products or services. If a prototype proves successful, then it can be scaled up to achieve commercial value. And, if it’s unsuccessful, then it can be quickly shut down and the team can move on to explore other ideas – it’s a principle we refer to as ‘failing fast, and failing forward’.

With the real-time data streams that cloud computing makes possible, businesses can fine-tune every aspect of their operations – making minor tweaks where the data points to improvement opportunities. Perhaps the data leads you to make changes to the production schedule, to change supplier relationships, or to change the tone of the marketing campaign, for instance.

We talk about a cloud-centred business being a blend of both art and science. This is the true beauty of the cloud: it unleashes the creativity of the creative types, to dream and to design. At the same time is provides a platform for the more left-brained team members to form methodologies, gain control, and ultimately make ideas commercially-viable.

In fact, the science of big data might reveal opportunities, for creatives to find an innovative solution to capture that market opportunity

Now, imagine an analogue business trying to compete, without all of these cloud benefits?

Taking the plunge

Despite all of the cloud’s compelling advantages, migrating part or one’s entire IT estate to the cloud often entails incredible complexity, uncertainty and cost. These concerns tend to cause inertia in decision-making, particularly in larger, more entrenched businesses, or those in protected and slower-moving industries.

Some traditional businesses are so consumed with the day-to-day grind of simply ‘keeping the lights on’ that they hardly have time to think about future-proofing their enterprise technology. And others still are remaining relatively successful – for the time being – without having made any serious attempt at digital transformation.

But the question is, for how much longer will this last?

For large organisations, cloud migrations are certainly complex and scary. But there are ways to manage the risks and costs, and become more certain of success. It generally starts with a comprehensive evaluation of your IT environment, and a very sharp understanding of your own business, your market, your customers, and your competitors.

Find a trusted technology partner, one that’s helped other firms through the process of cloud migration, and is willing to shoulder much of the risk and provide guarantees in terms of both costs and business returns. Once you’ve selected the right strategy and the right partner, commit to the transition and pour all your energy into making your cloud migration a resounding success.

As we see with the likes of Netflix and Nintendo, cloud-based organisations have one crucial advantage over their more traditional peers – the ability to continually reinvent themselves, serve new customer demands, and respond to ever-shifting market landscapes.

The time is now. Take any longer, and you may never catch up.

* AJ Hartenberg, Portfolio Manager: Data Centre Services for T-Systems, South Africa

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Rain, Telkom Mobile, lead in affordable data

A new report by the telecoms regulator in South Africa reveal the true consumer champions in mobile data costs

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The latest bi-annual tariff analysis report produced by the Independent Communications Authority of South Africa (ICASA) reveals that Telkom Mobile data costs for bundles are two-thirds lower than those of Vodacom and MTN. On the other hand, Rain is half the price again of Telkom. 

The report focuses on the 163 tariff notifications lodged with ICASA during the period 1 July 2018 to 31 December 2018.

“It seeks to ensure that there is retail price transparency within the electronic communications sector, the purpose of which is to enable consumers to make an informed choice, in terms of tariff plan preferences and/or preferred service providers based on their different offerings,” said Icasa.

ICASA says it observed the competitiveness between licensees in terms of the number of promotions that were on offer in the market, with 31 promotions launched during the period. 

The report shows that MTN and Vodacom charge the same prices for a 1GB and a 3GB data bundle at R149 and R299 respectively.  On the other hand, Telkom Mobile charges (for similar-sized data bundles) R100 (1GB) and R201 (3GB). Cell C discontinued its 1GB bundle, which was replaced with a 1.5GB bundle offered at the same price as the replaced 1GB data bundle at R149. 

Rain’s “One Plan Package” prepaid mobile data offering of R50 for a 1GB bundle remains the most affordable when compared to the offers from other MNOs (Mobile Network Operators) and MVNOs (Mobile Virtual Network Operators).  

“This development should have a positive impact on customers’ pockets as they are paying less compared to similar data bundles and increases choice,” said Icasa.

The report also revealed that the cost of out-of-bundle data had halved at both MTN and Vodacom, from 99c per Megabyte a year ago to 49c per Megabyte in the first quarter of this year. This was still two thirds more expensive than Telkom Mobile, which has charged 29c per Megabyte throughout this period (see graph below).

Meanwhile, from having positioned itself as consumer champion in recent years, Cell C has fallen on hard times, image-wise: it is by far the most expensive mobile network for out-of-bundle data, at R1.10 per Megabyte. Its prices have not budged in the past year.

The report highlights the disparities between the haves and have-nots in the dramatically plummeting cost of data per Megabyte as one buys bigger and bigger bundles on a 30-day basis (see graph below).

For 20 Gigabyte bundles, all mobile operators are in effect charging 4c per Megabyte. Only at that level do costs come in at under Rain’s standard tariffs regardless of use.

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Qualcomm wins 5G as Apple and Intel cave in

A flurry of announcements from three major tech players ushered in a new mobile chip landscape, wrItes ARTHUR GOLDSTUCK

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Last week’s shock announcement by Intel that it was canning its 5G modem business leaves the American market wide open to Qualcomm, in the wake of the latter winning a bruising patent war with Apple.

Intel Corporation announced its intention to “exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices”.

Intel said it would also continue to invest in its 5G network infrastructure business, sharpening its focus on a market expected to be dominated by Huawei, Nokia and Ericsson.

Intel said it would continue to meet current customer commitments for its existing 4G smartphone modem product line, but did not expect to launch 5G modem products in the smartphone space, including those originally planned for launches in 2020. In other words, it would no longer be supplying chips for iPhones and iPads in competition with Qualcomm.

“We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns,” said Intel CEO Bob Swan. “5G continues to be a strategic priority across Intel, and our team has developed a valuable portfolio of wireless products and intellectual property. We are assessing our options to realise the value we have created, including the opportunities in a wide variety of data-centric platforms and devices in a 5G world.”

The news came immediately after Qualcomm and Apple issued a joint announced of an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm, along with a six-year license agreement, and a multiyear chipset supply agreement.

Apple had previously accused Qualcomm of abusing its dominant position in modem chips for smartphones and charging excessive license fees. It ordered its contract manufacturers, first, to stop paying Qualcomm for the chips, and then to stop using the chips altogether, turning instead to Intel.
With Apple paying up and Intel pulling out, Qualcomm is suddenly in the pound seats. It shares hit their highest levels in five years after the announcements.

Qualcomm said in a statement: “As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio.”

Meanwhile, Strategy Analytics released a report on the same day that showed Ericsson, Huawei and Nokia will lead the market in core 5G infrastructure, namely Radio Access Network (RAN) equipment, by 2023 as the 5G market takes off. Huawei is expected to have the edge as a result of the vast scale of the early 5G market in China and its long term steady investment in R&D. According to a report entitled “Comparison and 2023 5G Global Market Potential for leading 5G RAN Vendors – Ericsson, Huawei and Nokia”, two outliers, Samsung and ZTE, are expected to expand their global presence alongside emerging vendors as competition heats up.

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