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The Latest

09 April 2021: During its advisor business update, Fujitsu discussed its rationale for acquiring Versor, an Australian data and analytics specialist. Versor provides both managed services for data management, reporting and analytics. In addition, it provides consulting services, including data science, to help organisations deploy big data solutions.

Why it’s Important

Versor has 70 data and analytics specialists with strong multi-Cloud knowledge. Fujitsu’s interest in acquiring Versor is primarily tapping Versor’s consulting expertise in Edge Computing, Azure, AWS and Databricks. In addition, Versor’s staff have direct industry experience with some key Australian accounts, including public sector, utilities and retail, which are all target sectors for Fujitsu. Finally, Versor has expanded into Asia and is seeing strong growth. 

So from a Fujitsu perspective, the acquisition is a quick way to bolster its credentials in digital transformation and to open doors to new clients. 

This acquisition clearly demonstrates Fujitsu’s strategy to grow in the ANZ market by increasing investment in consulting and special industry verticals.  

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Given its experienced staff, Versor is expected to lead many of Fujitsu’s digital transformation engagements with prospects and clients. Fujitsu’s well-established ‘innovation design engagements’, are used to explore opportunities with clients and leverage concepts of user-centred design. Adding specialist big data skills to this mix makes for an attractive combination of pre-sales consulting.

Related IBRS Advisory

  1. The new CDO agenda
  2. Workforce transformation: The four operating models of business intelligence
  3. VENDORiQ: Defence Department Targets Fujitsu for Overhaul

The Latest

16 April 2021: BMC has released a new edition of its Helix Platform, which leverages machine learning algorithms to support AI-driven IT operations (AIOps) and AI-driven service management (AISM) capabilities. The introduction of these algorithmic features enable IT service and operations teams to predict and resolve issues more effectively.

Why it’s Important

The use of algorithms to both categorise and predict events in IT operations is a growing trend. Such AI capabilities will be increasingly embedded in existing IT operations suites. As vendors enter a new ‘AI-powered’ competitive phase, these new AI capabilities will be included as part of regular upgrades and maintenance, rather than as add-on components.

Getting value from the new AI capabilities requires planning very human responses.  

For example, the predictive capabilities of algorithms, especially when using multi-organisational data, can provide op teams with alerts well in advance of problems becoming apparent. But unless op teams are resourced and given budget to respond to such ‘predictive maintenance’ issues, these predictive capabilities will be relegated to little more than an alarm clock with a snooze button. 

Likewise, the ability to correctly leverage and continually train advisory from resolution support algorithms, will demand both training of, and input from, the support team. The algorithms are only as good as the information and the contexts they can draw on. Support team people play an intimate role in ensuring the right information is selected for training the algorithm and, most importantly, the right contexts. This is especially pertinent as virtual agents (chatbots) are introduced for self-help capabilities.

Who’s impacted

  • CIO
  • IT operations staff
  • Support desk

What’s Next?

Begin to track the new AI capabilities available in IT operations support platforms, not just for the platforms used by your organisation, but in the competitive landscape. While there is no critical priority to adopt AI-powered IT operations or service management capabilities (just yet), it is important to understand what is coming and what may already be available as part of your current licensing agreements.

Assemble a working group to explore how AI capabilities could positively impact IT operations and service management, and the changes in process and roles that would be required to leverage them.

In short, start planning for AI-powered operations and a service management future.

Related IBRS Advisory

  1. Running IT-as-a-Service Part 55: IBRS Infrastructure Maturity Model
  2. Sustaining efficiency gains demands architecture risks mitigation Part 2
  3. Artificial intelligence Part 3: Preparing IT organisations for artificial intelligence deployment
  4. IBRSiQ: Approach to identifying an ITSM SaaS Provider

The Latest

18 March 2021: Veeam released a report which suggests that 58% of backups fail. After validating these claims, and from the direct experiences of our advisors who have been CIOs or infrastructure managers in previous years, IBRS accepts there is merit in Veeam’s claim.

The real question is, what to do about it, other than buying into Veeam’s sales pitch that its backups give greater reliability?

Why it’s Important

Sophisticated ransomware attacks are on the rise. So much so that IBRS issued a special alert on the increasing risks in late March 2021. Such ransomware attacks specifically target backup repositories. This means creating disconnected, or highly-protected backups is more important than ever. The only guarantee for recovery from ransomware is a combination of well-structured backups, coupled with a well-rehearsed cyber incident response plan. 

However, protecting the backups is only useful if those backups can be recovered. IBRS estimates around 10-12% of backups fail to fully recover, which is measuring a slightly different, but more important situation than touted by Veeam. Even so, this failure rate is still far too high, given heightened risk from financially-motivated ransomware attacks.

Who’s impacted

  • CIO
  • Risk Officers reporting to the board
  • CISCO
  • Infrastructure leads

What’s Next?

IBRS has identified the ‘better-practice’ from backup must include regular and unannounced, practice runs to recover critical systems from backups. These tests should be run to simulate as closely as possible to events that could lead to a recovery situation: critical system failures, malicious insider and ransomware. Just as organisations need to rehearse cyber incident responses, they also need to thoroughly test their recovery regime. 

Related IBRS Advisory

  1. Maintaining disaster recovery plans
  2. Ransomware: Don’t just defend, plan to recover
  3. Running IT-as-a-Service Part 59: Recovery from ransomware attacks
  4. Ransomware, to pay or not to pay?
  5. ICT disaster recovery plan challenges
  6. Testing your business continuity plan

The Latest

28 March 2021: MaxContact, vendor of a Cloud-based call-centre solution, announced it is supporting integration of Teams clients. Similar vendors of call centre solutions have announced or are planning similar integration with Teams and/or Zoom. In effect, the most common video communications clients are becoming alternatives to voice calls, complete with all the management and metrics required by call centres. 

Why it’s Important

The pandemic has forced working from home, which has in turn positioned video calling as a common way to communicate. There is an expectation that video calling, be it on mobile devices, desktop computers or built into televisions, will become increasingly normalised in the coming decade. Clearly call centres will need to cater for clients who wish to place calls into the call centre using video calls.

But there is a difference between voice calls and video that few people are considering (beyond the obvious media).  That is, timing of video calls is generally negotiated via another media: instant messaging, calendaring, or meeting invites. In contrast, the timing for voice calls are far less mediated, especially when engaging with call centres for service, support or sales activities.

For reactive support and services, video calls between a call centre and a client will most likely be a negotiated engagement, either instigated via an email or web-based chat agent. Cold-calling and outward bound video calls is unlikely to be effective.

The above has significant implications for client service and support processes and call centre operations.

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

The adoption of video calls by the masses is here to stay. Video calling is not a fad, but it will take time to mature. 

Having video support and services available as part of the call centre mix is likely to be an advantage, but only if its use makes sense in the context of the tasks and clients involved.  

Organisations should begin brainstorming the potential usage of video calls for serving. However, adding video calling to the call centre is less of a priority than consolidating a multi-channel strategy and, over time, an omnichannel strategy.  

Related IBRS Advisory

  1. Better Practice Special Report: Microsoft Teams Governance
  2. Evolve your multichannels before you try to omnichannel
  3. VENDORiQ: CommsChoice becomes Australia's first vendor of Contact Centre for Microsoft Teams Direct Routing

The Latest

28 March 2021: AWS has a history of periodically lowering the costs of storage. But even with this typical behaviour, its recent announcement of an elastic storage option that shaves 47% off current service prices is impressive. Or is it?

The first thing to realise is that the touted savings are not apples for apples. AWS’s new storage offering is cheaper because it resides in a single-zone, rather than being replicated across multiple zones. In short, the storage has a higher risk of being unavailable, or even being lost by an outright failure. 

Why it’s Important

AWS has not hidden this difference. It makes it clear that the lower cost comes from less redundancy. Yet this architectural nuance may be overlooked when looking at ways to optimise Cloud costs.

One of the major benefits of moving to Platform-as-a-Service offerings is the increased resilience and availability of the architecture. Cloud vendors, including AWS, do suffer periodic failures within zones. Examples include the AWS Sydney outage in early 2020 and the Sydney outage in 2016 which impacted banking and e-commerce services.  

But it is important to note that even though some of Australia’s top companies were effectively taken offline by the 2016 outage, others just sailed on as if little had happened. The difference is how these companies had leveraged the redundancies available within Cloud platforms. Those that saw little impact to operations when the AWS Sydney went down had selected redundancies in all aspects of their solutions.

Who’s impacted

  • Cloud architects
  • Cloud cost/contract specialists
  • Applications architects
  • Procurement leads

What’s Next?

The lesson from previous Australian AWS outages is that organisations need to carefully match the risk of specific application downtime. This new announcement shows that significant savings (in this case 47%) are possible by accepting a greater risk profile. However, while this may be attractive from a pure cost optimisation/procurement perspective, it also needs to be tempered with an analysis of the worst case scenario, such as multiple banks being unable to process credit card payments in supermarkets for an extended period.

Related IBRS Advisory

  1. VENDORiQ: AWS second data centre in Australia
  2. Post COVID-19: Four new BCP considerations
  3. Running IT-as-a-Service Part 55: IBRS Infrastructure Maturity Model

The Latest

18 March 2021: Zoho is a privately held, Indian, Cloud-based CRM vendor that has grown rapidly internationally. It has just turned 25 years old. While it’s CRM suite is not as sophisticated as that of SalesForce, it is supported by a suite of low-code development tools and marketing-oriented modules for small to mid-sized business.

zoho timeline

Why it’s Important

IBRS has noted that many Australian organisations - in particular the public sector - are only short-listing Salesforce and Dynamics for modern CRM. This is often due to the research into available CRMs being exclusively limited to vendors in leading positions on US-focused market research papers, or advice from consultancies that only refer to such public materials.

To ensure the best suite at the best cost-point is selected, IBRS strongly recommends that the following be considered during the shortlisting process: 

  1.  Be sure to explore niche CRM products, as some of these may have a better fit or specific industry sector focus that can deliver benefits more quickly and at significantly lower costs than the leading products. Just because a solution as complex as a CRM is leading the market, does not mean it is necessarily the best for your organisation.
  2. When reading international reports, keep in mind that North America and Europe have different technology market ecosystems to Australia. In particular, skills availability (and therefore costs) differ. Be sure to factor in local issues.
  3. Carefully consider your starting point. How complex is your software environment? Factor your organisation’s networking infrastructure and the integration requirements both immediate and longer term.
  4. Leverage the channel capabilities and skills of local implementation partners. Implementation partners play a significantly greater role in a CRM’s successful implementation than the product itself. It is therefore vital that buyers not only consider the product in question, but also the available partners. 

The ultimate impact of limiting modern CRM (and related digital services) to the major vendors is that organisations may find themselves paying for far more than they need in a system, while also introducing more complexity into business operations than is necessary. 

IBRS is not suggesting that Zoho (or any of the other niche CRMs from the myriad available) is right for your organisation. Salesforce and Dynamics are exceptional products. However, many organisations do not need exceptional: they simply need more than good enough for their current and future needs, and they need it quickly and at the right cost point.

Who’s Impacted

  • CIO
  • Digital platform leads
  • Procurement teams
  • Business units executives

What’s Next?

Shortlists are critical for keeping procurement agile and within scope. However, do not short-change the shortlisting process by relying on generic reports that do not factor in:

  • specific industry needs
  • the Australian context
  • local channels and skills 

Related IBRS Advisory

  1. Trends for 2021-2026: No New Normal and Preparing For the Fourth-wave of ICT
  2. VENDORiQ: Salesforce Introduces Hyperforce
  3. Salesforce vs Dynamics
  4. CRM Modernisation Part 5: Microsoft Dynamics vs Salesforce Total Cost of Service
  5. IBRSiQ: Can IBRS Review Our Dynamics365 (D365) Licensing Calculations?

 

The Latest

23 March 2021: ServiceNow has signed an agreement to purchase robotic process automation vendor, Intellibot. The deal will see Indian-based Intellibot, which was founded in 2015, embedded into the ServiceNow platform. 

Why it’s Important

RPA is rapidly becoming merged within the low-code everything ecosystem. ServiceNow’s planned investment in buying into RPA is not surprising: other low-code vendors, such as Nintex, have already secured their RPA solutions through acquisition. Buyers of standard-alone RPA solutions can expect more acquisitions, followed by rapid market consolidation in 3-5 years time. 

Who’s Impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Expect RPA to play an increasing role in areas such as customer account creation and management, customer verification, employee on-boarding and off-boarding, data extraction and migration, and claims and invoice processing, among others.

Related IBRS Advisory

  1. Exploring Robotic Process Automation
  2. How Can AI Reimagine Your Business Processes?
  3. Cloud Low-code Vendor Webflow Secures US$140 Million
  4. Aussie Vendor Radar: Nintex Joins the Mainstream Business Process Automation Vendor Landscape
  5. SNAPSHOT: A Robotic Process Automation Infographic

The Latest

20 March 2021: GorillaStack has released capabilities that allows it to monitor and apply governance rules to any external service that communicates with AWS EventBridge.

Why it’s Important

GorillaStack is one of the earliest vendors to address the complexities of Cloud cost management, having started in Australia in 2015 and moved to having strong growth in the international market. In May 2020, GorillaStack was acquired by the switzerland-based SoftwareOne.

Like its international competitors, GorillaStack moved from helping organisations monitor and optimise their Cloud spend, to monitoring the Cloud ecosystems for performance and security concerns. This recent announcement suggests that the next phase of growth for organisations in the Cloud cost optimisation space is not only to detect events in Cloud infrastructure, but also external services, and then apply rules to perform specific actions on those events. Such rules can not only automatically help reduce Cloud spend by enforcing financial governance directly into the Cloud infrastructure, but also helping to enforce security rules.

Who’s Impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Cloud cost optimisation is already an important discipline for organisations with mature Cloud teams. Like software asset management (SAM), tools alone will not see organisations optimise their expenditure on Cloud services. An understanding of the disciplines required and setting up appropriate rules is needed. In addition, IBRS notes that many less-mature organisations have a ‘sprawl’ of Cloud services that need to first be identified and then reigned in before cost optimisations products can be fully effective. 

Related IBRS Advisory

  1. New Generation IT Service Management Tools Part 2: Multi-Cloud Management
  2. How to Get on Top of Cloud Billing
  3. Sourcing Monthly April 2020 – May 2020

The Latest

27 March 2021: Google has announced programs with two US-based insurance companies where clients taking up Google Cloud Platform security capabilities will receive discounts on cyber insurance premiums. 

Why it’s Important

The number of serious cyber incidents is on the increase and insurance premiums in the US have tripled over the last two years. Having a cyber incident response plan in place helps mitigate the risks and reduces the recovery time from a cyber incident, but also contributes to lowering the premium for cyber insurance. It is akin to having fitted window locks to a house, lowering insurance premiums in certain circumstances.

Google’s security posture, and threat assessment services, and services to manage security incidents effectively are sufficient to both reduce the frequency of security incidents and lessen their impact. Insurance actuaries see the benefit in such services and have determined there are savings to be made by the lower risk and risk mitigation profiles. 

Notwithstanding any special programs brokered between Cloud vendors and insurers, being able to demonstrate both a strong security posture and, importantly, an incident response plan will drive down an organisation's premiums, especially as insurance companies are inserting their own teams into incident response situations. 

Who’s Impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

If not already done, organisations should undertake a cyber risk assessment and implement a cyber incident response plan backed by appropriate cyber insurance. 

Related IBRS Advisory

  1. Improving Your Organisation’s Cyber Resilience
  2. Incident Response Planning: More Than Dealing with Cyber Security Breaches and Outages
  3. How Does Your Organisation Manage Cyber Supply Chain Risk?
  4. Why You Need a Security Operations Centre

The Latest

9 March 2021: Dropbox has acquired DocSend for US$165 million. This is a welcome addition to managing the risks associated with information management in a collaborative environment. 

Why it’s Important

Dropbox’s acquisition is not about organic growth, as DocSend’s client base of 17,000 users is dwarfed by Dropbox’s estimated 600 million. The deal is more about positioning Dropbox against the likes of Adobe Document Cloud, by allowing organisations to track what happens to information once it is shared. Being able to manage and track document access is a critical aspect of modern, enterprise-grade file sharing which is needed for secure collaboration. It is a feature missing in most collaborative platforms - at least out of the box. 

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Being able to manage access and track who’s accessed a document is a good start for closing the governance issues of most collaborative platforms (e.g. Teams, Slack, Zoom, Zoho, etc.)  However, organisations should look at adopting a zero trust model for information assets, involving identity management linked to access controls and an ‘encrypt everything by default’ mentality.  

Related IBRS Advisory

  1. Did Dropbox just break knowledge management?
  2. IBRS survey exposes Teams risk - The Australian - 21 January 2021
  3. Microsoft Teams governance: Emerging better practices
  4. Data loss by the back door, slipping away unnoticed
  5. Workforce transformation Part 2: The evolving role of folders for controlled collaboration

The Latest

11 March 2021: Talend, a big data / data integration solutions vendor, has signed an MOU to be acquired by private equity giant Thomas Bravo for US$2.4 billion, representing a nearly 30% premium on its current share price. 

Why it’s Important

Talend has been aggressive with the development of its solutions in the last few years, in particular in the area of managing data quality. During one-on-one briefings with IBRS, the company has demonstrated considerable flexibility in its roadmap and the willingness, and agility, to take cues of the emerging needs of clients.

Conventional wisdom is that once tech firms get subsumed by private equity, innovation declines as business drive turns to ‘rent seeking’ behaviour. This is especially true for funds that have a portfolio of well-established (legacy) technologies. A review of Thomas Bravo’s current and prior investments places Talend in a fund that previously held the likes of Attachmate and Compuware. Attachmate (now owned by Micro Focus) was seen to be aggressive with audits during the period it was owned by Thomas Bravo. On the surface, this could be cause for concern about the future direction of Talend.  

However, there are significant differences. Talend has a growing user base, is positioned in a market segment that is still evolving and has at least a decade of product innovation to come.  

Who’s impacted

  • CIO
  • Business intelligence / big data teams
  • Data management leads
  • Procurement 

What’s Next?

Over the next half-decade, an acquisition of Talend by Thomas Bravo is likely to deliver a continued commitment to market-led innovation. There is enough head-room for the fifteen-year old Talend to continue deploying new capabilities at pace that keeps clients happily buying more services.  

However, as the market for big data management solutions matures - especially shared data catalogues - pressure may start to mount for Talend to refocus on extracting more revenue from clients with proportionally less investment in development. Yes, that is a worst-case scenario, and it is not unique to Talend nor its deal with Thomas Bravo.  

Even so, organisations looking to invest in big data management solutions need to be viewing their investment futures over a decade. Such solutions quickly become fundamental platforms for the business and will be difficult (and expensive) to replace as they become increasingly embedded. Keep the long-term scenario in mind. 

Related IBRS Advisory

  1. Power BI is driving data democratisation: Prepare now
  2. Why investing in data governance makes good business sense
  3. Key lessons from the executive roundtable on data, analytics and business value
  4. Machine learning will displace “extract, transform and load” in business intelligence and data integration
  5. IBRSiQ: Can IBRS provide input into suitable reporting systems using primarily in-system data, but not excluding third party?

The Latest

9 March 2021: The Australian Defence Department has inked a deal with Fujitsu, Leido and KBR to blitz its ageing network and end-user computing environment in a program of work thought to be worth around AU$200 million.

Why it’s Important

Fujitsu is not the first vendor that comes to mind when thinking about end-user computing overhauls. However, in the world of highly secure workplaces, vendors such as Fujitsu and Unisys have unique offerings and experiences. Even if not using these vendor’s capabilities, the critical components of the security architecture are worth noting by organisations that need to protect information assets with an increasingly mobile or distributed workforce. 

Who’s impacted

  • End-user computing / digital workspace architects
  • Security teams

What’s Next?

With remote working no longer a choice, but a business continuity issue, organisations need to rethink traditional approaches to securing information assets and people when planning for the next upgrade of end-user computing. Identity management, contextual access control and encryption of information assets are three essential pillars of a modern, secure digital workspace. Building upon these pillars, organisations can look towards zero trust approaches and adopt emerging new techniques for detecting issues and protecting the organisation, such as embodied in products for user, entity and behavioural analytics (UEBA).

Related IBRS Advisory

  1. Architecting identity and access management
  2. Embracing security evolution with zero trust networking
  3. Trends for 2021-2026: No new normal and preparing for the fourth-wave of ICT

The Latest

18 February 2021: The latest Australian Bureau of Statistics (ABS) Labour Force report highlighted major increases in employment for ICT and business professionals.

Net increases of note in the period were:

ICT professionals 

  • programmers (14%)
  • network professionals (16%)
  • web designers (16%)
  • database administrators (23%)

Business professionals

  • accountants (14%) 
  • information / organisational professionals (27%).

Who’s impacted

  • CIOs
  • Sourcing Teams
  • Human Resources

What’s Next?

These increases are consistent with forecasts that found ICT spending would increase in 2021 to
secure growth opportunities and support remote staff.

Employment increases of the scale above inevitably trigger investment in new systems that need
innovative software solutions, hardware, and specialised ICT services, all of which open the door for
market-ready vendors to promote their offerings.

Related IBRS Advisory

  1. ICT Trends 2021-2021: No new normal and the fourth wave of ICT
  2. IBRSiQ: Can IBRS help in an understanding of where Australian companies are in relation to spend vs revenue? 
  3. Why benchmarking IT costs and staffing is important

The Latest

25 February 2021: Microsoft has announced a new industry Microsoft Cloud product suite. In short, Microsoft is pivoting to deliver vertical market Cloud offering for: Financial Services, Manufacturing, Non-profit and Retail on the back of the success with the Microsoft Healthcare Cloud. The primary purpose of these tailored industry solutions is to meet specific needs, breakdown silos and increase collaboration, productivity and efficiency within and across Industries.

Is this new or are we seeing a response to similar Cloud SaaS verticals from Salesforce and Netsuite?

Why it’s Important

Whether it is regulatory compliance or creating efficiencies, Microsoft is the latest to develop industry driven verticals offerings under the Microsoft Cloud banner. Whilst each MS Cloud solution addresses specific industry needs it also makes a concerted effort to take the existing Microsoft software products suites and add new capabilities to M365, Azure, Dynamics 365 and the Microsoft Power Platform. 

This level of investment by Microsoft in Cloud specific solutions should reduce the need for industries to invest heavily in their own solutions and instead adopt a common off the shelf SaaS solution. But will this provide competitive advantage for industries or will it make everything vanilla over time. Microsoft is planning continuous engagement with Industry leaders to ensure constant innovation so the industry Clouds do not become a one size fits all, set and forget approach. 

Who’s impacted

  • CIO
  • CDO
  • Digital Supply Chain
  • Enterprise Architecture
  • Software Architecture Leads

What’s Next?

Monitor the release of these industry specific Microsoft Cloud solutions in March 2021. As with Microsoft Power Platform products, much of the pricing remains a mystery for these Cloud offerings. By all means get access to release information and hopefully a private preview from March 2021 so you can see if the industry solution really meets your business needs.

Related IBRS Advisory

  1. Book at an advisory session to explore how Microsoft’s Strategy impacts your organisation
  2. Pros and Cons of Going All-In With Microsoft
  3. Google Workspace for Education - From Free to Fee
  4. Oracle’s new federal government Cloud capabilities