InformationWeek Stories by Sue Tabbitthttp://www.informationweek.comInformationWeeken-usCopyright 2012, UBM LLC.2013-01-18T09:06:00ZU.K. Data Center Colocation Business GrowingU.K. companies are investing in data center colocation facilities to meet growing demand, as IT departments lean more on cloud computing.http://www.informationweek.com/cloud-computing/platform/uk-data-center-colocation-business-growi/240146520?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/cloud-computing/software/8-cloud-tools-for-road-warriors/240142591"><img src="http://twimgs.com/informationweek/galleries/automated/914/01_Clouds_tn.jpg" alt="8 Cloud Tools For Road Warriors" title="8 Cloud Tools For Road Warriors" class="img175" /></a><br /><div class="storyImageTitle">8 Cloud Tools For Road Warriors</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> As more companies move to the cloud to expand their IT capabilities, the effect on storage requirements has been vast, causing companies to increasingly call on external data center services, including colocation options. <P> U.K. Trade & Investment claims that the annual market value of the U.K.'s cloud computing market will grow from &#163;2.4 billion <a href="http://www.ukti.gov.uk/investintheuk/sectoropportunities/ict.html">to &#163;6.1 billion by 2014</a> (equivalent to $9.8 billion), and that by 2015 half of all new IT spending by the public sector will be on public cloud services. This in turn is putting pressure on storage capacity. <P> In response, the U.K. data center market -- the largest in Western Europe -- is currently investing in its facilities at a rate of around $3 billion a year, according to various analyst estimates, with only the U.S. investing more. Market watcher DatacenterDynamics has calculated that, at the last count, the U.K. boasted more than 7.6 million square meters (nearly 25 million square feet) of data center space. <P> In December, cloud analyst firm <a href="http://www.datacenterdynamics.com/focus/archive/2012/12/data-center-market-2013-analysts%E2%80%99-predictions">451 Group predicted</a> a healthy colocation and wholesale data center market in 2013, with growing use of multi-tenant data center space. <P> <strong>[ Services firms are trying to cash in on Windows migration slackers. See <a href="http://www.informationweek.com/software/operating-systems/windows-xp-stalwarts-boost-services-busi/240146497?itc=edit_in_body_cross">Windows XP Stalwarts Boost Services Business In U.K.</a>. ]</strong> <P> Explaining the drivers for renting space in a shared storage facility, Edward Jones, CEO of U.K. property development company PMB Holdings, noted that the cost of constructing a new data center in Europe now runs more than $30 million, representing a risky and unaffordable proposition for many companies. PMB is currently overseeing construction of the MK DataVault, a new colocation data center in Milton Keynes, northwest of London, where businesses will have the option to have facilities tailored to their specific requirements. <P> "Expense always plays a large role in strategic IT investments, and the ongoing economic instability around the world has made companies even more wary of large investments," Jones said. "Many businesses will have stuck to an 'if it isn't broken, don't fix it' attitude to their data storage over the years. Although the economy remains a concern for most companies, the growing number of data centers has brought greater choice and flexibility, making it easier to invest. Likewise, more flexible contracts and financial terms are helping more companies get involved." <P> Aside from the cost benefits of using an external service, data center ownership is also a much riskier strategy that leaves far less flexibility and room for error, Jones added. "A company building a smaller and more affordable center might find their demand outstripping it before long, while a large and expensive facility could become a costly white elephant if demand and growth don't live up to expectations. Renting space in a flexible data center offers a more viable solution with far less risk."2013-01-18T08:15:00Z4 Ways To Prevent 'Cloud Sprawl'Lured by easy-to-install cloud applications, individual business departments are deploying their own clouds and causing chaos for CIOs.http://www.informationweek.com/4-ways-to-prevent-cloud-sprawl/240146526?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/cloud-computing/software/8-cloud-tools-for-road-warriors/240142591"><img src="http://twimgs.com/informationweek/galleries/automated/914/01_Clouds_tn.jpg" alt="8 Cloud Tools For Road Warriors" title="8 Cloud Tools For Road Warriors" class="img175" /></a><br /><div class="storyImageTitle">8 Cloud Tools For Road Warriors</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE -->As if the bring-your-own-device (BYOD) phenomenon wasn't causing CIOs enough grief, individual business departments are drawing on their own preferred cloud services. <P> U.K.-based international managed service provider Logicalis, which has highlighted the problem, calls it "crowd sprawl." Seduced by easy-to-purchase and quick-to-install cloud applications, individual teams and business divisions are finding and deploying their own cloud solutions as a workaround to everyday challenges. <P> CIOs don't have to look far to see the effects of the movement, which also has been dubbed bring-your-own-cloud (BYOC). Employees are tapping into free Google Drive space, free Dropbox space, and free Box.com space -- giving themselves more than enough online room to store confidential customer sales and other mission-critical data outside the company firewall and outside of IT's control. <P> <strong>[ What else will clouds do this year? Read <a href="http://www.informationweek.com/software/enterprise-applications/5-cloud-app-trends-to-expect-in-2013/240145319?itc=edit_in_body_cross">5 Cloud App Trends To Expect In 2013</a>. ]</strong> <P> Inexpensive cloud applications that don't require corporate approval are walking through the door unchecked as well -- from CRM to email to marketing automation. As the situation develops, poorly managed end-user cloud purchases and deployments make for fragmented, redundant, unmanaged and inefficient cloud-based outsourcing decisions with little or no input from IT. <P> The root of the problem is underuse of internal servers, says Logicalis. As Windows became widely adopted and developers created applications specifically for the Windows OS, an explosive number of physical servers were needed to run individual applications on a 1:1 basis. The addition of X86 servers for application development, testing and QA, all running at low utilization, resulted in a physical server sprawl that demanded lots of racks, power, cooling and, in general, was an environment that became costly and difficult to manage. <P> Virtualization offered a one-to-many solution that over time resulted in fewer racks, less power consumption, lower cooling requirements, less floor space in the data center and a much easier-to-manage ROI. <P> Yet use of virtual environments is still hovering at under 20% today, because virtual servers allocated to temporary departmental projects are rarely reclaimed and reallocated when the projects are completed, according to Logicalis. As a result, substantial server space remains underused. Without the right management tools and processes in place, this problem goes unrecognized by even the most experienced data center managers, the company said. <P> This leads IT professionals to mistakenly believe they are out of space and to deny new departmental IT requests. Departments are forced to find their own solutions, often leading them to adopt easily accessible public cloud offerings. "We've managed to move from physical to virtual, which introduced virtual sprawl, and now from virtual to cloud," said Kevin Gruneisen, senior director for cloud and data center solutions at Logicalis. "But without proper management and strategies in place, moving to the cloud in an unchecked manner will result in cloud sprawl and a less relevant IT organization overall." <P> To avoid cloud sprawl and its inherent dangers and costs, CIOs must strategically plan and manage their cloud environments. CIOs should take four critical steps to help mitigate the looming IT crisis, says Logicalis: <P> <strong>1. Develop a strategy. </strong> Without proper planning, the cloud will become nothing more than an extension of the problems it is being employed to overcome. <P> <strong>2. Create a customized cloud solution. </strong> Whether it is public, private or hybrid, the cloud should be tailored to the company's specific business needs, because the cloud is not a one-size-fits-all opportunity. <P> <strong>3. Determine where cloud solutions will reside. </strong> Also decide how they will be operated, to help control the otherwise unmanaged expansion of cloud resources. <P> <strong>4. Assign a manager. </strong> Someone must manage the cloud that's been created to avoid the out-of-control clutter that once existed in unchecked physical data centers as well as the spiraling costs associated with that. <P> <i><a href="http://www.cloudconnectevent.com/santaclara/?_mc=DIWEEK">Cloud Connect</a> returns to Silicon Valley, April 2-5, 2013, for four days of lectures, panels, tutorials and roundtable discussions on a comprehensive selection of cloud topics taught by leading industry experts. Join us in Silicon Valley to see new products, keep up-to-date on industry trends and create and strengthen professional relationships. Register for <a href="http://www.cloudconnectevent.com/santaclara/?_mc=DIWEEK">Cloud Connect</a> now. </i>2013-01-17T11:05:00ZWindows XP Stalwarts Boost Services Business In U.K.With fewer than 500 days of Windows XP support remaining, many U.K. enterprises haven't started migration plans. Services firms are trying to cash in.http://www.informationweek.com/software/operating-systems/windows-xp-stalwarts-boost-services-busi/240146497?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/smb/hardware-software/windows-8-8-big-benefits-for-smbs/240142263"><img src="http://twimgs.com/informationweek/galleries/automated/907/01_windows8pro_tn.jpg" alt="Windows 8: 8 Big Benefits For SMBs" title="Windows 8: 8 Big Benefits For SMBs" class="img175" /></a><br /><div class="storyImageTitle">Windows 8: 8 Big Benefits For SMBs</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> The new year has prompted U.K. services specialists to exploit the shrinking window of opportunity for enterprise organizations to migrate from Windows XP to a newer operating system. <P> Microsoft will cease to provide extended support for the platform in April 2014, leaving businesses and their users vulnerable to security breaches, especially when using mobile devices over open connections, for example in public Wi-Fi areas. Given that sizeable migration projects typically take more than 18 months, any organization not already on top of their upgrade program is potentially at risk. <P> London-based enterprise migration and application rationalization specialist Camwood is among those redoubling its efforts this month as it tries to drive home the growing urgency of the situation. It is highlighting the fact that there are now fewer than 500 days until Windows XP support is withdrawn for enterprises. <P> "Among our own client base, only around 15-20% of businesses are looking at migration so far," said Ed Shepley, a solution architect at Camwood. "For some the issue hasn't hit home yet. Others think they still have time, but 2014 will come round all too quickly and they shouldn't underestimate all that's involved." <P> <strong>[Do you believe Microsoft's reports that Windows 8 sales are on track? See <a href="http://www.informationweek.com/software/windows8/windows-8-license-sales-top-60-million/240145865?itc=edit_in_body_cross">Windows 8 License Sales Top 60 Million</a>.]</strong> <P> The risks of remaining on an unsupported platform are multiple. Being vulnerable to security breaches leaves companies exposed to data theft or corruption, with the risk that they fall foul of data protection legislation and such. The associated brand damage could be costly too. <P> Then there are the efficiency issues, if users are running suboptimal systems on their devices -- for example, platforms that don't support the latest mobile capabilities. "Many users now carry a range of devices and mobile efficiency is critical today," Shepley said. "As just one example, newer platforms support the ability to synchronize notes after a meeting -- something that isn't as straightforward with an older operating system like Windows XP." <P> Camwood is advising customers that, although the deadline is looming, CIOs can plan their migrations so that they prioritize higher-risk users and applications. That way, if time runs out, they have minimized their exposure. <P> Of those organizations that are already actively pursuing migration projects, Shepley noted that there has been a notable rise in interest in thin-client environments, using virtual desktop platforms such as Citrix. This offers companies the chance to reduce costs, while making it easier to provision for secure remote access to internal systems. <P> Another U.K. technology firm keen to help enterprise customers through the transition from Windows XP is 1E. It advises companies on how to maximize IT efficiency by using assets more economically. CEO Sumir Karayi believes more efficient use of IT can help CIOs become innovative and responsive to the needs of the business, and suggests that a forced migration presents an opportunity for IT decision-makers to take stock. <P> "Agility is a big priority for a CIO as change in IT is far too slow," he noted. "The migration to Windows 7 -- or current lack of -- is a prime example. Many companies are only now putting together very large and costly projects where they will send people to every desktop and laptop to upgrade to Windows 7. This is going to take months if not years, and certainly go well beyond April 2014, as well as affect productivity. At least half a day will typically be spent on each PC or laptop, disrupting users. Ultimately IT needs to run at much lower cost and become more efficient. This can be achieved by reducing legacy waste in software, hardware, energy and operations." <P> 1E's approach, in addition to looking for opportunities to remove underused assets, is to automate the migration process. "This would mean it can take place at night without any disruption to the user." Karayi said that when his firm managed a project of this nature for Verizon Wireless' 80,000 desktops, it was able to complete the project in just three-and-a-half months. "Whereas when a renowned systems integrator helped a similar-sized organization migrate to Windows 7, it took more than 16 months," he said. "I dread to imagine the cost and number of engineers involved." <P> The earlier CIOs get started, the more of an opportunity they will have to rethink their existing IT infrastructures and determine where they might derive additional benefits from the exercise. Leave it too late, and they could end up spending more to achieve a lot less.2013-01-16T09:06:00ZMobile Business Intelligence: Here At Last?Tech and market conditions have finally aligned to make on-the-go BI a reality, say analysts.http://www.informationweek.com/software/business-intelligence/mobile-business-intelligence-here-at-las/240146333?cid=RSSfeed_IWK_AuthorsBusiness intelligence on-the-go is finally here, with the arrival of high-performance mobile devices and the evolution of more robust data transport infrastructure, according to U.K.-based IT analyst firm Ovum and a number of other respected market research companies. <P> Until recently, mobile BI solutions have suffered from a lack of technological advancement and use cases, despite accelerating demand for ready access to decision-supporting information from across the enterprise. Now, however, conditions have collided to enable senior executives and managers to experience a new "connected business reality," according to Ovum. <P> These conclusions are expanded on in Ovum's latest review of the mobile BI landscape, <a href=" http://ovum.com/research/solutions-guide-mobile-business-intelligence/">Solutions Guide: Mobile Business Intelligence</a>. In it, the firm suggested that mid-sized vendors including MicroStrategy, Information builders and Yellowfin are leading the field with advanced yet very useable mobile solutions. <P> So-called "mega BI vendor" SAP emerges as a top solution for Apple iOS-enabled devices, meanwhile. While all BI vendors fully support the iOS platform and 90% support Android, there is considerably less support for BlackBerry (50% of vendors) and Windows (supported by only a third of vendors). <P> <strong>[ SAP's fiscal year 2012 came in like a lion, out like a lamb. Read more at <a href="http://www.informationweek.com/software/enterprise-applications/sap-caps-strong-2012-with-modest-q4/240146321?itc=edit_in_body_cross">SAP Caps Strong 2012 With Modest Q4</a>. ]</strong> <P> "There is no question that the iPad's success in the consumer market has affected vendors' go-to-market strategies," said Fredrik Tunvall, an Ovum analyst. "However, to reach a larger audience, they should consider supporting native/hybrid applications for Android and Windows devices, as both are expected to become increasingly prevalent in the enterprise, especially in emerging markets." <P> SAP's proposition has been driven by its acquisitions of Afaria, Syclo, and Sybase and a BI roadmap that is heavily influenced by a "mobile-first" mindset. Rivals IBM, Oracle and SAS are also eyeing market share and, according to Ovum, all have the technology and necessary development resources to improve their solutions quickly in 2013. <P> "We expect BI vendors to enhance their mobile capabilities through in-house development and a continued wave of M&A [merger and acquisition] activity," Tunvall said. "This will also be where we will see some of the most interesting and innovative developments in BI and analytics over the next few years." <P> Ovum's research also exposes a growing trend towards packaged and purpose-built mobile applications for particular vertical sectors, tailored to the needs line-of-business managers. Vendors will use this model to provide a collection of pre-assembled applications and to offer a mobile development platform where users can easily develop and deploy mobile applications for specific needs or roles, the report concludes. <P> In November, Nucleus Research forecast that <a href="http://nucleusresearch.com/news/press-releases/nucleus-research-announces-top-predictions-for-tech-trends-in-2013/">expanded BI adoptions would double worldwide</a> in 2013 as further efforts from vendors make analytics accessible to every user. Forrester Research has made similar claims, predicting that mobile BI will be a particular priority. Its most recent research suggests that 24% of enterprises already use or are piloting mobile BI applications, while 37% are considering mobile BI for near-term implementations. <P> Issuing its top 10 BI predictions for 2013 in <a href="http://biblogg.no/2013/01/15/top-10-bi-predictions-for-2013/">a blog published on a Norwegian website</a>, Boris Evelson, a principal analyst at Forrester Research, wrote, "Mobility is no longer a "nice to have" -- will become the new BI mantra. Currently, mobile BI adoption is behind the curve compared with other enterprise mobile applications. This is mainly due to the perceived lack of specific business use cases and tangible ROI. But mobile BI caught up in 2012, will continue to progress in 2013, and will eventually become the norm. Why? Information workers can no longer wait to make decisions until they get back to the office -- that may be too late." <P> <i>Our 2012 State Of Servers report takes a look at three major technology trends emerging from our latest survey. Also in the new issue of <a href="http://www.informationweek.com/gogreen/121712it/?k=axxe&cid=article_axxt_os">IT Trends</a>: Performance and endurance gains plus lower cost give multilevel cell flash the edge over expensive single-level cell. (Free registration required.)</i>2013-01-15T12:00:00ZU.K. Companies Graded For Social Media UseU.K.'s fastest-growing technology companies failing to engage customers via social media, study says.http://www.informationweek.com/uk-companies-graded-for-social-media-use/240146301?cid=RSSfeed_IWK_Authors<!-- Image Aligning right --><!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/thebrainyard/news/galleries/social_networking_consumer/facebooks-2012-highs-and-lows/240145132"><img src="http://twimgs.com/informationweek/galleries/automated/931/FBYear_full.PNG" alt="Facebook's 2012 Highs And Lows" class="img175" /></a><br /> <div class="storyImageTitle">Facebook's 2012 Highs And Lows</div><span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE --><!-- / Image Aligning right -->Despite their industry-insider advantage, the U.K.'s fastest-growing technology companies still are failing to engage with their audiences via social media, according to a detailed analysis of the activities of the Deloitte 2012 U.K. Technology Fast 50 in 2012. <P> The <a href="http://www.deloitte.co.uk/fast50/winners/2012-winners/index.cfm">study</a>, conducted by U.K. communications agency <a href="http://www.emlwildfire.com/tech_social_media">EML Wildfire</a> and now in its third year, reveals a dip in blogging and use of Facebook over the last 12 months, and widespread failure to exploit the community aspects of social media. Among its findings: <P> -- Only 83% of B2C companies used Facebook in 2012 compared to 100% in 2010 and 2011. <P> -- LinkedIn comes out on top, as in previous years. The social network remained the most popular amongst technology companies (98%), followed by Twitter (82%). However, only 22% of businesses on the network advertised job vacancies on their page, despite being a highly used part of the LinkedIn experience. <P> <strong>[ Want more social tips? Read <a href="http://www.informationweek.com/thebrainyard/news/social_crm/240009236/how-to-turn-customers-into-brand-advocates?itc=edit_in_body_cross">How To Turn Customers Into Brand Advocates</a>. ]</strong> <P> -- Engagement levels on Twitter have fallen. Although the use of Twitter for customer service by many major brands continued in 2012, customer engagement among technology companies fell by almost two thirds to 24%. <P> -- Google+ has struggled to capture companies' interest. Although 42% of the companies studied had Google+ accounts, more than half (57%) of these were no longer active. <P> -- Blogging in general saw a decline, actively pursued as an activity by just 28% of companies <P> -- Business-to-consumer brands continued to be more likely to engage with users than business-to-business organizations. Of the B2C companies with a Facebook page, 38% used it to engage with consumers compared to 36% of B2B companies. However, this gap continues to narrow. <P> Commenting on the dwindling use of Facebook, Danny Whatmough, director of digital strategies at EML Wildfire, said, "Use of social media is maturing and businesses are realizing that, while there are benefits, it is not the silver bullet. As a result there has been a shift in behaviour as companies put more thought into the strategy behind it." <P> Although consumer-facing sectors, most notably retail, continue to lead in innovation -- most recently experimenting with platforms such as Pinterest, Instagram and Tumblr -- many technology companies, especially those with a business-to-business focus, are consolidating their activities in fewer environments. <P> "Companies are looking at what they want to achieve and then ensuring that everything they do is optimised for these purposes," Whatmough said. He highlighted the example of flight search engine business Skyscanner, which the report ranked top for its use of LinkedIn. "[Skyscanner] has taken the time to think about the target audience to ensure that the content it shares is useful and of interest to the associated communities, such as corporate updates and details of available jobs." <P> Similar discernment is becoming evident in company blogging, he said. "Fewer companies are doing this now, but those that do are producing better-quality content," Whatmough said. This reflects businesses' desire to promote expertise, knowledge and experience within their organizations, by positioning senior personnel as 'thought leaders', he said.A significant development that could significantly help lift organizations' profile is the move by Google to provide author rankings in addition to company rankings in its search results. "This will provide an opportunity for individuals to be singled out as experts," Whatmough said. "We expect this to be a major focus in 2013 as companies try to strengthen their perceived credentials in particular areas." <P> Businesses need to beware of using social media to indiscriminately push out one-way broadcasts, however, he warned. "Too many companies are still using these channels to issue their latest press release or company updates," he said. "If that's your focus you will never benefit from the unique community aspect of social media. If you fail to put out valuable content in context, or to engage with your target audience, you shouldn't be surprised if you're not getting the followers or comments you expected." <P> Even blogs are too one-way, said Whatmough. "A better way to engage people is to harness Twitter, LinkedIn and increasingly Google+ to share content and start a dialogue directly within a community," he said. <P> Meeting customers' expectations is important, too, Whatmough saod. That means monitoring social media for mentions of the company and having mechanisms in place to address customer complaints, suggestions and other comments promptly. "Tracking social media for mentions of your company is absolutely crucial," he said. "Reputation is much harder to manage now that everything is online. It only takes one negative tweet from someone influential and a business could find itself in a lot of trouble. Everything moves so fast in the social space that a real-time response is vital. Customers expect this -- if they post a grumble and the company doesn't pick up on it, their experience immediately becomes worse." <P> Company-wide ownership of social media is essential then. "Social media cannot be treated as a silo," Whatmough said. "It must be tightly integrated right across the business, from marketing, PR and communications through to customer service and IT. No single discipline can own it, but everyone needs input into it." <P> <i>Attend <a href="http://www.onlinemarketingsummit.com/sandiego?_mc=WETW01">Online Marketing Summit San Diego</a>, Feb. 11-13, and gather the insights and strategies you need to make the right online marketing choices to deliver the most value for your business. OMS San Diego offers three days of inspiration, connections, and practical learning. </i>2013-01-14T10:15:00ZLonger-Term Outsourcing Contracts Gain FavorMore IT leaders lean away from multiple outsourcing suppliers and short-term contracts, in search of stability and control, Ovum says.http://www.informationweek.com/global-cio/outsourcing/longer-term-outsourcing-contracts-gain-f/240146165?cid=RSSfeed_IWK_AuthorsLonger-term, single-supplier IT outsourcing contracts are becoming increasingly widespread because multi-sourcing arrangements have failed to deliver. <P> This is according to U.K.-based IT analyst firm Ovum, which has set out its predictions for IT buyer priorities in a report, "<a href="http://ovum.com/section/2013-trends-to-watch/">2013 Trends to Watch: Bundled Outsourcing</a>." It claims that, despite the growing requirement for agility and for companies to deliver quick wins from current IT projects, there is recognition that, unless they do the groundwork, organizations won't achieve the strategic transformations they seek. <P> "Buyers are now on their second and third generation of outsourcing, and are mature enough in their purchasing of services to know what they need to deliver their transformation agendas," said Jens Butler, principal analyst, IT services at Ovum, commenting on the report. "This is a trend that has been building for some time. In the mid-noughties there was a preference for using multiple best-of-breed suppliers, but for many the reality was an associated loss of control. Too often the right hand didn't know what the left was doing." This in turn led to escalating costs, scope creep and a failure to deliver the expected results. <P> <strong>[ See how creative CIOs get savings, flexibility and specialized skills from their IT outsourcers. Read <a href="http://www.informationweek.com/global-cio/outsourcing/outsourcings-new-reality-choice-beats-co/240006048?itc=edit_in_body_cross">Outsourcing's New Reality: Choice Beats Cost</a>. ]</strong> <P> Having worked hard to align IT with the business and achieve greater clarity of the company's strategic direction, organizations now have more at stake when outsourcing projects and require tighter governance, Butler said. "Projects are no longer just about saving money, but rather to lead a particular market within 3-5 years, or to drive up customer satisfaction ratios." <P> Ovum, which tracks the global market for packaged outsourcing services on a quarterly basis, claims that average contract lengths internationally are now above four years -- especially across the government sector, but also in manufacturing and financial services. The shift is particularly pronounced in the insurance industry where many contracts are closer to seven lengths, according to Butler. "This reflects the level of transformation required in these markets," he commented. "Contract sizes have increased too, hitting $72 million in the most recent quarter." <P> In 2013 IT buyers will be looking for stability, capability and accessibility in their outsourced service partners, according to the Ovum report. "As their goals become more ambitious, requiring longer-term support and with a high interdependence on systems and services, organizations need to be sure that the vendors they take on will still be around in five years' time. The desire for stability and control, which is being led by the government sector, now ranks as a number two priority, up from four or five out of 10," Butler said. <P> Buyers are also looking for a sufficient breadth and depth of capability, technologically and geographically, he added. "They need to be able to access those resources readily too, so we're seeing suppliers respond by appointing relationship managers who can engage with companies at a business level." <P> Another marked change which appears at odds with companies' need to be more responsive and deliver rapid results, is that organizations are now taking three to six months upfront to understand their exact requirements before embarking on what might be a five-year program of investment, Butler said. <P> To secure budget for this investment, IT buyers have found that if they base projects on topical priorities, such as BYOD-driven mobility or big data/analytics initiatives, the business case is deemed stronger, he noted. "Money tends to flow more easily if projects are seen to tie in with these hot topics -- much more so that with 'boring old infrastructure' work." Social collaboration and cloud-based initiatives are further priorities meeting these criteria. <P> Flexibility remains important however. "As organizations plan ahead, what they can't do is set down a rigid roadmap for five years, where any changes to it could risk derailing the whole project," Butler warned. "But once they have achieved a clearer understanding of their priorities and how these can be met through work on their infrastructure, it becomes easier to identify the quick wins."2013-01-11T09:06:00ZU.K. CIOs Stretch Budgets With Used EquipmentSome UK IT execs embrace pre-owned network equipment in a bid to find more IT budget for new innovation.http://www.informationweek.com/uk-cios-stretch-budgets-with-used-equipm/240146003?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --><div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/windows/reviews/top-10-tech-fails-of-2012/240145329"><img src="http://twimgs.com/informationweek/galleries/automated/932/TechFail1stslide_tn.png" alt="Top 10 Tech Fails Of 2012 " title="Top 10 Tech Fails Of 2012 " class="img175" /></a><br /> <div class="storyImageTitle">Top 10 Tech Fails Of 2012 </div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div><!-- /KINDLE EXCLUDE -->2013 could see a surge in alternative IT spending as CIOs look to make their budgets go further in the light of continued economic difficulties. International network specialist Network Hardware Resale (NHR) claims it has seen a growing interest in extended support for expiring equipment, as well as rising demand for second-hand equipment, as enterprises try to earmark funds for innovation. <P> "I speak to CIOs daily and, alongside the need to mitigate risk and deliver a consistent and reliable platform, is the need to contain costs and free up budget for strategic initiatives," said Glenn Fassett, international general manager at NHR. "Yet, according to the likes of Gartner and IDC, 70-75% of spending for most companies goes on the operation and maintenance of the existing core network, leaving only 25% for innovation and new-build." <P> NHR is an independent reseller of Cisco, Juniper and Foundry Networks equipment, supplying both new and pre-owned equipment. It also provides comprehensive maintenance and support services for products that have been discontinued and are no longer formally supported by the manufacturers. <P> <strong>[ Big data has value that's often not reflected in the books. Read more at <a href="http://www.informationweek.com/big-data/news/big-data-analytics/whats-your-big-data-worth/240144449?itc=edit_in_body_cross">What's Your Big Data Worth?</a> ]</strong> <P> In the U.K. over the last decade NHR reports that its revenues from pre-owned network equipment have grown at a compounded rate of 13% a year, buying customers an average discount of 75.6% compared with products' list prices. The firm also purchases unwanted equipment from organizations, releasing capital back into the companies that can be reinvested in more strategic initiatives. Over the last four years NHR has bought up redundant equipment worth a total of $29 million from U.K. companies, according to its own calculations. <P> "CIOs need to get more for their money at the moment and, by buying the same systems for less, or putting off a forced upgrade program, they can start to balance organizations' dual goals of staying lean and preparing for new growth," Fassett said. "Being more discerning in how they allocate their funds means they can put any savings towards the 25% of budget more usually allocated to innovation." <P> Market analyst firm Gartner produced a paper last year on the subject of <a href="http://community.mis.temple.edu/mis5205sec001f12/files/2012/09/know_when_its_time_to_replac_235400.pdf">premature network replacement</a>. In it, it noted, "Although the lack of a support contract is an issue for network operations, it does not result in a mandatory requirement to replace the equipment. In some circumstances, it is perfectly fine to get support from a third-party vendor." <P> When Cisco discontinued support for its popular Catalyst 6509 chassis in November, NHR responded with a maintenance and support package to extend its life for enterprise customers. "This has been one of our most successful propositions among large organizations," Fassett said. <P> With the Western economic situation showing little sign of imminent improvement in 2013, extending the useful life of stable, core infrastructure, or buying second-hand where the resulting equipment is ultimately the same, is an obvious way of doing more with less -- assuming everything else, such as support and reliability pledges, is equal. In a cost-efficiency context, CIOs must realize that there is more than one way of assessing risk when reviewing their network estates. <P> <i>Outsourcing lets companies concentrate on their core competencies instead of managing IT infrastructure. Generally speaking, IT security processes tend to be a good fit for the outsourcing model, but organizations must be careful not to paint with too broad of an outsourcing brush. In the <a href="http://www.darkreading.com/SecurityServices/util/8456/download.htmll?k=axxe&cid=article_axxe">Finding The Right Security Outsourcing Balance</a> report, we examine the security services that lend themselves best to the outsourcing model and provide some questions to ask to ensure that your organization&#8217;s assets remain safe. (Free registration required.)</i> <P> <P>2013-01-10T11:05:00ZBI Services Market Predicted To Double By 2016CIOs will increasingly draw on BI, analytics outsourcing firms to help deliver timely business insights to users, says U.K. technology research firm.http://www.informationweek.com/big-data/news/big-data-analytics/bi-services-market-predicted-to-double-by-2016/240145995?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/big-data/news/big-data-analytics/20-top-masters-degrees-for-big-data-analytics-professionals/240145673"><img src="http://twimgs.com/informationweek/galleries/automated/934/IntroImage_tn.jpg" alt=" Big Data Analytics Masters Degrees: 20 Top Programs" title=" Big Data Analytics Masters Degrees: 20 Top Programs" class="img175" /></a><br /> <div class="storyImageTitle"> Big Data Analytics Masters Degrees: 20 Top Programs</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> <p>In 2013, we will see a steep rise in outsourced data analytics services as CIOs seek help in providing timely, decision-supporting insights to business users. </p> <P> This is the conclusion of U.K.-based technology market research firm Pringle & Company in an extensive <a href="http://www.pringleandcompany.com/#/bi-market-2011-2016/4572252894">new report</a>, "Business Intelligence Software & Services Market, 2012-2016." <P> The research, conducted in the fourth quarter of 2012, suggests that the market for services provided by business and technology consultancies to develop and implement the systems required to generate data insights, is growing at a compound annual rate of more than 15%. The global market for these services will almost double over the next four years, from an estimated $54.5 billion in 2012 to $96.9 billion in 2016, according to the Pringle & Company report. <P> The overall business intelligence and analytics market, made up of both software and services, was worth $79 billion in 2012, and will now grow at a rate of approximately 16% annually to reach $143.3 billion in 2016. <P> Although enterprises have been grappling with big data headaches for years, the recognition that CIOs need external help to deliver rapidly accessible business insights to everyday users is new. "Across the whole spectrum of business intelligence, analytics is the area of most interest at the moment," said Tom Pringle, author of the report. "While organizations have always been interested in understanding operational performance, CIOs are now seeing more business-led demand -- from the board level down to individual business heads ... to extract new insights from the data that will allow them to experiment and compete more effectively." <P> <strong>[ All the data we're gathering and analyzing has privacy and security implications. Learn more about <a href="http://www.informationweek.com/big-data/commentary/global-cio/interviews/why-youll-need-a-big-data-ethics-expert/240145500?itc=edit_in_body_cross">Why You'll Need A Big Data Ethics Expert</a>. ]</strong> <P> Most CIOs who are used to delivering standard key performance indicator reports are not geared up to deliver this level of dynamic information, and now face a range of issues. These include providing flexible mobile accessibility across a growing number of devices; compensating for users' lack of data literacy; achieving the required speed of information delivery; and ensuring the quality and integrity of source data, Pringle said. <P> As they seek to satisfy growing demand for timely and specific business insight, CIOs must draw on a range of services. These range from assessing and improving the quality of target data sources and making resulting analyses comprehensible to users, to determining the exact needs of users and ensuring that the particular information they require can be delivered to them at the point of need. <P> The Pringle report highlights the indispensable role of external services right across the board -- from management consultancies to technical, deployment and maintenance providers -- in developing an organization's capability to harness the value of data. Its conclusions support the general rule that for every dollar spent on software for business intelligence, more than two are spent on external service providers, as companies seek to plug gaps in their internal data analysis capabilities and associated IT skills. <P> The telecommunications and financial services sectors have long exhibited strong demand for external services, but interest is now growing across a number of other sectors, including <a href="http://www.informationweek.com/big-data/slideshows/healthcare/electronic-medical-records/7-big-data-solutions-try-to-reshape-heal/240144641">healthcare</a>, as providers seek to improve patient care by establishing a more holistic view of patients, and <a href="http://www.informationweek.com/global-cio/interviews/disney-tries-tech-for-a-bit-more-magic/240145731">travel</a>, as airlines, for example, try to sustain the customer experience yet counteract rising costs. <P> Recognizing the opportunity, outsourced service providers are now ramping up their services and new players are entering the market, Pringle said. "Business intelligence, and specifically data analytics, is one of the highest growth areas in IT generally. What's particularly interesting as service providers tap into this opportunity is the entry of non-traditional players. Among them are industry professionals with a lot of operational experience. They are able to complement data and technology experience with a deep knowledge of how particular organizations need to use data for strategic and competitive advantage. Their involvement, alongside data experts, helps deliver the speed of results that is so critical now. Even very large firms don't have all of the skills they need in house, so it makes sense to partner with relevant experts." <P> Companies shouldn't underestimate the groundwork needed to enable more dynamic, business-driven data analytics, Pringle added. "The 'bigger' and more strategic data becomes, the more important it is that the quality is good," he noted. "Presentation is important too, as most users won't be data experts." To this end, technology providers need to work harder to hide the complexity of the data, he said, so that only unambiguous and relevant content is served up to users -- aiding their efficiency, rather than distracting them further. <P> Pointing to CIOs' priorities over the year ahead, Pringle concluded, "To avoid projects that spiral out of control, organizations should start small, focusing on where the demand is coming from in the business: is it to understand sales performance in more detail, for example, or to analyze costs in the supply chain? The sensible advice is probably to look at specific issues rather than take a big-bang approach -- then, if data quality turns out to be an issue, you might be able to get away with a fairly packaged service from an IT provider." <P> <i>Emerging database technology promises to automate more analysis. Here's where it could replace relational systems. Also in the new, all-digital <a href="http://www.informationweek.com/gogreen/120512s/?k=axxe&cid=article_axxt_os">The Rise Of Semantic Databases</a> special issue of InformationWeek: There's a big demand for big data and analytics experts. (Free registration required.)</i>2013-01-08T14:50:00ZCES 2013: PaperTab Tablet Boasts Flexible DisplayU.K. display technology researchers join Intel and Canada's Queen's University to develop 'paper' tablets.http://www.informationweek.com/hardware/handheld/ces-2013-papertab-tablet-boasts-flexible/240145766?cid=RSSfeed_IWK_Authors<!-- KINDLE EXCLUDE --> <div class="inlineStoryImage inlineStoryImageRight"><a href="http://www.informationweek.com/hardware/handheld/ces-2013-7-standout-technologies/240145683"><img src="http://twimgs.com/informationweek/galleries/automated/935/cesice_tn.JPG" alt="CES 2013: 7 Standout Technologies" title="CES 2013: 7 Standout Technologies" class="img175" /></a><br /> <div class="storyImageTitle">CES 2013: 7 Standout Technologies</div> <span class="inlinelargerView">(click image for larger view and for slideshow)</span></div> <!-- /KINDLE EXCLUDE --> A company founded by researchers from Cambridge University in the U.K. is part of a team claiming to be taking tablet computing to the next level. Plastic Logic has formed an alliance with Intel and the Human Media Lab at Queen's University in Canada to develop a 'paper-thin' (and just as flexible) mobile computing device. This was unveiled to the media at the Consumer Electronics Show (CES) in Las Vegas on Tuesday. <P> The PaperTab tablet feels just like a sheet of paper yet is equipped with a flexible, high-resolution 10.7-inch plastic display developed by Plastic Logic, with an interactive touchscreen. <P> The device is lightweight and robust so it can be pushed around on a desk while providing a magazine-like reading experience. By bending one side of the display, users can also navigate through pages like a magazine without needing to press a button. Instead of using several apps or windows on a single display, users have 10 or more interactive displays or 'PaperTabs' -- one per app in use. <P> <strong>[ For more innovating products at this year's consumer gadget-fest, see <a href="http://www.informationweek.com/global-cio/interviews/ces-2013-what-we-want-to-see/240145481?itc=edit_in_body_cross">CES 2013: What We Want To See</a>. ]</strong> <P> "Our flexible plastic displays are completely transformational in terms of product interaction," said Indro Mukerjee, CEO of Plastic Logic. "They allow a natural human interaction with electronic paper, being lighter, thinner and more robust compared with today's standard glass-based displays." <P> The PaperTab device is powered by Intel's second-generation Core i5 Processor. Intel has described the development as being a significant advance in its efforts to explore disruptive user experiences, and it claims that within 5-10 years 'most computers' will resemble sheets of printed color paper. <P> The intuitive interface allows a user to send a photo simply by tapping one PaperTab showing a draft email with another PaperTab showing the photo. The photo is then automatically attached to the draft email. The email is sent either by placing the PaperTab in an out tray or by bending the top corner of the display. <P> Similarly, a user can create a larger drawing or display surface by placing two or more PaperTabs side by side. In this way the device emulates the natural handling of multiple sheets of paper by combining thin-film display, thin-film input and computing technologies through intuitive interaction design. <P> The PaperTab can file and display thousands of paper documents, replacing the need for a computer monitor and stacks of papers or printouts. Unlike traditional tablets, PaperTabs keep track of their location relative to each other and to the user, providing a seamless experience across all apps as if they were physical computer windows. For example, when a PaperTab is placed outside of reaching distance, it reverts to a thumbnail overview of a document, just like icons on a computer desktop. When picked up or touched, the PaperTab switches back to a full screen page view, just like opening a window on a computer. <P> Since Plastic Logic was founded by researchers from the Cavendish Laboratory at Cambridge University, the company claims to have been at the forefront of research and investment into plastic electronics. It boasts a series of technological breakthroughs, including the production of high-quality color rugged plastic displays. <P> Market analyst firm Gartner recently predicted that by 2016 around 40% of the global workforce will be mobile, with two-thirds owning at least one smartphone or tablet device. <P> <i>Nominate your company for the 2013 <a href="http://www.surveygizmo.com/s3/1009971/2013IW500pre-reg?iwid=pl">InformationWeek 500</a> -- our 25th annual ranking of the country's most innovative users of business technology. Deadline is April 12. Organizations with $250 million or more in revenue may pre-register now to receive more information.</i>2013-01-08T09:06:00ZCIOs Ignore Collaboration Tools Too Much, CEB SaysIT leaders are spending too much time and budget money on automation, and not enough on collaboration, says CEB study.http://www.informationweek.com/global-cio/trends/cios-ignore-collaboration-tools-too-much/240145652?cid=RSSfeed_IWK_AuthorsThe way that people work is changing at a much faster pace than organizations have anticipated, with significant and immediate consequences for companies' IT strategies and budgets for 2013. <P> This is according to <a href="http://www.executiveboard.com/exbd/executive-guidance/index.page">comprehensive new research</a> from business advisory firm CEB (formerly known as Corporate Executive Board), which has extrapolated the IT implications of the changes for large businesses. <P> "Although austerity drives have led to a focus on process automation, this isn't producing the scale of improvements needed in employee productivity," warned Andrew Horne, U.K.-based managing director at CEB. After analyzing the results of a comprehensive cross-function study of enterprise working practices published late last year, CEB will issue a list of guidelines to member organizations over the coming weeks, advising them of urgent action they will need to take if they want to deliver significantly improved results. <P> <strong>[ Don't give up your seat at the big table. Learn <a href="http://www.informationweek.com/global-cio/interviews/how-it-can-keep-its-strategic-role-in-20/240145600?itc=edit_in_body_cross">How IT Can Keep Its Strategic Role In 2013</a>. ]</strong> <P> First, CIOs must reduce their focus on large enterprise ERP and CRM projects in favor of deploying more flexible and dynamic business intelligence, analytics, collaboration and mobility products which will more directly help transform the way users complete tasks. <P> "At the moment companies are spending on average around a third of their IT budgets in this area (then a third on large enterprise systems, and a further third on infrastructure)," Horne said. "Any organization spending less than this is seriously lagging, whilst those pushing hardest for improvements are allocating two-thirds of all IT spending to the tools that are really capable of transforming the way users work." <P> Collaboration tools for empowering knowledge workers to share ideas and easily locate the contacts and information they need should be particularly high on the agenda, Horne noted. <P> "One of the biggest surprises in our latest research is the growing impact of collaboration on productivity," he said. "People know that work is becoming more collaborative, but the surprise is that 50% of successful performance now depends on this -- where 10 years ago 80% of the outcome of any task would have been down to the individual. It is the magnitude of the shift that we didn't expect." <P> Other changes will have a more gradual impact over the next three to four years, but need to be planned now, he added. "Indeed, companies need to rethink their strategic planning altogether. The days of setting out annual strategic plans and budgets will soon be behind us," Horne said. "Things change so quickly now that organizations really need to be reviewing their plans quarterly, and ensuring they can adapt them if priorities have altered." <P> But the real wakeup call for CIOs during CEB's latest member survey has been their lack of visibility on what IT users need to do their jobs effectively. "When we asked 'Who in IT really understands the end users and how they get work done?' there was often an uncomfortable silence," Horne reported. "Someone needs to take responsibility for this, and find new ways to discover what users need from technology -- beyond asking their line managers, who are likely to be so removed from day-to-day activities that they aren't actually in the best position to judge this." <P> Then organizations need to look at how the designated tools will make a difference, Horne noted. This goes beyond the remit of IT, he suggested. "It may require the involvement of HR and other disciplines -- in the form of cross-functional support -- as users learn to work more collaboratively, sharing knowledge and ideas more readily, and replicating best practices." <P> Finally, as organizations strive to find the right balance between standardization and adaptability -- and adapt to the increasing consumerization of IT -- CEB proposes that companies approach IT in a layered way. This means separating the enabling architecture, including IT, security from the user interface, applications and data. "Some of this may be hosted in the cloud; also users will be able to find their own apps, which will simply plug in to the company infrastructure. IT will own the integration and the security, but will be much less focused on the interface to users," Horne said. <P> Fuller advice based on these themes will be issued to CEB's members in the weeks to follow. This latest analysis of the IT implications of changing work practices follows a major research program conducted by CEB late last year. This spanned functions including HR and sales and marketing, as well as IT, across 8,000 companies. The resulting report, "<a href="http://www.executiveboard.com/exbd/executive-guidance/index.page">Breakthrough Performance in the New Work Environment: Identifying and Enabling the New High Performer</a>," noted that executives are demanding 20% more productivity from their employees, yet that 55% of workers feel unable to handle the stress of their jobs for much longer. <P> More than any other department, IT has a crucial part to play in helping businesses meet this demand, CEB said. <P> <i>Our 2012 State Of Servers report takes a look at three major technology trends emerging from our latest survey. Also in the new issue of <a href="http://www.informationweek.com/gogreen/121712it/?k=axxe&cid=article_axxt_os">IT Trends</a>: Performance and endurance gains plus lower cost give multilevel cell flash the edge over expensive single-level cell. (Free registration required.)</i>