Tag: tech

Dimension Data has released its latest digital workplace report, highlighting which technologies South African companies are currently developing and working with.

In South Africa, Dimension Data spoke to 73 respondents of companies with at least 1 000 employees, from large businesses with headquarters in the region.

The companies surveyed reported that mobility was still the most important area for supporting broader digital workplace initiatives.

27% of organisations said that embracing multiple-device-ownership models (BYOD, COPE, company-liable) is the most important technology trend, and 89% identify mobile devices and business applications as being technologies that support business process improvement.

This was followed by an embracing of the consumerisation of IT (25%) as well as an increasing demand to make video communication more pervasive (21%), said the report.

“Ensuring that employees are well-connected and empowered with mobile technologies and applications has resulted in enterprise mobility becoming a key theme of broader digital transformation efforts,” said Dimension Data.

“Those leading on enterprise mobility strategy development and implementation should therefore ensure that mobility initiatives map well against broader digital transformation business objectives.”

Cloud

South African organisations are also turning to the cloud as an alternative to traditional on-premise deployments of workplace technologies.

For communications tools, such as WebEx and desktop video conferencing, 34% of South African organisations have deployed these in their own private cloud environments.
For collaboration applications, such as SharePoint and enterprise social, 22% of South African organisations have deployed these in their own private cloud environments.
For business applications, such as ERP, 18% of South African organisations have deployed these in their own private cloud environments.
“A better cost model is the top reason South African organisations are moving to cloud applications,” said Dimension Data.

“In time, organisations will rely more on fully hosted services for a wide range of digital workplace technology. The opex model is attractive to companies trying to rein in capital expenses, and cloud-based applications are considerably easier to keep up to date.”

However, it noted that many cloud-based applications do not yet meet the security and compliance requirements of many organisations.

Organisations also have existing assets that they own, that work well, and that do not need to be retired, it said.

“For example, 62% of South African organisations host business telephony applications on-premise, with only 5% being deployed in a private cloud environment. For this reason, managed services remain attractive for large organisations, which rely on them heavily as a way of keeping IT costs to a minimum.”

Enterprises are also turning to hybrid deployment models to keep one foot firmly planted in the current world of premise based technology whilst taking their first steps toward the cloud.

Hybrid deployments let organisations move some workloads to the cloud whilst retaining others on premise.

“Organisations with security or compliance concerns can keep applications on site or in private data centres under their own management whilst moving other, less sensitive applications to the cloud. Enterprises with significant investments in systems and applications deployed on premise can transition them to the cloud over a period of years, retiring legacy technology slowly as it becomes obsolete.”

Looking forward

Consumerisation and migrating to the cloud may occupy the minds of CIOs focused on here-and-now issues around digital transformation. However, those keeping an eye to the future see the dawn of a whole new set of technologies that will shape the digital workplace for years to come.

These primarily take the form of augmented reality which has practical uses for field technicians and other specialists needing instant access to information and AI/machine learning which are helping organisations derive insight from vast quantities of data and helping get the right information to the right people at the right time.

Unsurprisingly, the Internet of Things is also dovetailing with – and increasingly driving – a greater reliance on automation in the enterprise, as sensors variously monitor and control lighting, door locks, vehicles, medical equipment, manufacturing machinery, surveillance cameras, and other systems.

75% of South African organisations say they will have a practical use case for augmented reality technologies within the next two years.

The percentage of South African organisations (26%) that say they will never have a practical use for augmented reality technologies aligns quite closely with the global findings, which show that 34% of organisations see no value in this technology.

“It is still very early days for augmented reality technologies, especially in the enterprise context,” the group said.

“The focus is still very much on the hardware, as opposed to the new business outcomes that the hardware could potentially help support. The value of augmented reality technologies needs to be better communicated and in contexts that resonate with enterprises. A more enriched app ecosystem that supports the core technology will be vital to its enterprise success.”

“As this develops, and as the use cases for the technology become better contextualised, the value proposition of AR will be better understood by organisations across industries.”

21% of South African organisations are investing in intelligent agents now, and 18% are investing in IoT, but investment will increase significantly in those
areas over the next 24 months.

“Undoubtedly, however, it is analytics tools that interest South African organisations the most. Strong investment is planned in the area of workplace analytics, with 94% identifying that some form of investment will be made in this area over the next two years.”

“The most important use case for these analytics tools will be in managing the employee lifecycle and improving the customers experience.”

Source: Business Tech

South Africa’s tech billionaires

When the Sunday Times published its annual Rich List for 2016 at the end of last year, it included several billionaire tech executives based on their public investments.

BusinessTech provides an update on the Sunday Times list, using the latest shareholdings of the top executives in the industry against the current share price of that particular company.

Unsurprisingly, the list is littered with Naspers executives who have cashed in on the company’s growth which is largely as a result of it’s share in Chinese Internet and media firm, Tencent, which has enabled Naspers to work up a tidy market cap of R1.1 trillion.

Koos Bekker sits atop the list when it comes to wealth in tech, despite having stepped down as CEO of internet giant Naspers, several years ago.

Bekker is seen as having transformed Naspers into a digital media powerhouse, primarily due to his 2001 bet on Tencent.

During his tenure as CEO, which began in 1997, Bekker oversaw a rise in the market capitalization of Naspers from about $600 million to $45 billion, while drawing no salary, bonus, or benefits, Forbes noted.

He was compensated via stock option grants that vested over time. Bekker, who retired as the CEO of Naspers in March 2014, returned as chairman in April 2015.

Forbes said that over the summer of 2015 he sold more than 70% of his Naspers shares, with his total fortune put at $2.2 billion (R30 billion).

Also on the list are brothers Mark Levy and Brett Levy, who have been busy at Blue Label Telecoms in 2017 as they look to tie up an acquisition deal and recapitalisation of mobile operator, Cell C.

Also featuring on the list is founder and CEO of tracking firm, Cartrack, Zak Calisto.

One of the darlings of the JSE for a number of years, IT service management company, EOH has endured a shaky 2017 so far including the resignation of its long serving chief executive, Asher Bohbot, and a probe from the Competition Tribunal.

Shares in EOH are down from R163 at the end of December, to R124, which has meant a big dent in the wealth of Bohbot, and non executive director and largest shareholder, Danny MacKay.

How many billionaires are there in South Africa?

According to BusinessTech, the distribution of high net worth and ultra-high net worth individuals (UHNWIs) is a as follows:

 

Source: Business Tech

Are we in the next tech bubble?

The obvious question is whether the likes of Facebook, Apple, Amazon, Netflix and Google – collectively known as the FAANGs stocks – are merely pausing for breath after staggering rises so far this year or are about to launch Dotcom Bubble 2.0.

Before the sell-off, Facebook, Amazon, Apple, Microsoft and Alphabet (Google’s parent company) – had increased in value by $600-billion (R7.6-trillion).

That’s nosebleed territory.

Comparing the value of Nasdaq with the S&P, a very rough way of gauging how excited investors are about tech stocks compared with other sectors, generates the kind of multiples last seen when the dotcom bubble was primed to burst at the end of the 1990s.

The initial public offering of Snapchat earlier this year, which valued the social media company at $29-billion before ending up as a bit of a damp squib, also had a rather familiar feel to it for those with long enough memories.

Fund managers seem to think that things are getting a little toppy. According to the latest Bank of America Merrill Lynch survey of institutional investors, 44% think that equities are too expensive.

This is a bigger proportion than at any time since the survey began back in 1998 and up from 37% just last month.

A further 18% of respondents think that equity markets are “bubble-like”.

What’s more, three-quarters of investors said that they thought that tech stocks were either expensive or bubble-like. Investing in high-growth US stocks (being “long Nasdaq” in the vernacular) was top of the list of most crowded trades.

And a net 84% of respondents said that the US was the most overvalued region.

So, all these worried investors are rushing for the doors, right? After all, it is their clients’ money that’s at risk here, not theirs.

Well, according to the very same survey, a net 40% of asset managers say that they are overweight equities, which essentially means they’re making an outsized bet on the asset class. And what’s their favourite sector at the moment? You guessed it – technology.

There are several overlapping explanations for this apparent cognitive dissonance.

The first is that some investors really do believe that “it’s different this time” despite those words being about the most dangerous in finance.

At the turn of the millennium investors were betting on the potential of tech stocks, now that the importance of the internet and its centrality to everyday life is proven.

At the end of the 1990s roughly 300million people worldwide had (fairly clunky) access to the internet; now that figure is 10 times higher and for many it comes through the smartphone that is always on them.

Today’s big tech giants have proven business models and a long track record of churning out both revenues and profits (apart from Amazon that has only just got around to achieving the latter).

This means that while their valuations are stratospheric in market capitalisation terms, they are a bit more conservative when you look at price-to-earnings ratios.

Microsoft, for example, currently has a p:e of around 30 compared with around 50 at the time of the dotcom bubble (at which time Intel had a truly eye-watering p:e ratio of 190).

At the moment, the negativity is quite stock-specific. Short interest in Apple (essentially bets that the value of the shares will go down) has risen by 15% over the past month, according to analytics company S3 Partners.

For the four other FAANGs companies, it’s up just 5% over the same period.

Much of this can be traced to worries that the iPhone 8 won’t be as fast as its rivals.

Apple is so big that if its shares go into reverse it can have a big effect on the whole index.

Another thing weighing on the minds of investors will be the fact that just because stocks are expensive does not necessarily mean that they can’t become even more expensive.

Yes, we’re eight years into a bull market but it could extend into a ninth or 10th year.

Those investors who take their money off the table too early will lose out.

And then there is another issue and it’s a biggy – the almost total lack of other appealing asset classes in which investors can park their money.

They could sell their equities and invest in cash. But that would only guarantee that it gets slowly and surely eroded by rising inflation. And if they think equities are in a bubble then fixed-income assets are, after a decade of record-low interest rates and quantitative easing, strapped into stratosphere-bound hot-air balloons.

Fund managers could just hand the money back to investors but then they wouldn’t earn any fees.

Equity investors also tend to be congenital optimists: they may think equities are overvalued, and technology stock in particular, but they remain overweight equities, and technology stocks in particular, because they back their chances of getting out ahead of the crowd when things start to turn.

They can’t all be right, of course.

Source: www.businesslive.co.za

IoT could help traffic flow

The total cost of road traffic accidents across South Africa’s roads was estimated at R142.95 billion in 2016, equating 3.4% of GDP in that year. With Easter holidays approaching, these figures could increase if no effective drastic measures are taken. “These accidents put a strain on the country’s economy,” says Lawrence Kandaswami, MD at SAP South Africa. “It is important for all sectors, including the private sector, to understand the impact of these costs on the economy, so that we can develop strategies on how to partner with the public sector in managing the influx of a growing population in need of safe, reliable public transport.”

The Internet of Things (IoT) is expected to become a $1.46 trillion industry by 2020. This innovation will have a positive influence across all sectors of business, including public transport, security and in the provision of public healthcare. According to the United Nations, as much as 66% of the global population is expected to live in urban areas by 2050. This means that cities will face many challenges, mostly centred around having to leverage limited resources to deal with a growing influx of people needing services. Public transport is one of the many sectors that will experience strain because of high traffic volumes which can lead to increased road fatalities.
Solving traffic problems with an IoT mindset
Accessibility and safety of public transport is one of the major challenges facing modern urban centres. Navigant Research predicts that from 2025 onwards, public transportation itself will become more of an on-demand service, involving a more efficient use of buses. An IDC report also illustrates that there are 152,000 smart devices being used every minute globally, pointing to a future where the success of cities will be heavily determined by the level of smart and innovative technologies they use.

Additionally, a more citizen-centric business model for service delivery can help alleviate problems such as traffic congestion, safety and shortages of resources especially in public healthcare facilities. Citizens need tangible outcomes, enjoyable experiences and more personalised services. This is what will capture the hearts of many citizens across the continent.

“Smart traffic and IoT are critical for cities to operate more efficiently with better managed traffic flow and open lines of engagement between cities and citizens. This innovation offers the potential of a much safer and inclusive community with the amplified use of digital devices for municipal services across the country,” added Kandaswami.
In this age of innovation, cities are urged to think differently, have a clear vision of the city’s future and a digital transformation roadmap to get there. IoT, like other innovative technologies, presents cities such as Nanjing, China, with exciting fresh methodologies and real-time insights on finding new ways to connect, manage their operations better and provide real value to citizens.

Reimagining the ways cities work with IoT
South African cities stand to benefit immensely from IoT, especially with the high quality and speed that comes with network connectivity and infrastructure. The escalation in urbanisation and climate change is also putting pressure on cities’ management. These require speed and agility, to be able to respond in real-time to challenges such as road accident emergencies and service disruptions. “The biggest challenge we see, so far, is the adoption of technology into cities’ services models, the process requires an innovative technology platform with the ability to work with multiple data sources across all services while providing real-time insights for cities to make fast, accurate decisions,” says Kandaswami.

Cities need to capitalise on innovation opportunities by identifying solutions and planning better for natural disasters and emergencies. Connectivity and data analytics will play an increasingly critical role in helping cities and governments to provide more efficient and effective healthcare, transport and security services, using real-time technology platforms such as SAP S4/HANA.

Big data drives smart traffic
There are three key factors contributing to a smart traffic city namely; people (both drivers and passengers), vehicles and road infrastructure. Innovation is transforming how these key factors could operate harmoniously. As an example, organisations such as Keifuku Bus Company in Japan provide services and solutions that are putting people first using the SAP connected transport safety technology, which allows for data sharing amongst most major cities that are installed with traffic light sensor technologies to ensure a smooth flow of traffic. Innovation helps city managers make decisions for traffic planning and policies fast.
“SAP is convinced that, with the amount of traffic data available in South Africa alone, we could help measure, analyse and manage traffic volumes much better, by using technology and taking advantage of the traffic big data. The ability to analyse traffic big data will help cities consolidate different data sources into a single reliable source for better traffic management, reporting and insight,” explains Kandaswami.

The current South Africa road traffic data availability is not integrated, as it is collected from multiple sources which makes the quality of data unreliable. According to the Road Traffic Management Corporation of South Africa, having a quality comprehensive traffic management system is vital for accurate data collection, analysis and reporting across all factors including human casualties and related costs.

“Leveraging technology will present cities, transport authorities with innovative ways of how to improve road safety, provide sustainable, efficient public transport, manage traffic flows and speed up response time to the inevitable challenges of rapid urbanisation.”

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My Office News Ⓒ 2017 - Designed by A Collective


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