The Computing newsdesk's views on the latest issues in UK business technology The Computing newsdesk's views on the latest issues in UK business technology The Computing newsdesk's views on the latest issues in UK business technology

Thursday, 02 July 2009

Digital Britain? In your dreams

Ever wondered why you dream? There’s no shortage of theories out there, from Sigmund Freud’s view that dreams are disguised fulfilments of repressed wishes, to one that views dreams as a test drive for new ideas, and another that thinks dreaming is just the brain cleaning up mental clutter ready for the dawn of a new day.

Taking Freud’s wish-fulfilment view, how many out there are dreaming of a UK-wide optical fibre-based network? Not many, I suspect, especially after the publication last week of Lord Carter’s Digital Britain report.

The thing that really gets steam coming out of my ears, is Gordon Brown’s speeches on how important all this is to the UK economy. Comments such as: “We can’t leave this to chance,” and: “The UK will become the digital capital of the world,” would seem to suggest that he understands how important this is to UK plc. The government’s actions fail to match such rhetoric.

Which other country still has an agency ­ a Valuation Office Agency, to be precise ­ that considers optical fibre in the ground as a taxable asset? In fact, the tax only applies when the fibre has data going through it, and it gets worse, because the rating system favours large carriers with large numbers of fibre connections. For small carriers rolling out a few fibres, the charges are harder to swallow.

There is simply no financial incentive for these smaller ISPs to roll out fibre to the 25 to 30 per cent of the country that Carter has said will miss out because it is currently economically unviable.

Let’s move on to one of the big winners of Digital Britain ­ BT, and in particular its Openreach division. Ofcom is already consulting on proposals that would give Openreach control of those green cabinets you see located on most streets.

Openreach is the organisation that will be connecting up ISPs who want to roll out next-generation connectivity to your house. However, its record for doing the same for businesses in the UK leaves a lot to be desired, according to some ISPs I have talked to.

The main issue is a lack of transparency when it comes to connection charges. You can sign up to BT Wholesale for fibre connections, and then later down the line get hit by Openreach charges for connecting that fibre.

And some of these charges are no laughing matter. An ISP I spoke to recently had a nasty surprise after it checked out how much a fibre connection would cost in a large city centre. “You can use the BT Wholesale pricing tool and come back with a nice figure that looks very good, but when you order it, Openreach comes back with extremely high additional costs indicating excess construction charges,” said my source.

“Look at the charge for drilling a hole,” he added. “More than £300! What type of drills are they using ­ gold-plated ones, badged by Armani?”

You get the picture by now, but remember the government and Ofcom has conceded that BT has to make a return on its investment; the question is ­ just how much? If the Openreach charges relating to connecting up fibre for businesses are any indication, ISPs, and that includes BT Wholesale, should prepare to get stiffed big time.

So instead of dreaming about a Britain with state-of-the-art network infrastructure, I’m reminded more of the Ellen Ripley character in the Alien movies. In the last film of the series, Alien Resurrection, Ripley is once again trying to rid the universe of the bio-mechanoid killing machines. At one point she’s chatting to the obligatory android and says: “I don’t dream any more.” When asked why, she answers: “Because however bad the nightmares get, when I wake up ­ the reality is always worse.”

Ring any bells?

Thursday, 18 June 2009

Why it pays to be more social

Since the end of the world as we knew it, we have witnessed a rollercoaster of events in the economic world order and experienced feelings ranging from uncertainty and panic to a brutal reality check and, lately, hopes of a possible recovery.

For many, the post-recession technology heritage will be a portfolio of postponed projects and an IT shop cut to the bone. But how can IT leaders keep things running and return to growth with limited resources in the upturn?

Future challenges are not related to technology, but how to use it as an enabler. This may sound familiar, but chief information officers (CIOs) are looking even more similar to chief operating officers, as they put IT into the context of the new business imperatives.

CIOs across most of the UK’s biggest companies are leading IT transformations, but the smartest are realising the need for more partnership, inside and outside the business, so that such projects can be completed successfully.

A good example is banking. Its need to drive more segmentation, retain customers and rebuild their trust is urgent, as is the creation of better risk management and compliance frameworks. Unsurprisingly, a lot of change is happening.

Collaboration technology can help leaders to identify change agents and expertise within the business. Change is often concerned with altering the way people do things, so if teams can identify someone who can spread the benefits of projects via strong networks, staff become more efficient and risk can be minimised.

A major UK bank, for example, is planning to use an analysis tool to support its merger with a European institution. This will help it reach out to staff worldwide and improve co-operation by examining email content to identify people with relevant knowledge and expertise.

“Such tools are definitely worth the investment, even when it is so difficult to get money to do new things and when there are so many old things to fix,” said the head of innovation at the bank.

Decisions related to multi-sourcing, integration or cost cutting may seem daunting. But seeking advice from internal partners, suppliers and peer groups to react to market changes -­ and justifying projects that will help understand what the business needs ­ should be one of the steps towards becoming a proactive, valued CIO.

By Angelica Mari

Monday, 15 June 2009

Digital Britain – finally

Tomorrow afternoon in a building designed by Scottish neo-classical architect Robert Adam, close to Charing Cross railway station, Lord Carter of Barnes will rise to his feet and deliver the final Digital Britain report.

RSA House is the venue for the report's final disclosure. However, Lord Carter is still working on the implementation plan which will fill in the detail about exactly how all the mission statements will be delivered – the who and when – and hopefully the how much.

I'll be at the event, and I would like to think I'm going to hear something amazing tomorrow, that Carter will blow everybody out of the water with a succession of stunning announcements designed to move the UK's communications infrastructure into the 21st century. So, are we going to get visionary thinking from Lord Carter - or a point release of January's interim Digital Britain report plus small tinkerings at the edge?

The big problem for Carter is that he's hamstrung by the government's aversion to stumping up a serious amount of folding drink vouchers to deliver the proper digital IT infrastructure needed by the UK to compete effectively with our global competitors.

At the last forum organised to discuss Digital Britain, Gordon Brown took the stage and said: "We can't leave this to chance." Unfortunately I suspect that is precisely what will happen after tomorrow's announcement - Brown will be leaving the country at the mercy of Lady Luck, and if his recent luck is anything to go by, that doesn't bode well for the digital future of the UK.

By Dave Bailey

Thursday, 09 April 2009

Cloud computing comes of age

Isn’t it time IT leaders stopped asking where software-as-a-service (SaaS) might be deployed in their business, and started wondering instead where it shouldn’t?

Recently, SaaS pioneer Salesforce.com celebrated its 10th birthday. This year it also became the first enterprise cloud computing company to reach $1bn (£700m) in annual revenue, and has about 1.5 million subscribers.

If you want an alternative snapshot of how far on-demand/SaaS/cloud computing ­ – whatever you want to call it ­ – has come, look no further than Serena Software, an application development tools provider that migrated more than 700 worldwide staff to Gmail, in about the time it takes me to get to and from work.

Here is a sizable company dumping Microsoft Exchange because it can get a cheaper, more efficient and no less reliable service from the cloud. All done in the blink of an eye.

A recent Forrester Research report confirmed that the model has evolved beyond its early roots in customer relationship management and human capital management applications and is now gaining traction in areas such as web conferencing, collaboration and IT service management. These categories will experience significant SaaS success over the next decade, says Forrester, with only business intelligence and integration technology vendors unlikely to adopt the model.

But what of the caveats to this brave new world? Gmail itself was rocked by an outage in February, which had the Twitterati tweeting furiously. It was only out for about two and a half hours, but highlighted the problems, some said, of letting loose consumer technologies in the corporate sphere, and especially of using cloud-based technologies ­ – it’s out of your IT department’s control, you see?

Well, it hasn’t bothered Serena. René Bonvanie, senior vice president of IT, told me that Salesforce, Google et al do a better job of uptime and transparency than most IT departments can manage, it’s just that outages are so much more vis ible with these vendors.

And as for security concerns – ­ they are no greater with Salesforce than they would be with an on-premise Oracle solution, he says. Recent privacy concerns around Google’s cloud computing services may rock the boat for a little while, but too much momentum has already gathered for this to spoil the SaaS party.

By Phil Muncaster

Thursday, 05 March 2009

Earning the right to start complaining

Several years ago, there was an unfortunate incident around the Morgan family Christmas dinner table. I nearly choked on my lunch.

I should point out ­ for fear of incurring my mother’s wrath ­ that the cooking was not to blame. Instead, my gagging resulted from the chutzpah of my sister’s then beau, a merchant banker, who had stormed into the room, sulking like a child denied a top-of-the-range Transformer. The reason for his anguish? His Christmas bonus wasn’t what he’d hoped ­ what with it being a paltry four times my entire income for that year.

So for all those who argue that the latest storm over bankers’ bonuses has all the hallmarks of naked envy, I think back to that Christmas dinner, and am reminded of the divisive nature of wages.

Few subjects create friction as readily as pay, and the reasons are fairly clear. Employment is one of the few areas where we are given explicit statements concerning our worth to another party.

The link between pay and employee morale should not be underestimated. Because although some workers will complain about the unfairness of the eye-watering bonuses being paid to bankers, it is fundamentally an issue that does not affect people’s day-to-day life. Start messing with their take-home pay and you’ll see a real fuss.

Take, for example, technology vendor HP. On the back of some disappointing financial results, it announced an across-the-board pay cut for all its staff ­ or at least all its staff working in countries with labour laws that allowed them to do it. In other places, such as the UK, staff are being consulted about the proposal.

There is some sense in HP’s approach ­ though I would suggest that cutting wages is a last resort, and find it difficult to conceive that HP could not have devised other cost-saving measures first.

Nevertheless, for better or worse, its management looked at the options of redundancies or pay cuts and thought the latter was the better option.

And it is not just HP that is trimming wage bills. BP recently emailed its employment agencies to let them know that from March it would be paying IT contractors 10 per cent less for their work.

These examples might not be indicative of a widespread trend, but they are worth taking note of. With the economy in turmoil, the prospect of a significant period of deflation looms, and that could make salary cuts a reality for many.

Faced with falling prices for goods and services, business leaders may conclude that staff numbers cannot be reduced further and have to consider cutting wages. I suspect many firms would take BP’s approach, at least initially, where any pay cuts are targeted at contractors and not employees. But ­ on the ultra-gloomy side ­ all staff could ultimately be affected.

That is likely to be a bitter pill for staff to swallow. And managers would do well to consider the psychological impact ­ staff would effectively be told their work is no longer as highly valued as it once was. That need not be calamitous, but it needs careful handling.

The HP example provides a lesson in how not to go about it. When making painful decisions, it can be useful to convey the message that the team is in this together. HP tried to do that by announcing that its chief executive, Mark Hurd, would take a 20 per cent cut in his basic salary, compared to his staff who were taking a five per cent cut.

That gesture looked less laudable when bloggers drew attention to Hurd’s remuneration package. The announced cut equates to about $290,000 off a basic salary of $1.45m ­ but Hurd’s complete package last year was worth $42.5m. Suddenly, that looks less like taking one for the team.

And there’s the rub ­ sensitivities about pay really become inflamed when people start feeling they are being treated inequitably.

By Gareth Morgan

Thursday, 19 February 2009

Tapping a rich source of IT innovation

A recent survey of global executives concluded that IT is not a major contributor to innovation. They clearly have not been listening to the same IT professionals as me. The ones I meet on a regular basis are mostly bursting with ideas about how they could deliver business improvements or use new technology for money-making purposes ­ if only they had the time.

In my experience, a lot of potentially good ideas are discussed away from the office, over lunch, in the pub or smoking room ­ – or at least, the part of the pavement or car park that is the modern-day equivalent of the smoking room.

Some of those ideas, such as the one involving the pint pot and the managing director’s trousers or the national mobile phone camera surveillance network, are not helpful.

But others pinpoint specific problems observed and experienced at the sharp end of daily IT service provision, accompanied by logical or innovative suggestions on ways to solve them, or centre on ideas for new hardware and software that may be able to exploit dormant commercial opportunities.

The trouble is, those ideas are always left on the table with the soggy beer mats and grubby coffee cups. Once back in the office, the volume and urgency of the workload forces all thought of putting the world to rights on the back burner, not to be even thought of again, much less acted on.

It is an old complaint, but IT staff continue to spend most of, if not all, their time fire fighting – ­ just keeping mission-critical systems and applications up and running, and clearing up those myriad issues that affect user desktops, laptops and handheld PCs on a regular basis.

And in these difficult economic times, when pretty much every resource you can think of is pared to the bone, having a lean, mean IT operation that focuses on performing its core duty seems the natural option. So much so that anybody who can find the time within their working hours to think about how IT can help improve the business must be feeling pretty nervous about their jobs right now. If this is you, and you’re not feeling nervous, please accept my apologies for sowing any seeds of doubt.

And that is precisely what makes criticism from global executives even harder to stomach. Perhaps instead of lamenting what they clearly feel to be an unacceptable situation, these boardroom mandarins should take the time to listen to what their IT staff say and find out if they have any innovative ideas in the first place.

Admittedly, that approach would require a business leader who was able to spot a good idea when they encountered it, something that a few could not do if one hit them in the face with a cricket bat.

Of course the meeting does not have to take place in the pub, and for the sake of mutual courtesy and respect, it might be better if it didn’t. But bearing in mind the time constraints involved on both sides of the equation, some form of lunch hour meeting ­ – preferably with either free or subsidised refreshments in order to ensure good attendance –­ is probably the only way to take things forward.

Having taken the trouble to open their ears, making some commitment to the additional manpower and resources needed to put those innovative ideas into practice then becomes paramount –­ paying overtime if necessary. It must be remembered that not everyone is so scared of losing their job that they will work extra hours for nothing.

The expertise and creativity that can help drag ailing businesses out of the financial quagmire are often right under their own noses. Executives should stop carping and put more effort into digging them up and harnessing their potential.

Friday, 13 February 2009

A right Royal IT mess

When London’s Royal Free hospital admitted that its new medical records system had been failing patients, it came as no surprise to me.

The chief executive of the hospital, Andrew Way, said his staff had been disappointed with the IT system and its implementation had meant a large amount of inefficiency and fewer patients being seen.

I experienced the hospital’s troubles first-hand a few months ago and wrote an article about it at the time, only we chose not to name the hospital then - I did not want to look as though I was abusing my position as a journalist to make a complaint.

But now this is out in the open and the problems have been acknowledged by the hospital boss I thought I’d point out some of the Royal Free’s main problems – based on my experience.

For example, the accident and emergency department is not on the same integrated IT booking system as the rest of the hospital and the different departments that scan patients are not linked up with each other.

A doctor even told me to keep my own records if I wanted the doctors to be informed before they treated me.

It is clear these hospital difficulties have been ongoing so when will these problems be sorted?

Reports leaked out as far back as August 2008 of board level meeting minutes from the Royal Free indicating the June rol-out of the Cerner Millennium Care Records Service was not going well and appointments and records were being lost in the system.

The Cerner software was being installed by BT, which in 2003 won a £993m contract to build a care records system throughout the NHS, also known as the NHS Spine.

The minutes discussed the possibility of legal action against BT. A spokesman from BT Health said no action has yet been taken and when I wrote my column in November the Royal Free said it was too early to comment on what might happen, but that as a result of technical difficulties with the Cerner system, a programme was being set up with its local service provider BT, Cerner, and the London Programme for Information Technology to address the issues.

“While not all technical problems have been resolved, the programme to address these issues is progressing,” said a hospital spokeswoman in an email.

It is now clear this programme did not progress quickly enough.

By Rosalie Marshall

Thursday, 06 November 2008

Every cloud has a silver lining

As the latest economic reports confirm, US retailers are hurting. Americans’ expectations of easy credit have come to a crashing halt; the big spenders have become penny pinchers. With consumer spending plummeting, seismic changes in that particular market are inevitable.

But this is hardly revelatory and with more pressing problems of their own, IT leaders could easily be forgiven for not giving too much attention to the plight of shopkeepers across the Atlantic. Nevertheless, looking at their predicament, I think we can all draw some comfort.

It is still too early to make predictions about how a dramatic change in US spending habits will play out, so I won’t. But those organisations that are prepared -­ the ones able take decisive actions quickly -­ are the ones that will emerge stronger. I think that is instructive because there can be little doubt that momentous change is on the IT horizon too.

And while it would be wrong to suggest that the state of the global economy will be entirely good news for IT leaders, it need not be the calamity that some industry watchers are predicting.

The IT function has had to evolve continually. For example, outsourcing and offshoring have become routine -­ and often cost-saving ­- activities that changed the face of IT departments. IT leaders have become well drilled in identifying core functions, and those that can be passed to third parties.

For the past few years, virtualisation has been at the front of many IT chiefs’ minds. The ideas of doing more with less, trimming the fat, have become deeply ingrained in today’s IT strategies. That means many IT departments will enter what will be challenging times in good shape.

In fact, it does not matter how far IT departments are in terms of implementing virtualisation technology, or whether the organisation has established a transglobal network of IT workers, or has kept the IT team intact. What matters most is the mindset.

For those pitiable US retailers, one of the biggest challenges is that the change in customer behaviour has been so dramatic. Guessing how these reformed free-spenders will behave now is not easy.

In IT, the discipline of seeking out inefficiencies in the infrastructure has become part of working life. The fact that the belt-tightening may become more painful need not disguise an opportunity.

IT chiefs who can demonstrate leadership in reining in costs while maintaining a first-class service will burnish their reputation within the organisation.

It is inevitable that IT will be pressed to continue its evolution. Indeed, some industry watchers foresee the end of the IT department as we know it, as businesses migrate en masse to the cloud.

The hype around cloud computing was ratcheted up another notch by Microsoft’s recent Windows Azure announcement. Microsoft’s view on cloud computing is, of course, predictable -­ after all, it has a vested interest in prolonging the shelf life of on-premises software, while knowing it has to have some form of cloud computing offering to stay in the game. But its argument, that cloud computing will complement existing IT infrastructure, holds some water nonetheless.

In straitened times, the promise of making IT a more predictable cost to the business can begin to look appealing. And cloud computing can potentially tick some of those boxes.

But for IT departments, that need not spell doom. It offers IT leaders another tool to demonstrate their cost-trimming prowess. And it is that ability to harness those technologies capable of enhancing the business that will not only preserve the status of the IT department, but demonstrate why good IT leaders are an integral part of those organisations.

By Gareth Morgan

Thursday, 30 October 2008

E-commerce success is all in the delivery

It had to happen in the end. “Green” has been replaced on the list of most overused terms employed to sell IT by “economic downturn”. The list of vendors prepared to reinvent their products to highlight just how much money and time they could save you, and how much more efficient they can make your staff, has reached critical mass. The world’s going to hell, but before we get there, you might as well save your firm some money and get a promotion by buying a new piece of IT kit.

Actually, can I shock you for a moment? E-commerce is doing pretty well. Among all the talk of recession, depression and economic regression, there is a success story out there, and used in the right ways, the web channel could be a godsend for retailers. It could help public-sector bodies too. Get citizens to request and pay for council services online, for example, and imagine how many drop-in centres you could close.

A recent report by affiliate marketing firm Linkshare found that shoppers are increasingly turning to the web for the best bargains or to do research before shopping in store. Sites that feature peer reviews of products are also reporting healthy rises in traffic. While 56 per cent of consumers said they are planning to decrease offline spending, only 46 per cent said the same about online buying.

The message is clear get your online store in order, preferably before Christmas, although by now it’s probably too late for this year’s festive period. Improving your online store involves a range of different factors, including a search engine optimisation strategy to ensure you rank high on Google, as well as usability, availability and performance testing. Another key consideration is the integration of online, bricks and mortar, and call centre channels.

But the mistake many in the e-commerce sector seem to make is paying too much attention to the bells and whistles on their web site and spending too little time on the back-office stuff that can make or break the business. They might not be as sexy as web design, with its Ajax this and Flash that, but supply chain management and other disciplines are just as important. You might have made the check-out process as smooth and the site navigation as effortless as possible, but if a customer’s order is left unfulfilled because you’ve run out of stock, you can kiss your next sale goodbye.

It has become something of a truism these days, but in the world of e-commerce the customer truly is king; retention is difficult when switching suppliers is so easy, and prices are so competitive. That’s when factors such as delivery become extremely important.

Industry body IMRG last year launched a new initiative ­Internet Delivery is Safe (IDIS) ­ to combat the woeful levels of delivery service provided by most e-commerce firms. Very few allow you to choose delivery times, or if they do it will come at a premium price.

Retailers displaying the kitemark have to ensure they provide clear information on deliveries before an order is placed, delivery within an agreed timeframe, and clear charges. The emphasis is on convenience and reliability.

Recently, I had the pleasure of ordering a new bed from the Co-op ­like your typical Web 2.0 shopper, I have no loyalty to this company, I just found it through Google ­ and noticed the IDIS emblem proudly displayed.

Available delivery dates were shown on an easy-to-read calendar display, three-hour time slots were offered, then follow-up phone calls to check the address, and finally a text to confirm details. It’s not rocket science, but these things could help your customer retention at a time when, as you know, we’re all headed for economic disaster. Oh, and the bed was delivered on time too, by the way.

By Phil Muncaster

Thursday, 18 September 2008

Virtually disappointed

Following all the anticipation, the kick off to the VMworld conference this week was slightly disappointing. And after speaking to customers and analysts at the event, I know many feel the same.

A full audience awaited the new VMware president and chief executive, Paul Maritz. It was the ex-Microsoft employee's first major presentation to customers, partners and press since he joined VMware earlier this year and replaced founder Diane Greene, and he had a chance to put right the stories that have circulated on how Greene's departure caused share prices to plummet and important senior executives to step down. Maritz's keynote speech could have been an opportunity for VMware to show the world it would continue its innovation climb and not let the purchase by EMC diminish its hunger.

Instead Maritz's opening speech was flat and the announcements he made did little to surprise anyone. He did not mention his past or register any excitement with his new position.

Customers I spoke to expected the cloud announcements that were made. Some had read the gist of the strategy in the press already and others expected the move because of Maritz's background as chief executive of EMC's Cloud Division and founder of the company's acquired firm Pi.

The keynote told the audience VMware will expand its server virtualisation technology to build the first virtual datacentre architecture – which the firm calls a Virtual Data Operating System - that will allow businesses to pool all types of hardware resources, including servers, storage and networks, into an aggregated on-premise cloud. The capacity will then be able to be federated to off-premise clouds, said Maritz. VMware will partner with vendors such as Intel, Cisco and IBM to ensure the platform succeeds.

But it seems the idea has still to be developed a great deal before VMware can expect a large uptake from customers.

The topic concerning many customers is how secure is it for them to host their infrastructure off-site? And will such a move comply with regulation, especially European Union data privacy laws that require information to be stored within the EU. Indeed, that is why EMC's consumer cloud division, Mozy, has just opened its first datacentre outside the US, in Dublin.

Maritz is aware the new idea needs a lot more work before it will start appealing to customers. Following a question and answer session with the press, Maritz told me it was a complicated issue and he did not have to time to expand on the details, but he said: "The strategy will not take off before VMware solves these data issues and puts in place the necessary solutions".

Considering the cloud announcement was the main focus of Maritz's keynote, I don't think I was alone in expecting some more granular details on how the initiative would actually take off.


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