Monday, February 18, 2008

Gartner Highlights Key Predictions for IT Organisations and Users in 2008 and Beyond

Egham, UK, January 31, 2008 — Gartner, Inc. has highlighted 10 key predictions of events and developments that will affect IT and business in 2008 and beyond.

The predictions highlight areas where executives and IT professionals need to take action in 2008. The full impact of these trends may not appear this year, but executives need to act now so that they can exploit the trends for their competitive advantage.

"Selected from across our research areas as the most compelling and critical predictions, the trends and topics they address this year indicate a strong focus on individuals, the environment, and alternative ways of buying and selling IT services and technologies," said Daryl Plummer, managing vice president and Gartner Fellow. "These areas of focus imply a significant groundswell of change that may in turn change the entire industry."

These predictions are selected from more than 100 predictions that Gartner presents and reviews every year. These predictions focus on general technology areas rather than on specific industries or roles. This year's predictions include:

By 2011, Apple will double its U.S. and Western Europe unit market share in Computers. Apple's gains in computer market share reflect as much on the failures of the rest of the industry as on Apple's success. Apple is challenging its competitors with software integration that provides ease of use and flexibility; continuous and more frequent innovation in hardware and software; and an ecosystem that focuses on interoperability across multiple devices (such as iPod and iMac cross-selling).

By 2012, 50 per cent of traveling workers will leave their notebooks at home in favour of other devices. Even though notebooks continue to shrink in size and weight, traveling workers lament the weight and inconvenience of carrying them on their trips. Vendors are developing solutions to address these concerns: new classes of Internet-centric pocketable devices at the sub-$400 level; and server and Web-based applications that can be accessed from anywhere. There is also a new class of applications: portable personality that encapsulates a user's preferred work environment, enabling the user to recreate that environment across multiple locations or systems.

By 2012, 80 per cent of all commercial software will include elements of open-source technology. Many open-source technologies are mature, stable and well supported. They provide significant opportunities for vendors and users to lower their total cost of ownership and increase returns on investment. Ignoring this will put companies at a serious competitive disadvantage. Embedded open source strategies will become the minimal level of investment that most large software vendors will find necessary to maintain competitive advantages during the next five years.

By 2012, at least one-third of business application software spending will be as service subscription instead of as product license. With software as service (SaaS), the user organisation pays for software services in proportion to use. This is fundamentally different from the fixed-price perpetual license of the traditional on-premises technology. Endorsed and promoted by all leading business applications vendors (Oracle, SAP, Microsoft) and many Web technology leaders (Google, Amazon), the SaaS model of deployment and distribution of software services will enjoy steady growth in mainstream use during the next five years.

By 2011, early technology adopters will forgo capital expenditures and instead purchase 40 per cent of their IT infrastructure as a service. Increased high-speed bandwidth makes it practical to locate infrastructure at other sites and still receive the same response times. Enterprises believe that as service oriented architecture (SOA) becomes common "cloud computing" will take off, thus untying applications from specific infrastructure. This trend to accepting commodity infrastructure could end the traditional "lock-in" with a single supplier and lower the costs of switching suppliers. It means that IT buyers should strengthen their purchasing and sourcing departments to evaluate offerings. They will have to develop and use new criteria for evaluation and selection and phase out traditional criteria.

By 2009, more than one third of IT organizations will have one or more environmental criteria in their top six buying criteria for IT-related goods. Initially, the motivation will come from the wish to contain costs. Enterprise data centres are struggling to keep pace with the increasing power requirements of their infrastructures. And there is substantial potential to improve the environmental footprint, throughout the life cycle, of all IT products and services without any significant trade-offs in price or performance. In future, IT organisations will shift their focus from the power efficiency of products to asking service providers about their measures to improve energy efficiency.

By 2010, 75 per cent of organisations will use full life cycle energy and CO2 footprint as mandatory PC hardware buying criteria. Most technology providers have little or no knowledge of the full life cycle energy and CO2 footprint of their products. Some technology providers have started the process of life cycle assessments, or at least were asking key suppliers about carbon and energy use in 2007 and will continue in 2008. Most others using such information to differentiate their products will start in 2009 and by 2010 enterprises will be able to start using the information as a basis for purchasing decisions. Most others will stat some level of more detailed life cycle assessment in 2008.

By 2011, suppliers to large global enterprises will need to prove their green credentials via an audited process to retain preferred supplier status. Those organizations with strong brands are helping to forge the first wave of green sourcing policies and initiatives. These policies go well beyond minimizing direct carbon emissions or requiring suppliers to comply with local environmental regulations. For example, Timberland has launched a "Green Index" environmental rating for its shoes and boots. Home Depot is working on evaluation and audit criteria for assessing supplier submissions for its new EcoOptions product line.

By 2010, end-user preferences will decide as much as half of all software, hardware and services acquisitions made by IT. The rise of the Internet and the ubiquity of the browser interface have made computing approachable and individuals are now making decisions about technology for personal and business use. Because of this, IT organizations are addressing user concerns through planning for a global class of computing that incorporates user decisions in risk analysis and innovation of business strategy.

Through 2011, the number of 3-D printers in homes and businesses will grow 100-fold over 2006 levels. The technology lets users send a file of a 3-D design to a printer-like device that will carve the design out of a block of resin. A manufacturer can make scale models of new product designs without the expense of model makers. Or consumers can have models of the avatars they use online. Ultimately, manufacturers can consider making some components on demand without having an inventory of replacement parts. Printers priced less than $10,000 have been announced for 2008, opening up the personal and hobbyist markets.

http://gartner.com/it/page.jsp?id=593207

Saturday, January 26, 2008

Bank Pembangunan And SME Bank To Separate April 1

25 January 2008
Bernama

BUTTERWORTH, Jan 25 (Bernama) -- Bank Pembangunan and SME Bank will be undergoing a demerger exercise beginning April 1 to further strengthen and increase their respective capacities and banking service efficiencies.

Second Finance Minister, Tan Sri Nor Mohamed Yakcop said SME Bank's financial position and operational achievements were now sufficient for it to be directly placed under the Finance Ministry.

Prior to this, SME Bank was a subsidiary of Bank Pembangunan but with the separation the bank will be upgraded and come under the direct supervision of the MoF.

Speaking at the launching here today of the Seberang Jaya SME Bank branch, the bank's second branch in Pulau Pinang, Nor Mohamed said the move would also allow the two banks to provide
more effective services to their respective target markets.

Bank Pembangunan will continue to play its role of providing medium to long term financing to the infrastructure, maritime and high technology sectors while SME Bank will provide financing and advisory services to entrepreneurs from the small and medium industries.

There will be no changes in their administrative structures, and they will function as usual and in synch with their respective directions, Nor Mohamed said.

Under the Ninth Malaysia Plan, the government has allocated funds of RM690 million to the SME Bank for the purpose of financing and developing entrepreneurs.

Speaking to reporters later, Nor Mohamed said the increased per capita income in the country, from 13.5 percent during the period 2000-2003 to 39.5 percent in 2004-2007, has enabled it to bear the effects of an economic downturn in the US.

Meanwhile, chairman of SME Bank, Datuk Gumuri Hussain said that 10 funds for SMI entrepreneurs were channelled through the SME Bank and they covered the areas of biotechnology, handicraft, halal and graduate entrepreneurs.

http://www.smebank.com.my/news_detail.asp?id=86

SME Bank to be separated from Bank Pembangunan

25 January 2008New Straits Times

SMALL and Medium Enterprise Bank Bhd (SME Bank) will be upgraded and made a separate entity from its parent company, Bank Pembangunan Group, beginning this April.

Second Finance Minister Tan Sri Nor Mohamed Yakcop said the decision was in line with the government's plan to provide a better support to the small and medium-sized enterprises (SMEs).

He said with the move, the government expected SME Bank to be more efficient.

Nor Mohamed said SME Bank would continue with its core business of providing financing to SME players while Bank Pembangunan would focus on bigger and long-term financing services.

"The move is meant to strengthen the capacity, efficiency and the effectiveness of both banks in helping their targeted sectors," he said.

However, Nor Mohamed said the separation process was merely a move to enhance SME Bank's services and did not involve major structural changes in both organisations.

"With the separation, SME Bank will be given the autonomy to make its own decisions without having to go through Bank Pembangunan," he said after opening SME Bank's latest branch in Seberang Jaya, Bukit Mertajam, yesterday.

The branch is its second in Penang and 19th nationwide.

Present at the event were SME Bank chairman Datuk Gumuri Hussain, its managing director Datuk Azmi Abdullah, Bank Pembangunan group president and managing director Datuk Tajuddin Atan and state exco Datuk Jahara Hamid.

Bank Pembangunan is a wholly owned subsidiary of the Finance Ministry (MoF).

Following the separation, the SME Bank will be another subsidiary under the MoF.

The SME Bank was formed three years ago following the merger between Malaysian Development and Infrastructure Bhd and the Malaysian Industrial and Technological Bank Bhd.

Gumuri said SME Bank had distinguished itself not only in providing financing, but also consultancy, problem-solving and guidance services to its customers.

Up to November last year, the SME Bank had approved financing for 1,539 projects nationwide worth RM2.9 billion.

Meanwhile, Tajuddin said the separation would enable Bank Pembangunan to focus on providing financing facility to three core sectors - maritime, infrastructure and high-tech industries.

http://www.smebank.com.my/news_detail.asp?id=87

Wednesday, December 19, 2007

European firms keen on Takaful Malaysia (December 6, 2007)

KUALA LUMPUR: Two Europe-based multinational corporations (MNCs) with local conventional insurance units have emerged as potential suitors for a stake in Syarikat Takaful Malaysia Bhd (Takaful Malaysia).

This was in addition to the two Middle East groups that had already commenced negotiations with Takaful Malaysia, said group managing director Datuk Mohamed Hassan Md Kamil.

“We are still open to other interested parties. In fact, one or two other multinationals are also interested in talking to us through our merchant banks.
“So, we hope to receive all the proposals that will be presented to the board for evaluation,” he told reporters after the company's AGM yesterday.
Takaful Malaysia hopes the new investor would help it expand abroad as it leveraged on the foreign partner's expertise.

On potential markets, the company was looking to penetrate the Middle East through its international currency business unit (ICBU).

Hassan said it hoped to sell non-ringgit products, mainly investment-oriented products, to the Middle East through the new partner as well as expand and capture the increasing potential in the retakaful segment.

“We are in the midst of putting together a US dollar (denominated) product. We expect to launch the first product – with a fund size of US$100mil – in February.
“Once the ICBU is up and running, it is expected to contribute a large proportion to the company's turnover. We are looking at overseas contribution of between 20% and 25% for the financial year ending June 30, 2008, primarily from the ICBU,” he said.
Takaful Malaysia first obtained Bank Negara approval to begin talks with Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp in early October as a potential strategic investor. Late last month, it received consent to start negotiations with Islamic Arab Insurance Co PJSC (Salama).

Hassan said Takaful Malaysia was willing to part with up to 49% stake in the group, including reinsurance arm Asean Retakaful International (L) Ltd, Indonesian subsidiary PT Syarikat Takaful Indonesia and the company itself. As active discussion was already in progress between the Middle East parties and Takaful Malaysia's merchant bank, he was hopeful a deal could be sealed by year-end.

“If the pricing and everything else is favourable, I hope we can agree on a price by the end of December,” he said.

Although the identity of the two European MNCs were not immediately known, foreign insurance players had acknowledged the importance and potential of having a takaful business.

In July, it was reported that Allianz AG did not rule out venturing into the local takaful market after it had successfully established the business in Indonesia.

http://thestar.com.my/news/story.asp?file=/2007/12/6/business/19678422&sec=business

STMB finds another possible buyer for stake (November 19, 2007)

By DALJIT DHESI
HOT on the heels of its recent approval to commence discussions with Abu Dhabi-Kuwait-Malaysia Strategic Investment Corp, Syarikat Takaful Malaysia Bhd (STMB) is waiting to start negotiations with another suitor from the Middle East for a strategic stake in STMB.

Group managing director Datuk Hassan Kamil told StarBiz that STMB recently submitted a letter to Bank Negara seeking approval to commence discussions with a Middle East-based company.

It hopes to receive the central bank's reply in about a week's time.
“We now have two potential suitors, a consortium and a company, both with solid track records. We will accept any of the two that gives us the best deal and will add value to the group.

“Apart from the right price, the company will also consider other factors like expertise, business opportunities as well as good working relationship and “chemistry” between the board and its suitors,'' he added.

He said the Middle Eastern company had strong distribution network in the continent (Middle East) and would facilitate in the distribution of its products there.
Malaysia's first Islamic insurer received Bank Negara's green light last month to commence negotiations with the Abu Dhabi-led consortium for the sale of a strategic stake in the group.

According to Hassan, although the suitors have not met face-to-face, at end of the day there could be a possible partnership between the two to acquire up to 49% of the group, as both were capable to add value to STMB.

The proposed disposal of the strategic stake in the group include collectively its reinsurance arm Asean Retakaful International (L) Ltd, its Indonesian subsidiary PT Syarikat Takaful Indonesia, apart from the company itself, he noted.

On another note, he said the company hoped to receive a proposal from the consortium by end of the month, as currently it (consortium) was conducting due diligence and working with merchant bankers on some proposals.

Hassan said he hoped the foreign market would be a bigger contributor to the group's revenue upon completion of the deals.

http://thestar.com.my/news/story.asp?file=/2007/11/19/business/19474803&sec=business

Mayban Fortis aims for RM7.7b gross premiums (November 16, 2007)

It expects to achieve this via new corporate identity Etiqa

KUALA LUMPUR: Mayban Fortis Holdings Bhd is targeting gross premiums and pre-tax profit of RM7.7bil and RM500mil respectively for its financial year ending June 30, 2009 (FY09).

The insurance and takaful arm of Malayan Banking Bhd (Maybank) plans to achieve this through its new corporate identity, Etiqa, which was launched yesterday.

Etiqa Insurance Bhd and Etiqa Takaful Bhd chairman Tan Sri Megat Zaharuddin Megat Mohd Nor said Etiqa would be a single brand for all conventional and takaful businesses under Mayban Fortis.

“Our aim is to become number one in conventional and takaful insurance in Malaysia,” he told a press conference yesterday.

The Etiqa brand comprises five operating entities under two subsidiaries for conventional and takaful insurance, namely Malaysia National Insurance Bhd (now Etiqa Insurance Bhd) and Takaful Nasional Sdn Bhd (now Etiqa Takaful Bhd).

Mayban Fortis acquired both in 2005.

Megat Zaharuddin said Mayban Fortis was already the leader in the takaful business in Malaysia, with a market share of 54% in 2006, and was ranked second and third in the general and life insurance businesses respectively.
For FY07, Mayban Fortis recorded gross premiums and pre-tax profit of RM4bil and RM313.5mil respectively. Gross premiums from the takaful division alone stood at RM900mil.

Mayban Fortis has forecast its takaful division to record gross premiums of RM1.9bil for FY08.

Despite having a controlling share in the takaful market, Megat Zaharuddin said there was room for growth in the segment.

“The takaful segment currently comprises 6% of the overall insurance industry, and we want to grow it.”

He said the company would achieve its goal by educating the public on the importance of takaful insurance and providing the products and services that were affordable and meaningful to the public.

He also said that unifying the conventional and takaful insurance segments would allow for cross selling between agents from both fields and create stronger growth. Mayban Fortis currently has 14,000 agents nationwide.

Formed in 2001, Mayban Fortis is 70% owned by Maybank, with the remaining 30% owned by Fortis Insurance International NV, a leading European integrated financial services company.

http://thestar.com.my/news/story.asp?file=/2007/11/16/business/19486522&sec=business

Microsoft Adds Support for FileAct and InterAct to BizTalk Accelerator for SWIFT (Oct. 11, 2006)

New BizTalk adapters extend connections to SWIFTNet, helping enable STP and lower operational costs.

SYDNEY, Australia — Oct. 11, 2006 — Microsoft Corp. announced today at Sibos 2006 that it now supports the full complement of SWIFT messaging services, adding adapters for SWIFTNet FileAct and InterAct to Microsoft® BizTalk® Accelerator for SWIFT. In addition, the solution has been granted a SWIFTReady Gold Financial EAI (enterprise application integration) label for the third year running.
Using BizTalk Accelerator for SWIFT’s new support for FileAct and InterAct can help financial firms achieve substantial cost savings when exchanging bulk payment files. The new BizTalk adapters facilitate the real-time exchange of financial information across SWIFTNet and enable externally supplied applications to fully utilize the features of InterAct and FileAct.
“SWIFT’s relationship with Microsoft is an important strategic alliance,” said Johan Kestens, head of marketing at SWIFT. “The solutions Microsoft and its partners are developing for SWIFTNet demonstrate real benefits for our customers as they simplify support for SWIFT messaging services.”
“When using SWIFTNet messaging services such as FileAct and InterAct, customers have indicated a clear need for technology that improves connectivity to SWIFT to help enable substantial cost savings,” said Robert Wahbe, corporate vice president, Connected Systems Division at Microsoft. “Microsoft has extended BizTalk Accelerator for SWIFT with FileAct and InterAct adapters as it provides customers with a platform through which to connect SWIFT and existing line-of-business applications, and achieve these goals.”
“The industry is calling for greater automation, more standardized business process flows in the payments area, and the continuation of the drive toward a single market,” said David Vander, worldwide managing director of Banking at Microsoft. “Microsoft and its partners are working to provide solutions for the industry that are efficient and cost-effective and enable employees to help their companies seize market opportunities, make smart decisions and realize maximum value from technology investments.”
The added Microsoft BizTalk adapters for SWIFTNet InterAct and FileAct provide connectivity between Microsoft BizTalk Server 2006 and the SWIFT Secure IP Network (SIPN) via the SWIFTNet link APIs. SIPN enables SWIFT customers to transfer messages and files using InterAct and FileAct respectively, over a security-enhanced, private network, and facilitates bilateral communication between financial institutions, industry infrastructures and customers.
BizTalk Accelerator for SWIFT enables customers to simplify their infrastructure and connect to SWIFT across one integrated messaging platform, helping deliver rapid return on investment by reducing the complexity of bilateral communications between institutions. It also provides customers with enhanced messaging capabilities, delivers specific formats and provides schemas for financial messaging standards and middleware integration tools.
At Sibos 2006, Microsoft is demonstrating how it enables partners to build sophisticated applications using SWIFTNet services, solutions and standards. The following are among the partners exhibiting with Microsoft at Sibos:
• Avanade, demonstrating SWIFTNet Cash Reporting
• Message Automation Ltd., demonstrating the potential for leveraging Financial products Markup Language (FpML) connectivity over SWIFTNet
• SAGA Services Ltd., demonstrating support for low-value payments
• TEMENOS, demonstrating connectivity of TEMENOS T24, its modular core banking solution to SWIFT
• Unisys, demonstrating support for SWIFTNet Bulk Payments
• WealthCraft Systems Ltd., demonstrating its solution for SWIFTNet Funds

http://www.microsoft.com/presspass/press/2006/oct06/10-10MSSWIFTPR.mspx