ons ati p s min to tive No the cu for el exe open nn ow cha are n
February 2009
www.crn.co.za
Inside
EMC anticipates growth in SA P12>>
Small business storage needs still rising p20>>
Convergence: networking’s hot topic p29>>
Industry heads share what they think 2009 has in store p33>>
PUBLISHER’S: NOTE
Hope in the SME
W
hether you call it the SMB or SME space, the small and medium business sector, regardless of its focus, seems to be a big ray of hope for the IT industry. During this very negative period where project businesses are being reduced or suspended until sunnier days, there still seems to be a lot of hope that the SME/B space will remain vibrant. While the bigger corporates seem to be adopting a “lets sweat our assets” approach, the medium and smaller sized guys look poised to do quite a bit of spending this year. I have met with many heads of IT companies over the past 30 days and the one thing that remains constant is their faith in the small and medium-sized companies as the spenders in 2009. However, this begs the question as to how much is this space really worth locally and what if the recovery does not come as quick as most expect it to, what will we do then? The good thing is that I have actually spoken to a good number of SME/B companies and YES, I can confidently say that I am reliably informed that the space will be spending. Before anyone pops open any Champaign bottles, the companies did stress that their spending will be very cautious and that vendors, distis and resellers should all remain realistically optimistic when they plan to deal with SME/B companies. I guess for those that will be lucky enough to have their quotations accepted there is the blessed 2010 business to look forward to. My only concern is how many local distis and resellers will actually benefit from all this, I guess we will have to wait and see. I assure you I will give the final procurement list a thorough going through once it is available for public consumption or if it magically lands on my desk before then. In addition, it is interesting to see how much focus is being placed on the SME/B space by companies that previously mostly focused on the large enterprise and public sector, could this bring about some interesting developments. Let us wait and see.
Kaunda Chama – editor
Contents News & Analysis 4 – What’s News 6 – Comings and goings 8 – Demand Generator takes a look at how Bytes SI upgrades
PGP’s systems
10 10 – Hi Five CRN Contacts: Editor:
14 – Microsoft partner changes may cause concern
Kaunda Chama
[email protected]
Journalists:
16 – HP advances Adaptive network vision 33 – Cover story: 2009 market outlook. By Kaunda Chama and
Stanley Chishala
Portia Shaba
[email protected]
16
36 – Ten real cost cutting technologies for 2009. By CRN
Staff, ChannelWeb Dominic Khuzwayo
[email protected]
Features 21 – Virtualisation: Virtualisation is a hot topic and
Brand executive:
creeping into every layer of the IT stack. Organisations are
Hellen Murahwa
investigating the opportunities that exist in virtualising operating
[email protected]
systems and applications with an aim of consolidating infrastructure and driving business alignment. By Dudu Shaba
Sub-editor: Jenny Bastomsky
[email protected]
23
25 – Notebooks: The South African notebook market is
expected to be resilient in the face of a slowing local and global economy as end-users continue to buy into the benefits of mobile computing. By Dudu Shaba
Designer: Spencer van Graan
29 – Networking: The ability to deploy best-of-breed applica-
[email protected]
tions directly into the network infrastructure assists networking vendors to differentiate themselves and helps their customers
Database and subscriptions:
achieve even greater returns on their investment in network-
Daisy Mulenga
ing infrastructure. These applications create a more powerful
[email protected]
and intelligent network. By Dudu Shaba
copyright notice CRN Southern Africa is published monthly by Systems Publishers (Pty) Ltd. The copyright of all material in this publication is reserved by the proprietors, except where expressly stated. The publisher, however, will consider reasonable requests for the use of material by others on condition that the source and author of the report are clearly attributed. Due to the nature of the newspaper print process, Systems Publishers cannot be held responsible for colour variations in printed advertising. Printed by Ultra Litho. CRN Southern Africa is a licensee of CMP Media LLC.
Private Bag X12, Rivonia, 2128 Tel: (011) 234 7008 Fax: (011) 234 7025 Registered with the Audit Bureau of Circulation
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Product and Technology 39 – McAfee Total Protection 2009 review
Parting shots 40 – Snapshot: Andrew Holden, Bytes Outsource Services 40 – Dilbert
CRN SOUTHERN AFRICA • FEBRUARY 2009
39
WHAT’S
NEWS
IBM and SAP AG join forces
CommVault releases Simpana 8
IBM and SAP AG have announced the planned release of their first joint software product in March. The product named Alloy software was announced at the annual Lotusphere conference. Alloy software combines IBM Lotus Notes software with SAP Business Suite. “We expect the new Alloy software from IBM and SAP to help us drive down IT management costs and boost productivity by allowing employees easy access to SAP reports, procurement data and product lifecycle management tools directly from their Lotus Notes e-mail,” says Tom Greene, CIO, Colgate-Palmolive.
CommVault Systems has announced that Simpana 8, a major new release of its enterprise data management software, is now available. This includes advances in recovery management, data reduction, virtual server protection and content organisation. Simpana 8 helps companies to manage larger amounts of data, scale to accommodate an expanding, globally distributed enterprise, and implement cost-saving strategies by offering users new snapshot-based data management, laptop and desktop protection, remote office data management and advanced copy management features. The new version of Simpana software continues CommVault’s commitment to delivering comprehensive data protection, backup and recovery, and information management capabilities that enable companies to meet key business challenges and transform their enterprise.
Sahara’s latest ImageBook Sahara Computers has introduced its latest notebook based on Intel Centrino 2 processor technology to the local market. Sahara believes the sleek piano-black finished offering will add immense value to users in the business or corporate arena. “The mobile professional has the benefit of a mobile workstation and multimedia device in one. There is ample storage capacity to Gary Naidoo store and digitally manipulate information and large files,” says Gary Naidoo, deputy MD at Sahara. Key features of the Sahara ImageBook 15WS include an Intel 2GHz Core 2 Duo Mobile Processor, 2GB memory, a built-in 2.0 mega-pixel webcam, a 15-inch TFT LCD display, a 250GB hard-disk drive and a super multi-DVD writer.
Konica Minolta SA launches myFAX Bidvest Company, Konica Minolta South Africa has launched the myFAX network fax server product in SA. myFAX is designed to meet the needs of small-to-mid-sized businesses, and allows users to send and receive faxes from their desktop or browser. “Many organisations are becoming increasingly knowledgeable with high expectations for immediate and personalised service and support,” explains Mohammed Vachiat, product manager at Konica Minolta South Africa. “Expectations are rising and yet organisations are under pressure to do more with the same or fewer resources. The myFAX solution can assist in finding new ways to optimise operational efficiency, improve productivity and reduce costs,” he says.
Microsoft protects Office customers Microsoft has released a program called Office Genuine Advantage (OGA) notifier. OGA is designed for home and business customers, and partners to test their software’s authenticity. OGA notifier is downloaded voluntarily and once installed can tell whether Microsoft Office applications are authentic. “People spend thousands of rands on PC hardware, software and services, so it makes sense to keep it all virus free and up to date,” says Charl Everton, the anti-piracy manager at Microsoft SA. “With that in mind, we have seen an increase in the amount of counterfeit software in the local market,” he adds.
New HD displays Packard Bell has updated its Maestro line of high-performance displays with two new widescreen, full HD models, the 24-inch Maestro 242 Ws and 22-inch Maestro 222 Ws. “The two new displays are our most advanced ever,” says Emmanuel Fromont, sales and marketing VP, Packard Bell. “Not only is their design unique, with their signature seamless edge-to-edge glass enclosure, they also feature the latest LCD technologies, including 16:9 full HD, 2-ms response time and 40000:1 DCR.” Both Packard Bell Maestro displays have the same thin-case design and elegant stand. Behind the seamless glass enclosure, the glossy, widescreen display provides an immersive viewing experience.
Tarsus announces new 3G Aspire One
Nortel users get bonus
Tarsus Technologies has announced a host of interesting upgrades to Acer’s Aspire One range. According to Traci Maynard, Acer business unit manager at Tarsus, the upgrades comprise the addition of an integrated 3G modem to certain of the Windows XP-laden models in the range, an increase in hard-disk storage Traci Maynard capacity to 160GB and the introduction of two new colours - coral pink and diamond black. Maynard says that her team is looking forward to the arrival of the new Aspire One models, since they have been hugely popular with clients of every size and in every sector of the market since their launch a couple of months ago.
Enterasys Networks SA has announced an unprecedented 100% “trade-in credit” offer to users of Nortel Networks’ switching products should they replace them with the Enterasys equivalent. This limited period offer comes in the wake of news that Nortel Networks has filed voluntary petitions under Chapter 11 of the US Bankruptcy Code and has received approval from the United States Bankruptcy Court for a number of motions requesting relief from creditors. Martin May, country manager for Enterasys Networks SA, has taken advantage of apparent marketplace uncertainty over Nortel’s future – as highlighted in the global media – to encourage local Nortel customers to look at alternative solutions. May says the move will also facilitate free upgrades in future, allowing them to take advantage of imminent innovations in switch technology, particularly in data security.
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CRN SOUTHERN AFRICA • FEBRUARY 2009
WHAT’S
NEWS
COMINGS
&
Avaya appoints head of EMEA Distribution Avaya has appointed Thomas Veit as director of Avaya Europe, Middle East and Africa (EMEA) distribution. He will lead the distribution strategy for Avaya’s products and solutions across its business and channel partners in EMEA. Veit brings more than 17 years of experience Thomas Veit and success in building pan-EMEA distribution Thomas Veit programmes. Most recently, Veit worked at SonicWALL as senior director, EMEA sales operation & emerging markets, where he was responsible for the restructuring and rationalisation of distribution and reseller channel relationships. “Thomas brings a legacy of solid expertise in distribution strategies, and will help Avaya to expand its channel relevance and responsiveness,” says Jeremy Butt, VP, worldwide Channels, Avaya.
Intel Capital appoints Sam Mensah Intel Capital has appointed Sam Mensah as its director for South and sub-Saharan Africa. Mensah has been with Intel Corporation for the past six years, he previously worked in London at Deutsche Bank and tech consulting firm Gresham Financial Systems. “Intel
New Manhattan USB Radio Manhattan has announced its new USB Internet Radio that receives and records radio broadcasts on personal computers. Through Internet access and a USB port, the Manhattan USB Internet Radio delivers more than 14 000 radio stations from around the world to desktop and notebook computers, whether you’re under a palm in Rio or in an Internet café in Miami. You can connect, listen to and enjoy favourite sports, talk, music and news broadcasts without subscriptions, user restrictions or costly upgrades. Its multi-function on-screen control panel provides access to intuitive search, sort, audio controls and settings.
HP takes tech to varsities HP recently announced the successful implementation of the Technology for Teaching Grant programme at the University of the Free State. HP’s Higher Education Technology for Teaching Grant initiative creates an opportunity for new models of success on campus by integrating mobile technology into the classroom setting. This initiative is aimed at improving teaching and learning experiences through the innovative and effective application of mobile technologies. According to Oliver Fortuin,
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CRN SOUTHERN AFRICA • FEBRUARY 2009
GOINGS Capital will seek out and make strategic investments, allowing innovative home-grown technology companies not just access to our capital but also to our technological expertise and global network,” says Mensah. “The move into Africa illustrates Intel’s view that Africa as an emerging market will continue to unearth great business opportunities for us” he adds.
Sam Mensah
Peter Watt joins Itec Former Business Connexion (BCX) CEO Peter Watt has been appointed deputy chairman of Itec Distribution, bringing with him extensive strategic and leadership skills. “Having been with large public companies most of my life, I look forward to helping the management team of this growing business to achieve its Peter Watt objectives and roll-out key projects designed to enhance Itec’s market position,” says Watt. His primary function at Itec will be the development of business strategy, executive development, and mentoring and assisting in the establishment of governance committees. He will also watch over and guide the company’s expansion into the overseas market.
HP South Africa managing director, “HP South Africa has always been committed to promoting empowerment and ascribes to the underlying principles of broad-based black economic empowerment initiatives as the key to realising our full potential as a company and as a business imperative.”
Alvarion’s new move Alvarion, an international wireless broadband pioneer, has launched a new distribution model to address vertical market requirements and expectations. The Alvarion distribution strategy currently being rolled-out as part of its partner programme, has seen the appointment of Duxbury Networking as the master distributor of Alvarion products in Graham Duxbury southern Africa. Duxbury Networking offers turnkey wireless solutions to its partners, including feasibility studies, pre and post-sales, and technical support. As a distributor of the Alvarion product range in southern Africa, the company is now able to complement its existing range of wireless networking solutions in the licence-free bands.
DEMAND
GENERATOR:
BYTES SI SOLUTION
PROVIDERS
Bytes SI upgrades PGP’s IT systems Implementing IT solutions.
B
BY DOMINIC KHUZWAYO ytes Systems Integration (SI), a division of Bytes Technology Group, assisted Pam Golding Properties (PGP) to upgrade its IT systems and introduced services orientated architecture (SOA) element. After 32 years in the property market PGP has become a trusted name when it comes to real estate. However, to gain a lead in a market that is suffering a slump, PGP turned to technology to get its systems running properly, better serve its customers and to create an efficient working environment for its staff. “We were struggling with our online systems because they were not integrating efficiently,” says Henry Potgieter, infrastructure manager, PGP.
“We needed to link our Web services with our database and various applications but soon realised that our systems were very disjointed and were linked by an array of applications that just didn’t make sense,” adds Potgieter Bytes SI was chosen to make sense of the various applications and document the existing applications to allow all the systems to integrate seamlessly. The project, which started in March 2008, was successfully completed five months later and achieved the integration and logical links between the database, various applications and Web services that PGP needed. Bytes SI met the requirements of the real estate giant by building an application that logically
“When we started at PGP in the beginning of 2008, its application business logic resided in many systems and was tightly integrated into those systems. As a result, its IT systems were difficult to use, slow and expensive to grow with the business’ needs.” – Willem Odendaal, Bytes SI.
Willem Odendaal, Bytes SI
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CRN SOUTHERN AFRICA • FEBRUARY 2009
grouped the Web services and created an SOA layer that sits above the database and dynamically controls the links between the various applications and the database. “When we started at PGP in the beginning of 2008, its application business logic resided in many systems and was tightly integrated into those systems. As a result, its IT systems were difficult to use, slow and expensive to grow with the business’ needs,” says Willem Odendaal, senior architect at Bytes SI. One of the main goals of the solution was to document how PGP’s current IT systems are built so that future systems can be easily built to this standard. The SOA layer we implemented achieved this level of standards and will dictate the management principles for the future. In this way the collective teams have led the way and implemented a
solution that creates a benchmark and standard for all future applications to be built on within PGP. “We set out with a small team to start implementing the SOA at PGP. As with any SOA it is critical to have a successful pilot project, so for our pilot project we focused on providing services to be used by PGP’s intranet site,” explains Odendaal. Potgieter says: “Our IT services have already seen marked benefits since having the SOA layer in place.” It has allowed us to hide complexity, simplify project deliverables and reduce costs. The SOA enables us to integrate solutions without having to be concerned with the underlying technology of the solutions.” “The intranet site is used daily by hundreds of PGP offices around the country. During the pilot project we followed agile development practices like SCRUM and continuous integration with great success,” says Odendaal. In addition, albeit an uncomplicated solution, the application implemented by Bytes SI satisfies the needs of PGP by providing an integration layer that effectively links the database to the various Web services. The solution itself is built on a .Net platform and makes use of Web services, factories, cruise control for continuous integration and an NUnit testing application, and uses SOA as the management principle. Odendaal adds: “SOA is a long-term goal, it was important for the business and IT department to understand and support what we were doing. As such, education of business and IT staff was an important part of the project. “The pilot project is only the beginning, and we trust that it will serve as the foundation for future SOA growth at PGP and will ultimately make its systems more agile and business focused, and cheaper to maintain.” Do you have demand generator stories to share with us, please e-mail Dominic Khuzwayo at
[email protected]
HIGH FIVE: IMPROWEB SOLUTION
PROVIDERS
ImproWEB
improves the IT
channel
Digital business is the future. BY DOMINIC KHUZWAYO
“D
igital business its your future or you’re history,” this is according to Henno Marais MD of ImproWEB. Marais claims the online solutions offered by improWEB are supreme and unrivalled in the South African market, which has made improWEB one of the leading Web-based solutions companies today. In this month’s High Five, CRN chats to Marais, an industrial engineer and consultant, to find out what digital business has to offer the IT channel.
CRN: Tell us more about ImproWEB? HM: Founded in 2005, ImproWEB develops high-technology solutions specific to the IT industry. Driven by a strong business background, development skills and a passion to help smaller businesses like resellers ImproWEB was born. ImproWEB has re-engineered the IT channel in SA so that the sales chain can be completely automated. This means that the reseller can now sell to its customer, and have the product delivered to the customer without knowing about it. ImproWEB can do for the IT industry what Internet banking has done for the banking industry.
CRN: How is digital business in SA? HM: We are fortunate in that we can see the future for our own country by observing what has happened in other countries. In SA a large portion of online sales activity is driven by rewards programmes. There is still room for improvement because there is no way that a physical store can compete with a properly integrated Web store. This comparison is both on price and service levels. Digital business needs to be done correctly before it really works, if somebody can do it correctly they will fly in 2009. By using the ImproWEB software correctly with my knowledge and experience distributors will stand out above the rest.
“ImproWEB can do for the IT industry what internet Banking has done for the Banking industry.” – Henno Marais MD, ImproWEB. CRN: How does it help distributors? HM: Cheaper for the distributor or bank Improves customer-reseller experience Improves customer-reseller relationship Develops loyalty towards the distributor or bank Creates customer-reseller expectations
CRN: How does it help resellers? HM: With resellers being able to generate orders and have those orders delivered without them lifting a finger, I cannot see why resellers would buy from a distributor without a system like this. It also makes life easy and cuts costs for resellers.
CRN: How does it help vendors? HM: By making it easy for the reseller to get vendors’ products out there while having all the product specifications and pictures available sends a strong brand message. Vendors will benefit from both distributors and resellers if everything is done well.
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CRN SOUTHERN AFRICA • FEBRUARY 2009
ANALYSIS: EMC SOLUTION
PROVIDERS
EMC wants to ‘fly’ in SA
E
BY DOMINIC KHUZWAYO MC, one of the world leaders in information infrastructure solutions, announced that it is anticipating high growth in South Africa in 2009 despite the bleak economic outlook globally. Recently, EMC joined the list of IT vendors who are cutting cost by sending their staff home in order to survive in this financial draught. However EMC South Africa says this did not have any impact on the local operation. Looking at the EMC‘s financial results released a few weeks ago, the vendor reported a total revenue of $14.9 billion, up 12 percent from the $13.2 billion it reported for 2007. On CRN.com Joe Tucci, EMC chairman, president and CEO, said he is happy with the fourth-quarter results but a bit disappointed with the results for the entire year. “I am disappointed that we missed our $15 billion revenue target by a little over $100 million,” he said. According to EMC, it currently has a 40% market share in South Africa compared to 50% in the US and 30% globally. Gerhard van der Merwe, Regional Country Manager of EMC South Africa says: “The strategy for EMC South Africa is the same as the global strategy. As an information infrastructure provider, EMC aims to become a virtual data centre solution specialist, achieving 100% virtualisation and being recognised as number one solution provider in the world.” In addition, Van der Merwe says, the company will use the cost-saving strategies of local enterprises to offer value-added, efficient solutions and services which increase its market share. EMC says its focus in 2009 will be on the South, East and Central African (SECA) region, where it has identified opportunities in the telco, public sector, oil and gas market sectors. “In South Africa, our focus on the enterprise side of the business will be in the telco, financial services, public sector and industrial sectors.” “On the corporate and commercial side of the business, the focus is on manufacturing and retail. We also aim to double our existing 25% market share in the coastal regions this year,” says van der Merwe. In a time where you need to have a true partner, EMC says it is
confident of delivering solutions to the market by working closely with its partners to provide end-to-end virtualisation projects encompassing hardware, software services and consulting. “We see our growth coming from our content management product. There will be a big drive around security and storage products, and we intend to open a new division called Resource Management Software Group which will combine a new product Gerhard van der Merwe, EMC line with existing products such as Smarts, Infra and Control Centre to offer clients a value proposition to handle the growth in content in South Africa and Africa,” explains van de Merwe. According to him, 2009 will have a very strong virtualisation focus. “Server virtualisation is the most substantial shift in IT so far, adoption is high, and organisations are virtualising mission-critical and businesscritical applications. As a result, enterprises need to work with a storage partner like EMC SA to carefully select the appropriate storage networking approach and storage system,” he says. In addition, EMC says it will invest approximately $1.4 billion in research and development during 2009, thereby demonstrating its commitment to remaining one of the leading IT services and solutions providers globally. However the writing is on the wall, that even the IT vendors are also feeling the economic knocks. This clearly shows the high growth that EMC anticipates won’t be as easy with the economic downturn pulling IT spending on the ground. With things projected to pick-up in the second half of the year, if EMC plays its cards well they might get an ace in South Africa.
ANALYSIS: MICROSOFT SOLUTION
PROVIDERS
Microsoft program changes: VARs will be happy, LARs less so BY SCOTT CAMPBELL, CHANNELWEB
M
icrosoft is poised to make some sweeping changes to its channel programs, ushering in more opportunities for VARs seemingly at the expense of direct marketers and large-account resellers, according to channel sources. Microsoft plans to dramatically reduce funding to DMRs and LARs and give VARs more equal footing with those larger partners on opportunities of more than 250 seats, sources say. “This is real, real positive for the channel. It’s a more level playing field,” says one distribution executive who asked not to be named. Microsoft informed its DMRs and LARs of
Microsoft has yet to inform solution providers about the changes, and executives at Microsoft declined to comment. A spokesperson issued a statement that read “Microsoft regularly evaluates its partner programs and incentives with the goal of rewarding partners for driving revenue growth and delivering value-added solutions and services.” A channel executive briefed on the matter said VARs will be pleased with the changes. “Microsoft has always given a very unfair advantage to their LARs and the Dells and Insights of the world. They’ve really done a
“We make our money in services, but if they can make it an even playing field, or at least lessen the gap between the larger and smaller VARs, it will be better for the industry.” – Tim Howard, Rmon Networks Inc its intentions at a meeting last week, according to sources. “It was very poorly received by the LARs,” according to the distribution executive. Microsoft reportedly feels that those large partners are fulfilling demand but not doing an adequate job of driving it and wants to provide more incentives to solution providers to do so, according to the executive. Soon after the meeting, direct marketer Insight Enterprises said that changes to vendor incentive programs would negatively impact its earnings for 2009. On a conference call with analysts, Insight CEO Rich Fennessy said the direct marketer expects to earn $10 million to $15 million less this year in incentives from its largest software partner, although he did not mention it by name. The changes come as Microsoft also revealed plans to open its own retail locations.
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180. They’re investing dramatically more into the channel, through distributors and VARs,” says the executive. A second distribution executive who asked not to be named said Microsoft hasn’t detailed the changes to distributors either but he noted that that could happen as early as next week. That executive said the strategy will be implemented on a worldwide basis. The move could have a dramatic impact on the LAR landscape, said the second distribution executive. “Those [LARs] that are financially and operationally minded, I think you’ll see them make cuts. Others might be in a position to grow. They’ll all start to look at consolidation opportunities. We’ll see that this year,” said the executive. It’s believed Microsoft is hoping the changes could foster partnerships between
CRN SOUTHERN AFRICA • FEBRUARY 2009
VARs and LARs, but the second distribution executive is not so sure. “I don’t see a VAR doing business with a LAR. That’s like letting the fox into the hen house,” he said. In these tough economic times, Microsoft is making changes it believes necessary to drive more demand, said the first distribution executive. “They’re reducing investment on those [partners] that are just fulfilling demand. Anyone that is good at driving demand, that can increase the average invoice of a customer, should benefit,” said the executive. Some Microsoft solution providers lauded the news, saying moves to help SMB partners are overdue. “They’ve had the same pricing structure for a long time. Times have changed, with netbooks and Linux taking hold. It’s good for them to re-evaluate this,” said Todd Swank, vice president of marketing at Nor-Tech, Burnsville, Minn. “All we ask for is an equal playing field. We’re good at taking care of customers, delivering innovative solutions. But certain people can take advantage of different programs not available to the rest of us. That’s not fair.” Tim Howard, president of Rmon Networks Inc. Danville, N.H., said back-end incentives from Microsoft to large partners have been a sticking point for a long time. “Those larger companies, they live by those and pad their earnings by hitting those volumes. As smaller VARs, we don’t have that volume because we’re constantly competing with the Insights and CDWs,” he said. However, some customers still turn to VARs to implement the Microsoft applications even after the end user buys them from a LAR. “We make our money in services, but if they can make it an even playing field, or at least lessen the gap between the larger and smaller VARs, it will be better for the industry,” Howard said. Kevin Mclaughlin contributed to this story.
ANALYSIS: HP SOLUTION
HP
PROVIDERS
advances adaptive network vision
Technology vendor launches multi-vendor program and data centre solutions. BY KAUNDA CHAMA
L
ast month HP ProCurve announced a dramatic change in the way it will engage its current and future technology partners, and also announced some new products for data centres. The networking vendor has made a concerted effort to expand its Adaptive Networks vision by announcing two initiatives that enable customers to address rapidly changing enterprise data centre needs and improve the efficiency of their network applications. At the same time, the company added to its extensive technology portfolio by unveiling data centre switches and management software designed to help customers lower costs, mitigate risks and drive business growth. HP ProCurve’s new Open Network Ecosystem (HP ProCurve ONE) is a multivendor alliance program that optimises the performance of enterprise-class applications with HP ProCurve infrastructure. Participating in this program are technology leaders such as Microsoft, Avaya, McAfee, F5 and Riverbed. Adaptive Networks is HP ProCurve’s vision for the future in which networks adapt to users, applications and an organisation’s needs. “To help customers address the increasing pace of change within their businesses, HP ProCurve is combining its own technology with some of the most innovative, respected and visionary companies in the world,” says Marius Haas, senior VP and GM, HP ProCurve. “Establishing partnerships with major technology companies to deliver open-standards choices delivers business value by increasing the efficiency of network applications.”
Marius Haas, HP ProCurve and certified to ensure interoperability with the new HP ProCurve ONE Services zl Module. The module is an HP blade for the HP ProCurve Switch 5400zl and 8200zl series that consolidates many partner applications onto one common platform, thereby eliminating redundant operational costs while optimising rack space. Meanwhile, the partners are collaborating with HP ProCurve to help customers strengthen security, reduce complexity of network management, increase network and data centre performance, deploy new VoIP services and improve manageability.
New data centre solutions The ecosystems Using HP ProCurve’s open networks platform as its foundation, HP ProCurve ONE allows customers to securely integrate a wide choice of network applications and services from alliance partners that integrate directly with HP ProCurve infrastructure. Partner applications are rigorously tested
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The new HP ProCurve Data Center Connection Manager is designed to streamline operations in next-generation data centres. This software enables automated provisioning of server and network resources in virtualised and traditional environments to help reduce operating expenses in data centres. The HP ProCurve 6600 switch series adds
CRN SOUTHERN AFRICA • FEBRUARY 2009
five new top-of-rack server edge switches to the HP data centre portfolio, simplifying management and maintenance enabled by consistent firmware across HP ProCurve 5400, 8200 and new 6600 series switches. The switches are all based on the fourth generation of HP ProCurve’s internally developed ProVision ASIC network chipset, which drives the functionality of the network switches. By turning off unused ports and employing a front-to-back reversible airflow system, the HP ProCurve 6600 switches help to reduce energy consumption and allow customers to effectively manage the cooling layout of their data centres. Through the HP ProCurve ONE initiative, HP ProCurve is helping customers to accelerate their adoption of next-generation data centres by teaming with F5 to provide application delivery technology, and with Riverbed for WAN acceleration and optimisation. Speaking at last month’s event to officially announce the new initiative, Alberto Soto, VP and GM for HP ProCurve EMEA mentioned
ANALYSIS: HP SOLUTION
“I particularly admire the tighter integration of ProCurve switches into the HP Data Centre story. Acknowledging networking as a vital part of the Data Center’s Green agenda further strengthens the ProCurve offering.” – Keith Humphreys, EuroLan “IDC is very positive about HP ProCurve’s expansion into the network equipment market through the launch of these new switches, since data centres are becoming increasingly important for organisations, fuelled by the growth in data centre hosted applications.” – Peter Hulleman, IDC “By signing partnerships with top companies like F5, Avaya and Aastra, HP ProCurve is increasing its market reach and it will help to strengthen its position as the 2nd largest player in the European LAN switch market.” – Peter Hulleman, IDC
that the company is expecting and will allow more members to join the initiative provided they are able to add value. Alan Baratz, senior VP; president, Global Communications Solutions at Avaya says: “Through our strategic alliance with HP and the ProCurve Open Network Ecosystem, we’ll deliver fully integrated IP networking and unified communications solutions and services with significant benefits for businesses and organisations.” Dan Matte, F5 senior VP marketing and business development comments: “F5 is very pleased to be chosen as a strategic launch partner for the ProCurve ONE program and align much more closely with HP. We bring our deep expertise of the enterprise data centre and market-leading application delivery networking solutions that give customers the flexibility to deploy solutions that scale and adapt on demand.” Dan Ryan, executive VP and GM of security vendor McAfee’s network security unit says: “We’re excited about becoming a member of the HP ProCurve ONE alliance program and the opportunity to collaborate with HP ProCurve in building data centre solutions that combine McAfee’s industry-leading network security products with HP ProCurve’s new family of data centre switching products.” Microsoft GM Tim Sinclair comments: “HP
Alberto Soto, HP ProCurve ONE will help customers to resolve interoperability concerns by delivering an open standards-based solution that is effective and efficient. The combination of the HP ProCurve ONE initiative and Microsoft Network Access Protection (NAP) will provide customers with enhanced security and policybased access that helps to reduce downtime and boosts return on investment.”
PROVIDERS
Riverbed’s senior VP marketing and business development Eric Wolford says: “The inclusion of Riverbed WAN optimisation in the HP ProCurve Open Network Ecosystem gives customers moving to next-generation data centre models a best-of-breed solution that reduces costs and complexity, while improving application performance and employee productivity.” Miercom CEO Rob Smithers comments: “Miercom is pleased to recognise the ProCurve division of Hewlett Packard for achieving the Certified Green Standard for the products in the 6600 series data centre switches which were recently reviewed.” “HP’s innovation is truly commendable in that it has built sustainable benefits into its products, while at the same time demonstrated responsible environmental practices in production and in its business practices. “The certification is based on a holistic review of Hewlett Packard’s ProCurve division and the switching products produced. Detailed lab testing, qualitative product assessments, and an audit of business and production practices were included in the review.” He says that HP has effectively proven an innovative product design to offer network switching products with lower energy consumption that comply with increasingly stringent environmental directives. “Analysts are praising this move by HP ProCurve, stating that the Open Network Ecosystem takes the concept of strategic alliances one step further, as it not only provides customers with a choice of multiple applications on multiple appliances, it also executes on true go-to-market partnerships of combined solutions.” “The fact that ProCurve One has identified common resellers with leading companies in their market segment such as Avaya, and Aastra in voice, Fortinet and McAfee in security as well as Microsoft, gives all vendors that participate in ProCurve One credibility in their joint solutions and the competitive advantage of engaging with new channel partners.” “This is definitely one of the most interesting strategic moves by any multinational in recent history and it will be interesting to see how it all develops and how successful it will be both in the short and long term.”
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ANALYSIS: SAHARA COMPUTERS SOLUTION
PROVIDERS
Sahara 2009
plan to grow resellers
Adding value and growth to the channel. BY DUDU SHABA
S
ahara Computers’ approach to 2009 is extremely bullish, the company says it has recently been joined by some senior Sahara team members, who were seconded to India, bringing a lot of experience and business strategies that will grow its resellers in SA. Irrespective of the economic challenges and the fluctuating rand, Gary Naidoo, deputy MD, Sahara, says the company has designed its new business model in a way that will empower its resellers by giving them products that sell at the right price. “With this new business model in place, the credit crunch will have a very low impact on our resellers. We will create awareness by embarking on roadshows and other marketing strategies to present our products and technologies to the market,” he says. The Sahara Business Development Division is set to grow resellers in the nine provinces in SA. “We will continue to engage them in different programmes, work more closely with distributors and continue to guide them in their existing and new markets. If our resellers take Gary Naidoo, Sahara Computers
“Even though the market is the other way round, we remain a very strong company. We are still hiring people, and our sales team and reseller programme have expanded.” – Gary Naidoo, Sahara
advantage of any programme we introduce this year, they will add value to their business,” says Naidoo. The company has introduced a focused and dedicated division with regard to retail, government and corporate. In addition to that, Sahara has established a new call centre that will control the service offering. Naidoo has outlined that Sahara has released the Intel 2GB Centrino 2 Montevina
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notebook to the local market. He says the company has expanded its range of digital lifestyle solutions and is targeting the mid-level market, more specifically users that require a feature-rich mobile solution that offers high-speed, on-the-go computing. `He says that the company believes the sleek piano black finished offering will add immense value to home users or those that operate a home-based small business.
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“The mobile professional has the benefit of a mobile workstation and multimedia device in one. There is ample capacity to store and digitally manipulate information and large files. It can be used as a central workstation to expand and consolidate the home network,” says Naidoo. Naidoo explains that critical communication resources such as e-mail and the Internet are all centralised which reduces cost and enhances control to maximise output and lower total cost of ownership over the infrastructure. “It has sufficient battery power to be used extensively should there be an interruption in power supply. This eliminates the risk of downtime to the business. The Intel Centrino processor technology enables massive performance, multi-tasking, high-definition multimedia, latest WiFi tech-
ANALYSIS: SAHARA COMPUTERS SOLUTION
nology and longer battery life,” he explains. According to Naidoo, key features of the Sahara ImageBook 15WS include an Intel 2GHz Core 2 Duo Mobile Processor, 2GB memory, a built-in 2.0 mega-pixel webcam, a 15-inch TFT LCD display, a 250GB hard disk drive and a super multi-DVD writer. He says that it also includes Quick Switching Speed, a feature that automatically switches the CPU to hurry up and idle mode. Naidoo says there is an increasing need for affordable, robust and feature-rich wireless technology within the home network and home business space. “This is a thriving area of the market where the rate of technology adoption is increasing to keep up with global skills set requirements. This solution combines the very best in processor and chipset technology for quick connectivity and also offers a high memory and storage capacity for effective management of multimedia files. The value in this offering lies in the fact
PROVIDERS
that it can be tailored to suit the needs of the user and customised to fulfil all requirements. This is an exciting new solution that we believe will make a difference to people’s digital lifestyle,” Naidoo comments. He continues to say that next month Sahara will introduce a next-generation netbook, a fully functional device that will allow resellers to tap into the new market. He also comments that Sahara is operating extremely efficiently with regard to its distribution model that is based on cash on delivery. “We do not expose ourselves to bad debt,” he remarks. Given the current economic challenges in the market, Naidoo says Sahara will not fall as it has the strong backing of the Gupta family that has always maintained high profitability within the Sahara Group. “Even though the market is the other way round, we remain a very strong company. We are still hiring people, and our sales team and reseller programme have expanded,
therefore the economic decline does not affect the growth of our company,” says Naidoo. Analysing the market in terms of IT use, Naidoo states that large corporations and businesses are expected to be tighter and more controlled, at the same time he is expecting more growth in terms of IT use in the government sector. “The household market is also showing growth with regard to computing and skills, while the FIFA World Cup will enable small businesses and resellers to grow their businesses,” he comments. Naidoo comments how Sahara remains consistent in keeping its business. “Getting the basics right and achieving operational efficiency is very important. Sahara continues to provide its resellers with good training and putting the right tools in place, because we know that when they grow, we will grow with them. Always ensure that when you lay a foundation you sustain its growth,” Naidoo concludes.
ANALYSIS: TRENDS SOLUTION
PROVIDERS
Pack Rats Small businesses save too much, too often. How can you help them deal? BY JOSEPH F. KOVAR, CHANNELWEB
T
he economic downturn may be hammering many small businesses,but it is not impacting the growth of their data storage requirements. In fact, opportunities abound for solution providers to help small-business clients better manage their storage and save money in the process. All it takes is a few key technologies and policies. Three trends are driving the fast-growing need for small-business storage, said Stephen Allen, president of Integrated
resolution. Or they may be using a multifunction printer to scan documents at 300 dpi with color. I suggest 200 dpi with black and white.” Technologies that help better manage storage and cut the need to buy new hardware are key, solution providers said. Server virtualisation, for instance, simultaneously increases the need for storage while making it easier to manage. Combined with iSCSI, it allows solution providers to build low-cost,
“Just don’t forget to back up the data. A lot of small businesses buy two and use the second one for backups.” Technology Systems, a New York solution provider.The first is the fact that customers do not delete e-mails. Second is that they are scanning more documents into repositories that are not deleted.Third is that they are using applications that generate more and more .PDF and Word document files. A few years ago, a business figured it might need triple or quadruple its capacity over the next two to three years, Allen said. “But in 2007 and 2008, when we designed an upgradable network, we used a factor of eight. So if the customer has 100 Gbytes of storage today, we figure 800 Gbytes over the next two to three years.” Small businesses are burning through storage capacity with things like downloading photos and putting files on the network without regard to the cost of managing that data, said Fred Moore, managing partner at Moore Computing, St. Louis. “For example, a construction company might be storing 600 site photos at maximum resolution,” Moore said. “There’s no reason to store all those photos, or at that
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disaster-resistant infrastructures for small businesses, said Mitch Kleinman, president of Ryjac Computer Solutions, Irvine, Calif. Customers can use the VMotion capability of VMware to connect two physical host servers and 3 TB to 5 TB of shared disk storage to allow the sharing of multiple virtual servers to build a high-availability infrastructure, Kleinman said. Another important technology is e-mail management. Kleinman expects to see more e-mail management solutions combined with deduplication technologies to handle the growing volume of information that does not need to be stored in multiple copies. “A lot of companies in this space need to put best practices in place,” he said. Small businesses are also likely to be scanning and storing more documents for search and archive purposes and to decrease the physical and compliance risk of storing them in paper versions. Small businesses can take advantage of what used to be called HSM, or hierarchical
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storage management, to scan a document and store it with e-mails into an archive that can be backed up to disk or tape and then secured in an offsite location, Kleinman said. Only don’t call it HSM, Kleinman said. “That’s a big word for a small business,” he said.“When you walk into a company that sells stools to restaurants, they don’t want to hear about HSM.They want to hear what the solution will do for them.” A lot of small businesses are also looking to tiered storage, said Jeanne Wilson, president of Condor Storage, Sedona, Ariz. “They want to start moving data from primary storage because they have no budget for adding new capacity,” she said. “One customer said he can’t get rid of the music files users keep. Managers tell me they can’t get people to delete things. They want to clear out files so they don’t need to back them up, but they’ve had little success.” Small businesses also like traditional NAS appliances because of the cost, the ease of hooking them to the LAN and the fact that they eliminate the need for a dedicated file server, said Brian Lisse, owner of Madison Computer Works, a Madison,Wis.based solution provider. “Plug it in, and turn it on,” he said. “Just don’t forget to back up the data. A lot of small businesses buy two and use the second one for backups.” Allen said his small-business customers prefer to move away from tape to a NAS or SAN appliance like Hewlett-Packard Co.’s All-in-One or SonicWall Inc.’s continuous data protection, which handles version control and replication. Another opportunity is customers who work with brand-name vendors like EMC Corp. or HP but are becoming more open to working with lower-cost second-tier vendors,Wilson said.
VIRTUALISATION SOLUTION
TRAINING
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Virtualisation: a very hot topic Most IT organisations are implementing the virtualised environments.
BY DUDU SHABA
V
irtualisation is currently a hot topic and creeping into every layer of the IT stack. Organisations are investigating the opportunities that exist in virtualising operating systems and applications, with an aim to consolidate infrastructure and drive business alignment. Gartner predicts that virtualisation will be the highest-impact trend in the infrastructure and operations market through 2012. Raymond Watt, MD, REO Consulting (an EOH company), backs this prediction saying that the current global economic situation is driving companies to lower costs, show better returns on existing hardware, and do more with less. “Virtualisation is all about the numbers. It is about reducing the number of physical servers in an environment while increasing availability stats, and at the same time decreasing complexity and administration overheads. There is no need to stick to the one-to-one application to server ratio anymore,” he comments. “Pressure on limited resources requires us to increase our awareness of the impact we have on the environment and to consider our carbon foot print, our energy consumption, etc. This is further compounded by the global financial crisis, resulting in many companies looking for ways to improve the way they utilise technology, without sacrificing the number of machines that do the work. In short virtualisation is the do more with less solution,” Richard Sutherland, Portfolio Manager, Dynamic Infrastructures, Fujitsu Siemens Computers says. Virtualisation is enabling one of the fastest growing trends in the technology space
today, and this is cloud computing. This is according to Nick Keene, Country Manager, Citrix Systems, SA. “Cloud Computing has been around for a number of years in a few guises, initially, Application Service Providing (ASP) was a very popular movement at the turn of the century but failed to deliver possibly due to the conceptual idea being 10 years too soon. Software as a Service (SaaS) and Web 2.0 took the lead in providing software to enterprises with infrastructure without requiring too much bandwidth to connect to environments hosting such facilities. However, this is very much limited to Web type applications. Although 80% of application development is done for Web format today, organisations still have to grapple with legacy 16 and 32 bit client server applications coupled with the need to centralise desktops and deliver these as a service,” he explains.
Nick Keene, Citrix Systems, SA
“Virtualisation is enabling one of the fastest growing trends in the technology space today, and this is cloud computing” – Nick Keene, Citrix Systems, SA
According to Keene, moving IT infrastructure into the Cloud offers an organisation many benefits including a flexible and agile platform to access their information while reducing the total cost of ownership compared to owning the infrastructure. In his view, the South African adoption rate of cloud computing has been slower
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than that of Europe and United States, primarily because South African organisations are taking a more cautious look at the concept and waiting for more success stories in the form of references and case studies.
“Organisations are investigating the opportunities that exist in virtualising operating systems and applications, with an aim to consolidate infrastructure and drive business alignment” – Manfred Gramlich, Sun Microsystems.
“The adoption rate is also constrained by concerns such as bandwidth costs and the reliability of the connections into the cloud. There will also be a natural trust issue that will have to be overcome, as many local organisations fear their vital information is no longer on their own infrastructure and in their direct control, but rather managed by the cloud service provider,” he comments. Manfred Gramlich, storage leader for Sun Microsystems SA, believes that Storage virtualisation is a more mature methodology and is now being supported with innovative hardware and software solutions that have the ability to unlock great value. Gramlich says that storage virtualisation has much to offer businesses in reducing complexity and consolidating hardware, along with often overlooked advantages in data migration. Andrea Lodolo, CA Africa Manager, Technical Sales is also bullish about virtualisation, He says that it is gaining momentum and most IT organisations are either investigating, implementing or already using virtualised environments. “Most of these business know why they are doing it, to save costs, sweat their assets, and deploy new solutions quicker,” he comments.
Manfred Gramlich, Sun Microsystems.
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more than $1,8 billion in 2009. “One of the main drivers of server virtualisation is the green issue. Using fewer servers drives the effective utilisation of server capacity, and from a green perspective it helps reduce electricity consumption as less power is needed to cool the consolidated servers,” he comments. Another factor that Sutherland raises is that the management of servers is becoming increasingly more costly. “Virtualisation gives us a 1 to 7 physical to virtual ratio on average and often a lot more. This means that 6 out of every 7 servers are not seen, which makes managing them more difficult. More importantly is the fact that there isn’t the obvious red light that comes on when a component fails. There needs to be visibility and manageability to the virtual environment to enable more effective capacity planning and control on VM server sprawl,” he says. Meanwhile, Gramlich adds that the market, however, has not been educated enough in the advantages of effective provisioning. “Virtualisation means simplification. And if organisations can simplify they must begin to take steps to do so immediately. The gap between management, deployment and the amount of data to be managed continues to widen. This is why virtualisation is currently on the front page of nearly every trade journal,” he remarks.
Benefits According to Watt, these are the six major benefits, which are driving server virtualisation in SA:
1. Quality of service One of the beauties of virtualisation is the ability to shrink or grow the virtual machine’s resource utilization, allowing business processes to become more agile.
The market
2. Optimisation
Looking at the current state of the virtualisation market, Steve Buck, MD, Edgetec, says that virtualisation is becoming a top priority because of the specific pressures that companies and their IT departments are facing. “According to the Worldwide Virtual Machine Software 2006-2010 Forecast, it is predicted that the already strong x86 server virtualisation software market will expand to
Most data centres have a lot more servers than are strictly required, with administrators preferring to keep critical systems separate. This same methodology can be followed by using virtual machines which are configured with exactly the right amount of resources required, instead of server typically being underutilized by as much as 90 percent.
CRN SOUTHERN AFRICA • FEBRUARY 2009
VIRTUALISATION SOLUTION
3. Standardisation Most companies have a list of standard software and patches that need to be installed on every machine they roll out. In a virtualised setup, one machine can be installed with all the correct software and this can then be backed up and used as an install template for all future server rollouts.
4. High availability Many virtual machines can be created to run a single application with dynamic fail over based on the application’s clustering capabilities ensuring little or no downtime.
5. Backup Virtualisation also simplifies backup strategies as virtual machines can be backed up as a flat file or a simple partition at any time. At critical stages, the virtual machine can be backed up in its entirety and restored if any issues are encountered.
6. Disaster Recovery This is also simplified as the entire virtual machine can be backed up and restored on similar hardware, or each individual machine can be backed up and restored as required on any host.
The latest technologies Keene says that, Citrix, launched the Citrix Cloud Center product family at the end of 2008, a solution that brings together the service delivery infrastructure building blocks that have been proven in the world’s largest clouds and enterprise data centres, enabling massively scalable architectures that support rapid innovation and cost reduction. “Known as C3, the Citrix Cloud Center allows next-generation cloud providers to take advantage of the most widely-adopted virtual infrastructure platform for hosted cloud services, as well as the most proven infrastructure to deliver those services reliably and securely to both cloud consumers and enterprise data centres. The Citrix strategy focuses on equipping both new and existing cloud providers with the infrastructure needed to deliver successful clouds to their customers,” he says. He adds that the Desktop virtualisation solutions from Citrix, Citrix XenDesktop, which is co-marketed with Microsoft, is a groundbreaking desktop delivery solution
that allows companies to virtualise Windows desktops in the data centre and deliver them on-demand to office workers at any location. “Unlike first-generation virtual desktop infrastructure (VDI) technologies, XenDesktop is a comprehensive end-to-end desktop delivery system that offers an improved end-user experience, dramatically simplifies desktop management and reduces the cost of traditional desktop computing by up to 40 percent,” Keene says. Buck notes that virtualisation will continue to become a top priority because of the specific pressures that companies and their IT departments are facing. He cites the Worldwide Virtual Machine Software 2006-2010 Forecast, stating that it predicts that the x86 server virtualisation software market will expand to more than $1,8 billion in 2009. “One of the main drivers of server virtualisation is the green issue. Using fewer servers drives the effective utilisation of server capacity, and from a green perspective it helps reduce electricity consumption as less power is needed to cool the consolidated servers,’ he says.
TRAINING
PROVIDERS
Raymond Watt, REO Consulting
“Virtualisation is all about the numbers. It is about reducing the number of physical servers in an environment while increasing availability stats, and at the same time decreasing complexity and administration overheads.” – Raymond Watt, REO Consulting
He goes on to say that VMware continues to dominate the market it has created. “When EMC bought the company in 2003, VMware revenues were around US$100 million a year. But at the end of 2007 the company hit $1,5 billion. Most enterprise data centres today contain at least one or two x86 servers running VMware virtualisation software. VMware is pushing server virtualisation by opening up its code so that partners, such as application vendors, can integrate better with its virtualisation software. It is also pushing for virtualisation standards,” he remarks.
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Storage Virtualisation Deriving value from data storage, however, relies on effective optimisation in the form of thin or dynamic provisioning of virtualised storage that can provide an immediate ROI. Gramlich points out that storage virtualisation is possible via four methodologies that share common advantages. “Virtualisation of storage improves device utilisation levels, reduces storage management
“Management of servers is becoming increasingly more costly. Virtualisation gives us a 1 to 7 physical to virtual ratio on average and often a lot more” – Richard Sutherland, Fujitsu Siemens Computers.
Manfred Gramlich, Sun Microsystems.
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complexity and overall costs while facilitating interoperability and driving open storage systems. Other advantages include resource consolidation and the enablement of applications to more fully leverage virtualised storage, thanks to the tight integration of operating systems and virtualisation technology,” he says. He emphasises that one of the greatest advantages of storage virtualisation is in data migration. “This is not often perceived in the market, where the likes of consolidation and the resulting reduction in complexity tend to take a front seat,” he adds. “Moving data from one storage system to another is essential, yet most end-users don’t have a strategy aside from letting their storage vendors move their data for them,” explains Gramlich. “The problem with this approach is that it is a reflex action rather than something that should be considered as an important project in and of itself. Additionally, there are more reasons to move data between storage systems beyond upgrades, such as intelligent tiered storage; something that everyone thinks about doing, but rarely implements,” he explains. He says that data migration drivers include upgrading to new storage systems for next generation upgrades, storage consolidations, test and development, and
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intelligent tiered storage. “Power, cooling and floor space consumption will drive even further data migrations to consolidate storage systems to an even greater degree,” he continues. “Server virtualisation increases storage capacity and new storage system acquisitions, which are catalysts for data migration projects as well. “One time moves are valuable and necessary, but you must also begin to consider implementing an intelligent tiered storage environment along with the day-today migrations it necessitates. This will provide a great deal of value in your data-centre. Consider the implications of a long term relationship and not just a one time project,” advises Gramlich. But Gramlich says that virtualised storage should be accompanied with effective provisioning to drive rapid ROI and offer real value to business. “The most effective technique of doing this is in thin or dynamic provisioning,” he comments.
Resellers For resellers this sounds to be a great opportunity for partnering and making good revenue for themselves. “There are estimates that by 2012, 10% of the world’s desktops will be hosted and virtualised rather than being deployed traditionally,” says Keene. According to him, as customers are challenged with reducing operational costs, such as desktop deployment, they will be looking for partners who understand and can assist them in successful desktop virtualisation projects. “For the reseller this equates to revenue streams from not only providing the solution but also maintaining this on behalf of the customer,” he says. “Resellers need to understand the when and where it fits, what kinds of applications are ideal for virtualisation, then consult with the customer. A good understanding of virtualisation, storage and physical server infrastructures is required,” he comments. According to Buck, indications are that the market is taking the direction of server virtualisation and that in two or three years’ time most companies will have adopted the technology to improve their overall efficiency.
NOTEBOOKS SOLUTION
FEATURE
PROVIDERS
2009 will see continued growth in notebook sales Users will benefit from new technology, better performance and lower costs. BY DUDU SHABA
T
he South African notebook market is expected to be resilient in the face of a slowing local and global economy as end-users continue to buy into the benefits of mobile computing. That’s according to John Geypen, business development manager at Acer SA. He says that 2009 will be the year a number of technologies such as notebooks with Blu-Ray drives and screens with 16:9 aspect ratios start moving into the mainstream. “Even though we don’t expect to see too much in the way of new technology reaching the market this year, a number of technologies are starting to reach a price level and maturity that will make them attractive to the mainstream market,” adds Geypen. “Blu-Ray writers, for example, are now common in high-end notebook models and will go mainstream by 2010, while the first high-performance Acer notebooks with quad-core processors are starting to hit the market. “Over the past few years, notebook vendors have carved out the market into a number of segments to deliver a range of products that answer to the needs of a broad set of users,” says Geypen. “Notebook vendor companies can no longer take a one-size-fits-all approach to the market since segments such as the corridor warrior, the road warrior, the deskbound user and the desktop replacement power user all have vastly different needs,” he comments.
Current Trends According to Llewellyn Chame, product manager, Dell SA, netbooks will continue to be popular in 2009 as the move towards ultra-portable notebooks continues. In his view, ultra-portable netbooks have seen significant uptake in the consumer market and still needs to increase in the coming year. “Netbooks are typically seen as a second device, however, they are not so much cannibalising the notebook market as extending it by adding a new form factor. Ultra-portable is, however, still a significant
driver in the market and Dell has seen a growing trend towards wider use of ultraportable notebooks in general. Historically, 14-inch notebooks were the most popular form factor in the corporate sector while in the consumer sector the 15.4 inch models proved to be the most in demand,” he says. At the one end of the spectrum, Geypen believes that true desktop replacements with large high-definition screens, plenty of RAM and Blu-Ray optical drives are finding favour with power users at home and at work. He comments that elegant, ultra-thin, ultra-light
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notebooks with 13.3-inch screens are finding favour with people who travel often and want a compact notebook that allows them to connect to the Internet easily and do their work. At the other extreme, he
the Web, email, instant messaging and other Internet and communications tools, no matter where the user is. Acer regards
“Netbooks will continue to be popular in 2009 as the move towards ultra-portable notebooks continues. Ultra-portable netbooks have seen significant uptake in the consumer market and still needs to increase in the coming year.” – Llewellyn Chame, Dell SA states that netbooks are driving massive growth for vendors such as Acer by allowing them to address new markets with affordable Internet access devices. Geypen says netbooks are low-cost communication devices that are designed to provide true mobile and wireless access to
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netbooks as a discrete and separate market from notebooks. “Innovations such as Intel’s Atom processor have enabled us to bring affordable entry-level devices such as the Aspire One to market,” says Geypen. “Although some industry observers expected these products to cannibalise sales from the
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entry-level notebook market, this has not been the case. Instead, we’re reaching many users who couldn’t afford a notebook in the past,” he adds. Chame says that 2009 will see continued strong growth in notebook sales as consumers and corporate clients benefit from better performance, lower cost and more environmentally friendly products. He says that one of the key drivers in the notebook market in 2009 will be the ongoing development of CPUs from makers such as Intel and AMD. “New-generation processors will give users the power they are used to on the desktop, but in notebook form, while at the same time being more environmentally friendly through lower power consumption,” he says. Imi Mosaheb, country manager, AMD SA, believes that notebooks are becoming thinner and lighter, and also that there are higher battery life expectations. For 2009, he says that users should look out for AMD’s latest and upcoming platforms offering superior multimedia experiences in high definition across price segments ranging from R3 999 up, which take full advantage of Microsoft Vista’s multimedia options and the future Windows 7. “ AMD-based notebooks, based on open standards, offer a faster wireless experience saving users both time and money. “We have launched a new line of thin notebooks as well as netbooks in SA and more choices will be introduced throughout 2009. These netbook platforms are robust enough to run Microsoft’s Vista operating system, he remarks. While today’s high-end notebooks typically ship with dual-core processors, Chame predicts that the quad-core processors will become increasingly common in notebooks in the coming year. He adds that new technologies such as RGB-based LCDs will offer users better colour performance as they become more mainstream. He goes on to say that multi-touch screen capabilities will also become more mainstream in the coming year rather than being limited to tablet PCs as in the past. “One of the drivers for multi-touch panels in late 2009 and early 2010 will be the release of Windows 7 which has these features built-in and as its release draws closer, increasing
NOTEBOOKS SOLUTION
numbers of notebooks will be engineered to provide these capabilities,” he predicts. According to Chame, connectivity will continue to be an important part of notebooks in 2009, increasingly so as WiFi, WiMax and 3G networks mature around the globe. “As these technologies matures they will begin to be included in notebooks as standard features. While it is clear that connectivity will be a key factor in notebook uptake over the coming year and beyond, Dell South Africa will build its notebook range incorporating 3G and HSDPA to cater for this market,” says Chame. “Embedded WiMax and 3G modules tend to be relatively expensive because of limited suppliers at this time, and because of this cost, the USB-dongle connectivity option will remain dominant in the short term, particularly in the netbook sector where cost is a significant factor. In the longer term, however, as suppliers become more abundant and prices begin to decrease, embedded connectivity will become increasingly common,” he adds.
New products Tarsus Technologies has announced upgrades to Acer’s Aspire One, the netbook range that’s taken the market by storm. Traci Maynard, Acer business unit manager, Tarsus, says that the upgrades comprise the addition of an integrated 3G modem to certain of the Windows XP models in the range, an increase in hard-disk storage capacity to 160GB and the introduction of two new colours – coral pink and diamond black. Maynard, says her team is looking forward to the arrival of the new Aspire One models, since they have been hugely popular with clients of every size, in every sector of the market since their launch a couple of months ago. “We are particularly excited about the availability of a model with integrated 3G, since the majority of current Aspire One users find that using an external peripheral that accomplishes the same task cumbersome. With an integrated module, all the hassle is removed and users can connect to the Internet or their VPN whenever the need arises. It extends the usability of the netbook substantially,” she says. Maynard comments that the addition of the 3G module not only makes life more convenient for users, but can also extend the unit’s battery life.
“Computer designers have traditionally struggled to regulate the power consumption of external USB-driven peripherals,” she explains. “However, by adding the 3G functionality into the mix as an on-board component, the Aspire One’s power-saving features come into effect and extend the unit’s battery life,” she says. Maynard also believes that the availability of a 3Gequipped Aspire One will boost sales of the 8GB flash storage unit. “That’s because cloud-computing practises that allow users to store all of their data online rely heavily on a fast and ubiquitous Internet connection. “The Aspire One now makes that a reality and the need for users to carry a massive volume of storage around with them is starting to disappear. The Aspire One and
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extensively should there be an interruption in power supply. This eliminates the risk of downtime to the business. The Intel Centrino processor technology enables high performance, multi-tasking, high-definition multimedia, latest WiFi technology and longer battery life,” he explains.
“This will be the year when a number of technologies such as notebooks with Blu-Ray drives and screens with 16:9 aspect ratios start moving into the mainstream.” – John Geypen, Acer SA netbook concepts are changing what our future demands on technology will look like,” she comments. Sahara Computers has announced the release of the Intel 2GB Centrino 2 Montevina notebook to the local market. The company says it has expanded its range of digital lifestyle solutions and is targeting the mid-level market, more specifically users that require a feature-rich mobile solution that offers high-speed, on-the-go computing. “The mobile professional has the benefit of a mobile workstation and multimedia device in one. There is ample capacity to store and digitally manipulate information and large files. It can be used as a central workstation to expand and consolidate the home network,” says Naidoo. Naidoo explains that critical communication resources such as e-mail and the Internet are centralised which reduces cost and enhances control to maximise output and lower total cost of ownership over the infrastructure. “It has sufficient battery power to be used
Naidoo adds that there is an increasing need for affordable, robust and feature-rich wireless technology within the home network and home business space. “This is a thriving area of the market where the rate of technology adoption is increasing to keep up with global skills set requirements. This solution combines the very best in processor and chipset technology for quick connectivity and also offers high memory and storage capacity for effective management of multimedia files,” says Naidoo.
Green computing According to Chame, one of the overriding trends for all technology in the coming year is green computing, and confirms that Dell has made a firm commitment to it. “In August last year we announced that we had achieved our goal of becoming carbon-neutral – five months ahead of schedule. Dell has achieved this with a wide-ranging multi-pronged approach that
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includes purchasing renewable resources, eliminating toxic substances in our products, creating a recycling chain for all of our products and reducing the power consumption of manufacturing processes as well as on our products,” he says. Chame adds that one way to make computers more environmentally friendly is to reduce power consumption. “Some of these power savings are achieved by the new generation of processors and solid-state drives that are reducing the demand on resources,” he says. “But creating products that are truly green is about more than reducing power usage. It requires making improvements in the design, manufacture and reclamation of products throughout their lifetimes. We proactively eliminate environmentally sensitive substances from our products wherever viable alternatives are available, and we design products that are easily recyclable,” he adds. Green computing is another area where Acer is seeing a lot of innovation. Geypen says processor vendors are investing substantial parts of their R&D budgets in creating processors that need less power and generate less heat. “LED screens that use 30 per cent less power than the TFT screens used in most notebooks today are also likely to become more common in 2009 and 2010. This not only addresses the need to create products that are environment-friendly, but also helps to extend battery life for mobile users. An Atom-based netbook can deliver up to six hours of battery life with a six-cell battery,” he says.
Customisation Chame says customers are demanding customisation when buying notebooks. He says that for Dell, customisation is a cornerstone of the success of the business. “We have always offered customers products customised to their needs rather than simply providing one-size-fits-all products. In 2009 we expect to see greater demand for customised products, particularly in the notebook sector,” he says. He goes on to say that users are increasingly seeing their notebook as a personal product that needs to reflect their style. “For consumers, this means being able to select form factors, colours and styles that they want, and Dell’s customisation options
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make this possible. To date, this has largely been limited to the consumer sector but as consumerisation takes hold in the corporate sector we expect to see similar demands,” he comments.
AMD’s vision Mosaheb says AMD continues to fulfil its vision of a relatively cheap notebook to further help propel
PC growth and penetration in SA. “AMD continues to make strides with One Laptop Per Child to offer low-cost options in SA. The OLCP OLPC AMD laptop costs around R1 599,” he says. In addition, Mosaheb says AMD is integrating the graphics and the CPU to reduce notebook sizes and costs while driving more performance and higher visual experiences. “Since AMD owns the ATI products, the integration of two world-class technologies is expected to yield APUs that will redefine and establish higher computing performance
tablet-like devices and become more pervasive in business, entertainment and home environments. “For example, the self-ticketing for movie theatres take up valuable floor space and will easily be migrated to wall-mounted touch screens when replacement cycles come around. Notebooks are being integrated into home appliances and this trend will continue to show itself more and more in SA. Business, home security and home automation are
“There is an increasing need for affordable, robust and feature-rich wireless technology within the home network and home business space.” – Gary Naidoo, Sahara Computers. and improved battery life in the mobile segment,” he comments. Mosaheb says that AMD continues to adhere to its customer-centric culture of listening to its customers’ needs and defining products for future implementation. “Our customers’ vision of advancing their products to offer more for better value to end-users is what defines the AMD CPU/chipsets and ATI Graphics roadmaps at AMD,” says Mosaheb.
The future of notebooks Mosaheb predicts notebooks will find their way into becoming more touch-panel
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other areas where notebooks are of great use due to their mobility,” he says. As cloud computing becomes more prevalent towards the end of 2009, Mosaheb foresees the mobile thin client category growing. “This category will require more graphical performance than CPU performance since computation will be done in the Web 2.0 environment. AMD is well positioned in this segment both with its very low-power processors and its ATI graphics products for mobile platforms and handhelds,” he concludes.
NETWORKING SOLUTION
FEATURE
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Convergence:
the hottest issue in networking today
Enabling flexibility without sacrificing productivity. BY DUDU SHABA
T
he ability to deploy best-of-breed applications directly into the network infrastructure assists networking vendors to differentiate themselves and helps their customers achieve even greater returns on their investment in networking infrastructure. These applications create a more powerful and intelligent network. This is according to Derek Wiggill, regional sales director, 3Com Africa. He says that the convergence of open standards and an economic downturn prompt people to be more selective in their choice of networking components. “Open standards means that they are no longer locked into proprietary solutions and can hand-pick products that will deliver value,” he says. Richard Sutherland, portfolio manager, Dynamic Infrastructure also believes that convergence, mobility and security are the hottest issues in networking today. “Convergence brings together voice, video and data which is critical to ensure communication among people and organisations, mobility eliminates dependence on a wired connection, while offering the user the ability to connect from a place of their choice, while security with convergence and mobility is becoming more prevalent,” he says. Sutherland believes that convergence in the office environment is critical for business as it offers people the flexibility to live a more balanced life without sacrificing productivity. “Convergence offers the critical advantage of working from anywhere in the connected world as if you are in the office,” he says. Wynand Moller, regional manager, D-Link Africa, Western Cape, states that new applications like Wi-Fi VoIP require the ability to roam seamlessly and securely. “For example, wireless switches provide a simple,
centralised, iron-clad solution, with management tools, policy enforcement and built-in security. They make wireless LANs as secure as their wired counterparts. With today’s technology
Richard Sutherland, Dynamic Infrastructure
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you can overlay WLAN switches without compromising the integrity of the original wired infrastructure,” he says. Unlike traditional wireless networks, Moller says that wireless switching offers a user-based approach to administration policy as opposed to policy tied to ports and addresses. “This puts the network administrator back in charge, with a centralised console for managing and troubleshooting any contingency. Network administrators centrally control
“WiFi and Wimax are being adopted at a rapid pace. In emerging markets, the adoption is delayed and, in some instances, restricted by regulatory policy and limited backhaul infrastructure. With Intel’s release of its new chipsets that will support WiMax in the early part of 2009, Wimax will be fast tracked in many parts of the world.” – Richard Sutherland, Dynamic Infrastructure
authentication and encryption, manage VLAN groups, enforce roaming policies and maintain tight control over quality-of-service traffic. Each client is tracked by user identity, rather than by port, device or approximate location, making the environment more secure and intruders much more visible. Policies that govern who can do what and where while roaming wirelessly can be easily implemented. Centralised WLAN systems follow users and know who they are, so it is much easier to locate rogues when they appear on the scene,” Moller explains.
The adoption rate
Derek Wiggill, 3Com Africa
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Wiggill says that WiFi is continuing to become more and more prevalent throughout the marketplace. With new WiFi standards such as 802.11n, he outlines that WiFi continues to improve as a technology. “Security remains a challenge facing WiFi networks in both large and small companies, and unless implemented correctly, it leaves them vulnerable to bandwidth theft and makes company resources vulnerable to unauthorised external access.
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WiMax would have a ready market if it weren’t bogged down by the ICASA licensing process and the shortage of spectrum. This may improve by year end,” Wiggill comments. According to Sutherland, globally WiFi and Wimax are being adopted at a rapid pace. “In emerging markets, the adoption is delayed and, in some instances, restricted by regulatory policy and limited backhaul infrastructure. With Intel’s release of its new chipsets that will support WiMax in the early part of 2009, Wimax will be fast tracked in many parts of the world,” he comments.
Broadband fuelling Are networking vendors fuelling broadband to consumers in the home and office environments? According to Wiggill, bandwidth acceleration technologies and WAN optimisation remain extremely high priorities. He says the availability and price of broadband to businesses and consumers alike creates a compelling case for such technologies to grow exponentially as the return on investment is irrefutable. Sutherland, says that network vendors, telcos and ISVs are working together to make connectivity more accessible through subsidisation of the components needed to get connected. “The deregulation of markets has assisted greatly with fuelling broadband to consumers by providing access to unconnected areas,” he says. Moller says that D-Link continues to fuel broadband to consumers by developing and marketing products that thrive on bandwidth. He says that new draft 802.11n wireless technology improves bandwidth speeds while enabling next-generation Internet applications like VoIP. “Small businesses that are considering wireless to expand network coverage, and add connectivity and flexibility need to consider new draft 802.11n wireless equipment. New draft 802.11n products enable faster performance and longer connectivity range. They are perfectly suited to small organisations needing a more robust wireless solution. Draft 802.11n wireless solutions are much faster than traditional 802.11g, 802.11b and 802.11a equipment.
NETWORKING SOLUTION
Draft 802.11n technology also expands coverage much further than previous 802.11 technologies,” he says. “The implications for small businesses and home offices are clear. VoIP telephony, large file sharing and streaming, and numerous other performance-dependent applications are now much easier to maintain without delays or network traffic hiccups,” explains Moller.
Convergence Organisations of all kinds are taking advantage of IP network convergence solutions to integrate applications, boost productivity, save on network management and maintenance, and lower the cost of communication. Moller believes that these new solutions bring people together more efficiently to connect with customers, solve problems and make better decisions. “IP convergence does not require rip-andreplace modifications. Converged IP services, software and equipment can be added as necessary and infrastructure can be improved incrementally. IP networks already exist at most organisations,” he says. He goes on to say that most IT departments have been addressing the “silos of information” issue for some time. Now, as more and more business resources use the IP infrastructure that has evolved from networking implementations and Internet applications, the silo metaphor is being extended to people, processes and projects. “Organisations want to leverage their IP infrastructures to bring workers closer together, help them work more productively, and allow them to share information more freely and flexibly. Network convergence includes both software solutions and the hardware that accompany them. A robust physical network is needed to support presence-aware applications,” he comments.
The benefits of convergence According to Moller, the following are the benefits of IP convergence: Dramatic hardware, software, space utilisation, maintenance and support cost savings Increased employee productivity and mobility Videoconferencing reduces travel costs Seamless communication improves decision-making
Memorising of multiple phone numbers, screen names and email addresses eliminated Single, unified, open IP platform requires only one skill set for maintenance and support Easy to train users and support staff Applications and functionality available anywhere in the world He adds that the benefits and advantages of convergence are also compelling from an IT perspective. “The beauty of the architecture is that presence and connectivity rely on infrastructure that is often already in place,” he remarks.
Security management Moller comments that D-Link demonstrated its commitment to the latest in advanced security technology by announcing the integration of Microsoft Network Access Protection (NAP) technology in its family of xStack switches. He explains that Microsoft NAP is a new platform that controls access to network
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“Microsoft NAP is a policy enforcement technology built into the Windows Vista and Windows Server 2008 operating systems that allows customers to better protect network assets from unhealthy computers by enforcing compliance with network health policies. Network administrators are able to define granular levels of network access based on who a client is, the groups to which the client belongs and the degree to which that client is compliant with a corporate governance policy. This provides customers with bespoke enterprise-level security features that ultimately deliver the peace of mind of knowing that the network is protected by the latest security advances,” says Moller. Wiggill believes that intrusion prevention systems are constantly being refined to deal with the increasing ingenuity of people focused on penetrating company networks. “3Com’s TippingPoint division introduced IPS in 2002 to identify, prevent or quarantine intrusion problems before they infect the network. This next-generation approach provides unmatched network-based security
“The convergence of open standards and an economic downturn prompts people to be more selective in their choice of networking components.” – Derek Wiggill, 3Com Africa
resources based on a client computer’s identity and its adherence to a company’s corporate governance policy. “Providing enterprise-level security and advanced network interoperability, NAP is one of the most desired and highly anticipated features of Windows Server 2008. “With the support of Microsoft NAP, D-Link xStack switches ensure that each host’s access to the network is only possible if they comply with IT security policies as well as the update of anti-virus signatures and patches from the operating system. D-Link and Microsoft’s main objective is for users to secure their network systems against possible infected computers and implement more effective security policies on computer networks,” he says.
with unrivalled cost-effectiveness and ultrahigh reliability, performance and scalability,” he says.
ISVs and Vendors ISVs are important as they are the trusted advisers who bring the network technologies, software and applications together to optimise the end-user experience and provide feedback on the vendor’s relevant successes. Sutherland says software developers are more aware of the impact networks have on performance and ultimately the end-user experience and as such have adjusted their development techniques. “Convergence, together with fully automated and integrated infrastructures that can be acquired off the shelf, is encouraging traditional
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network and software developers to team up to ensure that their overall solutions work together effectively,” Sutherland comments. Wiggill states that more and more
“Resellers need to focus on advanced technologies and development of good quality resources that will ensure service offering that customers will be addicted to. Service is king in the era of skills shortage. Customer pays premier pricing for service and not products.” – Richard Sutherland, Dynamic Infrastructure applications are being embedded into the network through programmes such as 3Com’s Open Services Network (OSN) initiatives. He explains that 3Com’s OSN programme allows software developers to deploy their applications such as voice, security, bandwidth optimisation and many others directly onto a switch or router. “This saves on the number of servers that need to be deployed, vastly improves performance and provides a greater degree of flexibility of applications that can be deployed across the network. They create a truly intelligent network,” he comments.
Resellers Looking at how resellers can earn revenue from networking, Sutherland says that base networking technology like routing and switching has become a commodity. “Resellers need to focus on advanced technologies and the development of good quality resources to ensure service offerings that customers will be addicted to. Service is king in the era of skills shortages. Customers pay premier prices for service not products,” says Sunderland.
the market with trained resources as they did in late the ‘90s and early 2000s. This is critical for the value chain and movement of skills in the market,” says Sutherland. “Connecting mobile devices and managing their network access are major issues in network management. There is a desperate need for qualified network security specialists in a field where technology is rapidly evolving. SA will never have enough of them. They are in demand worldwide,” Wiggill comments. Success in the IT industry also depends on constant learning. Moller says that the D-link DCE course is designed to introduce, enhance and maintain valuable skill sets that are required in the IT industry. The DCE training is a full two-day intensive training course that encompasses the basics of networking, taking the student through a series of simple modules through to some very advanced and interesting topics. The focus areas include the following: Wireless, switches, security and surveillance, and entails theory as well as practical hands-on sessions. Providing network professionals with the knowledge to design and implement end-to-end solutions. Channel partners to greatly benefit from course. Achieving the highest level of technical knowledge across a broad range of internetworking-related technologies. Moller says delegates attending the two-day course will be required to pass assessments to gain certification. “On successful completion of the assessments, the delegates will receive a unique D-Link Certified Engineer Certificate with an authentication number,” he says.
Skills issue
Wynand Moller, regional manager, D-Link Africa
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As with any successful technology that has expanded rapidly, there is a shortage of quality skills in this space. Sutherland says that much more needs to be done to develop skills. “The ownership is with government, corporate organisations and manufacturers of network technology as everybody requires skills. “Government must continue to flood
CRN SOUTHERN AFRICA • FEBRUARY 2009
Looking ahead Sutherland says that networking is critical and here to stay with most of emerging markets still being unconnected. “Most developing countries can jump to the latest technology but the skills to support infrastructure will be key to success or failure,” he concludes.
OUTLOOK: COVER SOLUTION
STORY
PROVIDERS
A look into the
crystal ball
What 2009 could hold for the industry. BY KAUNDA CHAMA
T
AND
STANLEY CHISHALA
he fact that the year ahead will be a tough one for the global economy has become a cliché and companies have moved quickly from thinking about how bad it will be to making concrete plans to help them weather the impending storm. Company executives and industry analysts agree that the next 12 months will be turbulent, but there are certain market segments that provide more than just a glimmer of hope. One such segment is the small and medium enterprises or businesses (SME or SMB) space which has now become the darling of many businesses because of the potential it still has to spend on technology provided that the solutions make business sense. Pierre Spies, CEO of distribution house Tarsus Technologies, comments that 2009 is going to be a very tough year and says some of the financial results that have been released so far are indicative of how tough
the year is really going to be. An example of this is the half-year revenue figures released by IT solutions company Faritec this month which showed a significant decline from previous periods. The company attributed the somewhat dismal performance to the global and local economic downturn, which resulted in a decline in revenue for the six months to 31 December 2008. In addition, the company also reported a decline in gross profit margins. At the time of the results’ release, the company’s CEO Simon Tomlinson said revenue had declined by 18% from R502 million to R414 million compared to the same period last year; earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased to a loss of R11.6 million; and gross profit margins decreased slightly from 24% to 23%, mainly as a result of significant pressure on hardware margins.
However, the group remains cash positive, reporting a closing balance of R42 million. Tomlinson said that while the revenue drop was pronounced in the company’s Gauteng and public sector operations, revenue from the coastal operations has remained stable. He added that hardware and software revenues have declined by 21% and 23% respectively, while the services side of the business declined by 6%, explaining that this was partly due to the stability of its long-term service and support business. Spies says that from an IT distribution perspective, he foresees a year-on-year decline in units moved due to the current climate which will naturally put huge pressure on margins. Although some analysts and industry players have put a 12 to 18 month time frame on the entry point of the global economic recovery, Spies is confident that the
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Pierre Spies, Tarsus Technologies
turnaround could come in the next eight months, adding that when the turn comes, it will be a very fast one.
“This year will be a bit of a touch and go one, especially for the smaller players so this will also be a time when a lot of vendors will have to realign their expectations.” – Pierre Spies, Tarsus Technologies “Distributors and resellers should continue to focus on their cost structures and keep costs as low as possible because in the short to medium term, corporates will sweat their assets more,” he says. He comments that companies that provide technical services and support are bound to benefit from this situation, but end-user companies will find that the more they sweat assets, the more they will experience failures and system downtimes.
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In addition, Spies comments that that the box dropper’s road will be a tough one, adding that he does not see any consolidation taking place in the short term. “The SME space is definitely going to be buoyant. The one thing distributors and resellers need to bear in mind is that a lot of companies are buying down in an effort to get the best value for money out of IT solutions. Even with SMEs as a major option companies should keep in mind that generally, IT budgets are being heavily cut,” he says. Spies also adds that business coming from the public sector should pick up because his company has seen some increased activity coming from government on the project side although there will be some delays in the signing of bigger contracts. “This year will be a bit of a touch and go one, especially for the smaller players so this will also be a time when a lot of vendors will have to realign their expectations,” he notes. Sahara deputy MD Gary Naidoo says that from his company’s point of view, the year looks like it will be a tough one but comments that the IT space looks poised to hit the challenges head on. “There is no denying the potential in mobile computing as the industry gets poised to service first-time notebook users and those that will upgrade because the notebook or computer is now a business and educational tool,” he says. According to Naidoo, the demographics of SA provide for an increase in technology demand and the fact that the demand for data bundles is on the rise is promoting data communications. At the same time, the availability of wireless technologies like WiFi and WiMax is increasing the product offerings as well as extending communications to areas that were previously untapped. “Distributors like us will definitely put campaigns in place that will help resellers to target new market segments and also help them to offer solution-based bundles to both the larger corporates and smaller guys,” he says. Storage solutions vendor EMC South Africa’s country manager Gerhard van der Merwe agrees that the tough times will see a few smaller companies in the technology space disappear and even some larger ones taking significant strain.
OUTLOOK: COVER SOLUTION
“It’s going to be tough out there so companies have to watch their operating expenses and what they do very carefully,” he notes. Van der Merwe comments that with stricter controls on revenues and expenses, there will unfortunately be some staff rationalisations in the sector and major reductions in IT budgets across the board, but adds that companies that do smart business will remain stable. In light of the current economic climate, research company Gartner has released a number of reports predicting what industries should expect in the near future. Regarding the IT sector, the firm says recessions tend to be turning points in an economy, spawning new industries. The personal computer industry emerged from the recession of 1979, and although the “dotcom” recession of 2001 saw the disappearance of most of the overvalued companies, we cannot ignore those that continued to grow – Amazon and eBay, among others. These turning points are equally effective in ending prior business models, as the financial services and automotive industries are discovering. The current recession started with the deflation of asset values in areas such as housing and the stock markets. At their height, asset values powered US consumer spending, which in turn drove the global economy. It will take years to know the full impact of this recession, which makes these predictions even more important for effective decisionmaking. What are the forces in play right now, and how will they affect your industry?
Key Findings The recession is having a highly negative
impact on IT budgets in government and retail. ”Creative destruction” is alive and well as business models change to respond to new economic and competitive realities, with automotive and K-12 including it in their predictions. To show that complacency is never a strategy, the competitive landscape is shifting. New players are entering the arena to capture market share from incumbent players, especially in banking and retail, whereas manufacturing is seeking to regain its power with customers.
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Looking at the corporate space, Gartner advises that CIOs must be decisive and resourceful in 2009. “Meeting the challenges of 2009 requires CIOs to lead their organisations or enterprises through decisions that have no simple answers. CIOs need to lead and have the foresight to look at IT in new ways,” Gartner says.
“It’s going to be tough out there so companies have to watch their operating expenses and what they do very carefully.” – Gerhard van der Merwe, EMC
They will demonstrate this leadership through the following imperatives: Being decisive in setting priorities on actions that raise enterprise effectivenes with a focus on improving business process, using business intelligence to raise visibility and enhancing workforce effectiveness. Doing the first things faster, as changing economic conditions render a large project irrelevant. CIOs need to add schedules to their prioritisation process and recognise that some priorities can wait. They need to place greater emphasis on the schedule (when) rather than the priorities (why). Being resourceful in restructuring IT to raise its productivity and agility, because the business will not reduce its demand for IT just because you have fewer resources. Modernise technical infrastructure, as new technologies offer lower cost, use less energy, deliver better performance and provide greater capacity; the business will need all of these in the immediate future. With the above imperatives forming the basis for the CIO agenda and its focus on making the enterprise more effective, distributors and resellers alike can rest assured that although spending may slowdown significantly, smarter planning on their side will ensure that they benefit fromthe new opportunities that will be created by the prevailing market conditions.
Gerhard van der Merwe, EMC
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ANALYSIS: COST
CUTTING
SOLUTION
BY CRN
STAFF,
PROVIDERS
Real cost cutting technologies for 2009
CHANNELWEB
I
t’s no secret that customers are reluctant to part with their hard-earned cash during the economic downturn, but that doesn’t mean IT sales will come to a standstill. Savvy solution providers will show that by spending a little now on the right technologies, customers will actually save down the road and gain a competitive edge over their rivals to boot. With that in mind, CRN has identified 10 real cost-cutting solutions that will play big in 2009. The list features technologies that offer proven ROI with real-world examples of customers that scored huge savings. Ultimately, these technology investments will provide the tools customers need to survive in this economy.
Data Center Automation
Document Management
5 KEY PLAYERS: BMC, CA, HP, IBM, mValent Applying automation to the enterprise data center is an important part of running mission-critical applications and making sure servers and storage devices are utilised to the fullest extent. And it is the kind of business where solution providers can prove their importance to customers, said Bob Schwartz, president of Robert Mark Technologies, Cottage Grove, Minn. “When times are good, a lot of glitzy applications get purchased, but people don’t think of boring things like automation,” Schwartz said. “In the last recession, we saw a lot of interest. Now, with the economy falling, we’re back in the same situation.”
5 KEY PLAYERS: eCopy, HP, Laserfiche, Oki Data Americas, Xerox Print and imagingVARs that aren’t raising their game to master document management are not only missing out on a key aspect of the “total solution” but also ignoring one of the most important cost-cutting technologies for today’s office. That’s probably why big players like Xerox,HP, Ricoh and Oki Data Americas have been fine-tuning their offerings and why mavens like Laserfiche and eCopy and newcomers like GoScan are attracting VARs left and right. “We had a very successful year with Laserfiche and, going forward, we are heavily focused on [their] value, particularly with regard to process automation,” says Kevin Smith, senior vice president of One Source Document Solutions Inc., a Greensboro, N.C., solution provider.
REAL WORLD: Robert Mark Technologies automated the runbook of a money-transfer application for a banking customer, and saved it an initial $240,000 per year related to the cost of two full-time contractors who manually monitored the application.
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REAL WORLD: One Source used Laserfiche technology to help Iredell Memorial Hospital save $40,000 per month in writeoffs from misplaced records.
ANALYSIS: COST SOLUTION
Managed Services 5 KEY PLAYERS: Kaseya, Level Platforms, N-able, Nimsoft, Zenith Infotech It sounds odd, but there aren’t many MSPs using the term “managed services.” Rather, they market themselves as “outsourced IT departments.” The terminology might be complex, but the concept is not: helping customers lower costs by monitoring and managing their IT infrastructure. In most cases, customers pay the MSP a recurring fee to take care of their IT needs. Because MSPs have more control over both their resources and the customer, the end user’s costs are typically less than the traditional break-fix model. “It’s pretty easy.We take responsibility for their network. My analogy is if you had a mechanic living in your garage, your car would run forever,” says B.J. Farmer, CEO of CITOC Inc., a Houston-based MSP. REAL WORLD: PFM, a property services company for the petroleum industry, outsourced its network management to CITOC and is saving about $1 million each year.
CUTTING
PROVIDERS
applications like Openbravo (ERP), ProcessMaker (business process management) and SugarCRM, as opposed to just operating systems and databases.“Many open-source applications are not only viable alternatives to proprietary ones, they’ve also added new functionality, such as social networking capability, that doesn’t exist in commercial software,” he says. Companies are starting to take open source seriously, said Frank Basanta, director of technology at Systems Solutions, New York.“My first suggestions to customers are things like open-source file servers, print servers or FTP servers. We’ve had FTP servers running for two years without a reboot,” he says. “There is some basic input you have to learn, but when you’re administering something and don’t have to worry about it, that adds up to major cost savings.” REAL WORLD: EUS Networks closed a 1,000-port VoIP deal based on Digium’s Asterisk Business Edition for $250,000; a comparable Cisco solution was priced at $1.5 million.
Open-Source Software
Power Management
5 KEY PLAYERS: Digium, MySQL, Novell, Red Hat, SugarCRM As the economy worsens, it’s not surprising that more companies are looking to open-source software as a way to cut licensing costs. But according to VARs, open-source software has matured to the point where some products offer functionality that surpasses proprietary software. Ron Bongo, CEO of Corra Technology Inc., a Montclair, N.J., Linux solution provider, is seeing more companies move to
5 KEY PLAYERS: APC, Belkin, Eaton, Liebert, Tripp Lite Providing solutions in power management technology for cooling and electricity in the data center can lead to a highmargin product and services business. Five Nines Technology Group, Lincoln, Neb., first analyzes every device that draws power and documents the business case, said Ben Pankonin, director of business development. For power management, Five Nines mainly uses products from APC and Liebert,
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often working the technology into a broader solution sale. “We often have the opportunity to explore energy savings at the time that clients are looking at other projects,” he says. But, he warns, “Do not pretend to be an HVAC specialist. Instead, partner with mechanical engineering firms and become a valuable resource for your client.”
REAL WORLD: Insight Public Sector outfitted Florida’s Seminole County Schools with an NComputing solution, saving it 50 percent on hardware, 70 percent on life-cycle maintenance and 90 percent on energy. Thin-Client Computing 5 KEY PLAYERS: Citrix, IBM, NComputing, Symantec, VMware Recent advances in thin-client technology– along with increased interest in improving IT efficiency – have led to renewed interest. Advantages such as lower hardware, IT administration and energy consumption costs make Unified Communications
REAL WORLD: Five Nines cut server power consumption for a community bank by more than 50 percent by combining virtualisation and APC power management technology.
Server Virtualisation 5 KEY PLAYERS: Citrix, Microsoft, Parallels, Sun Microsystems, VMware Server virtualisation actually lets customers reduce the amount of physical hardware they require while providing a platform for expanded capabilities. Putting a dollar figure on the cost savings is fairly easy using software tools that assess a customer’s environment, says Mitch Kleinman, president of Ryjac Computer Solutions, Irvine, Calif. “Our server virtualisation methodology shows tangible savings,” Kleinman says.“We’ve gone into a customer, dropped software on their server, and showed how much they’d save with virtualisation.” REAL WORLD: One Ryjac customer invested $131,000 in VMware, two IBM servers and a SAN, saving $1.3 million in power, maintenance and acquisition costs over three years.
Software-as-a-Service 5 KEY PLAYERS: Adobe, Microsoft, NetSuite, Oracle, Salesforce.com Given the current economy, Software-as-a-Service solutions and their buy-what-you-need, pay-as-you-go model are all the more attractive. “With SaaS, there is no need to install infrastructure and no up-front capital costs, which makes it very desirable in today’s economic climate,” says Eric Berridge, co-founder and principal at Bluewolf Inc., New York, which specializes in SaaS applications from Eloqua, Salesforce.com, SuccessFactors and Xactly, among others. SaaS solutions require fewer infrastructure resources on the customer side to deploy, run and manage vs. packaged software, and they help cut requirements for on-site maintenance and support staff. They also typically offer more flexibility and are quick to roll out. REAL WORLD: By implementing SaaS applications, Bluewolf helped a cable services company improve sales-lead qualifications and reduce its sales cycle by 40 percent. such solutions extremely attractive, said Wade Wyant, managing partner of ITS Partners, Grand Rapids, Mich. “In this climate, you need to look at technologies that offer instant ROI for customers,” he says.
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5 KEY PLAYERS: Avaya, Cisco Systems, Microsoft, Nortel, ShoreTel It may sound expensive on the surface, but unified communications has a proven track record for delivering rapid ROI. By tying together VoIP, IM, e-mail, videoconferencing, smartphones and PDAs,VARs can help customers cut costs and generally do more with less. Cisco Systems, Microsoft, Avaya and others have been preaching the ROI story for years, and solution providers and end customers are catching on. “Through [unified communications] we can consolidate vendors, improve corporate productivity, reduce hard costs and reduce our customer’s overall bottom line,” says Glenn Conley, CEO of Metropark Communications, Chicago. REAL WORLD: Metropark used AltiGen IP telephony and conferencing products and 3Com gear to save a medical equipment sales outfit $10,000 per month in telecom services.
Videoconferencing 5 KEY PLAYERS: Cisco, Lifesize, Microsoft, Polycom, Tandberg Travel budgets often take a hit when times are tough, but that doesn’t mean businesses have to cut back on face time with contacts.And as improvements such as high-definition video and telepresence go mainstream, the videoconferencing experience mimics real-life meetings more than ever. “We’ve got technical experts that are available to all of our salespeople, but they’re centralized,” he says.“They can meet with four customers in four parts of the world all in the same day and never travel,” said Charlie Macli, executive vice president of sales and marketing at IVCi LLC, Hauppauge, N.Y. REAL WORLD: IVCi implemented a Polycom VCX 7000 videoconferencing system to help an expanding East Coast-based law firm cut travel to its West Coast offices by 20 percent.
Reviews by: Stanley Chishala
Highly Recommended
McAfee – Total Protection 2009 Well locked down. As one of the leading vendors in the security space with expertise in both system security and anti-virus McAfee has done well with Total Protection 2009. As far as modern day security software is concerned, the suite incorporates a very good and comprehensive collection of tools for safeguarding users against threats. I must admit that I took the software home and spent some time getting the installation right (it could have been user error) and I also seemed to have a few issues getting the online registration right (which is an initial prerequisite), I found that the software was a great improvement on what the company had to offer users last year. The interface is relatively easy to understand because the it displays green ticks if everything looks OK and offers a one-click solution to fix any problems that it detects. It has two easy controls that offer quick access to updates and scans and all the software’s features are easy to get to through a categorised list that includes computer protection, Internet and network, email and IM and parental controls. With all its features broken down into individual components with advanced menus it is quite remarkable to see how much tweaking one can do to the way they view and use the software through the collection of additional lists and menus. The firewall is admittedly quite complex and quickly reminds beginners that sometimes even out of the box solutions should be left for experienced users to install.
The interface is relatively easy to understand because the it displays green ticks if everything looks OK and offers a one-click solution to fix any problems that it detects.
However there are some impressive extras thrown into the package like McAfee’s Backup and Restore software. This allows users to save copies of data to local and networked drives. This feature alone makes this software solution stand out very prominently even in a room full of competitor brands.
The QuickClean feature enables users to remove unwanted files from their systems and registries. It also comes with a convenient shortcut to Windows’ Defragmenter and a network manager to view the status of computers that have access to the machine the software is installed on. Essentially, Total Protection 2009 is a fairly comprehensive collection of utilities, but in some cases switching between them involves an overly long wait while the component loads. While most are integrated quite well they all seem to follow the same pattern of being rather awkward to use. It does also give users a lot of flexibility but comes at a sort of premium price. At the end of the day, even with the price of the product, the upside is that the solution has a lot to offer users with its wide array of tools: It is a great system scanner and scans a users’ system almost 100%. After using this product, it is easy to understand why McAfee remains one of the global leaders in the total system security space.
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PARTING: SHOTS
DILBERT
www.dilbert.com
by Scott Adams
S n a pshot
Andrew Holden
Company: Bytes Outsource Services, a division of the Bytes Position: Managing director Age: 42 Best personal achivement: I think my best personal achievement lies in the growth of Bytes Outsource Services, over the last 5 years. It has been a phenomenal few years for us, in a highly competitive industry. Management style: I believe in People – by empowering my management team they are encouraged to perform TO the best of their abilities thus ensuring personal development, satisfaction and inevitable success. Most admired company: David Redshaw, CEO of Bytes Technology Group. His determination, fairness and loyalty to the company and staff are characteristics I admire and aspire to be. Most admired executives: Adrian Gore Most pressing local business issues: I think the economic situation in South Africa (and globally) as well as skills shortages and inter-related threats to our businesses. The economic situation negatively impacts IT Projects and this in turn affects skills development; which then exacerbates the current skills shortage we are facing in this country. Key to success: I think adapting to the ever-changing face of technology is a trait of many successful people. Favourite car: Mercedes Your car: Mercedes Favourite authors: Steven R Covey Where do you live: I currently reside in Pretoria Birthplace: I was born in England Hobbies/sports: I enjoy Hockey and Golf Favourite periodicals: Time Magazine
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