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News and views of the action in Australasia's IT sector this week



                    THE RUST BUCKET                        Malaysia pays off for
         The smart money                                   CCK's treasury system
    TECHNOLOGY is so wedded to business strategy           Australian developer CCK Financial Solutions has
    today that investment will have to return. But         been selected to provide its Guava Suite of treasury
    investment as we are now experiencing is a lot
    smarter and a lot more strategic. Many people
                                                           management      systems      to   three    Malaysian
    making technology decisions are still unsure if        organisations — PM Securities, OSK Securities
    their budgets will be cut again, so they are holding   Berhad, and K&N Kenanga Berhad. All three will use
    back on spending.                                      Guava to handle local treasury functions, covering
         The big challenge they have to address is what    money market and securities trading, dealing, risk
    opportunity lies before them, what technology          management, settlement, and accounting functions.
    they have in place, and what is on the horizon —       In addition, OSK will use the software to manage its
    and then they have to figure out how they can
                                                           corporate banking requirements, explained Joseph
    take      advantage     of    the     circumstances
    economically.
                                                           Wong, managing director of CCK.
         In many complex industries, vendors are              Each implementation will be undertaken by CCK's
    asking for trouble if they stage a flat-out assault    consulting team using the company's rapid
    on an organisation's fundamental way of doing          implementation methodology. The installations are
    business. The best points of entry are likely to lie   scheduled to be completed by the end of June, at
    on the edges of an industry, in tasks that involve     which time OSK and Kenanga are expected to have
    relatively small sets of people. Only after these      been awarded investment banking licences, Wong
    initiatives pay off — that is, lots of people at the   added. www.cck.com.au
    front lines see technology as a boon to their work
    — does it make sense to pursue bigger dreams.
         We all need to be thinking beyond the horizon     Mincom wins Russian contract
    to what might happen next. This kind of thinking
    is everyone's job, not just the CEO's, hence the       Queensland software developer Mincom has been
    need for brainstorming sessions on what to do as       awarded a contract to provide an integrated system to
    the ICT industry continues to consolidate.             the resources division of JSC SeverStal Group, one of
         Nothing gets done with enthusiasm if people       the largest holding companies in Russia. The system,
    are down. Staff and their CIOs see themselves "at      which will be based on Mincom's MineScape solution,
    risk" and, as a result, IT executives are looking to   will contain computer-aided geological modelling and
    raise and stabilise the quality of IT services
                                                           data management, survey, and mine planning
    offered and to present these services in business
    terms understood by chief executives. Enterprises      capabilities.
    are also having to replace the experience and              "The system will bring JSC SeverStal Resource's
    skills that in many cases have been let go over the    geological and engineering services into a new
    recent period of cost cutting. In addition there are   technical level, which will increase the efficiency,
    concerns over the aging workforce and the              accuracy, and reliability of reserve calculation. In
    difficulty of attracting new people with the right     addition, it will help JSC Sever Stal Resources to
    skills to address the new requirements.                decrease loss and dilution of mineral products,
         All of this is happening at a time when
                                                           provide the organisation a unified view of its graphical
    outsourcing — a far from a new phenomenon — is
    also beginning to create a huge amount of stress       mining data, and improve mining safety and planning
    on employees concerned about losing their jobs.        optimisation overall," explained Richard Mathews,
         The one thing that can be counted on is that      CEO of Mincom. www.mincom.com
    there will always be change in the IT industry. To
    manage this change, organisations need to look to
    the future to make better informed business                       INSIDE THE RUST REPORT
    decisions. Regardless of company size or industry,
    people in business do want technology to be             Insider Edition                              Page 2
    tracked and measured just like any other part of             This week's orders and installations
    their business.                                         Aussies Worth Watching                      Page 3
         There is every reason to believe that                   A roundup of Aussie ICT companies making waves
    technology will continue to provide organisations
                                                            Deal Makers                                  Page 4
    with    an    important    competitive    advantage.
                                                                 Mergers, acquisitions, & funny business
    However, for that fact to be recognised marketers
    must take the bull by the horns and demonstrate         Rust e-Research                               Page 6
    to customers, prospects, analysts, and the media             What the analysts said and did this week
    that technology is not simply a convenient utility      A CEO told me                              Page 7
    but that it remains a key driver of competitive             Serge Gansner, CEO of Swiss company E2E
    advantage.
                                                            Revolving doors                            Page 8
                  — Len Rust RustOz@bigpond.com.au              Who's in work and whose jobs they took
The Rust Report, February 24, 2006                                                                        Page 2




                                     INSIDER EDITION
IBA wins three hospitals on home turf Adacel wins deal with US college
Sydney health systems developer IBA Health has been      Adacel,     an    Australian   developer    of  diverse
selected to provide Web-based solutions to three more    technologies, has been selected to provide an air
Australian hospitals. St George's Health Service and     traffic control tower simulator to the Georgia Aviation
Caritas Christi Hospice, both in Victoria, will          Technical College in the US.
implement IBA's patient management system                    The college, which recently received approval to
operating from the Sisters of Charity St Vincent's       expand its aviation department to include an air
Health Service data centre. The system will be used to   traffic control program, has ordered a six-screen tower
provide multi-hospital access to patient data,           trainer that is similar in size and function to the
explained Steve Garrington, CEO of IBA.                  system in use by the US Air Force, Federal Aviation
   Mildura Private Hospital has also signed up to use    Administration, and US Marine Corp, explained Silvio
the patient management system and will install the       Salom, managing director of Adacel. www.adacel.com
developer's Theatre Management and Casemix
modules to streamline administrative and clinical
functions across all departments, Garrington said.         Aconex builds system for architects
www.ibatech.com                                           Aconex, an Australian provider of IT systems to
                                                          the construction industry, has been selected to
Merit counts for PNG border system                        provide an online information service for The Cox
                                                          Group of architects. The Aconex system, which
Merit Technology, a Victorian developer of systems for    will be used to replace manual, paper-based
the government and health care sectors, has been          information exchange, was given an extensive trial
selected to provide a border management system to         by The Cox Group during 2005, explained Graham
the Papua New Guinea Immigration and Citizenship          French, QA manager at The Cox Group. "We are
Division. The contract, which was awarded by the          already using the system in Melbourne, Perth, and
Australian Department of Immigration and Multi-           Dubai, and it will soon be implemented in
                                                          Canberra, Sydney, Brisbane, China, and Malaysia,"
cultural Affairs, also covers the provision of
                                                          he added. www.aconex.com
implementation and support services.
   The system will manage visa and permit issuance,
a movement alert list, a name-matching facility,
document authentication, and border movement
                                                         Argus wins contract at Vic hospital
processing, a spokesman explained. It will be            Australian identity management specialist Argus
implemented at all major airports and border             Solutions has received an order for its MethaDose
crossings in PNG, as well as 15 overseas posts before    drug dispensing system from a Victorian hospital that
the end of this year, the spokesman added.               provides services to Corrections Victoria. The contract
www.merit.com.au                                         indicates the growing acceptance of biometrics to
                                                         provide positive assurance of identification, said Bruce
RuleBurst scores job with the Feds                       Lyman, CEO of Argus Solutions. "MethaDose clearly
                                                         prevents the likelihood of over-dosing, misdosing, and
RuleBurst, an Australian developer that was              fraudulent acquisition of restricted and/or dangerous
previously known as SoftLaw, has begun work on a         drugs while streamlining the dispensing process,"
business rules system that will form a part of the       Lyman added. www.argus-solutions.com
Australian Department of Finance and Admini-
stration's  planned    Parliamentary   Entitlements
Management System.
                                                         ISS cleans up for resources giants
   To complete the system RuleBurst will work with       WA developer ISS Group, which specialises in systems
QSP Asia/Pacific and Dytech Solutions — both part of     for the process industries, has been awarded
the UXC group of companies — which will provide the      contracts by BHP Billiton, for its Ravensthorpe nickel
project management, business analysis, system            project in Canada, and the Worsley Alumina Refinery.
development, integration, and ongoing support            The systems will be integrated with Honeywell
services, said Surend Dayal, chief executive of          Experion    (Worsley)    and     Emerson    Delta   V
RuleBurst. www.ruleburst.com                             (Ravensthorpe) control systems. www.issgroup.com
The Rust Report, February 24, 2006                                                                       Page 3


INSIDER EDITION
Continued from page 2                                     Aussies worth watching
                                                          A roundup of companies making waves
Nortel replaces bank's data net                                   at home and abroad
St George Bank has replaced its legacy data network
                                                              JUSTSYS     is   dedicated   to   the    rapid
with a new network that was implemented by Optus
                                                          development of Web-based support systems that
using Nortel's 10Gigabit optical equipment. The           model decision-making reasoning. The decision
network overhaul followed the bank's launch of a CRM      support software tools and methodologies Justsys
project in the fourth quarter of 2005, explained John     deploys have evolved from research projects in the
Loebenstein, group executive for IT at St George.         application of artificial intelligence to law
   "New applications like videoconferencing and VoIP      conducted in two universities over the last five
put a much greater emphasis on the reliability and        years. The company's current R&D is now focusing
resiliency of the network infrastructure because of the   on tools for the rapid development of decision
                                                          support systems, online dispute resolution, and
added stresses they put on available bandwidth,"
                                                          data mining. www.justsys.com.au
added Paul Bristow, executive manager of IT network
services at the bank.                                          BLUE REEF is a data networking vendor
                                                          specialising in role-based access control and
People picks up AT&T's WA node                            network enforcement. Blue Reef aims to help
                                                          organisations improve the way people access and
US giant AT&T has selected Australian telco People        use their networks and network-based resources.
Telecom to provide co-location and Australian voice       The    company's    gateway    appliance   products
telecom services to AT&T. AT&T has already relocated      leverage an     organisation's existing     identity
its network node in Perth to People Telecom's Internet    management      infrastructure   (such   as    LDAP
data centre under the terms of a five-year contract.      directory services) to enforce granular role-based
                                                          access, content, and bandwidth control at network
The voice services will be provided under a separate
                                                          level. www.bluereef.com.au
three-year deal.
    "We expect to make savings of around 50 per cent           CMX TECHNOLOGIES is an intellectual
on our domestic calling costs," claimed Jeyan             property (IP) licensing company founded in 2001,
Jeevaratnam, managing director of AT&T Australia          to deliver a simple and cost-effective extra layer of
and New Zealand. "Furthermore, we have also reduced       security to enhance institutions' existing end-user
the costs associated with our Perth POP, which will       authentication    processes.   CMS     provides   an
give us the opportunity to target businesses in           authentication codification process ranging from
                                                          simple personalised scrambling solutions through
Western Australia. www.peopletelecom.com.au
                                                          to impregnable rolling code offerings that enhance
                                                          existing    security    measures     deployed     by
                                                          institutions during the authentication element of
                                                          an online transaction. www.cmxtech.com

                                                               e-BILITIES' core business is the sale and
                                                          distribution of an innovative range of online
                                                          cognitive ability tests, which are based on
                                                          contemporary research directions in intelligence
                                                          testing. e-Bilities provides clients with the
                                                          convenience of Internet access to tests that
                                                          accurately    access     cognitive   abilities.  The
                                                          company's testing system also helps clients to
                                                          pinpoint people who are over-confident, under-
                                                          confident, or realistic in appraising their cognitive
                                                          abilities. www.ebilities.com

                                                               SEEING MACHINES's focus is on vision-based
                                                          human/machine interfaces. Formed in 2000,
                                                          Seeing Machines's purpose is to commercialise its
                                                          computer-vision intellectual property across a
                                                          wide range of industries and applications. The
                                                          company's faceLam provides head-pose, gaze
                                                          direction, and eyelid closing tracing. Seeing
                                                          Machines's   technologies   are   used  in   the
                                                          development of new products and applications
                                                          that range from devices to improve road safety
                                                          and save lives to those that can detect and
                                                          manage eye disease and prevent loss of eyesight.
                                                          www.seeingmachines.com

                                                               FUTURE KNOWLEDGE offers a comprehensive
                                                          suite of change, education, consulting, and
                                                          training project management services. Customers
                                                          include St George Bank, Boeing, Brambles, and
                                                          Hardy Wine Company. Future Knowledge has also
                                                          recently launched into the Asia/Pacific region
                                                          delivering end-user training for organisations that
                                                          are    implementing     enterprise    applications.
                                                          www.futureknowledge.com.au
The Rust Report, February 24, 2006                                                                       Page 4




                                        DEAL MAKERS
Keycorp partner unlocks Internet                         Mediator hits China on the run
Australian company Keycorp plans to offer a secure       Byte Power got off to a flying start in its efforts to
Internet payment transactions service after entering     introduce the Mediator network monitoring product to
an alliance with Canadian company Datawire               the Chinese market when its partner Henan Easeful
Communication Networks. The service will be based        Information Technology Co won an order for 15 units.
on Keycorp's EFT-POS technology and Datawire's VXN       The initial delivery is destined for use in Nanyang
global Internet-based transaction delivery network.      City's education network in Henan Province, but the
Keycorp will offer the service to its customers and      two companies intend to exploit the sale as they work
partners in New Zealand, Singapore, Malaysia,            together to introduce the product to the broader
Taiwan, Japan, Hong Kong, Korea, China, and              Chinese market, said Alvin Phua, CEO of Byte Power.
Canada, explained Bruce Thompson, CEO of Keycorp.            "Mediator has the potential to be implemented in
In Australia, Keycorp will link to Telstra's broadband   over 300 schools in Nanyang City and in over 300
access and bank connectivity network.                    schools in the new Zhu Ma Dian City project, which
    "The alliance with Datawire offers the opportunity   will be implemented following Nanyang," Phua
for Keycorp to build on our strategy of moving from a    explained. "This contract has large significance to Byte
products company to a solutions company by               Power Technologies as it builds on our success in
leveraging the power of the Internet," Thompson          introducing Mediator into new markets in Singapore
added. www.keycorp.net                                   and Malaysia, and now China.
                                                            In Australia Byte Power has received follow-up
  Aussies recognised with A/P awards                     orders for Mediator from Metropolitan Fire Brigade in
                                                         Victoria   and    from    Queensland      WorkCover.
 The achievements of Australian companies Beonic
 and Hearne Scientific Software, along with CSIRO
                                                         www.bytepowergroup.com
 Entomology, were recognised at last Sunday's
 Asia/Pacific ICT Awards ceremony in Thailand.           IBM leans on software partners
      Retail intelligence specialist Beonic won the
 Applications and Infrastructure Tools category          IBM Australia has revamped its distribution model to
 with its Traffic Insight system, which uses             make it more attractive to its channel partners. The
 sophisticated sensing equipment to provide              newly introduced distribution model is expected to
 shopper traffic intelligence integrated with back-      increase profit margins for distributors and provide
 end analytical software.                                additional incentives for resellers, claimed Sue Hope,
      Hearne Scientific and CSIRO Entomology             channel manager for the IBM Software Group
 received a merit award in the general applications      Australia and NZ.
 category for their Dymex-Climex model-building
 tool for biologists. The tool helps scientists carry
                                                            Six companies have been accepted into the new
 out risk assessments and manage invasive species        regime. Three are existing partners — Avnet, Express
 in agricultural and natural systems.                    Data, and ITX — and three are newcomers — Igatech,
      The companies had gained entry to the awards       Lan Systems, and Meier Business Systems.
 by winning their respective categories at the
 AIIA's 2005 iAwards. www.iawards.com.au
                                                         GPS developer scores extra funding
                                                         SigNav, an Australian developer of global positioning
Reckon buys local super product                          system solutions, has raised $A2.5 million in series C
                                                         funding from Neo Technology Ventures and Nanyang
Australian company Reckon has bought a super-
                                                         Ventures.
annuation administration package — Desktop Super
                                                             The Funds will be used to capitalise on SigNav's
— from Sydney software developer Desktop
                                                         existing sales opportunities, to expand operational
Partnership: Dipolar (www.desktopsuper.com). The
                                                         functions, and to increase the company's international
software will complement Reckon's APS suite of
                                                         presence and partnerships, explained John Riedl,
products, claimed Brian Armstrong, managing
                                                         CEO of SigNav. "SigNav is experiencing strong
director of APS.
                                                         customer demand for its GPS solutions. The funding
   Reckon has also entered an agreement to market.       will help ensure the company has sufficient operating
the Quicken Superlink product to its QuickBooks          capital to turn these opportunities into reality."
customers. www.quicken.com.au                            www.signav.com.au



         LOOKING FOR A VENTURE CAPITAL PARTNER
             TO HELP GROW YOUR BUSINESS?
  Are you a growing company that has                     Ask Macquarie's Technology Investment
  ambitions to be a market leader?                       Banking Team about Venture Capital

       david.standen@macquarie.com            www.macquarie.com                FORWARD   thinking
  @    dan.phillips@macquarie.com
The Rust Report, February 24, 2006                                                                       Page 5



DEAL MAKERS
Continued from page 4                                                   COMMS BITS
CSIRO spins off search engine
The CSIRO ICT Centre has spun off its P@Noptic
                                                             ADI and BAE win navy upgrade
enterprise search technology into a company named         ADI and BAE have been awarded contracts for
Funnelback Pty Ltd. "It is our view that, with the        communications      upgrades    programs    for   the
technology in a company structure with good               Australian Navy's major surface ships.
governance and management we will create maximum             ADI (www.adi-limited.com) has been selected to
impact for our research," said Dr Geoff Garrett, chief    modernise on-board communication systems under
executive of CSIRO.                                       the third phase of a $A45 million project approved by
   CEO of Funnelback will be Stuart Beil, formerly        the Federal Government in May 2004. BAE will
senior manager of commercialisation at CSIRO. Dr          provide further broadband satellite terminals for five
David Hawking will be chief scientist.                    ANZAC-class frigates and a guided missile frigate. A
   The Funnelback product already has a useful user       spokesman said the contracts will allow deployed
base in Australia and abroad. At home its users           ships to establish computer-based WANs at sea via
include the Australian Government Information             broadband satellite links.
Management Office, Westpac, the ASX, the ABC,
ninemsn, and the University of Sydney. Overseas           Cisco tests new AARnet links
users include the National Research Council of
                                                          The Sydney-to-Brisbane leg of AARnet's new national
Canada, University of Staffordshire, and the Scottish
                                                          fibre network has undergone successful testing. The
Care Commission. http://funnelback.com/
                                                          network is being created by Cisco using advanced
                                                          optical products to expand capacity and performance
Ansearch resells Google solutions                         of AARnet's network. In addition, AARnet will also
ASX-listed search engine developer Ansearch has           connect the South Australian Partnership for
entered a distribution agreement that allows its online   Advanced Computing to its peer supercomputing
advertising subsidiary Soush to resell Google's           centres on the east coast. www.aarnet.edu.au
advertising solutions in Australia and New Zealand.
   "Following this agreement Soush can immediately        3Com builds wireless schools net
provide near 100 per cent advertising coverage for
Web site publishers, while maximising premium             3Com and its Queensland partner Communications
rates," explained Dean Jones, CEO of Ansearch.            Design & Management have designed a wireless
www.ansearch.com.au                                       network for use by government schools in
                                                          Queensland. The state has 1300 primary and
Allied calls halt to ARA takeover                         secondary schools spread over vast distances. "In
                                                          situations where fibre-optic is not the most suitable
Allied Technologies has terminated its takeover           option we have utilised wireless solutions which are
discussions with ARA Group by mutual agreement.           designed in conjunction with 3Com and CDM, with
                                                          3Com then creating a unique wireless device to
                                                          address our needs," explained Bill Clarke, director for
                                                          information   management        services   with    the
                                                          Queensland Department of Education and The Arts.
                                                          www.cdm.com.au

                                                                     — Comms briefs —
                                                             The Manning Shoes retail chain has implemented a
                                                          NetGear    voice-over-IP   network     to   improve
                                                          communications and reduce call costs between its five
                                                          stores on the mid-north coast of NSW. A long-term
                                                          NetGear user, Manning was first introduced to the
                                                          brand by Coastal Computer Solutions.
                                                              ISPhone Australasia, a privately-owned Australian
                                                          company that is closely affiliated with US company
                                                          ISPhone, has launched itself into the Australian
                                                          wholesale VoIP market. The company began setting up
                                                          its Australian VoIP network in the middle of 2005 and
                                                          has already signed seven customers, one of which is
                                                          Australian Satellite Services. www.isphone.com.au
                                                             Kiwi ISP Orcon Internet has installed equipment
                                                          from Juniper Networks to help it meet increasing
                                                          demand for high-speed residential and business-class
                                                          DSL services.
                                                             Reeltime Infotainment (listed on the ASX under the
                                                          old Flowcom code of FLO) plans to protect its IPTV
                                                          video-on-demand service with the Encryptonite
                                                          System from US company SecureMedia. The service is
                                                          due for release in the near future.
The Rust Report, February 24, 2006                                                                          Page 6




                              Rust e-Research Roundup
                                                               In the APAC countries, 28 per cent of consumers
High expectations for Vista security                        played single-player mobile games at least weekly,
US enterprises expect to use new security features in       versus 13 per cent in Europe and eight per cent in
the next release of Microsoft's operating system, Vista,    North America. Further, seven per cent of Asia/Pacific
although many have concerns about Microsoft's               consumers played multi-player mobile games weekly,
security solutions, according to a Current Analysis         versus two per cent in Europe and North America.
market research study. The industry analysts said
that while 90 per cent of survey respondents expected
automatic      patch    updates      and     installation
                                                            Telcos start investing in OSS at last
management functionality to be part of Vista, more          Telecom service providers are finally investing serious
than two-thirds thought that intrusion detection and        money in OSS, especially provisioning and network
protection features would be included.                      inventory, according to Dittberner Associates. On the
    "The breadth of threat protection functions             strength of service providers' new commitment to
enterprises expect to be in Vista was surprising, even      operational readiness, Dittberner forecast the market
going beyond areas that Microsoft has been widely           for provisioning and network inventory software will
touting," remarked Andrew Braunberg, senior analyst,        grow at a modest, but healthy 4.6 per cent CAGR from
information security A.                                     roughly $US2.1 billion in 2005 to $2.6 billion in 2010.
    The research also indicated that Microsoft faces
significant hurdles in increasing its presence in the       Telcos should review outsourcing
enterprise security sector. Sixty-three per cent of         Telecommunications operators should urgently review
respondents agreed with the statement that reports of       their    outsourcing    strategies    or   risk    being
vulnerabilities in Microsoft's operating systems raised     outmanoeuvred by rivals, according to an Analysys
concerns about Microsoft's security solutions.              market research study. "Outsourcing has become an
                                                            important weapon in a telecoms operator's strategic
Rating tech marketing effectiveness                         arsenal," said study author Simon Sherrington.
                                                                "An effective and well-managed outsourcing
Technology vendors and service providers can see how
                                                            scheme can deliver flexibility, reduce time to market
well their marketing operations — and those of their
                                                            for new services, and help to deliver profit growth for
industry partners, peers, and competitors — are
                                                            shareholders," continued Sherrington.
performing with IDC CMO Advisory's Marketing
                                                                Although failed outsourcing contracts received a
Performance Matrix (SM). The IDC marketing
                                                            great deal of media attention, the author pointed out
measurement draws a direct correlation between a
                                                            that there are now numerous examples of operators
company's internal marketing operational efficiency
                                                            that have improved time to market for new services,
(KPI assessment) and its effectiveness in marketplace
                                                            and/or improved organisational flexibility as a result
execution.
                                                            of handing over management of different activities to
   The matrix indicates the relative position of tech
                                                            third parties. There is also evidence that outsourcing
marketers along two dimensions: efficiency of internal
                                                            can help operators to achieve significant cost savings.
operations, and effectiveness or proof of results. IDC
identified several companies within the marketing                          Rust e-Research continued on page 7
leadership quadrant of the debut marketing
performance Matrix, including Adobe, Cisco, EMC,
Intel, Oracle, SAP and Symantec.
                                                                 Kick off your 2006
Asia/Pacific leads in mobile gaming                              marketing campaign
Consumers in Asia/Pacific (APAC) countries lead
European and North American consumers more than
two to one in the adoption of both single-player and
                                                                        NOW!
multiplayer mobile gaming, according to Parks
                                                               Advertise in the Rust Report and start selling
Associates. The analysts found 3D multiplayer gaming
                                                                                  today!
and casual PC-to-mobile gaming would both be good
first steps in driving the mobile gaming market.
    The Parks Associates study concluded that the                     Advertise new products, special
mobile gaming market could also benefit from                          offers, and promotions
innovations such as cross-platform designs that
positioned a mobile phone as an extension platform to                 Promote webinars, events, white
online PC and console games. Other innovations the                    papers, and downloads
report mentioned included the integration of location-
based services (LBS), social networking, and                          Display your URL and boost traffic
multiplayer mobile gaming.                                            to your Web site
    "Leveraging unique characteristics such as always-
on connectivity and always-with-you ubiquity is
extremely important to the success of mobile gaming,"              Space limited: first-come first-served
said Yuanzhe (Michael) Cai, director of broadband and
gaming at Park Associates.                                     Contact Len Rust on 0413 588 728 or e-mail
    "Focusing on brands and franchise licences alone                     rustoz@bigpond.com.au
is not a sustainable model."
The Rust Report, February 24, 2006                                                                           Page 7


RUST e-RESEARCH                                                                  A CEO TOLD ME
Continued from page 6
                                                                        Serge Gansner
                                                                           CEO of E2E Technologies
"This is not an appropriate strategy for every operator
in the telecoms market, but pioneers have proven that         RUST: Could you outline E2E’s proposition
the outsourcing model can be made to work," added             GANSNER: E2E offers 20 years of experience in
Sherrington. "Operators should really consider the            enterprise level systems integration. Based in
competitive     benefits  of   outsourcing    activities      Switzerland but now with offices in Sydney acting
traditionally considered as core."                            as our springboard into the Asia/Pacific region, we
                                                              intend to bring quality and timeliness to complex
                                                              integration and migration projects.
CIOs not guaranteed board seat                                     Our model driven integration platform, the
Only slightly more than a half of all typical CIOs sit on     E2E Bridge, enables businesses to deploy the IT
                                                              services they need quickly, easily, and without
their company's management committee, while world-
                                                              needing the extensive redevelopment work that
class CIOs universally earn this senior leadership            causes failure of so many integration and
position, enabling them to align IT with business goals       migration projects.
and objectives much more effectively, according to                 The problem many businesses face today,
Book of Numbers research from The Hackett Group, a            whether in Australia or Europe, is that such
strategic business advisory firm, and Answerthink             projects rarely meet initial expectations. Half of
company                                                       them fail to deliver the expected levels of business
    Hackett's research also identified several other key      functionality but more than half go over budget
                                                              and take significantly longer to complete than was
factors enabling CIOs to improve strategic alignment.
                                                              initially planned.
World-class CIOs are more than three times as likely               The heart of our solution is our unique ability
to report directly to their company's CEO or chairman         to create the integration runtime directly from a
than typical CIOs. World-class IT organisations also          model     instead   of   program     code,  enabling
hire managers and professional staff with far greater         organisations to automate the integration process.
business knowledge, and a much higher percentage              It is the integration with XMI-based UML
have advanced degrees than at typical companies.              modelling tools that allows us to compose, test,
Finally, world-class CIOs have completely eliminated          and deploy IT services without leaving the model
                                                              domain. Not only does this eliminate the time and
parts of their IT organizations that report locally, and
                                                              cost involved in bespoke programming but it also
drive significantly higher levels of centralised              guarantees     the    quality,   effectiveness   and
reporting.                                                    reusability of the integrated IT services.

                                                              RUST: What are your market development plans
                                                              for Australia?
          The Rust Report                                     GANSNER: We recently established offices in
                                                              Sydney and will be looking to appoint around five
  The Rust Report is a weekly newsletter that is e-mailed     systems integrators to drive market presence
            FREE to registered subscribers.                   among medium to large enterprises. We have
                                                              already established a professional services arm to
                     To SUBSCRIBE to                          our business in Australia and will add staff in line
   The Rust Report click on the green button or send an       with business growth.
       e-mail to rustreportadd@qmtechnologies.com                  Australia   has  a    very   mature   systems
             (No subject or message required)                 integration market with major opportunities in
                                                              storage and server consolidation. Being a 100 per
                       SUBSCRIBE                              cent channel-focused organisation, we will be
                       Subscribe                              tasking our systems integrators with opportunities
                                                              in   several   industry    verticals  from    retail,
                                                              healthcare, and finance, to transport and
                                                              government. All industries have a need right now
   To UNSUBSCRIBE and stop receiving The Rust Report
                                                              for increasing project efficiency by factors rather
  please click on the red button below or send an e-mail to
                                                              than percentage points.
              rustreportrm@qmtechnologies.com
               (No subject or message required)               RUST: Who are your flagship customers?
                                                              GANSNER: In Australia, we are seeing major
                     Unsubscribe                              interest from household name companies many of
                                                              whom have experienced issues with systems
                                                              integration. Our flagship customers are currently
                                                              found in the financial services, logistics, and
             The Rust Report is published by
                                                              telecommunications     sectors, including   UBS,
           Dialog Marketing Services Pty Ltd,
                                                              Oetker/Agrano, and Swisscom.
        PO Box 437, Roseville, NSW 2069, Australia.
                                                              RUST: What will we be seeing from the company
                 Publisher Len Rust                           in the future?
     RustOz@bigpond.com.au or phone 0413 588 728
                                                              GANSNER: Overall, you will see us constantly aim
                  Editor Peter Scott                          to reduce the time and cost spent on projects
     Rust-Ed@bigpond.net.au or phone 0413 544 609             which in turn will reduce the risks inherent in
                                                              systems integration whether companies are
                                                              planning to integrate third-party software with
             The Rust Report is distributed by                enterprise solutions, migrate away from high
                    QM Technologies                           maintenance legacy systems, or consolidate the IT
                 www.qmtechnologies.com                       services landscape after a merger or acquisition.
The Rust Report, February 24, 2006                                                                          Page 8




                                     REVOLVING DOORS
Jason Hart heads ActivCard in US                            Comm Bank imports Kiwi as IT head
Australian Jason Hart has been appointed CEO of US          Expat New Zealander Michael Harte has been
digital identity assurance specialist ActivCard, which      appointed group executive of technology services at
does business as ActivIdentity. Hart became a share-        the Commonwealth Bank of Australia. He is currently
holder in ActivCard after its acquisition of Canberra       executive vice president and CIO of PNC Financial
company Protocom, in which Hart held a 57 per cent          Services in the US, and works with the Centre of
stake, last August (Rust Report, Aug 4 2005, p4).           Information Systems at MIT on open systems and
   At ActivCard Hart has replaced Ben Barnes, who           competitive advantage. In the past he worked for
had overseen the acquisitions of Protocom and               Citigroup.
another Australian company Authentic8.
                                                            Willett flies into Qantas CIO job
Johnson takes helm of travel group                          John Willett has been appointed CIO of Qantas,
Adam Johnson has been appointed managing director           replacing Fiona Balfour who is due to leave the airline
of Travel.com.au after having filled the position in a      in March and will take up a post at Telstra (Rust
acting role since the resignation of Bill Gair a year ago   Report, Feb 10, p8). Willett was previously head of IT
(Rust Report, Feb 18 2005, p8).                             business services.
    Johnson joined Travel.com.au in 2004 as CTO
following the acquisition of Arnold Travel Technology,      HDS announces changes for A/NZ
where he had been managing director. He had
previously been managing director for Australia and         Hitachi Data systems has promoted its Kiwi sales
NZ at Sybase.                                               manager, Brent Wilkinson, to head of its New Zealand
                                                            business.
                                                               In Australia Andrew Heading has been appointed
Changes of the guard at Reckon                              to the new role of channel marketing manager for
ASX-listed company Reckon announced this week               Australia and NZ. He was previously with IT finance
that Greg Wilkinson has been appointed deputy               company HAL Data Services, and has also worked for
chairman with responsibility for strategy, and Clive        Toshiba TEC UK Imaging Systems.
Rabie has been appointed group CEO. Wilkinson was
a founder of Reckon in 1987 and has been CEO since          F5 turns up in NZ marketplace
that time. Rabie joined Reckon as COO in 2001.
                                                            F5 Networks, a US company that specialises in
                                                            application traffic management, has opened an office
AAPT chief no longer required                               in Auckland with Martin Mooney as NZ country
Jon Stretch found out this week that changes to the         manager. He has previously worked for Compuware,
structure of Telecom NZ subsidiary AAPT meant there         Foundry Networks, and InternConnect.
was no longer a chief executive's position and hence
no job for him. Instead Telecom has changed the
structure of its Australian operations to focus on
                                                                     — Around the traps —
mass and managed market segments. Telecom's CEO                Eelco Lijding has been appointed director of
Marko Bogoievski will head the mass market                  technology services at Capgemini Australia. He was
operation, while the telco's chief IT services officer      previously in the company's Netherlands office.
Mark Ratcliffe will run the managed customer business.
                                                                Graeme Stevens has joined Oakton in a senior
                                                            client management role. He had recently undertaken a
TeleTech names VP for Victoria                              number of private consultancy jobs after a 15 year
US business services outsourcing company TeleTech           term with DMR Consulting.
Holdings has appointed Peter Ozard vice president of            Elouise Cordaiy has been appointed general
business development for its Victorian operation. A         manager of marketing at VeCommerce. She was
20-year veteran of high-level sales and project             previously a marketing executive at Suncorp
management roles he has held senior positions with          Metway/GIO Insurance and previously worked at
Roy Morgan Research, Salmat, and Aquent.                    iPlanet E-Commerce Solutions for Sun Microsystems.

Tigwell joins Orion in operations role                         Pacific Internet has promoted Nigel Stitt to the
                                                            position of national sales manager, and Trent Lennox
Jim Griffith has resigned as chief operations officer of    to NSW state manager.
Orion Telecommunications in order to move back to
the US for personal reasons. He had been based in              Primus Telecom has appointed Marion Macleod
Spain for the past seven years.                             head of business improvement. She previously ran her
   Victoria Tigwell has joined the company as director      own consulting business, and has worked for Telstra
of operations. She was a founding director of QAI           Mobiles.
Australia, which is now Southern Cross Telco                   Stephen Munday has been appointed CFO of
Holdings, and was a shareholder in TelEurope, which         Ansearch. He was previously CFO of Senetas and has
is one of Orion's largest shareholders. Most recently       also worked for Pauls (Victoria)
she chaired the Metropolitan Airports Commission in
Minnesota.                                                     David Leighton plans to retire as CFO of Integrated
   Orion expects to name its new manager of                 Research at the end of March. A search is on for a
European operations within a few weeks.                     replacement.

				
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