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Adacel to provide Fiji with air traffic system

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Adacel to provide Fiji with air traffic system

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



                   THE RUST BUCKET
                                                            Adacel to provide Fiji
           Policy pickle                                    with air traffic system
  THE RANGE of ICT-related concerns facing policy
  makers in Australia has increased dramatically in         Australian technology company Adacel has been
  recent years: communications, infrastructure,             awarded a $A3 million contract to provide its Aurora
  procurement for government automation and                 air traffic management system to Fiji. Adacel has been
  e-government programs, intellectual property,             appointed     a subcontractor      to   Era    Systems
  government-sponsored programs, investment, and            Corporation, which is implementing a comprehensive
  of course the potential for export revenue.
                                                            air traffic management system for the Nadi flight
      Every ICT-exporting country has evolved a
  unique industry, shaped by its own resources and          information region, explained Fred Sheldon, CEO of
  situation and by the particular opportunities             Adacel.
  available at the time.                                       "Our Aurora ATM system software is already being
      The ICT industry is critical to Australia's future    used in adjacent flight information regions by FAA
  both as a major industrial sector in its own right        and Airways New Zealand. With this project we will
  and as a driver of productivity and improved              provide Airports Fiji with equivalent oceanic air traffic
  service quality. Yet, most policymakers do not            management capabilities as well as en route approach
  adequately appreciate this fundamental reality.
                                                            and tower control in the same system."
  Many believe, incorrectly, that the IT economy is
  all smoke and mirrors. The integration of IT into           Adacel has also been enjoying a successful run in
  virtually all aspects of the economy and society is       Europe, where it was recently awarded a number of
  creating a digitally-enabled economy that is now
                                                            contracts for the supply of air traffic management
  responsible for generating the lion's share of
  economic growth and prosperity. It is also the            simulators. The contracts covered a number of
  basis for a highly successful industry that is critical   countries, including Austria, the Czech Republic,
  to Australia's international competitiveness.             Hungary, and Italy. Total value of the systems was
      Australia needs to act now to ensure that it          more than $A15 million. "We consider Europe to be a
  provides the right environment for this sector to         key area in our global strategy," Sheldon said.
  flourish and to play its full role in driving the         www.adacel.com
  country's economic and social goals.
      The Australian ICT sector is a broad-ranging
  industry cluster that encompasses extremely                             INSIDE THE RUST REPORT
  diverse     groups    of   product     and     service
                                                             Insider Edition                                   Page 2
  organisations, which range from the very small
                                                                    This week's orders and installations
  through to the multinationals.
      Meanwhile, with the greying of the Baby                Aussies worth watching                        Page 3
  Boomers, pressures on the health system are                       Companies making waves at home and abroad
  mounting. The steps that Australian governments            Deal Makers                                       Page 4
  should take to address this fiscal challenge in                  Mergers, acquisitions, & funny business
  health have been hotly debated. Many experts               A VIP told me                                    Page 5
  have pointed to strategic investments in ICT as an                Infor's Rick Parker contemplates the market
  important part of the solution to the healthcare           Rust e-Research                                   Page 6
  challenges. There is a growing body of research                   What the analysts said and did this week
  evidence that demonstrates that the increased use          By Association                                    Page 7
  of ICT in health care settings can result in                     Put technology first, the AIIA demands
  significant improvements in health outcomes.
                                                             Revolving doors                                   Page 8
                               — Continued on page 2                Who's in work and whose jobs they took
The Rust Report, March 13, 2009                                                                            Page 2




                                    INSIDER EDITION

eServGlobal builds business in Egypt                       Praemium drives UK service
eServGlobal, an Australian company that develops           Praemium, an Australian company that supplies
billing and payment systems for telcos, has extended       online financial portfolio administration technology,
its reach in Egypt following the decision of mobile        has joined forces with BNP Paribas Securities Services
service operator Mobinil to build a missed call alert      in the UK to launch a discretionary and platform
service on eServGlobal's platform.                         service for advisers and wealth managers. The service
   "Mobinil required a solution to notify subscribers of   is built on Praemium's separately managed account
an attempted call when they are out of coverage or         platform technology.
when the mobile is switched off," explained Laurent           Arthur Naoumidis, group managing director of
Lafarge, CEO of eServGlobal. "We implemented an            Praemium, explained that the joint service has already
innovative intelligent network solution, closely           signed up its first customer in the form of chartered
coupled with eServGlobal's Mailis voicemail system.        accountants' firm Price Bailey. "Price Bailey is
This solution reduces costs by optimal utilisation of      currently moving the assets it manages from its
network resources and increases revenue by                 previous        provider,"      Naoumidis         said.
generating return calls," he added.                        www.praemium.com.au
   eServGlobal has been providing products and
services to Mobinil for more than 10 years.                TransLogix drives Kiwi warehouse
www.eservglobal.com                                        Australasian developer TransLogix has implemented a
                                                           third-party logistics system for the Maxwell Group of
Objective to serve NSW agencies                            logistics companies in New Zealand. The system is
Australian developer Objective Corporation has been        built on the Advanta application suite, explained
selected to provide its enterprise content management      Anselm Waterfield, managing director of TransLogix.
system to ServiceFirst, the shared services provider          Waterfield added that Maxwell, which is based in
for NSW Government agencies. The recently formed           the South Island city of Christchurch, offers logistics
ServiceFirst was formerly known as Corporate Shared        services to major players in the fast-moving consumer
Services.                                                  goods sector and operates the largest warehousing
   Tony Walls, CEO of Objective, explained that the        and distribution facility in the South Island.
company's system will be rolled out to more than           TransLogix will continue to work with Maxwell over
1200 users in a number of agencies regionally across       the next year to build a business intelligence
NSW. The first stage of the implementation modelled        capability. www.translogix.com.au
more than 40 business processes across all agencies.
A committee containing representatives of each             HBF signs up for THELMA
agency then decided on 10 business processes that          HBF Health Funds has signed up to use ICSGlobal's
Objective will help streamline and manage. They            health transaction network — THELMA — for its
include correspondence and records management;             medical claims service. www.thelma.com.au
contact management; and the processing of finance,
HR, and IT transactions. www.objective.com


 RUST BUCKET
 Continued from page 1

 Vigorous information technology R&D is also
 essential these days. Research programs are
 needed to maintain the flow of new ideas in IT and
 to train the next generation of entrepreneurs.
 Australia needs significant new research on
 computing and communications, especially in the
 complex    systems     that  now     underpin    our
 transportation, defence, mining, business, finance,
 and healthcare infrastructures. If the results are
 to be available when needed, we must act now
 otherwise the flow of ideas may slow to a trickle.
     Research,    education,  the    IT    workforce,
 innovation,    and   economic     growth    are   all
 intertwined. To remain competitive we must
 ensure that we remain vigorous and healthy; this
 will require sustained investments, close co-
 operation, and informed policies. To help policy-
 makers and others access Australia's high tech
 competitiveness it is essential we work together
 on the following areas: education, the workforce,
 knowledge     creation   and    new    ideas,   R&D
 investments, the high tech economy, specific
 high-tech sectors, and exports.
                — Len Rust RustOz@bigpond.com.au
The Rust Report, March 13, 2009                                                                          Page 3



INSIDER EDITION
Continued from page 2                                      Aussies worth watching
                                                           A roundup of companies making waves
SAP and CSC win super business                                     at home and abroad
Two multinationals, SAP and CSC, have been selected           SCALABLE      DATA    SYSTEMS     focuses    on
to provide an ERP solution to Superpartners, an            Microsoft's Dynamics AX and manages a variety of
Australian     administrator    for   industry    super-   implementations, from rapid fast track projects to
annuation funds. Superpartners' legacy system will be      complex integration and development projects.
replaced with SAP's software, with CSC providing the       Internationally, Scalable operates through the
required systems integration services. The new system      AXPact    World   Alliance,  an    invitation-only
                                                           organisation that pools together expertise from
is scheduled to go live by July 2009.                      around the world. www.scalableds.com.au
   Superpartners has also gone to tender for IT infra-
structure managed services and expects to announce            QUINTESSENCE LABS supplies OEM quantum
the winning tender in the near future, explained Greg      communications     technology   to   networking,
Camm, CEO of Superpartners.                                communications, and defence organisations. The
   "Superpartners has doubled in size over the past        company    specialises  in   second   generation
five years and we now service more than six million        quantum cryptography technology to protect
member accounts and 700,000 employers," Camm               information in transit with end-to-end, real-time
                                                           pad encryption. www.quintessencelabs.com
noted. "Moving to a new ERP system is absolutely
essential for us to mitigate the costs of ongoing growth       MTD ATA supplies GPS tracking and fleet
and provide the sophisticated reporting and analysis       management solutions to a customer base that
required by our client industry funds."                    spans every industry segment. MTData's advanced
                                                           GPS tracking solution includes live tracking,
                                                           historical replays, customer way-points, route
Unisys takes over defence support                          monitoring, and speed reporting via simple Web
Unisys has transitioned IT support services for nine of    client or server software. www.mtdata.com.au
the 12 Defence Department regions covered by a
                                                              THINKSECURE is a specialist IT security
contract it was awarded last month. The five-year deal     consultancy    that   designs   scalable   hosting
is valued at $A240 million and involves provision of a     environments enabling users to provide new client
range of IT support services, including network            applications and environments while maintaining
security and infrastructure support, plus server and       the highest levels of security. ThinkSecure
desktop services. Unisys will also standardise IT          provides a range of services covering architecture
support processes nationally.                              and design, implementation and configuration,
   Tony Henshaw, Asia/Pacific vice president of global     and technology procurement, as well as main-
                                                           tenance and support. www.thinksecure.com.au
outsourcing and infrastructure services for Unisys,
said the project was taxing. "It has been a very large        STAYZ is an advertising Web site that allows
and complex change management challenge," he               property owners to list and promote holiday
acknowledged. www.unisys.com.au                            accommodation and receive and manage inquiries
                                                           about their properties. In the last 12 months more
                                                           than 430,000 nights have been booked through
Cisco helps Feds cut costs                                 Stayz. On average the site receives 550,000
Cisco and Telstra are implementing a Cisco Tele-           monthly unique visitors and has increased its
Presence system across more than 20 of the Federal         inventory by more than 25,000 holiday rental
                                                           property     listings    in     the    last   year.
Government's offices. The video network, carried over      www.stayz.com.au
Telstra's Next IP network, will span all Australian
states and territories and is expected to help reduce          TTG TRANSPORTATION TECHNOLOGY provides
the cost of travel, improve productivity, and reduce       technology products and associated services to the
carbon emissions.                                          rail industry in Australia and internationally.
   The system will be used for inter-jurisdictional        TTGTT focuses on solutions that support railway
meetings, including the Council of Australian              planning, operations, and asset management using
Governments and Ministerial Council meetings,              its own products as well as those from partners.
                                                           The company operates throughout Australia and
explained David Thodey, Telstra enterprise and             through a network of associates and agents inter-
government        group       managing       director.     nationally. www.ttgtransportationtechnology.com
www.telstraenterprise.com
The Rust Report, March 13, 2009                                                                             Page 4




                                        DEALMAKE RS

Telstra forces the broadband pace                          IBA raising to decrease debt
Telstra has moved to shake up the Federal Govern-          Australian healthcare systems developer IBA Health
ment's national broadband plan by forcing the pace         has launched a $A124 million equity raising to reduce
on high-speed access. The telco announced this             debt. The raising has the support of IBA's largest
week that it will upgrade its hybrid fibre coaxial         shareholder, AEP Financial Services Holdings, which
network in Melbourne to 100M-bits/sec before the           has committed to take up its pro-rata entitlement
end of this year. Sol Trujillo, Telstra's CEO, hinted      equivalent to about $A32 million.
that further upgrades in the future could lift the speed     "The equity raising places IBA in a strong capital
of the service to 200M-bits/sec.                           position to continue to benefit from investment in
   Trujillo also noted that Melbourne and the new          health IT by governments worldwide and the
technology being used to upgrade the network               computerisation of healthcare records," said Gary
comprise stage one of Telstra's deployment of "next        Cohen, executive chairman of IBA. "The outlook for
generation super-fast broadband technologies into its      the company is robust." www.ibahealth.com
cable network".
   Several analysts responded quickly to Telstra's         Feds attempt to promote research
announcement with claims that it had effectively
scuttled the National Broadband Network. Upgrades          The Federal Government has launched a $A10 million
to Telstra's cable network have the potential to make      program that aims to bridge the gap between public
access speeds of 100M-bits/sec available to some 2.5       sector research and business. In announcing the
homes. The NBN was planned to offer Australia-wide         program Senator Kim Carr, Minister for Innovation,
access to rates of just 12M-bits/sec. Telstra has          Industry, Science, and         Research, said     that
kicked the ball deep into the government's territory.      Researchers in Business will place researchers in
www.telstra.com                                            small and medium-sized businesses for between two
                                                           and 12 months. "The scheme will provide $A50,000
                                                           per business to employ researchers from universities
IPscape picked up by SEMA                                  or public research agencies," Carr explained.
Contact     centre    solutions    developer   IPscape        The new program is a component of the
(www.ipscape.com.au) has entered an agreement              government's      Enterprise     Connect      network.
allowing Australian communications group SEMA              www.enterpriseconnect.gov.au
(www.semagroup.com.au) to offer SaaS contact centre
services based on IPscape's technology. The alliance       Bank paints a more gloomy picture
will add inbound, outbound, and blended hosted
contact centre services to existing business solutions,    The global financial crisis keeps lurching from one
claimed Lee Bourke, SEMA's director of business            piece of bad news to another. This week the doom and
transformation services.                                   gloom was spread by a Goldman Sachs analyst who
   "We know the value IPscape can bring to a call          issued a revised estimate for the drop in worldwide IT
centre from our own positive experience with the           spending. The fall in spending will blow out from her
solution, the people, and the results," Bourke added.      previous forecast of four per cent to nine per cent, but
"It is a perfect fit for our business objective to         the drops will be worse in developed countries.
simultaneously deliver increased revenue and cost             The revised forecast was made as a result of a
reduction for our clients."                                survey of CIOs, who are now focusing on cost-cutting.

Paul Matthews spreads reach                                My Net Fone expands appeal
Industry veteran Paul Matthews has spread the              IP services provider My Net Fone has expanded its
breadth of products and services offered by his            range of products with an SIP trunking service that
company            Defining        the          Moment     can be used to set up communications between the
(www.definingthemoment.com.au)        by    forming   a    MyNetFone product and a PBX. The service will help
partnership with Melbourne-based i9 (www.i9.net.au).       businesses cut communications costs by eliminating
The alliance will allow each partner to increase market    the need to purchase ISDN and PSTN gateways and by
coverage and offer broader skills and services to their    unifying voice and data on to a single broadband
customer bases, Matthews claimed.                          Internet connection. www.mynetfone.com.au




                           Expose yourself!
                                To advertise here contact Len
                                               0413 588 728
                                       RustOz@bigpond.com.au
The Rust Report, March 13, 2009                                                                                  Page 5



DEAL MAKERS                                                                      A VIP TOLD ME
Continued from page 4
                                                                       Rick Parker
                                                            Senior vice president, marketing, Infor
ERG fades away from industry view
                                                            RUST: What     are    the   main     drivers   of   Infor's
ERG — the Australian ticketing specialist that was          business?
able to hold its own in world markets before stumbling
over a government contract in NSW — is no more. The         PARKER: Infor has four primary drivers that have
                                                            not changed since the company started in 2002:
company has changed its name to Vitelli and trades
on the ASX under the code VID as it ponders its                 Culture: This might sound trite, but one of our
future. It is little more than a year since the NSW         most important business drivers is our customer-
                                                            first culture. Other large vendors in our space are
Government cancelled a contract with ERG, triggering
                                                            known to be bureaucratic or even arrogant. Our
claim and counter-claim, law suit and counter-suit          human touch shows. With over 94 per cent of our
(Rust Report, Jan 25 2008, p1).                             customers renewing maintenance, our customers
   In the meantime a restructuring has seen ERG's           have become the most loyal in the industry.
business operations and some assets sold to investor           Mid-market focus: Our primary market is mid-
Duncan Saville to cancel debt. ERG retains Integrated       sized businesses. We have more than 60,000
Transit Systems, which is battling the NSW                  midsized customers in over 45 countries.
Government in court.                                            Product Strategy: Our customers want to use
                                                            their current Infor products for many years, while
Feds feed funds to regions . . .                            still enhancing and extending them. Infor's
                                                            service-oriented architecture (SOA) approach to
The Federal Government has earmarked $A60 million           developing software allows our customers to
for communications in regional parts of Australia as        replace component functions and add new
its initial response to Dr Bill Glasson's Regional Tele-    capabilities without ripping out and replacing
communications Review. In all, the government               their current solution.
expects to spend about $400 million in its response to         Acquisitions: Infor has a unique ability to
the review, claimed Stephen Conroy, Minister for            target, acquire and integrate business software.
Broadband, Communications, and the Digital                  This allows us to meet the requirements of our
Economy.                                                    customers and enter new markets.
   Conroy added that the funds will be used for
                                                            RUST: What impact has the financial crisis had
education, health and emergency services projects; to       on your business?
provide greater access to satellite phones; and to
                                                            PARKER: As tough as it is, we have seen less of
expand computer and Internet access at remote
                                                            an impact in Australia. But still, in Australia and
indigenous communities. The government's response           everywhere around the world, buyers check and re-
is spelt out at www.dbcde.gov.au/regionaltel                check purchase justifications. The biggest impact
                                                            is on first time customers and million dollar plus
. . . Criticised over investment tax                        purchases. Infor is fortunate to have a large
                                                            customer base generating a big volume of smaller
The Federal Government came in for some criticism           purchases.
this week over its omission of software and related             Customers are definitely looking for projects
services from the Draft Investment Allowance Tax            that have a fast return on investment. One
Break Initiative. "As an initiative designed to spur        example is application managed services, where we
productivity and lessen the impact of the economic          completely manage a customer's applications
downturn on Australian businesses, the omission of          remotely at a considerably lower cost.
software from the tax break incentives is a serious         RUST: How     do     you    build   your   footprint    in
oversight," said Ian Birks, CEO of the AIIA.                markets?
   "The exclusion of software and related services will     PARKER: First and foremost, we target markets
decrease the attractiveness of investment in computer       where we believe that we can be a significant
systems and effectively nullify many of the potential       player. Infor started in manufacturing and
productivity benefits the tax break is seeking to drive."   distribution and in our first couple of years all of
   The AIIA has called on the government to consider        our acquisitions were in these markets. Our
adopting a simple tax incentive model for computer          customers are our most important guides on what
systems, such as a 150 per cent tax deduction on the        we should acquire. For example, our customers
                                                            were asking for a solution to help them manage
total   system      investment,     Birks    concluded.     their assets. We researched the market and
www.aiia.com.au                                             acquired enterprise asset management vendor
                                                            Datastream. We also look at adjacent markets. The
Ingram Micro picks up EMC                                   Datastream acquisition moved us into the public
                                                            sector market, so we made some additional
EMC has appointed Ingram Micro a distributor of its         acquisitions allowing us to meet all the solutions
products in Australia (www.ingrammicro.com.au).             needs of cities, councils, and utilities.
"With the integration of Iomega into its business, EMC
                                                            RUST: What      are    your     key     challenges     for
is now able to provide solutions for a far broader
                                                            2009/10?
audience, from consumer to enterprise," noted David
Henderson, EMC's A/NZ general manager for the               PARKER: Easy to answer this one: The economy,
                                                            the economy, and the economy. Our primary
channel and partners. "Currently there is great
                                                            strategy is to take advantage of the downturn to
potential for channel partners and we believe EMC's         make investments public companies cannot make.
wide range of products creates an attractive                We plan to come out of the downturn even
proposition for resellers across Australia," Henderson      stronger and with more market share.
added. http://australia.emc.com
The Rust Report, March 13, 2009                                                                            Page 6




                                  RUST e- RESEA RCH

Some plan IT budget increases                                When asked about their opinion of the current state
                                                          of cloud computing, 17 per cent of the respondents
Despite the fact that enterprises globally are planning   stated that although cloud computing was very
on keeping their IT budgets flat and there will be no     promising, there are currently not enough services
growth in 2009, enterprises in some countries are         available to make it compelling.
much more confident about their future outlook with          Chris Morris, director of IDC's Asia/Pacific Services
planned IT budget increases outstripping IT budget        Research, said that the future uptake of cloud
decreases, according to Datamonitor.                      computing appears to be strong. "Over the next three
   "It is clear there has been a noticeable decline in    years, as the use of cloud services expands from the
enterprise confidence. However, the findings are not      domain of early adopters to that of the early majority,
as negative as might have been expected", said Daniel     it becomes critical for IT vendors to develop strong
Okubo, technology analyst with Datamonitor. "Despite      cloud offerings and play a leadership role in aligning
the rise in the proportion of IT budgets which are        their new cloud products and services with their
remaining flat, there is still a sizable proportion of    organisation, their traditional offerings, partner
enterprises that are planning to increase IT              ecosystem, and customer and market requirements.
expenditure. Technology vendors should be keenly          IT vendors that fail to seriously contend for a
aware that the economic conditions of a country           leadership role will be left with a minority share of the
directly impact enterprise IT budgets."                   lucrative pie."
   Despite the bleak outlook for some countries,             For IT vendors to be successful in the cloud market,
enterprises in Benelux, Nordics, and Australia appear     they will have to address users' cost concerns. The
to be much more confident about their future outlook      survey also revealed that more than 50 per cent of the
with planned IT budget increases outstripping IT          respondents indicated cost cutting as the key driver
budget decreases. These economies are expected to be      behind the adoption of cloud computing.
less affected by the economic downturn, with the             However, it is also important to note that supplying
exception of Iceland, according to Datamonitor's          low-cost services alone will not guarantee success, as
findings.                                                 users also indicated that any cloud solution they buy
   Even in the industries that have been the worst        must offer competitive pricing, offer service level
affected by the downturn, such as manufacturing and       agreements (SLAs), and provide complete solutions.
retail banking, there are opportunities for vendors          "Some IT vendors are well positioned to do this but
that understand enterprise requirements in a              others who are focused on a single solution will need
downturn.                                                 to build strong partner ecosystems to bring broad
   In the manufacturing sector, software vendors are      solutions to their customers. The time to do that is
going to see demand fall in some areas, such as           now, as our survey respondents have indicated that in
supply chain analytics, product lifecycle management,     three years time, their use of cloud-based services will
and marketing, which are not viewed as core or            be very different as compared to what we see today",
essential processes. However, other areas like sales      added Morris.
CRM, financials, procurement, and manufacturing
execution will continue to see healthy levels of          Server shipments plummet
investment and technology vendors should focus on
these core areas.                                         Worldwide server shipments in the fourth quarter of
   Similarly in retail banking, investments will be       2008 declined 11.7 per cent from the fourth quarter of
made that: are essential from a regulatory standpoint;    2007, while server revenue decreased 15.1 per cent,
make a demonstrable improvement to a retail bank's        according to Gartner.
bottom line; and protect the institution from exposure       The weakening economic environment had a deep
to risk, be it lending fraud or operational failure.      impact on server market revenues in the fourth
Investment into online channels will remain on the        quarter as companies put a hold on spending across
agenda, though banks have invested heavily in this        most market segments, explained Heeral Kota, a
area over the past few years.                             senior research analyst at Gartner. "Almost all
                                                          segments exhibited similar behaviour as users sought
Cloud computing more than hype                            to reduce costs and spending, deferring projects where
                                                          possible."
Worldwide IT spending on cloud services will grow            Blade servers were one of the few segments to
almost threefold, reaching $US42 billion, by 2012,        achieve any growth at all in this challenging
according to IDC. As the cloud computing model offers     environment. Unix servers on the other hand fell for
a much cheaper way for businesses to acquire and          the fourth quarter at 10.5 per cent in shipments and
use IT, IDC expects its adoption to be amplified by the   13.7 per cent in revenue for the year.
cost-cutting mantra of most organisations today.             From a geographic perspective, all regions apart
   In a recent survey conducted with 696 IT executives    from Japan saw a fall in revenue. While Japan had a
and CIOs across Asia/Pacific excluding Japan (APEJ)       4.7 per cent revenue increase, Europe, Middle East,
to gather their views, understanding, current usage       and Africa (EMEA) suffered the worst decline with
and planned usage of cloud computing, it was found        revenues falling by 20.6 per cent. Even the emerging
that 11 per cent of the respondents were already          regions of Latin America and Asia/Pacific suffered
using cloud-based solutions. A further 41 per cent of     with declines of 12.5 per cent and 14.8 per cent,
the respondents indicated that they were either           respectively.
evaluating cloud solutions for use in their businesses,
or already piloting cloud solutions.                                        Rust eRESEARCH continued on page 7
The Rust Report, March 13, 2009                                                                              Page 7



RUST eRESEARCH                                                                 BY ASSOCIATION
Continued from page 6

North American server revenue declined 14.6 per cent.
                                                             Technology first, please
In addition to weak demand, strong exchange rate            By Ian Birks*
fluctuations also had a sizable impact on server            THE WORLD-WIDE economic downturn provides an
                                                            unwelcome but telling lens through which to view
market performance, particularly in the Eurozone
                                                            the value of the technology industry. Efficiency has
   The top five vendors based on worldwide server           become (another) top priority as families, businesses,
revenue all experienced a decline in revenue in the         governments, and nations set out to meet the
fourth quarter of 2008. IBM continued to lead the           challenges at hand.
worldwide server market based on revenue and ended              The mantra as the challenges of the 21st century
the year with just over $US4 billion in server revenue,     are addressed must be Technology First. This is
with its worldwide market share totalling 33.4 per          equally true whether working as an individual or a
cent in the fourth quarter of 2008. While IBM retained      nation, and for developing approaches to economic,
                                                            social or environmental problems alike.
the No. 1 spot, it sustained a 17.4 per cent revenue
                                                                In this context, it is disappointing to see that we
decline, with most parts of the business declining. The     are missing important opportunities as a country.
only area of IBM's business to grow year-on-year was        The recent economic stimulus packages have been
system Z, which continued to benefit from the efforts       announced without reference to the importance of
IBM has made to reinvigorate this platform.                 technology-driven solutions, and this must change.
   "The outlook for 2009 is a very challenging one,             Education is a good example. The Teaching and
with the pattern of the fourth quarter more indicative      Learning Capital Fund targets capital expenditure
for the level of demand in 2009 than that seen in 2008      for the development of teaching and learning spaces
                                                            in Australia's universities to ensure they are
as a whole," Kota said.
                                                            physically and technologically appropriate for 21st
                                                            century approaches to tertiary education.
Increased regulation takes its toll                             Traditional responses to this will see funds
                                                            allocated to building new physical spaces as well as
Seventy two per cent of respondents to Deloitte's 2009      fitting them out with the appropriate workplace
In-house Counsel Survey expect to see an increase in        equipment and technology; in other words the actual
regulator activity in the next 12 months, and yet the       technology will only get a portion of the funds and
vast majority are not confident that they could identify    the impact it can create will be in proportion to this
and produce all relevant electronic documents in            investment.
                                                                Putting Technology First would see the creation
response to a legal or regulatory document production       of virtual spaces leveraging emerging cloud-based
request.                                                    computing and would see almost 100 per cent of the
   Of the 209 in-house lawyers from the Australian          available funds allocated to technology with a
private and public sector that responded to the             considerably more significant impact for the same
survey, almost two-thirds (62 per cent) of survey           level of total investment.
respondents indicated that they were not confident              The Digital Education Revolution is a great
that they could identify and produce all relevant           initiative that is founded on recognition of the
electronic documents in response to a legal or              importance of technology skills in education.
                                                            Supplying laptops to students, though, is only a
regulatory request.                                         small part of the picture. We also need to actively
   "Given the current economic conditions, this result      plan and fund the infrastructure to connect students
does highlight the need of corporations to look at ways     to schools, connect schools with each other and the
that they should prepare for and manage the process",       community, and the skills of teachers to ensure that
said Nicholas Adamo, lead partner of Deloitte's             the best possible outcomes — and best return on
Forensic Data practice.                                     investment — are realised.
                                                                Putting technology first is not only the right way
                                                            to develop appropriate solutions to current problems
                                                            and secure best value for investment dollars. It is

    The Rust Report
                                                            also the path to economic stimulus and revival
                                                            through increased productivity in the current
                                                            financial climate.
  The Rust Report is a weekly newsletter that is e-mailed       In a comparable economic context, recent studies
            FREE to registered subscribers.                 from the US demonstrated that an investment of
                                                            $US30 billion in American IT infrastructure —
                                                            including widespread rollout of smart energy grids
                   To SUBSCRIBE to                          and electronic healthcare — will directly lead to the
         The Rust Report please visit our Web site          creation of more than 900,000 jobs, over half of
                 www.rustreport.com.au                      which will be in small business.
                                                                Investment in smart infrastructure and digital
    To UNSUBSCRIBE please activate the "Manage your         technology solutions will not only stimulate growth
    subscription" link at the bottom of the weekly e-mail   in the short term, it will return exponential benefits
                             alert                          for years to come in the form of new jobs, higher
                                                            employment, better business efficiency, and more
                                                            competitive industry.
            The Rust Report is published by
                                                                Leveraging the full benefits possible through a
          Dialog Marketing Services Pty Ltd,
                                                            Technology First approach requires a strong ICT
       PO Box 437, Roseville, NSW 2069, Australia.
                                                            industry with the depth of skills and resources to
                 Publisher Len Rust                         work with business and the community to ensure
     RustOz@bigpond.com.au or phone 0413 588 728            successful adoption.

                  Editor Peter Scott                             * Ian Birks is CEO of the Australian Information
     Rust-Ed@bigpond.net.au or phone 0413 544 609                          Industry Association www.aiia.com.au
The Rust Report, March 13, 2009                                                                           Page 8




                                   REVOLVING DOORS
Murray Sargant rides again                                 Rebecca Norton joins Bravura
Industry veteran Murray Sargant has been appointed         Australian wealth management applications developer
Asia/Pacific vice president of sales for US performance    Bravura has appointed Rebecca Norton CFO, taking
management systems developer SuccessFactors.               over from Jonathan Kenny. Norton was most recently
Before joining SuccessFactors Sargant was senior vice      CFO and COO of the Business Objects Asia/Pacific
president of sales at SAP. He had previously been with     division of SAP. She had also held the position of vice
PeopleSoft until its acquisition by Oracle in 2005, and    president of finance for Asia/Pacific and Japan at
has also worked with Misys, Tandem Computers,              Business Objects. Previously she worked for Lexmark
Compaq, and NCR.                                           Asia/Pacific as the finance director.
                                                              Trevor Perry has joined the board of Bravura as a
DiData goes Long on sales                                  non-executive director. Perry had a distinguished
Dimension Data has appointed Christopher Long              career with Prudential, where he was most recently
national sales director. Long began his IT career in       managing director for Australasia.
Australia in 1985 with Accenture before moving to
Epicor (formerly Platinum Software), where he became       Around the region
managing director for Australia and NZ. He then               Emerson Network Power has appointed Ling Chee
joined InterWorld, and in 1999 founded US services         Hoe general manager of the market and management
firm Q Strategies. Long returned to Australia in 2001      organisation for its telecom business. He is based in
and worked for SAS Institute, PeopleSoft, and more         Malaysia. Ling has previously worked for Maxis,
recently Lawson as director of professional services for   Accenture, Nortel, Cap Gemini, and most recently
Australia and NZ.                                          Siemens Malaysia as senior vice president.
                                                              Wilson Chu has been appointed vice president of
Batchelor heads sales at SAS                               channel sales for Asia/Pacific at Infor. He will be
Andrew Batchelor has been appointed to the new             based in Hong Kong. Chu has previously worked for
position of sales director within the Australian           Kenexa Asia, Airzip Asia/Pacific, and Compaq.
operation of business analytics specialist SAS.
Batchelor was previously with MessageLabs as the           Minh Phan heads HTC channel sales
director of EMEA strategic accounts and UK
                                                           Minh Phan has joined HTC Corp as channels sales
enterprise business. He has also worked for Oracle in
                                                           manager for Australia and New Zealand. He was
Australia and NZ, and for PeopleSoft and Computer
                                                           previously account manager at LG Electronics, and
Associates in New Zealand.
                                                           has also been key account manager for Optus SingTel
                                                           and NSW sales account manager for Cellnet.
Branton joins BMC
Sandrina Branton has joined BMC as the regional
sales manager for Australia south. She has previously                  Around the Traps
worked for IBM and Spectrum Software, and more
recently for Compuware. At the same time, BMC has             Hugo Chan has been appointed chairman of Raw
promoted Joely Scott-Thomas to regional sales              Capital Partners. He has been a non-executive
manager for Australia north and NZ. Scott-Thomas           director of the company since 2002.
has been with the company since 1999 and was most             Barbara Liskov of the Massachusetts Institute of
recently regional sales manager for service assurance      Technology has been named the winner of the 2008
solutions covering Asia/Pacific and EMEA.                  AM Turing Award, only the second woman so
                                                           honoured by the US Association for Computing
Viocorp expands Aussie business                            Machinery. Liskov, the first woman awarded a PhD by
Video and digital media specialist Viocorp has             a computer science department (1968 at Stanford),
appointed Sam Skontos dedicated head of sales. He          undertook research that revolutionised programming.
was most recently with Sagem Australasia and has           www.acm.org
also worked for Virgin Mobile and Vodafone.                   Our item last week on Alison Sinclair joining EC
   The company has changed the responsibilities of         Integrators incorrectly stated that the company was
Nick Bolton, formerly head of sales and marketing,         staffed exclusively by females. We have been told this
who will now focus solely on marketing, noted Ian          is not the case and apologise for any confusion we
Gardiner, CEO of Viocorp                                   may have caused.

								
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