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August 2014 capioIT Newsletter
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A person walks into a bank in New York and asks for the loan officer.

They say they are going to Hong Kong on business for two weeks and need to borrow $5,000. The bank officer says the bank will need some kind of security for the loan, so they hand over the keys to a new Mercedes.

The car is parked on the street in front of the bank, they have the title and everything checks out. The bank agrees to accept the car as collateral for  the loan.

The bank manager and staff all enjoy a good laugh for using a $250,000 Mercedes as collateral against a $5,000 loan.

An employee of the bank then proceeds to drive the Mercedes into the bank's underground garage and parks it there.

Two weeks later, the person returns, repays the $5,000 and the interest, which comes to $15.41.

The loan officer says, " we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled. While you were away, we checked you out and found that you are a millionaire. What puzzles us is, why would you bother to borrow $5,000?"

The person replies...


"Where else in New York can I pak my car for two weeks for only $15.41 and expect it to be there when I return ..... ?



 

Next Month is capioIT's 4th Birthday. Look out for great prize give away's in our September Newsletter.
Trusted Advisors in Emerging Technology
 
What's News....

Innovation was a theme for capioIT in July. This is not unusual of course. Innovation is the most tagged item for capioIT research and a favourite topic in any month. We have highlighted some unique perspectives and application of innovation identified this month.
 
Our CEO, Phil Hassey was in Tokyo this month. Japan has been a traditional home of innovation in process, product and participation. Unfortunately, the competitive advantage that this innovation at the national level provided stalled in recent years. Competition from Korea, Taiwan and China, and the US has had a substantial impact on established powerhouse companies such as Sony, Panasonic and Mitsubishi.

As is always the case in Tokyo eye opening contrasts are easy to find.  Within a few minutes’ walk of the headquarters of struggling legacy Japanese firms, Panasonic and Fujitsu, is Ginza. Anyone who has visited Ginza knows that it is a globally unique hotspot. I met with a couple of smaller digital and analytics agencies who have the mindset to create innovation to beat the new local and international competition. They have the ability to create immediate innovation.

capioIT believes that innovation based benefits for the Japanese economy will increasingly come from smaller organisations and entrepreneurs who are not tied to the traditional Japanese enterprises and the Keiretsu structural limitations.
 
For a legacy European based vendor, Capgemini has usually carried its weight in terms of innovation. At a recent analyst day Capgemini CTO Lanny Cohen reinforced the Capgemini view on innovation in terms of the CTO role. Simply, the primary role of innovation in an IT services and solutions company is to make money for clients in the short term, then provide a long term vision. Too many firms go for the long vision in innovation that is near impossible to execute.
 
Sadly, it often seems that sport often only enters technology discussions when it comes to doping and gambling issues. Increasing, and positively, sporting organisations globally are seeing the benefits of investment in SMAC, particularly social media and analytics. Analytics is primarily focused on performance management, but also investment is made from a business and fan engagement point of view.
 
In the recently completed Super 15 Rugby Competition (played in the Southern Hemisphere with teams from Australia, New Zealand and South Africa), the NSW Waratahs (yes, my local team, so time to be proud …) won their first ever title, beating long term nemesis the New Zealand based Canterbury Crusaders. Earlier in the season the Waratahs management invested a significant amount of time communicating the benefits of their work with IBM to deeply understand each players individual physiological capabilities. This helped them manage training workloads individually and collectively. The impacts of a reduction in soft tissue injuries were very significant and there is no doubt that the work between IBM, the Waratahs and partners was critical for the overdue success that the team experienced on the field. 
 
We expect that the investment in sport for both wearable technology (clearly fitness is the major driver for the consumer) and analytics will be driven to identify the 1% factors that can influence success or failure in the sporting environment just as it does in the business sphere.  
 
Finally, a note on the readership of capioIT. As we reached the halfway mark of 2014, we undertook some analysis of the audience of the capioIT research. There were several outcomes that were very exciting for us. The most exciting was that since 2012, average monthly readership has increased 300% from an already established base. The level of outreach and engagement that this provides is incredibly satisfying and highlights that we are providing content that has an impact on a rapidly growing audience.
Last year, readers came from 101 countries. Whilst the largest source of readers are the US, India and Australia (Thanks Mum and Dad), it was great to have readers from countries as diverse as Malta, Barbados and Azerbaijan. This reinforces the blend of research and insight that we provide that mixes local market intimacy with global reach.
 
Thanks for taking the time to continue to read the newsletter. We have linked to some of our key content for the month. As always, please let us know if there is any way we can support you and your business requirements, and please provide us with feedback on the newsletter to Phil Hassey.

Capture Snapshots....

Short insights from July
  • Fujitsu announced that that it will spend billions on cloud computing. It is a concern for Fujitsu that it will be too late to the party to transform the cloud agenda
  • VMware announced the vCHS in Japan, and a partnership in China. Highlights the market reality of China. Opportunity is subdued
  • Not surprisingly the Rackspace fanatical support mantra is clearly visible in the VMware vCHS offerings as it looks to differentiate from the AWS, Azure and Soft Layer
  • Whilst we understand and sincerely respect the benefits from an environmental and sustainability perspective, the strategic value for Google of locating a North Asian data centre is limited in comparison with Japan, Singapore etc.
  • On a positive note for Google, the Google Mobile Monday and Tablet Tuesday approach increases productivity and makes mobility truly enterprise wide for the firm.  
  • IT Services providers who could not transition to offshore delivery will really struggle with #cloud. Transformation maybe too much
  • The new economy is not a “sharing economy”. It is a transactional economy. No-one gives up their house, car or other commodity for free which is implied by free. The route to market has just changed
  • Too many legacy vendors are adapting to a world as it was 2-3 years ago, not as it will be in 2-3 years. The inevitable decline is sad
  • I went to a recent launch of Tableau 8.2. Not surprisingly audience demographics were front and centre. The fact that only 23% attendees at the event were from IT functions was very telling. Analytics is increasingly a business play.  
  • Exciting that Capgemini has invested in a technology lab in Melbourne. It has a big focus on working with start ups.
  • Whilst there are some failures, digital enablement in Australia has boomed in past 12 months. This is clearly driven by technology.

Our Latest and Greatest....

Google Enterprise – Not quite sweet enough to turn lemons to lemonade just yet.
Last week Google held its customer event in Sydney, Atmosphere14. capioIT was intrigued to find that front and centre at the entrance was a bowl of lemons. I can only guess that Google was going to make lemonade from lemons, sadly, whilst the day had moments of sweetness, Google could not set up the lemonade stand this time around.
As an online consumer brand Google, only has Facebook and on a good day, Microsoft within range. The translation of this to the enterprise space, whilst successful on many other organisations benchmarks, has not been successful enough on a Google scale. Read More...

As AWS dominates, Rackspace grows, and IBM, Microsoft and Cisco arrive by year end, does Australia need a sixth global IaaS provider


AWS currently is the dominant provider of IaaS in Australia from a revenue, perception and capability perspective. Its connection with the market has been nothing short of extraordinary. In a recent capioIT client meeting, we saw a client looking as if the weight of the world had been lifted from his shoulders. The simple reason, his board had finally approved use of AWS. Not the cloud, not IaaS, but AWS.

He is not alone. Virtually every major private sector organisation in Australia, and an increasing number of public sector authorities and agencies that we meet with are at the minimum considering AWS and IaaS for many and varied workloads. Of course Rackspace has been in Australia for longer than AWS, and has had success, albeit constrained at times  Read More....

IBM and Apple – Enabling the Individual Enterprise
Much has been written about the announcement by IBM and Apple around their announcement of a partnership to increase enterprise mobility outcomes for organisations of varied size, industry and geography. Clearly it is seen as a positive move for both organisations and if executed upon will transform enterprise mobility.

Three points that have been missed by many commentators are critical.

The first is execution. All partnerships only show value when the parties are able to execute for real clients and this is no exception. If the partnership is simply a signed photo-op between Armonk and Cupertino then it is simply a hollow announcement. What will matter is how Apple and IBM execute the relationship on the ground in all  Read More....

How capioIT can Help Your Organisation....

Vendor Consulting
capioIT has an enviable reputation in driving projects that capture and understand specific business challenges and market characteristics to identify, and enable delivery of the most appropriate business strategy.
These services enable a vendor to:
  • Identify and assess the most appropriate geographic location for customer success
  • Validate business decisions through tangible and robust market analysis, forecasts and process driven competitive analysis  
  • Identify your most valuable audience and create content that specifically meets their needs to drive engagement to your business
A key differentiator for capioIT is that we are an analyst firm established and built in the current environment. We have established capioIT without the need to linger with old and outdated approaches to taxonomies, insights and market analysis.

A range of research methodologies and tools developed by capioIT are highlighted below. In order to maximise outcomes typically projects are delivered using an integrated range of methodologies.
Read More....
 
For more information about our services or to discuss your research needs, please contact:

Phil Hassey CEO

+61 (0) 422 231 793
e: info@capioIT.com
t:  PHassey
s. phil.hassey

about.me/phassey

www.capioIT.com
Copyright © 2014 capioIT, All rights reserved.

NOTE: This is general information only and does not constitute advice nor take into account any individual’s or company’s specific requirements, and should not be relied upon as such. Readers are advised to seek specific advice from capioIT. capioIT makes no representation nor gives any warranty as to the accuracy of future forecasts. To the fullest extent permitted by law, any conditions, warranties or liabilities implied by law into these conditions are hereby excluded.

 
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