Gemalto and Eseye launch World’s first IoT ‘device-to-cloud’ solution

Gemalto and Eseye have launched the world’s first IoT ‘device-to-cloud’ solution to simplify the process of onboarding an IoT device into AWS IoT Core securely

To realise the benefits of IoT, organisations need to navigate an enormously complex ecosystem and a fragmented value chain. With many development hurdles to cross, typically it can take an average of two years to launch a new IoT solution, while many projects are paralysed by complexity and even struggle to make it to market.

With the new Intelligent Cloud Connect solution, Eseye and Gemalto are fundamentally disrupting the IoT ecosystem with a collaborative IoT Connectivity Platform, which cuts through the complexity of IoT and enables new product development timelines to be reduced from 2 years to less than six months.

The foundation of this first solution developed in partnership is Gemalto’s ground-breaking Cinterion® PLS62-W Global IoT Module which comes pre-installed with Eseye’s market leading intelligent AnyNet Secure® SIM, also provided by Gemalto. Each AnyNet Secure® SIM comes pre-programmed to leverage Eseye’s unique network switching as a service platform, delivering near 100% global cellular connectivity. As each Intelligent Cloud Connect device is powered-on a dedicated embedded application automatically and securely connects directly to AWS IoT Core, delivering ‘plug and play’ global IoT connectivity.

Anand Gandhi, VP of Worldwide Channels & Alliances at Eseye, said “This partnership will change the way IoT devices are developed and deployed in the future. Intelligent Cloud Connect vastly reduces the complexities of creating an IoT device and then directly connecting it to the cloud, saving customers significant resources and time, whilst giving them a distinct competitive advantage. “

Andreas Haegele, VP IoT at Gemalto, a Thales company, notes “Our customers can now follow a quick and easy process to deliver IoT data securely to the cloud with confidence. It paves the way for massive innovation and marks a watershed moment for the IoT industry, which can now accelerate the deployment of secure IoT solutions at previously unachievable speeds.”

Intelligent Cloud Connect allows customers to develop a single IoT product SKU for any application that connects out-of-the-box on power-up to any mobile network in the world, while offering seamless and secure data provisioning to the AWS IoT Core. This means it is now possible to have an IoT device automatically activated and fully connected to AWS in less than 10 minutes.

The platform handles zero-touch IoT security certification with AWS IoT Core, as well as lifecycle device management, allowing customers to manage global device estates through a single pane of glass. With this solution the complexity of balancing bandwidth, data plans and negotiating multiple Mobile Network Operator (MNO) contracts is completely removed, providing customers with only one single bill for consumed MQTT messages, which can be conveniently purchased via the AWS marketplace.

www.eseye.com

www.gemalto.com

Cloud offers 20% saving on IT spend

Cloud migration is typically driven by business demand, cost-savings and IT efficiency. However, to realise the full benefit of cloud migration, business leaders must understand the real business benefits for moving an application to the cloud.

One Channel CEO Bernard Ford says companies that have already migrated the majority of their business systems to the cloud save on average more than 20 percent in IT spending as a percentage of revenue and the benefits of Cloud will continue to increase.

According to a new report from Gartner, public cloud-services technology revenues are projected to grow by more than 50 percent worldwide in the next three years, to about $355-billion in 2022.

It predicts that the global public cloud services market is set to reach $266.4 billion, representing a growth of 17%, up from $227.8-billion in 2019. Software as a service (SaaS) will remain the largest market segment, which is forecast to grow to $116-billion next year due to the scalability of subscription-based software.

The second-largest market segment is cloud system infrastructure services, or infrastructure as a service (IaaS), which will reach $50-billion in 2020. IaaS is forecast to grow 24% year over year, which is the highest growth rate across all market segments.

Gartner says this growth is attributed to the demands of modern applications and workloads, which require infrastructure that traditional data centres cannot meet.

“Some people have a perception that the Cloud means a single Cloud. However, to really take advantage of the Cloud, you need to understand that there isn’t going to be just one Cloud, but many of them,” he explains.

As the world of Cloud evolves, it’s important to distinguish between siloed Cloud environments versus a multi-cloud approach. When people say they are moving all their business systems to the Cloud, they are essentially referring to the Internet where information will be accessible anytime, anywhere.

“However, with the concept of a multi-cloud world, it goes a step further. Although Cloud services all run on the Internet, they are often siloed. Cloud environments such as Microsoft Office 365, SalesForce and Zenefits provide critical services to businesses, but they don’t easily interact with one another,” he says.

This leaves companies trying to piece together various Cloud environments, and essentially creating a version of the former on-premises world, but in the Cloud. In the former on-premises world, businesses would purchase a range of applications and then be faced with getting them to talk to each other.

Integration was the misery of many an IT department’s existence, as was customisability and adaptability. While the Cloud could make it easier, organisations may still wind up in the same silos as before in the on-premises world.

Ford says one of the exciting things that happened early on in the Cloud computing era was that a set of open standards were defined. “These standards dictate the way pieces work for an individual application, but they also dictate how one application talks to another. This is what is known as cloud interoperability and is critical for businesses to not end up in a siloed Cloud environment.”

Choose the right platform for the future. Businesses that have moved their systems to the Cloud often use a wide range of applications. This is now starting to create real challenges with regards to scale, interoperability, cost-effectiveness, and integration.

For businesses that want to be strategic and mitigate these issues, one of these applications needs to be selected to be at the centre of this multi-cloud world. It would make sense to anchor this in one that’s the most critical for business namely ERP.

“You might call this a tiny bit self-serving, but I would offer up that an ERP system truly is the system of record for a business. If other systems stop or break, the business can generally move on. If the ERP system breaks, you can’t order or ship products or bill your customers. Things stop so thinking about your ERP Cloud strategy as the centre point of this multi-cloud hub is something I would strongly recommend,” he adds.

Ford says companies that embrace the multi-cloud world are set up for success, they are light years ahead of their competitors, because they have chosen to centre their entire business around one main ERP platform that easily integrates into other Cloud environments.

The IT department doesn’t stress when the CIO recommends a new Cloud application that the ERP system must integrate into. The CFO has one less major headache to deal with, as the cost effectiveness of the ERP platform enables the business to put their money where it matters most.

“Finally, their customers are happy because they can count on a business that is always taking orders, shipping on time and making their buying experience the best in the industry, creating customer loyalty like never before,” he concludes.

www.onechannel.cloud

[South Africa] Local partner role is critical to cloud success in Africa

While cloud technology presents a significant opportunity for enterprises to innovate as if they were potentially start-ups, the time and approach some are taking to make this decision could ultimately cost them. This is according to Guy Zibi, principal analyst, Xalam Analytics, who was a keynote speaker at Hype, vendor neutral cloud infrastructure provider, Routed’s recent event series.

In his sessions in Cape Town and Johannesburg, Zibi says that there is no doubt that the African cloud is here: “While customers are going digital at an alarming rate, competition is increasingly amorphous and more agile. There are also thousands of start-ups looking to disrupt. Traditional rivals are becoming more agile and are leveraging new technologies, making the African cloud complex and varied,” says Zibi.

He says that this has led to many enterprises playing a defensive strategy, now looking at how to leverage technology to grow revenue: “This is predominant in consumer-facing businesses and has led to growth of mobile applications and a rise in the use of analytics, artificial intelligence (AI) and machine learning (ML).”

This, he says, is while data volumes grow, budgets get tighter, economies slow down, and unpredictable power supply, cyber-attacks and a heavier regulatory burden all make the landscape more challenging.

How organisations approach the cloud largely hinges on what and where they are, according to Zibi. Is the market cloud-ready? How important is technology in the production chain? What is the quality and cost of connectivity?

“In Africa we are seeing selective cloud usage, which includes a mix of basic and critical workloads onsite and a mix of full-blown migration. The latter includes lift and shift; re-platform; replace/rebuild and rearchitect,” says Zibi. Interestingly, he says that the financial services sector is the most progressive in Africa, having moved to a combination of off premise and public cloud.”

Migration patterns in cloud-ready markets have been amplified by the arrival of hyperscalers, which is evident in the acceleration of the financial services sector. While rebuild/replace is not seen as a viable option, lift and shift together with rearchitecting seem to be dominating cloud migration.

“Rehosting is growing within financial services as well as in retail, however the public sector and industry are slower. It is this reluctance to consider viable alternatives that could impact the outcome and success of cloud migration across several industries,” says Zibi. 

He says that there is room for locally-attuned platforms in Africa: “While it is good to see global market leading cloud platforms in Africa, it is highly likely that several markets and sectors will be highly-dependent on local providers. Managed Service Providers (MSPs) will play an important role in cloud migration but they must evolve.”

Dave Funnell, VMware Senior Manager: Cloud Provider Business, Sub-Saharan Africa says that the growth of applications is driving Cloud adoption, with a different destination depending upon the lifecycle status of the application. This is leading to a hybrid multi-cloud world, with the requirement for cloud services not just from the hyperscalers, but also hosted private clouds. Having recently presented Routed with Africa’s first VMware Cloud Verified accreditation, he says that these Cloud platforms provide customers with a valuable proposition: the easiest and lowest risk pathway for migration to the cloud.

“The reality is that it’s a hybrid cloud future with multiple cloud providers. The majority of applications being migrated to the cloud are ‘lift and shift’, so why expend the time, cost and energy to migrate over months and years to a hyperscaler, often with unpredictable results. Rather perform a rapid and confident migration to a private cloud, whether delivered by a hyperscaler or a localised provider, such as Routed. This is why all six major hyperscalers, including AWS and Azure, have partnered with VMware and explains the growth of localised cloud provider partners, who deliver services tailored to their client’s requirements. As more enterprises adopt a cloud first strategy, I expect the private cloud market to grow in lockstep with the native hyperscale requirement, making the role of companies like Routed and other MSPs, critical,” says Funnell.

www.routed.co.za

www.xalamanalytics.com

Companies worldwide struggle to manage and protect multi-cloud compute infrastructures, survey

A vast majority of enterprises worldwide have adopted multi-cloud strategies to keep pace with the need for digital transformation and IT efficiency, but they face significant challenges in managing the complexities and added requirements of these new application and data delivery infrastructures, according to a global survey conducted by the Business Performance Innovation (BPI) Network, in partnership with A10 Networks.

The new study, entitled “Mapping The Multi-Cloud Enterprise,” finds that improved security, including centralized security and performance management, multi-cloud visibility of threats and attacks, and security automation, is the number one IT challenge facing companies in these new compute environments.

“Multi-cloud is the de facto new standard for today’s software- and data-driven enterprise,” said Dave Murray, head of thought leadership and research for the BPI Network. “However, our study makes clear that IT and business leaders are struggling with how to reassert the same levels of management, security, visibility and control that existed in past IT models. Particularly in security, our respondents are currently assessing and mapping the platforms, solutions and policies they will need to realize the benefits and reduce the risks associated of their multi-cloud environments.” 

“The BPI Network survey underscores a critical desire and requirement for companies to reevaluate their security platforms and architectures in light of multi-cloud proliferation,” said Gunter Reiss, vice president of worldwide marketing at A10 Networks. “The rise of 5G-enabled edge clouds is expected to be another driver for multi-cloud adoption. A10 Networks believes enterprises must begin to deploy robust Polynimbus security and application delivery models that advance centralized visibility and management and deliver greater security automation across clouds, networks, applications and data.”

The study finds that some 40 percent of companies have or will reassess their current relationships with security and load balancer suppliers in light of multi-cloud, with most others still undecided about whether a change in vendors is needed.

www.bpinetwork.org

[Kenya] KETRACTO digitizes procurement processes with SAP Ariba Cloud

In a bid to improve its operations and in compliance with presidential directive and government requirements, Kenya Electricity Transmission Company Limited, KETRACO, has digitized its procurement processes via an e-procurement platform powered by SAP Ariba Cloud. 

This second phase of an end-to-end automation of tendering, supplier management and contracts process will see tenders and quotations submitted and processed online for efficiency, accountability and transparency. This process is 100% Paperless.

Open and secret tenders, Request for Proposals (RFP) and Request for Quotations (RFQ) will be advertised through the government portals, KETRACO websites and in newspapers. All interested Bidders/ Suppliers will be required to submit their documentation online. The tenders will then be received, evaluated and awarded online.

In the first phase of the implementation that went live in April this year, the company automated ‘procure to pay’ operations by on boarding suppliers to the SAP Ariba network to start transacting electronically. Purchase Requests, Local Purchase Orders, invoices and payment of goods/ services were processed online in the ‘procure to pay’ operation.

Speaking during the go live event, KETRACO’s Managing Director FCPA Fernandes Barasa noted that over 260 suppliers have registered on the Ariba network and continue to transact with KETRACO in a paperless environment for Purchase order and invoice submission and processing and are ready to move the entire tendering process.

‘’Supplier registration and qualification has now been made available online. The youth and the special groups will be submitting their registration applications online and will be on boarded immediately. ‘’ He noted.

This automation has been made possible by SAP Ariba, a leading global provider of collaborative business commerce solutions which allows suppliers to easily extend their back-end systems and processes to benefit from electronic transactions.

Pedro Guerreiro, Managing Director for SAP Central Africa adds, “Two years ago Kenya’s leading electricity transmission company implemented SAP’s Enterprise Resource Planning (ERP) System and shortly after, won Gold at the SAP Quality Awards. Today, we are thrilled to yet again be a part of Ketraco’s continued digital transformation journey with the adoption of our Ariba e-procurement software solutions.  By streamlining business operations and connecting to Ariba’s +4.2 million companies, Ketraco has established a solid foundation for tomorrow’s Intelligent Enterprise, pointing to a bright and innovative future for the organisation, its staff and customers.”

www.ketraco.co.ke

www.sap.com

[South Africa] Euphoria Telecom launches cloud based telephone management system to boost business efficiency

Euphoria Telecom has launched the latest version of its market leading cloud-based business Telephone Management System (TMS).

The new TMS version 3 is packed with easy-to-use features and is capable of significantly improving business efficiency whilst delivering powerful reporting and workforce management capabilities.

Designed specifically for the South African market and using international best practice development methodologies, the Euphoria TMS is at the cutting edge of new technology.

Euphoria Telecom CEO John Woollam says the system empowers businesses to control, manage, automate, personalise and analyse every aspect of a company’s phone system from one central point. “You simply log-in to the TMS, from anywhere, make any change you require and it’s done. It’s as simple as that. “

“The new TMS is the result of nine years of building, learning and developing – and the end product is incredible. All the basics that our customers love are still available, but they are now even easier to use. And there is a host of additional features that are accessible through an upgraded web interface which is faster and better than ever before,” he explains.

Version 3 functionality offers multiple features such as per-extension based budgeting, mobile device applications (for both Android and IOS) that ensure full landline mobility and remote office deployment. Customers can also access browser phone applications, POPIA compliant call recording, global contact manager and extremely rich reporting tools.

Furthermore, overseeing team members is simplified with the new ‘User Manager’ feature that provides business owners with the freedom to give team leaders and managers access to specific sections of the TMS. By setting permissions for certain users, managers can easily control access to sensitive team data.

He says the real differences are the security layers. “Our TMS user interface allows full PBX control of every aspect, enabling management to restrict and secure their business phone system data and user functionality as required.”

“Reporting is a dream with Euphoria’s proactive scheduled reporting feature. One can now schedule reports to be delivered directly into your inbox hourly, daily, weekly or monthly. Version 3 also offers our customers the opportunity to design their own personalised reports,” he adds.

Woollam says customer satisfaction is the name of the game. “The customer experience can easily be managed with our SLA answer time adherence feature that provides you with a better understanding of your customer wait-to-answer times and overall experience.”

Management features include detailed drilldown functionality as well as great workforce management control in being able to create company specific pause and unpause codes, providing greater control of user productivity.

With stricter governance and data protection laws, it is important for every business to understand how long they need to keep customer data. Euphoria has made this extremely easy because business owners can now choose how long they want to keep their data, when it must be deleted and who exactly has access to that data.

Euphoria ensures that all data is safe and securely backed up, it is stored in top data centres across South Africa and Europe.

“We know that collaboration with other platforms through our integration technology is a critical component of our latest version. We have worked extremely hard to develop advanced Webhook features that make it possible for customers to integrate with other platforms that allow for API integration,” he explains.

Euphoria Telecom has always strived to give the power back to its customers. With over 4000 happy customers migrating to the new version, the company aims to improve the user experience while simultaneously enabling businesses to improve their general operational efficiency.

“We offer so much more than a just a phone system, we provide a game changing business tool that can take companies of all sizes to the next level,” he concludes.

www.euphoria.co.za

[Column] Flora Kangethe: Customer service to backend – How cloud-based AI enables modernisation of business

Artificial Intelligence (AI) is proving to be a key technology in delivering improved customer experience and exceeding customer expectations. It is also a highly effective way for countries to achieve their economic growth and sustainability objectives.

In Kenya, emerging digital technologies are considered a significant part of national development plans, and have enjoyed significant support from the country’s leaders. This has led to the introduction of a host of development initiatives that leverage the potential of the latest cloud technologies that are powered by machine learning.

Possibly the most notable early adopter of AI in Kenya is the Kenyan government itself, which is also one of the top performers in Africa as per the Government Artificial Intelligence Readiness Index 2019. According to the report, it’s estimated that AI will add US$15 trillion to the global economy by 2030. However, the report findings also reveal that governments in the Global North are still better positioned to reap the benefits of AI than their southern counterparts. This poses a risk to countries in the Global South as they may not be fully prepared to succeed in the Fourth Industrial Revolution.

As noted in the Readiness Index 2019 report, “AI has the power to transform the way governments around the world deliver public services. In turn, this could greatly improve citizens’ experiences of government. Governments are already implementing AI in their operations and service delivery, to improve efficiency, save time and money, and deliver better quality public services.”

As one example of their efforts to improve the local socio-economic direction of the country, the Kenyan government has committed to using AI to help assess citizens’ eligibility for affordable housing. The AI technology will assist in allocating 500,000 new affordable homes by checking applicants’ credit histories and smartphone wallet transaction history sourced through the Credit Reference Bureau (CRB).

The government is also making use of AI technology to verify and authenticate voters during election campaigns. Biometric technology was used by the Kenya Integrated Elections Management System (KIEMS) to ensure that votes were cast only after fingerprint and photo authentication.

Oracle is the first organisation to take AI even further by embedding this technology in its cloud applications. By leveraging AI organisations can unlock significant value not only for their customers but for themselves in the form of greater operational efficiencies and cost savings.

AI in customer service

A best practise AI use case is in customer service. When used in this area of the business, chatbots can reduce the cost to serve customers, while improving the response time, consistency and quality of customer interactions. Similar benefits arise when the chatbot is customer-facing or when used by agents themselves to augment their knowledge.

Oracle recently announced the extended and evolved availability of its AI-trained Oracle Digital Assistant. Now users can use voice commands to communicate with their Oracle enterprise applications to drive desired actions and outcomes. The technology enriches the user experience with conversational AI, simplifying interactions and improving productivity.

This feature has already been of exceptional importance to the international organisation, Industries for the Blind and Visually Impaired (IBVI), who employ blind people for a wide range of jobs – from assembly to various customer service and office roles. Switching to Oracle Cloud Applications, the organisation aims to improve product quality and accuracy around factors such as shipment status and inventory.

Since implementing the new Oracle Cloud Applications with Oracle Digital Assistant, IBVI has been able to create new independent roles (no sighted assistance required, where one sighted person for every four blind employees was required previously) in customer service, human resources, and financial management.

It’s not just about chatbots: Automation across both sales and marketing processes can improve quote-to-cash turnaround times and reduce administrative workloads while allowing for a level of personalised messaging to customers that were previously unachievable. As these examples attest, AI-embedded cloud systems have the power to deliver value whether as the mechanism for customer interaction (as in the case of chatbots) or in support of those responsible for it.

AI in HR

For Kenya – the highest-ranked African nation on the Government Artificial Intelligence Readiness Index 2019 – to stay ahead of the AI curb, the focus needs to be shifted to the adoption of cloud-based business systems that embed the technology in the application itself, unlocking automation capabilities by default.

HR is one such example, where the use of AI to understand and automate processes, can lead to significant efficiency gains. It can be used to identify staff who may be thinking about leaving or to recommend learning paths, thereby reducing employee attrition.

In the world of procurement, the use of AI within Enterprise Resource Planning (ERP) systems can identify deviations from compliance requirements in contracting, enforce approval processes, and automate requisition through invoice matching and payment. The automation of these processes allows organisations to reliably produce outcomes while enabling their employees to focus on tasks that deliver more strategic value to the organisation.

Much has been made of the abilities of AI to bring significant value to the customer – and rightly so. AI can produce repeatable, scalable, and reliable outcomes for customers, improving their overall experience. However, AI can also deliver enormous efficiency through various lines of business and across roles, creating a more streamlined organisation that is more able to focus on creating client value.

Flora Kangetheis the Applications Sales Director, Oracle Kenya

OmniClouds implements Nokia’s solution to improve cloud connectivity for businesses in EMEA

Nokia has announced that its Nuage Networks SD-WAN 2.0 solution has been implemented by OmniClouds, leading cloud service provider and migrator, to improve and optimize cloud connectivity for enterprise customers throughout the Europe, Middle East and Africa region.

The deal will be a boost for enterprises in the region, as they are currently held back by a shortage of native cloud service providers and a challenging reach to public cloud data centers.

Nokia’s Nuage Networks will build and operate its SD-WAN 2.0 network, enabling OmniClouds to connect enterprise customers over a large coverage area – touching all key public cloud data centers with dedicated infrastructure in a flexible and cost-efficient way. With this deal, OmniClouds is focused on easing its customers’ migration to hybrid or full public cloud, with support ranging from consulting to connectivity services.

Paired with Nuage Networks’ SD-WAN 2.0 solution, OmniClouds customers will have a secure and scalable way to connect with data centers, private clouds, software-as-a-solution (SaaS) and infrastructure-as-a-solution (IaaS) providers. This is a huge shift for the region, as in many areas enterprise customers are currently unable to connect to their cloud environments, data centers and remote locations in this way.

OmniClouds will not only provide full cloud connectivity, but will also use Nuage Networks’ SD-WAN 2.0 as an overlay to existing connectivity technologies, such as IP-MPLS, microwave, satellite or public internet, to automate operations and enhance connectivity over large geographic regions. This will give its enterprise customers a central management view of the entire network, enabling them to easily control security, user permissions and parameters, such as latency and quality of service.

OmniClouds will use Nuage Networks’ SD-WAN 2.0 gateways at each of the region’s main cloud service providers, which connect with SD-WAN CPE gateways at the enterprises’ data centers, headquarters and branch operations. This dramatically reduces customer operating costs, smooths their adoption of cloud services and enables widespread connectivity across distant locations.

Amr A Eid, Chief Executive Officer and Board Member, OmniClouds, said: “We are the trusted partner of enterprise customers in the Middle East and Africa region when they need help in migrating to the cloud. The Nuage Networks SD-WAN 2.0 solution plays a critical part in smoothing their move to the cloud by simplifying the operational side and providing the security and assurance they need for such a critical part of their business.”

Roque Lozano, Vice President of IP & Optics for Middle East and Africa, Nokia, said: “OmniClouds is using Nokia Nuage Networks SD-WAN 2.0 solution as a powerful platform for offering cloud services to MEA regional businesses. It not only manages cloud connectivity, but also automates and simplifies many operations, eliminating any boundaries imposed by the underlying connectivity technology. It will play a key part in OmniClouds’ mission to further the adoption of cloud and to support the digital transformation of MEA businesses and organizations.”

www.nokia.com

www.omniclouds.com

Organizations worldwide failing to adequately protect sensitive data in the cloud, Thales study

A new global study from Thales, with research from the Ponemon Institute, has exposed an increasing disparity between the rapid growth of data stored in the cloud and an organization’s approach to cloud security.

 Although nearly half (48%) of corporate data is stored in the cloud, only a third (32%) of organizations admit they employ a security-first approach to data storage in the cloud.

Surveying over 3,000 IT and IT security practitioners in Australia, Brazil, France, Germany, India Japan, the United Kingdom and the United States, the research found that only one in three (31%) organizations believe that protecting data in the cloud is their own responsibility.

Increased multi-cloud cloud use, but with risks

With the proliferation of cloud-based services, businesses and other organizations are increasingly dependent on cloud providers.

 In fact, nearly half (48%) of organizations have a multi-cloud strategy, with Amazon Web Services (AWS), Microsoft Azure and IBM being the top three. The study found that, on average, organizations use three different cloud service providers and over a quarter (28%) are using four or more.

Despite storing sensitive data in the cloud, nearly half (46%) surveyed revealed that storing consumer data in the cloud makes them more of a security risk. Over half (56%) also noted that it posed a compliance risk.

 In addition, organizations believe that cloud service providers bear the most responsibility for sensitive data in the cloud (35%), ahead of shared responsibility (33%) and themselves (31%). Even though businesses are pushing the responsibility to cloud providers, only 23% say security is a factor in selecting them.

“With businesses increasingly looking to use multiple cloud platforms and providers, it’s vital they understand what data is being stored and where,” said Larry Ponemon, chairman and founder of the Ponemon Institute. “Not knowing this information makes it essentially impossible to protect the most sensitive data –ultimately leaving these organizations at risk. We’d encourage all companies to take responsibility for understanding where their data sits to ensure it’s safe and secure.”

Encryption increasing, but organizations handing over keys to cloud providers

Roughly half (51%) of businesses and other organizations still do not use encryption or tokenization to protect sensitive data in the cloud. The study uncovered regional disparities in terms of data security, with German organizations being the most advanced in their use of encryption at 66%.

Organizations are handing over the keys to their encrypted data to cloud providers. Nearly half of cloud companies (44%) provide the encryption keys when data is encrypted in the cloud, ahead of in-house teams (36%) and third parties (19%).

On top of this, 53% are controlling these encryption keys themselves, despite 78% saying it’s important their organization retains control of the keys.

Over half of businesses (54%) think cloud storage makes it more difficult to protect sensitive data, up from 49% last year. More than 70% believe that data in a cloud environment is harder to protect due to the complexity of managing privacy and data protection regulations, while an additional two-thirds (67%) cited the difficulty of applying conventional security methods in the cloud.

“This study shows that businesses today are taking advantage of the opportunities that new cloud options offer, but aren’t adequately addressing data security,” said Tina Stewart, vice president of market strategy for cloud protection and licensing activity at Thales. “Having pushed the responsibility towards cloud providers, it is surprising to see that security is not a primary factor during the selection process. It doesn’t matter what model or provider you choose, the security of your business’ data in the cloud has to be your responsibility. Your organization’s reputation is on the line when a data breach occurs, so it is critical to ensure in-house teams keep a close eye on your security posture and always retain control of encryption keys.”

www.thalesgroup.com

Cloud IT infrastructure revenues decline amid a slowdown in overall spending, IDC

According to the International Data Corporation (IDC) Worldwide Quarterly Cloud IT Infrastructure Tracker, vendor revenue from sales of IT infrastructure products (server, enterprise storage, and Ethernet switch) for cloud environments, including public and private cloud, declined 10.2% year over year in the second quarter of 2019 (2Q19), reaching $14.1 billion.

 IDC also lowered its forecast for total spending on cloud IT infrastructure in 2019 to $63.6 billion, down 4.9% from last quarter’s forecast and changing from expected growth to a year-over-year decline of 2.1%.

Vendor revenue from hardware infrastructure sales to public cloud environments in 2Q19 was down 0.9% compared to the previous quarter (1Q19) and down 15.1% year over year to $9.4 billion. This segment of the market continues to be highly impacted by demand from a handful of hyperscale service providers, whose spending on IT infrastructure tends to have visible up and down swings.

After a strong performance in 2018, IDC expects the public cloud IT infrastructure segment to cool down in 2019 with spend dropping to $42.0 billion, a 6.7% decrease from 2018. Although it will continue to account for most of the spending on cloud IT environments, its share will decrease from 69.4% in 2018 to 66.1% in 2019. In contrast, spending on private cloud IT infrastructure has showed more stable growth since IDC started tracking sales of IT infrastructure products in various deployment environments.

 In the second quarter of 2019, vendor revenues from private cloud environments increased 1.5% year over year reaching $4.6 billion. IDC expects spending in this segment to grow 8.4% year over year in 2019.

Overall, the IT infrastructure industry is at crossing point in terms of product sales to cloud vs. traditional IT environments. In 3Q18, vendor revenues from cloud IT environments climbed over the 50% mark for the first time but fell below this important tipping point since then.

 In 2Q19, cloud IT environments accounted for 48.4% of vendor revenues. For the full year 2019, spending on cloud IT infrastructure will remain just below the 50% mark at 49.0%. Longer-term, however, IDC expects that spending on cloud IT infrastructure will grow steadily and will sustainably exceed the level of spending on traditional IT infrastructure in 2020 and beyond.

Spending on the three technology segments in cloud IT environments is forecast to deliver growth for Ethernet switches while compute platforms and storage platforms are expected to decline in 2019.

Ethernet switches are expected to grow at 13.1%, while spending on storage platforms will decline at 6.8% and compute platforms will decline by 2.4%. Compute will remain the largest category of spending on cloud IT infrastructure at $33.8 billion.

Sales of IT infrastructure products into traditional (non-cloud) IT environments declined 6.6% from a year ago in Q219. For the full year 2019, worldwide spending on traditional non-cloud IT infrastructure is expected to decline by 5.8%, as the technology refresh cycle driving market growth in 2018 is winding down this year. By 2023, IDC expects that traditional non-cloud IT infrastructure will only represent 41.8% of total worldwide IT infrastructure spending (down from 52.0% in 2018). This share loss and the growing share of cloud environments in overall spending on IT infrastructure is common across all regions.

Most regions grew their cloud IT Infrastructure revenues in 2Q19. Middle East & Africa was fastest growing at 29.3% year over year, followed by Canada at 15.6% year-over-year growth. Other growing regions in 2Q19 included Central & Eastern Europe (6.5%), Japan (5.9%), and Western Europe (3.1%). Cloud IT Infrastructure revenues were down slightly year over year in Asia/Pacific (excluding Japan) (APeJ) by 7.7%, Latin America by 14.2%, China by 6.9%, and the USA by 16.3%.

www.idc.com